Pef131 PDF

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University of South Africa
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PEF131V/1/2008±2010
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Contents
FOREWORD V
TOPIC 1: FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 1

STUDY UNIT 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 3
STUDY UNIT 2: STRATEGIC HUMAN RESOURCE PLANNING 13
STUDY UNIT 3: THE PROCESS OF JOB ANALYSIS 25
STUDY UNIT 4: EMPLOYEE RECRUITMENT 39
STUDY UNIT 5: EMPLOYEE SELECTION 51
TOPIC 2: HUMAN RESOURCE DEVELOPMENT AND UTILISATION 87

STUDY UNIT 6: ORGANISATIONAL SOCIALISATION 89
STUDY UNIT 7: EMPLOYEE TRAINING AND DEVELOPMENT 98
STUDY UNIT 8: PERFORMANCE MANAGEMENT PROCESS 110
STUDY UNIT 9: CAREER MANAGEMENT IN ORGANISATIONS 138
STUDY UNIT 10: JOB EVALUATION SYSTEMS 150
TOPIC 3: MANAGING COMPENSATION SYSTEMS AND EMPLOYMENT

RELATIONS 161
STUDY UNIT 11: COMPENSATION SYSTEMS AND EMPLOYEE BENEFITS 163
STUDY UNIT 12: EMPLOYEE ABSENTEEISM 177
STUDY UNIT 13: MANAGING LABOUR TURNOVER 191
STUDY UNIT 14: SOUTH AFRICAN LABOUR LAW 201
TOPIC 4: HUMAN RELATIONS IN MODERN ORGANISATIONS 233

STUDY UNIT 15: UNDERSTANDING THE SELF-CONCEPT 235
STUDY UNIT 16: THE DYNAMICS OF SELF-DISCLOSURE IN INTERPER-
SONAL RELATIONS 246
STUDY UNIT 17: INTERPERSONAL TRUST 259
STUDY UNIT 18: COMMUNICATION FOR INTERPERSONAL RELATIONS 266
(iii)
STUDY UNIT 19: INTERPERSONAL BEHAVIOUR AND EXPRESSION OF FEEL-
INGS 279
STUDY UNIT 20: RESOLVING INTERPERSONAL CONFLICT 287
STUDY UNIT 21: WORKPLACE STRESS MANAGEMENT 296
GLOSSARY OF TERMS 304

REFERENCES 306
(iv)
Foreword
Dear Student
It is a great pleasure to welcome you to this exciting course, The Personnel Function /
Human Resource Management I / Human Relations. This course falls within the field of
human resource management (HRM), which, according to the online Encyclopaedia of
Business (2006), `èntails planning, implementing, and managing recruitment, as well
as selection, training, career, and organizational development initiatives within an
organization''.
The goal of HRM is to maximize the productivity of an organization by
optimizing the effectiveness of its employees while simultaneously improving the
work life of employees and treating employees as valuable resources.
Consequently, HRM encompasses efforts to promote personal development,
employee satisfaction, and compliance with employment-related laws
(Encyclopaedia of Business, 2006).
To achieve equilibrium between employer and employee goals and needs, this course
will introduce you to the general functions or activities that human resource
practitioners are responsible for in various organisations. These functions include
human resource acquisition, human resource development and utilisation, compensa-
tion and maintenance as well as human relations in organisations. The Encyclopaedia of
Business (2006) describes the first four as follows:
Ð Acquisition entails the hiring of workers most likely to help a company attain its
goals.
Ð The development function encompasses the training of workers to perform their
tasks in accordance with company strategy. This activity also involves company
efforts to control and change employee behaviour via reviews, appraisals,
incentives, and discipline.
Ð Compensation covers the payment of employees for their services.
Ð Maintenance requires structuring labor relations Ð the interaction between a
company's management and its unionised employees Ð and ensuring compliance
with government regulations and labour laws.
Finally, the human relations function includes the assessment of human interaction and
promotion of good interpersonal relationships within the organisation.
Purpose of this course

The purpose of this course is to introduce line managers to the human resource
functions and processes in order to enhance their grounding in current HR
practices, people management practices, and labour laws that impact on the
effective discharge of line management duties, etc.
(v)
Icons used in this study guide
The following icons are used throughout this study guide:
The learning outcomes icon indicates what you should be able to achieve
after you have worked through the study guide.
The assessment icon indicates the sections of the study guide where you
must evaluate yourself to determine whether you have mastered the learning
outcomes set for each study unit.
The key concepts icon draws your attention to certain keywords or

concepts that you will come across in the topic or study unit.
The activity icon refers to activities that you must do in order to develop a
deeper understanding of the learning material. The activities will help you to
understand the study guide and assist you to make mind maps or summaries
that you can use in your preparation for the examination.
Learning outcomes and assessment criteria

This course is at NQF Level 5 and is based on the following learning outcomes and
assessment criteria:
Learning outcomes
A learning outcome is a statement indicating the end result for a learner following a
learning activity, usually stated in terms of what a person can observe the learner do
at the end of a learning activity. Therefore, after completing this course, you should
be able to do the following:
Ð Understand and analyse the process of human resource planning in organisa-
tions
Ð Conduct job analysis using different techniques with guidance
Ð Design, implement and evaluate a recruitment programme with guidance
Ð Design, implement and evaluate a selection programme with guidance
Ð Plan, implement and evaluate an employee induction programme with guidance
Ð Facilitate and evaluate the training process
Ð Implement and evaluate the performance management programme with
guidance
Ð Conduct career guidance and counselling of others with guidance
Ð Conduct job evaluation using different techniques with guidance
Ð Implement and evaluate the compensation management programme with
guidance
Ð Manage and analyse the cost of absenteeism and labour turnover with guidance
Ð Understand yourself and others and manage your and others' disclosure in
interpersonal contacts
(vi)
Ð Communicate effectively with others and manage the communication process
taking into account the various steps
Ð Express your feelings and understand the feelings of others in interpersonal
contacts
Ð Understand and solve conflict situations using diverse techniques
Ð Understand and manage stress using various techniques
Assessment criteria
An assessment criterion is a standard used for assessing the achievement of

learning outcomes and defining the complexity of learning. Assessment
criteria specify the standard expected when learning outcomes are assessed.
Therefore, in this course, your ability to do the following will be assessed:
Ð Demonstrate appropriate knowledge of strategic planning and human
resource planning processes when conducting human resource planning.
Ð Apply appropriate techniques to conduct job analysis in a simulated
organisational context.
Ð Implement recruitment and selection programmes appropriately and
effectively in line with the relevant government prescripts and labour laws
Ð Plan and implement a simulated induction programme according to the
organisation's guidelines.
Ð Select appropriate theories and principles of adult learning and use them
in the design and delivery of learning interventions.
Ð Select appropriate methodologies and use them when assessing
employees' performance in accordance with a simulated organisational
performance management framework.
Ð Effectively demonstrate knowledge of career planning, career guidance
and counselling for application in the real organisation.
Ð Select and implement appropriate techniques when conducting job
evaluation.
Ð Demonstrate an understanding of various compensation models and
benefits plans for application in the real organisation.
Ð Demonstrate knowledge of costing absenteeism and labour turnover in a
simulated case problem.
Ð Reflect knowledge of self-disclosure management and manage others'
disclosures in line with ethical guidelines of privacy and confidentiality.
Ð Communicate and demonstrate understanding of the communication
model through completing assignments and projects.
Ð Effectively demonstrate understanding of challenges of interpersonal
relations in a simulated organisational context.
Ð Demonstrate knowledge of conflict resolution and stress management
techniques as part of employee wellness and relationship management in
a simulated case situation.
To master the content of this course and succeed in the examination, you must study
regularly and complete all the activities and self-assessment questions.
Make every effort to answer the self-assessment questions in as detailed a way as
possible. This will help you to assess how well you have mastered the learning
(vii)
outcomes of the study units concerned. The questions for self-assessment are based on
the learning outcomes listed at the beginning of each study unit, and the learning
outcomes are related to possible examination questions. The questions do not
necessarily apply to a specific study unit but may test your ability to integrate the
content of different parts of the study guide.
Take your time in answering the questions, and if you have difficulty, do not give up Ð,
page back and study the relevant sections carefully again. If you still have problems, do
not hesitate to contact us.
Link to other courses

This course is part of the National Diploma in Management. While the other courses
deal with elements of the broader human resource development function, such as
advanced management of training, organisational development and research
methodology, in this course we will focus on general human resource management
activities and principles.
The course forms an integral part of the broader human resource development
programme. It therefore builds on and supports the strategic human resource
development focus areas that have already been covered in other courses, such as
management of training, labour relations, personnel management, organisational
development, organisational behaviour, etc.
Prescribed and recommended books

There is no prescribed book for this course. However, the following books are
recommended to help you achieve the learning outcomes for this course:
Cascio, W.F. 2006. Managing human resources: Productivity, quality of work life, profits. 7th edition. New York:
McGraw-Hill.
Grobler, P.A., WaÈrnich, S., Carrell, M.R., Elbert, N.F. & Hatfield, R.D. 2006. Human resource management in South
Africa. 3rd edition. London: Thomson Learning.
Johnson, D.W. 2006. Reaching out: Interpersonal effectiveness and self-actualisation. 9th edition. New York: Allyn and
Bacon.
Reece, B.L. & Brandt, R. 2005. Effective human relations in organizations. 10th edition. Boston: Houghton Mifflin.
Note that it is very important for you to consult other sources of

knowledge in order to enhance and enrich your learning.
How to use this study guide

The main purpose of this study guide is to help you grasp the key elements of human
resource management so that you will be able to apply them in the workplace
environment. The content of this guide is based on best practices in the field of HRM,
and your challenge is to internalise these best practices and implement them in your
applicable environment. We would like to encourage you to engage actively with the
learning material by completing all the learning activities provided. To help you with the
learning process, we have structured this course into four broad topics.
(viii)
Each of these topics is made up of study units which are structured in the following
way:
Ð An outline of the contents of the study unit
Ð Learning outcomes that you should have achieved after working through the
learning unit
Ð Key concepts
Ð A brief introduction to provide you with background on the particular section
Ð Learning activities that will help you to master the subject matter
Ð Self-assessment questions to help you to achieve the learning outcomes of the
particular study unit
Therefore this study guide should help you to progress steadily through the learning
material of this course. To this end we will expect you to apply certain principles and
practices of HRM to fictitious as well as real life situations. We also encourage you to
relate the content of this course to a practical working environment. Should you not be
employed in a supervisory/managerial position or be responsible for any aspect of
HRM in your organisation, we suggest that you liaise with the HR manager or
practitioner to provide you with advice and relevant supporting documents that may
help you.
If you are unemployed, we suggest that you liaise with an HR practitioner in any
organisation of your choice to enhance your understanding of the application of the HR
processes that are covered in this course. However, your ultimate success in this course
will depend largely on your own ability to achieve the learning outcomes and meet the
assessment criteria. We therefore suggest that you take full responsibility for
empowering yourself in this regard.
Framework of this course

If you look at the table of contents, you will notice that this study guide is divided into
four topics. Each topic has several study units. Each study unit has several learning
outcomes that provide the overall focus for that particular unit.
The following table provides an overview of the different topics and study units covered
in this guide:
Topic 1 Topic 2 Topic 3 Topic 4
Fundamentals of H u m a n re s o u rc e Managing compen- Human relations in
h u m a n r e s o u r c e development and sation systems and modern organisa-
management utilisation employment relations
tions
Study unit 1: Study unit 6: Study unit 11: Study unit 15:
Introduction to human Organisational sociali- Compensation systems Understanding the self-
resource management sation and employee benefits concept
Strategic human re- Employee training and Employee absenteeism The dynamics of self-
source planning development disclosure in interper-
sonal relations
(ix)
Fundamentals of Human resource Managing compen- Human relations in
human resource development and sation systems and modern organisa-
tions
Process of job analysis Performance manage- Managing labour turn- Interpersonal trust
ment process over
Employee recruitment Career management in South African labour Communication pro-
organisations law cess and interpersonal
relations
Study unit 5: Study unit 10: Study unit 19:
Employee selection Job evaluation systems Interpersonal behaviour
and expression of feel-
ings
Study unit 20:
Resolving interpersonal
conflict
Study unit 21:
Workplace stress man-
agement
Composition of the learning material

You will receive the first tutorial letter, numbered 101, containing the contact information
of the lecturers, the guidelines for completing your assignments and preparing for the
examination, compulsory assignments and self-assessment assignments. This tutorial letter
may not be readily despatched to you during the registration process but may be posted
later. Use this tutorial letter in conjunction with this study guide.
After you have submitted the compulsory assignment 02, a second tutorial letter, 201,
will be despatched to you in order to provide feedback on your compulsory
assignments. Study the feedback provided in this tutorial letter in order to assess your
understanding of the assignment questions.
Unisa will communicate further with you about this course when necessary.
The study process

Tutorial Letter 101 and this study guide will direct you on how to approach the
learning process and other resources. It is important for you, as a distance learner, to
know whom to contact for academic and administrative matters, and how to manage
your time effectively.
As indicated before, this study guide will enable you to understand the theory in each
topic and study unit. Remember that only once you understand something can you
apply it. We suggest, therefore, that you always use this guide even when working
through the recommended books.
In your years of study, you have probably worked out what kinds of study technique
work for you. However, we would like to emphasise that the best way to learn is not
(x)
through memorising the learning material but rather through engaging actively with it
and applying its content to the work environment. This study guide has been written in
a practical and user-friendly manner so that you are continuously encouraged to relate
your learning to the work environment. Because this course is based on best standards
in the field of HRM, we recommend that you do the following in order to succeed:
Ð Work actively through the learning material.
Ð Work continuously throughout the year.
Ð Talk to specialists or colleagues working in this field or other learners enrolled for
this course.
Ð Contact the lecturers responsible for this course if you require additional learner
support relating to the outcomes or content of the course.
Ð Complete all the activities and assignments.
Ð Focus on applying what you have learned in the work environment.
Ð Visit all the recommended websites to update your knowledge with the latest
information on a particular topic.
Ð Prepare thoroughly for the examination and start well in advance.
Our expectations of you

In order for you as a learner to benefit from this course, we expect you to do the
following:
Ð Study the prescribed tutorial matter conscientiously according to the guidelines
and sequence provided.
Ð Relate what you are learning to your work situation. If you are unemployed, seek
opportunities to discuss what you are learning with a professional employed in the
HRM field and to relate it to the real working environment.
Ð Plan your studies according to the time available.
Ð Use the study guide according to the learning guidelines provided.
What you can expect from Unisa

As a distance education learner, you will need a great deal of support from UNISA and
your lecturer. However, for this learning process to take place effectively, it is your
responsibility to be at the forefront. You have to be actively engaged and committed to
the process. You can expect us to do the following:
Ð We will provide you with up-to-date and relevant learning material which is
regularly benchmarked against similar local and international programmes.
Ð We will keep the learning materials in line with the needs of industry and
commerce by consulting with professional bodies and with industry leaders and
government.
Ð We will assist you as a learner by giving you the opportunity to develop
competencies and skills at a certain level. The learning outcomes correspond with
the National Qualifications Framework (NQF) Level 5. You will be assessed with
due regard for the level descriptors of the NQF.
Ð We will support you whenever you require assistance. You may contact your
lecturer to discuss something or to make personal appointments. We know it is
quite challenging to study through distance education rather than at a residential
university. You can contact us by phone or via e-mail or the Internet (myUnisa).
(xi)
Ð We will provide you with clear indications of what we expect from you in terms of
your assessment.
Ð We will give you timely feedback on assignments.
Conclusion
In conclusion, we believe that once you have read all of the above, you should be able
to work through this study guide with a clear understanding of what is required of you
and of us. If you work through this study guide properly, you should succeed with your
studies.
Best wishes, and enjoy this very interesting course!
M C Tshilongamulenzhe, Lecturer
The Personnel Function / Human Resource Management I /
Human Relations
(PEF131-V / MHB101-Q / HUM161-Q)
Department of Human Resource Management
(xii)
Topic 1
Fundamentals of human resource
management
tions
Study unit 1:
Introduction to human
resource management
Study unit 2:
Strategic human re-
source planning
Study unit 3:
The process of Job ana-
lysis
Study unit 4:
Employee recruitment
Study unit 5:
Employee selection
Introduction
The human resource management (HRM) function includes a variety of activities, and
key among them is deciding what staffing needs you have and whether to use
independent contractors or hire employees to fill these needs, recruiting and training
the best employees, ensuring they are high performers, dealing with performance
issues, and ensuring your human resource management practices conform with
various regulations and labour laws.
In a nutshell, human resource management involves all those activities and actions
which have to do with getting competent employees (planning, workplace analysis,
recruitment and selection), doing something with them (training, development and
performance management) and looking after them (compensation, good employment
relations and employee assistance programmes).
1
TOPIC AIM
The aim of this topic is to provide you with a comprehensive understanding of the
initial processes of human resource management, such as human resource planning,
job analysis, recruitment and selection.
Learning outcomes for topic 1
After completing this topic you should be able to:

Ð explain the importance of human resource management as a profession
Ð explain the process of strategic human resource planning
Ð conduct the process of job analysis using various techniques with guidance
Ð plan and analyse the recruitment and selection processes with guidance
Topic contents
The topic ``Fundamentals of human resource management'' will include the following
study units:
Study unit 1 Study unit 2 Study unit 3 Study unit 4 Study unit 5
Introduction to Strategic human The process of job Employee recruit- Employee selec-
human resource resource planning analysis ment tion
management
2
Study unit 1
Introduction to human resource management
Contents Page
Learning outcomes 3
Key concepts 3
1.1 The importance of human resource management 4
1.1.1 The human factor 4
1.1.2 Co-ordinated, goal-directed teamwork 4
1.1.3 Productivity 5
1.1.4 Quality of working life (QWL) 6
1.2 Human resource management activities 8
1.3 The relationship between strategic planning and human resources 9
1.4 Evaluation of the human resource management function 10
1.5 Human resource management and the legislative framework in South Africa 11
1.6 Summary 12
Self-assessment 12
Learning outcomes
After studying this unit, you should be able to:

Ð state why human resource management is important
Ð list and describe the responsibilities of human resource management with
regard to line managers
Ð identify the main functions of human resource management and describe the
roles of the human resource manager and line manager in fulfilling these
functions
Ð describe the strategic value of human resource management
Ð identify the most important labour legislation (Acts) influencing human resource
management in South Africa
Ð list and describe the main human resource challenges in South Africa, and
indicate what steps can be taken to address these challenges
Key concepts
You will need to master the following key concepts in order to meet the study unit
learning outcomes:
Human resource management
Productivity
Quality of work life
3
1.1 The importance of human resource management
Human resource management is important in organisations because:
Ð every enterprise is composed of people (the human factor)
Ð these people have to work together as a team to fulfil the organisation's purpose
(i.e. generate its product or service)
Ð they have to be maximally productive
Ð they have to be afforded an acceptable quality of life in the organisation
Let's consider each aspect briefly.
1.1.1 The human factor

Human resource management forms an essential and integral part of every manager's
job. This is because the enterprise is the people. According to Cascio (2006:5±6),
organisations are managed and staffed by people and cannot exist without them. Most
of the challenges and opportunities in managing organisations come from the people-
related problems that arise within them. People are unique and cannot be treated
identically. People have different needs, react differently to the same stimuli and are
unpredictable.
Just take one family, for example, with the same mother and father, where one child
may be outgoing and love sport and outdoor activities, another child may be more
reserved, preferring to read and play computer games, and a third child may love
playing the piano or acting on a stage. Just look around you in a busy shopping centre,
where there will be fat people, tall people, thin people, short people, people in a hurry,
relaxed people, children, elderly people, people in love and people arguing with each
other.
The challenge is even bigger in a country like South Africa, where the cliche Â ``variety is
the spice of life'' could almost be used as an official slogan. With eleven official
languages, many more cultures, various religious beliefs and political affiliations, no one
in business can afford not to pay attention to the impact that these factors can have on
their enterprise. These differences must be taken into consideration so that each
person is given the opportunity to maximise his or her potential and thus be able to
contribute to the organisation's success.
1.1.2 Co-ordinated, goal-directed teamwork

People have a number of different needs and there are many ways of meeting these
needs. Consider some of the organisations that accommodate our needs and wants:
hospitals, movie theatres, sports clubs, schools, colleges, universities, fast food outlets,
grocery stores, to mention only a few.
Cascio (1998:6) points out that each of these organisations exists because consumers
demand its products or services, and because the task to be accomplished is too large
or complicated for one person to accomplish alone Ð in other words it requires co-
ordinated teamwork.
According to Cascio (1998:6), all organisations are similar in that they are:
4
(1) made up of people (2) who perform specialized tasks (3) that are co-
ordinated (4) to enhance the value or utility (5) of some good or service (6)
that is wanted by and provided to a set of customers or clients.
1.1.3 Productivity
Productivity is the measure of the output of goods and services relative to the input of
labour, material and equipment. The higher the productivity of an industry, the better
its competitive position as the unit costs are lower. When productivity increases,
businesses can increase wages and salaries without affecting inflation, thus improving
the standard of living of the people. Improving productivity is not about increasing the
resources, but it is doing better with what you have (Cascio, 2006:22).
Activity 1.1
South Africa has improved from 46th place in 2005 to 44th in 2006 in the World
Competitiveness Yearbook, released by the International Institute for Management
Development (IMD) (www.imd.ch/wcc/).
The country performed well in overall government and business efficiency. However,
the country continues consistently to perform poorly in the Human Development
and Employee Productivity Index, especially in the ``people'' dimensions such as
equal employment opportunity, skilled labour, AIDS, worker motivation, alcohol and
drug abuse, values of the society, and competent senior managers, to name a few.
(a) Why do you think South Africa is known as one of the most unproductive
countries in the world?
.............................................................
.............................................................
.............................................................
.............................................................
(b) How do you think quality and productivity in the workplace can be improved?
.............................................................
.............................................................
.............................................................
.............................................................
(c) What do you think South African organisations should do to improve the
country's position in the world competitiveness rankings?
.............................................................
.............................................................
.............................................................
.............................................................
5
1.1.4 Quality of working life (QWL)
Grobler, WaÈrnich, Carrell, Elbert and Hatfield (2006:24) say that the term ``quality of
working life'' refers to the extent to which employees' personal needs are met through
their work. It includes things like giving workers the opportunity to make decisions
about their jobs, the design of their workplace, and what they need in order to produce
or render a service more effectively.
Improvements in QWL enhance organisational performance and enable companies to
compete in a global environment. QWL tends to increase productivity and decrease
absenteeism and staff turnover. According to Grobler et al. (2006:24), an increasing
number of organisations are providing a good QWL for their employees, for example
through rearranging offices and using de
Â cor that promotes a friendly atmosphere and
encourages employees to approach work more creatively.
Another facet of QWL is having fun at what you are doing. Here are some practical
examples of adding fun to the workplace (adapted from Grobler et al., 2006:25):
Ð Bulletin board. Put up a bulletin board near the coffee station or in the
staffroom where people are encouraged to put up their best jokes, or conduct a
``who is this baby today'' contest, with prizes going to winners. Personal
achievements can also be displayed this way.
Ð Theme days. On specific holidays or days like Valentine's Day, Red Nose Day,
Casual Day, etc. employees can dress according to a theme.
Ð Celebrate achievements. When goals, such as completing a project on time,
are achieved, throw an afternoon party to say thank you to all who helped.
Ð Birthday celebrations. Allow small working groups to take their members to
lunch on their birthdays.
Activity 1.2
Can you think of any other ways to improve the quality of working life by adding fun
to the workplace?
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
As Grobler et al. (2006:25) point out, creating a work environment that minimises the
likelihood of an accident or injury is also a goal of QWL programmes. There are a
number of safety and health issues that can be addressed. Grobler et al. (2006:25)
identify the following three:
Ð Regular healthcare check-ups, such as cholesterol and blood pressure checks,
weight and nutrition education can result in healthier and happier employees and
lower employer-provided healthcare costs.
6
Ð Some work environments can result in cancer, infertility, lung disease and other
illnesses. Occupational diseases are difficult to detect and often remain undetected
until it is too late for a remedy.
Ð Job-stress can lead to ulcers, heart failure, nervous conditions and other
physiological or psychological impairments. Stress and coping mechanisms are
discussed in study unit 21 of this study guide.
Additional concerns for the management of organisations are drug and alcohol abuse
and HIV and AIDS:
Ð According to Pieters (1996:419), research has shown that `àn alarming
percentage of workers are alcoholics and that an alcoholic worker has more
work-related problems than the non-alcoholic worker.'' Rehabilitation pro-
grammes for alcoholic employees should be available. This is an expensive option
for any organisation, but research has shown that rehabilitation programmes do
work and that the majority of alcoholic employees recover fully as a result of
rehabilitation efforts (Pieters, 1996:420).
Ð HIV is one of the health issues that have the most serious impact on society and
the organisation. The high costs of HIV and AIDS are embodied in aspects such as
the loss of human resources, reduced productivity and effectiveness, growing fears
among employees, high labour turnover and absenteeism (Pieters, 1996:422).
Employee assistance programmes (EAP) can be used to educate employees about
HIV and AIDS.
Activity 1.3
(a) Refer to study unit 21 in this study guide and write down things that you think
organisations can do to help employees cope with stress.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) If you were a manager who suspected that an employee was suffering from
alcoholism, what would you do? Do not guess. Consult your company's policy
on employee assistance or a reliable source from the library.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(c) If your company has an employee assistance policy, what does it entail?
.............................................................
.............................................................
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7
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(c) Refer to the Employment Equity Act 55 of 1998 in study unit 14. Write down
how HIV should be managed in the workplace in terms of this Act.
.............................................................
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1.2 Human resource management activities

Cascio (2006:6) states that when it comes to managing people, all managers must be
concerned to some degree with the activities of staffing, retention and development of
staff, adjustment and managing change. Cascio outlines these as follows:
Ð Staffing consists of the following three activities: (i) identifying work require-
ments within an organisation, (ii) determining the number of people and the skills
required to do the work, and (iii) recruiting, selecting and promoting qualified
candidates.
Ð Retention includes (i) rewarding employees for performing their jobs effectively,
(ii) ensuring harmonious working relations between employees and managers,
and (iii) maintaining a safe, healthy work environment.
Ð Development aims at preserving and enhancing the competence of employees
in their jobs through improving their knowledge, skills, abilities and other
characteristics. Human resources specialists use the term ``competencies'' to refer
to these items.
Ð Adjustment refers to activities that intend to maintain compliance with the
organisation's HR policies (e.g. disciplinary action) and business strategies (e.g.
cost leadership).
Ð Managing change is an ongoing process which aims at enhancing the ability of
an organisation to anticipate and respond to developments in its external and
internal environment, and enabling employees at all levels to cope with the
changes.
The above activities are not the responsibility of the human resource department only;
every manager has a considerable impact on how workers actually behave.
Activity 1.4
Study the table below and critically analyse each activity and the responsibilities
8
bestowed on line managers and the HR department. Refer to your organisational
context, and use this table as a check list of what your organisation is doing. Then
advise the relevant authorities on how best to improve the situation.
Table 1.1: HRM activities and the responsibilities of line managers and the HR
department
Line management HR department

responsibility responsibility
Staffing Providing data for job analyses Job analysis, human resource
and minimum qualifications; in- planning, recruitment; compli-
tegrating strategic plans with ance with labour laws and
HR plans at the unit level (e.g. regulations; application blanks,
department, division); inter- written tests, performance
viewing candidates, integrating tests, interviews, background,
information collected by the HR i nv e st i g a t i o n s , re f e re n c e
department, making final deci- checks, physical examinations
sions on entry-level hires and
promotions
Retention Fair treatment of employees, Compensation and benefits,
open communication, face-to- employee relations, health and
face resolution of conflict, pro- safety, employee services
motion of teamwork, respect
for the dignity of each indivi-
dual, pay increases based on
merit
Development On-the-job training, job enrich- Development of legally sound
ment, coaching, applied moti- performance management sys-
vational strategies, perform- tems, morale surveys, technical
ance feedback to subordinates training; management and or-
ganisational development; ca-
reer planning; counselling; HR
research
Adjustment Discipline, discharge, layoffs, Investigation of employee
transfers complaints, outplacement ser-
vices, retirement counselling
Managing change Providing a vision of where the Providing expertise to facilitate
company or unit is going and the the overall process of mana-
resources to make the vision a ging change
reality
(Source: Adapted from Cascio, 2006:8)
1.3 The relationship between strategic planning and human

resources
Have you noticed that what was previously known as personnel management is
now referred to as human resource management? Is this merely wordplay or is
there a reason for this change? According to Flamholtz (1985:xi), the emphasis has
shifted from personnel management to human resource management because of the
strategic emphasis on human resources. This new approach means that the human
resource manager must account for the human assets in the organisation.
9
Cascio (2006:174) agrees with this, saying strategic human resource management
means getting everybody from the top to the bottom of the organisation to work
towards implementing the strategy of the business effectively. The idea is to use people
more wisely in terms of the strategic needs of the organisation.
According to Cascio (1998:24), in order to use the human resource management
function most effectively as a corporate resource, top management should consider
the following points:
Ð Human resource executives must be experienced business people, interact with
managers in all other functional areas and be perceived as equals by their
corporate peers.
Ð The top human resource officer should be a key player in the development and
implementation of business plans Ð acting as the sounding board for the CEO
and providing early warning regarding the employees' acceptance of these plans.
Ð The human resource department's responsibility should be defined as the
maximisation of business profits through the better management and use of
people. The human resource management function should concentrate on ways
to make people more productive Ð such as implementing a skills development
programme, and increasing people's motivation by improving their quality of work
life (QWL).
Ð The human resource management function should not be saddled with unrelated
responsibilities, such as the mailroom and public relations. The focus should be on
the firm's productivity and profitability.
1.4 Evaluation of the human resource management function

There is often the impression that the human resource function is a constant drain of
money. One reason for this is that no physical product is produced by this function.
Often the human resource practitioners do not have sufficient knowledge of finance to
attach a monetary value to their activities. It is also not always possible to express a
function in monetary terms, and other methods of measuring the effectiveness of
human resource management in an organisation must be found.
Ivancevich (1992:775) suggests the following four criteria for measuring the
effectiveness of the human resource management function:
(i) Performance measures

This refers firstly to overall human resource management performance that could, for
example, be expressed as unit labour cost per unit of output.
Secondly, performance measures refer to specific human resource department costs
and performance, expressed in terms of the cost of a human resource programme per
employee.
(ii) Compliance measures

These are used to measure compliance with legal requirements, for example minimum
wages or unemployment insurance.
10
(iii) Employee satisfaction measures
Employees' satisfaction with their jobs and with human resource management
activities is measured by means of questionnaires, observation of behaviour or other
measures.
(iv) Indirect measures of employee performance

The performance of employees can also be measured in terms of the following factors:
Ð Employee turnover, expressed by the rate of resignations as a percentage of the
labour force and by units over a period of time
Ð Absenteeism, expressed as the rate of voluntary absences of the labour force and
by units over a period of time
Ð The percentage of poor quality output which must be scrapped
Ð Other measures of quality
Ð Rates of employee requests for transfers
Ð Number of grievances per unit and in the total labour force over a period of time
Ð Safety measures and accident rates
Ð Number of improvement suggestions per employee over time
A number of statistical methods are available that can be used in the above
measurements, but for the purposes of this study guide, we do not need to elaborate
on these.
1.5 Human resource management and the legislative frame-

work in South Africa
Since 1994, the human resource profession has felt the great impact of government
policies and programmes. These include the implementation of the Occupational
Health and Safety Act 85 of 1993, the Labour Relations Act 66 of 1995, the Mine
Health and Safety Act 29 of 1996, the Basic Conditions of Employment Act 75 of
1997, the Employment Equity Act 55 of 1998, the Skills Development Act 97 of 1998,
and the Skills Development Levies Act 9 of 1999.
Copies of these Acts and other useful documents are available from the Government
Printer, the Unisa Library and the Internet site of the Department of Labour (http://
www.labour.gov.za), from where you can download them.
Activity 1.5
(a) What do you think are the five major challenges that face human resource
professionals in South Africa?
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11
(b) Which of the challenges that you listed above have the most serious effects on
the productivity and quality of work life in organisations in this country?
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(c) Provide your analysis of the demand and supply of skilled labour in the South
African labour market.
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1.6 Summary
In this study unit, we have provided you with an overview of the process of human
resource management in organisations. We have also briefly touched on the effect
of legislation on human resource management. In the rest of the course material we
will focus on different functional areas within the field of human resource
management. These functional areas are important for both human resource
managers and line managers. The emphasis will be on the role of the line manager in
co-operation with the human resource department.
Self-assessment
1 State what you think the following organisations have in common: a

hospital, a soccer club, a grocery store and a bakery. (6)
2 Define the concept of productivity. (2)
3 What do you think the main reasons are for the decline in productivity in
South Africa? (5)
4 What is meant by the quality of work life? (3)
5 Discuss two ways of improving the QWL in an organisation. (6)
6 Discuss five human resource activities and point out what the role of the
line manager is in each activity. (15)
7 How can the function of human resource management be evalu-
ated? (10)
8 What do you think are the implications of the new labour legislation for
human resource management in South Africa today? (20)
12
Study unit 2
Strategic human resource planning
Contents Page
Learning outcomes 13
Key concepts 13
2.1 Introduction 14
2.2 The importance of human resource planning 14
2.3 Types of plans 14
2.3.1 Strategic planning 14
2.3.2 Tactical or operational planning 15
2.3.3 Human resource planning 15
2.4 The relationship between human resource planning and strategic and
tactical planning 16
2.5 Human resource planning Ð a practical approach 17
2.5.1 Establish human resource objectives 18
2.5.2 Compiling personnel inventories 19
2.5.3 Doing a human resource forecast 20
2.5.4 Formulating action plans 22
2.5.5 Controlling and evaluating the human resource planning system 23
2.6 Summary 23
Self-assessment 24
Learning outcomes

Ð define resource planning
Ð describe the different types of plans
Ð indicate how human resource planning is related to strategic planning
Ð discuss the steps in the human resource planning process
Ð explain the human resource forecasting process
Ð explain the Delphi technique
Ð differentiate between labour demand and supply forecasting
Key concepts
learning outcomes:
Human resource planning
Strategic planning
13
Operational planning
Tactical planning
2.1 Introduction
Human resources must be managed effectively and efficiently. This requires a number
of actions on the part of the manager. These actions are taken more or less in sequence
when a company is established. However, in an existing organisation the actions are
part of the daily tasks of managers and are taken when the need arises.
The first step in human resource management is to identify the nature and extent of
the human resources required. The required human resources must then be recruited,
selected, welcomed into the organisation, trained and developed as needed, and their
performance must be assessed. They must be rewarded for their labour and attractive
careers must be offered to them.
In this study unit we are going to look at the planning of human resources. We will look
at the other aspects in later study units.
2.2 The importance of human resource planning

Many companies invest large amounts of financial and physical resources in planning
their production processes. Their production processes are usually planned with
meticulous care and dedication. Unfortunately this is often not the case with human
resources, even though they are the company's most valuable asset. Without proper
human resource planning, even the best intended production plans may not be able to
achieve the company's objectives.
The competitive business environment necessitates well-developed human resource
planning to contribute to business plans and strategies.
According to Cascio (2006:177), human resource planning (work force planning) can
be defined as `àn effort to anticipate future business and environmental demands on
an organization, and to provide qualified people to fulfill that business and satisfy those
demands''.
2.3 Types of plans

In this section we will look at three types of planning:
Ð Strategic planning
Ð Tactical or operational planning
Ð Human resource planning (HRP)
2.3.1 Strategic planning

Strategic planning is the process of setting organisational objectives and deciding on
comprehensive programmes of action to achieve these objectives. According to Cascio
(2006:173), strategic planning for an organisation includes the following:
14
Ð Defining philosophy. Why does the organisation exist? What unique
contribution does it make?
Ð Formulating statements of identity, purpose and objectives. What is
the overall mission of the organisation? What are its goals? Are the missions and
goals of strategic business units consistent with the mission of the organisation?
Ð Evaluating strengths, weaknesses and competitive dynamics. What
factors, internal or external, may enhance or inhibit the ability of the organisation
to achieve its objectives?
Ð Determining design. What are the components of the organisation, what
should they do, and how should they relate to one another to achieve the
objectives and fulfil the mission of the organisation?
Ð Developing strategies. How will the objectives, at every level, be achieved?
How will they be measured, not only in quantitative terms of what is to be
achieved, but also in terms of time?
Ð Devising programmes. What will be the components of each programme,
and how will the effectiveness of each programme be measured?
Cascio (2006:173) states that ``the biggest benefit of strategic planning is its emphasis
on growth, for it encourages managers to look for new opportunities rather than
simply cutting more workers''.
Cascio (2006:173) notes that strategic planning differs considerably from short-term
tactical or operational planning. It is about the very nature of the business. Strategic
planning may result in new business acquisitions, decentralising or centralising some
business activities, getting rid of product lines or new capital investments. It provides
direction to tactical planning.
2.3.2 Tactical or operational planning

This aspect of planning concerns issues associated with the growth of current or new
operations, as well as any specific problems that might disrupt the pace of planned
growth. Examples of this type of planning could be the purchasing of new or additional
office equipment to enhance efficiency (e.g. new computers), dealing with a slow-
moving product line, and acquiring a new design to stay ahead of competitors (e.g.
tamper-proof bottle caps in the pharmaceutical industry) (Cascio, 2006:173).
Except for the obvious difference in time frames between strategic and tactical planning,
there is also the difference in the degree of change resulting from the planning Ð and
thus the degree of impact on human resource planning (Cascio, 2006:173±174).
2.3.3 Human resource planning (HRP)

According to Cascio (2006:174) human resource planning (work force planning) concerns
the plans for the business as a whole. It focuses on questions such as the following:
Ð What is the effect of the proposed business strategies on the human resources?
Ð What are the implications for staffing, compensation practices, training and
development, and management succession?
Ð What kinds of internal and external constraints does the business face? For example,
the implementation of a smoking policy is an internal constraint, while a projected
shortfall in the supply of graduated electrical engineers is an external constraint.
15
The ultimate objective of HRP is the most effective use of scarce talent in the interests
of the worker and the organisation.
2.4 The relationship between human resource planning and

strategic and tactical planning
Strategic planning: Operational plan- Budgeting: Annual
Long-range ning: Middle- perspective
perspective range perspective Budgets
Corporate philosophy Planned programmes Unit, individual
BUSINESS Environmental scan Resources required performance goals
PLANNING Strengths and " Organisational " Programme
PROCESS constraints strategies scheduling and
Objectives and goals Plans for entry into assignment
Strategies new businesses, Monitoring and con-
acquisitions, trol of results
divestitures
d d d
Issues analysis Forecasting Action plans
Business needs requirements Staffing authorisations
External factors Staffing levels Recruitment
HUMAN Internal supply analysis Staffing mix Promotions and
RESOURCE Management implica- (qualitative) transfers
PLANNING tions Organisation and job Organisational
design changes
PROCESS
Available/projected Training and develop-
resources ment
Net requirements Compensation and
benefits
Labour relations
Figure 2.1: Impact of three levels of business planning on human resource planning
Figure 2.1 indicates how the human resources planning process is related to the
business planning process.
The long-range perspective (two to five years) of strategic planning flows naturally into
the middle-range perspective (one to two years) of operational planning.
At the level of strategic planning, according to Cascio (1998:150), HRP is
concerned with issues such as assessing the management implications of future
business needs, assessing factors external to the firm (e.g. demographic and social
trends) and estimating the internal supply of employees over the long term. The focus
is not to make detailed projections but rather to analyse issues.
At the level of operational planning, HRP is concerned with detailed forecasts of
employee supply and demand. Based on the forecasts, specific action plans can be put
into effect. These may involve recruitment, promotions, retrenchments, training or
transfers. Procedures must be established to control and evaluate progress toward
targeted objectives (Cascio, 1998:150).
16
As figure 2.1 shows, HRP is influenced by long-range, middle-range and annual
business plans. Examples of these influences (as pointed out earlier) include the impact
of rapid technological change, more complex organisations (in terms of products,
locations, customers, and markets), and responses to external forces such as
legislation, demographic changes and increasing multinational competition (Cascio,
2006:175±176).
Activity 2.1
(a) Give a brief description of the strategic planning process.

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(b) Briefly explain the three levels of strategic planning in organisations.
.............................................................
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(c) Why do you think human resource management should be a strategic focus for
any organisation in South Africa and beyond?
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2.5 Human resource planning Ð a practical approach

Human resource planning includes several interrelated activities that together
comprise a human resource planning system. These activities include the following
(Czanik, 1996:41):
Ð Establishing human resource objectives
Ð Compiling a personnel inventory to assess current human resources (skills,
abilities, and potential) and to analyse how they are currently being used
17
Ð Doing a human resource forecast to predict future human resource require-
ments Ð that is, the number of workers needed (demand) and the number
expected to be available (supply)
Ð Formulating action plans to enlarge the pool of people qualified to fill the
projected vacancies through such actions as recruitment, selection, training,
placement, transfer, promotion, development and compensation
Ð Controlling and evaluating the human resource planning system to obtain
feedback on its overall effectiveness by monitoring the degree of attainment of the
human resource objectives
1. Organisational goals and purpose
!
2. Strategic planning
!
3. Strategic and operational business plans
!
" 4. Human resource objectives
!
5. Personnel inventory
Current supply
!
6. External labour market
9. Constant control and evaluation
!
7. Forecast human resource supply and demand
!
8. Action plans
Figure 2.2: The human resource planning process and its integration with strategic
organisation planning
(Source: Adapted from Czanik, 1996:42)
2.5.1 Establishing human resource objectives

According to Czanik (1996:44), human resource objectives vary depending on the type
of environment the organisation operates in, its strategic and operational plans, the
18
current design of jobs and employee work behaviour (e.g. in McDonald's one of the
human resource objectives is to define jobs narrowly so that they are easy to learn in a
short period of time).
Obviously human resource objectives should be flexible Ð for example, if new
technology is introduced, existing skills, behaviour and attitudes should be readjusted
to fit the needs of the business.
Activity 2.2
Name any five examples of industries or fields of work you know in which existing
skills became obsolete and staff had to be retrained to keep up with the new
technology.
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.5.2 Compiling personnel inventories

Once the human resource objectives are set, it is important to compare the numbers,
skills and experience of the current work force with those desired in future. A
personnel inventory helps with assessment of the current work force, while a human
resource forecast of supply and demand helps to determine future needs. Together
they provide powerful planning information for the development of action
programmes. In most organisations such information is often computerised, and,
when combined with other databases, it can be used to form a complete human
resource information system (HRIS) that is useful in a variety of situations (Czanik,
1996:44±45).
The following is typical information that could be included in such a profile (Cascio,
2006:178):
Ð Current position information
Ð Previous positions in the company
Ð Other significant work experience
Ð Education
Ð Language skills and relevant experiences
Ð Training and development programmes attended
Ð Community or industry leadership responsibilities
Ð Current and past performance appraisal data
Ð Disciplinary actions
Ð Awards received
19
Common uses of a personnel inventory include the following:
Succession
Transfer planning
Training ~ ~
~
Assignment to
Compensation
3 Uses of a personnel inventory " special projects
planning
~
~
Promotion Career planning Affirmative action
FIGURE 2.3: Uses of a personnel inventory

(Source: Adapted from Czanik, 1996:45)
2.5.3 Doing a human resource forecast

A human resource forecast entails the estimate of labour requirements at some future
time period. It consists of two aspects (Cascio, 2006:179):
Ð The external and internal supply of labour. This relates to conditions inside the
organisation, such as the age distribution of the work force, terminations and
retirements.
Ð The aggregate external and internal demand for labour. This is subject to many
uncertainties, such as worldwide economic conditions, changes in technology and
consumer behaviour.
Forecasting external human resource supply

According to Cascio (2006:179), recruiting and hiring new employees are essential
activities for virtually all firms, at least in the long run. This can be due to projected
expansion of operations or normal work force attrition.
Information about the supply of human resources in South Africa can be obtained from
various public and private institutions. Below is a list of sources, but since the business
and government situation is changing rapidly, this list is not complete. It should be
updated continually.
Ð Educational institutions such as universities, further education and training
colleges, private education and training institutions
Ð Government departments such as Statistics South Africa, the Department of
Labour, government departments involved in education and responsible for
formal schooling
Ð Newspapers, trade journals and other periodicals
Ð Employment agencies
Forecasting internal human resource supply

Cascio (2006:181) says a reasonable starting point for projecting a firm's future supply
of labour is its current supply of labour. The succession plan is perhaps the simplest
20
type of internal supply forecast. ``The process of developing this type of plan includes
setting a planning horizon, identifying replacement candidates for each key position,
assessing current performance and readiness for promotion, identifying career
development needs and integrating the career goals of individuals with company
goals'' (Cascio, 2006:181).
The following factors must be taken into consideration when forecasting the internal
supply (Pettman & Travernier in Czanik, 1996:50):
Ð Age distribution of the work force (e.g. the more older staff there are, the more
younger appointments are necessary for the transfer of skills and experience)
Ð Length of service (e.g. an average length of service of under five years in an
organisation could lead to a loss of experience and skill, as it indicates a high
labour turnover)
Ð Geographical location (e.g. if all employees are located in one main centre, skills
and experience are transferred far more easily than in an organisation where the
employees are geographically scattered)
Ð Stability rates (the lower the labour turnover rate, the more stability in an
organisation, which makes succession planning much easier)
Ð Reasons for leaving (e.g. if people leave because of internal conflict, this problem
should be addressed)
Forecasting the demand

According to Cascio (2006:184), ``demand forecasting is beset with multiple
uncertainties Ð changes in technology; consumer attitudes and patterns of buyer
behavior; local, national, and international economies; number, size, and types of
contracts won or lost; and government regulations that might open new markets or
close off old ones, just to name a few. Consequently, forecasts of workforce demand
are often more subjective than quantitative, although in practice a combination of the
two is often used''.
For the purpose of this study guide, we will only discuss one popular approach to
demand forecasting, namely the Delphi technique.
The Delphi technique

The Delphi technique is a qualitative method of forecasting HR demand. It is a
structured approach whereby a group of experts exchanges several rounds of
estimates of HR demand, normally without meeting face to face. An intermediary is
used to gather and summarise the information, and provide feedback to the experts on
the independently generated information. The process is then repeated so that the
experts can revise their forecasts and explain the reasons behind their revised forecasts.
Successive rounds usually lead to a convergence of expert opinion within a few rounds
(Cascio, 2006:185).
According to Grobler et al. (2006:111), the advantages of this technique are the
following:
Ð It can involve key decision makers in the process.
Ð It can focus on what is expected or desired in future.
Ð It is not bound to the past.
21
The disadvantages of this technique are the following:
Ð It is highly subjective.
Ð Judgements may not use objective data efficiently.
2.5.4 Formulating action plans

Labour demand forecasts affect a firm's programmes in many different areas, including
recruitment, selection, performance appraisal, training, transfer, and many other types
of career enhancement activities. These activities all comprise action programmes in
order to balance supply with demand (Cascio in Czanik, 1996:56).
According to Cascio (2006:186), if a firm has a choice, it is better to select workers
who have already developed the skills required to perform competently or to train
workers who do not have the skills immediately but who can be trained to perform
competently.
An organisation should always strive first to develop the most accurate and valid
selection process it can, as this will yield higher-ability workers. Further, to enhance the
performance of existing employees, the organisation should apply the most
appropriate action programmes.
Firms that select high calibre employees, and then commit resources to their ongoing
development, gain a competitive advantage that no other organisation can match: a
deep reservoir of firm-specific capital (Cascio, 2006:186±187).
Activity 2.3
(a) List any five of the factors that you think can influence internal HR supply.
.............................................................
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(b) Describe the Delphi technique in your own words.

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(c) Why do you think it is important to have a good selection process in the
organisation? Give reasons.
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22
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2.5.5 Controlling and evaluating the human resource planning system

The purpose of control and evaluation is to guide HR planning activities, identifying
deviations from the plan and the causes of those deviations. For this reason measures
of performance are necessary (Cascio, 2006:187). For example, if specific targets are
set for the recruitment of graduated electrical engineers, these must be monitored to
see whether the organisation is reaching the targets.
Qualitative and quantitative objectives can both play useful roles in HRP. Cascio
(2006:187) explains that quantitative objectives ``make the control and evaluation
process more objective and measure deviations from desired performance more
precisely'', while in newly instituted HRP systems, evaluation tends to be more
qualitative than quantitative, with less emphasis on control.
In more established HRP systems, in which both objectives and action plans are
underpinned by measured performance standards, Cascio (2006:188) suggests the
following key comparisons for measuring performance standards:
Ð Actual staffing levels compared with forecast staffing requirements

Ð Actual levels of labour productivity compared with anticipated levels of labour
productivity
Ð Actual personnel flow rates compared with desired rates
Ð The actual results of the action programme implemented compared with the
expected results
Ð Labour and action programme costs compared with budgets
Ð Ratios of action programme benefits to action programme costs
The advantage of quantitative information, according to Cascio (2006:188), `ìs that it

highlights potential problem areas and can provide the basis for constructive discussion
of the issues''.
2.6 SUMMARY
Cascio (1998:164) provides a useful summary, as follows:
Strategic and operational business objectives dictate what human resource
objectives must be. So also do internal and external labor markets. Human
resource planning (HRP) parallels general business planning. Broadly speaking,
HRP is an effort to anticipate future business and environmental demands on an
organization and to meet the human resource requirements dictated by those
conditions. This general view suggests several interrelated activities that together
make up an integrated HRP system. These include (1) an inventory of talent
23
currently on hand, forecasts of human resource supply and demand over short-
and long-term periods, action plans such as training or job transfer to meet
forecasted human resource needs, and control and evaluation procedures.
Activity 2.4
Assuming that you are employed as a human resource manager at RMC RUCHCO
Consulting, indicate in detail how you would match the future human resource
demand with the available human resource supply. In your answer, take the South
African labour market into account, given its vulnerability to macro environmental
forces.
.................................................................
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Self-assessment
1. Define the process of human resource planning. (1)

2. Explain the process of strategic planning. (6)
3. Describe the steps to be followed in the human resource planning
process. (10)
4. List any five common uses for a personnel inventory. (5)
5. Explain the Delphi technique and indicate how it can be used in human
resource forecasting. (6)
6. Which factors should be taken into account when forecasting internal
supply? (6)
7. Name any four activities that are included in an integrated HRP
system. (4)
8. Explain the quantitative method for measuring performance stand-
ards. (6)
9. Explain what the contents of an integrated HRP system could be. (4)
NOTES
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24
Study unit 3
The process of job analysis
Contents Page
Key concepts 25
3.1 Introduction and definition of terms 26
3.2 Uses of job analysis results 27
3.3 The job analysis process 28
3.3.1 Steps in the job analysis process 28
3.3.2 Who should conduct the job analysis? 28
3.4 Job analysis techniques 29
3.4.1 Observation 29
3.4.2 Questionnaires 30
3.4.3 Interviews 31
3.4.4 Critical incidents 31
3.4.5 Diary or logbook 32
3.5 Results of a job analysis 34
3.5.1 Job description 35
3.5.2 Job specification 36
3.6 Job analysis challenges 37
3.7 Summary 37
Self-assessment 38
Learning outcomes

Ð define job analysis and explain its importance for organisations
Ð describe five commonly used job analysis techniques
Ð discuss situations in which each of the job analysis techniques would be most
effective
Ð compile and formulate job descriptions and job specifications with guidance
Ð discuss the uses of job analysis
Key concepts
learning outcomes:
Job Job description
Job analysis Job specification
25
3.1 Introduction and definition of terms
How many times have you used the word ``job'' in conversations? For example, `Ì've
lost my job''; `Ì have been promoted to a new job''; `Ì am looking for another job''; `Ì
love my job''. Or as Samuel Gompers, first president of the American Federation of
Labour, once said: `À job's a job; if it doesn't pay enough, it's a lousy job'' (Cascio,
2006:158).
Jobs are important to individuals, for obvious reasons, and they are important to
organisations because they are the vehicles through which work and organisational
goals are accomplished (Cascio, 2006:158). Jobs are the basic units of the organisation
structure. The organisation must therefore have a systematic way of determining
which tasks and functions should be grouped into jobs and how these jobs relate to
one another. This process is known as job analysis and is regarded as the foundation
of many human resource management programmes (Gael in Albertyn-Neuper,
1996:93).
The following job analysis terms are very important and will be used frequently in your
studies and in practice.
Job analysis: This describes the process of obtaining information about jobs (Cascio,
2006:158). It refers to breaking a job down into tasks performed by incumbents and
obtaining data about and studying those tasks and functions (Gael in Albertyn-Neuper,
1996:93). The results of job analysis are described in a job description and a job
specification.
Job description: This is an overall written summary of the basic tasks, functions and
working conditions of jobs. It describes what needs to be done by the incumbent.
Job specification: This is an overall written summary of worker requirements. It
describes the minimum qualifications, skills and experience the incumbent should have
before he/she is appointed. Job specifications represent the KSAOs (knowledge, skills,
abilities and other characteristics) deemed necessary to perform a job. For example,
keen vision is required of astronauts and test pilots.
An element: This is the smallest unit into which work can be divided without
analysing the separate motions, movements, and mental processes involved. Removing
a saw from a tool chest prior to sawing wood for a project is an example of a job
element (Cascio & Aguinis, 2005:212).
A task: This is a distinct work activity carried out for a distinct purpose. Running a
computer program, typing a letter, and unloading a truckload of freight are examples
of tasks (Cascio & Aguinis, 2005:212).
A duty: This includes a large segment of the work performed by an individual and
may include any number of tasks. Examples of job duties include conducting interviews,
counselling employees, and providing the public with information (Cascio & Aguinis,
2005:212).
A position: This consists of one or more duties performed by a given individual in a
given firm at a given time, such as Clerk Typist Ð level three. There are as many
positions as there are workers (Cascio & Aguinis, 2005:212).
26
A job: This is a group of positions that are similar enough in their job elements, tasks
and duties to be covered by the same job analysis, e.g. payroll manager (Grobler et al.,
2006:151) .
A job family: This is a category in which similar occupations are grouped together.
Training managers, compensation managers and recruitment managers can be
combined with other occupations in the field of human resources and placed in the
job family of human resource professional (Grobler et al., 2006:151).
An occupation: This is a group of similar jobs found in different organisations at
different times Ð for example, electricians, machinists, etc. (Cascio & Aguinis,
2005:212).
A career: This covers a sequence of positions, jobs, or occupations that one person
engages in during his/her working life (Cascio & Aguinis, 2005:212).
3.2 Uses of job analysis results

Cascio (2006:158±159) writes as follows on the reasons for studying job require-
ments:
Sound HR management practice dictates that thorough job analyses always be
done, for they provide a deeper understanding of the behavioral requirements of
jobs. This, in turn, creates a solid basis on which to make job-related employment
decisions. Legally, job analyses play a major role in the defense of employment
practices (e.g., interviews, tests, performance appraisal systems) that are
challenged, for they demonstrate that the practices in question are ``job related.''
Below are a number of uses for job analysis information (Cascio, 2006:159±61):
Ð Organisational structure and design. Through clarification of job require-
ments and the interrelationships among jobs, responsibilities at all levels can be
specified, promoting efficiency and minimising overlap or duplication.
Ð Human resource planning. Job analysis is the foundation for forecasting the
need for human resources as well as for planning such activities as training,
transfer and promotion.
Ð Job evaluation and compensation. Job descriptions and specifications (the
results of job analysis) provide information that is necessary to rank jobs in terms
of their overall worth to the organisation for purposes of pay surveys or
compensation decisions.
Ð Recruitment, selection and placement. The most important information a
recruiter needs is full knowledge of the job(s) in question. The selection of
applicants must be based on a meaningful forecast of job performance. An
understanding of what a worker is expected to do on the job, as reflected in job-
related interviews or test questions, is necessary for such a forecast. Selection and
placement go hand in hand. If there is a clear picture of the needs of a job and the
abilities that workers need in order to fulfil those needs, selection decisions will be
accurate and workers will be placed in jobs where they will be the most
productive.
Ð Orientation, training and development. Training a worker can be very
costly. Up-to-date job descriptions and specifications help ensure that training
programmes reflect actual job requirements.
27
Ð Performance appraisal. If employees are to be judged in terms of how well
they do those parts of their jobs that really matter, to distinguish effective from
ineffective performers, it is important to specify critical and non-critical job
requirements through job analysis.
Ð Career planning. If the organisation and the individual do not understand the
requirements of available jobs and how jobs at succeeding levels relate to one
another, effective career path planning is impossible.
Ð Labour relations. The information provided by job analysis is helpful to both
management and unions for contract negotiations as well as for resolving
grievances and jurisdictional disputes.
Ð Job design. As with methods improvement, changes in the way work is
accomplished must be evaluated through a job analysis, focusing on the tasks to
be done and on the behaviour required of the people doing the tasks.
Ð Safety. Frequently, in the course of doing a job analysis, unsafe conditions are
discovered and thus may lead to safety improvements.
Ð Job classification systems. Selection, training and pay systems are often
keyed to job classification systems, also referred to as ``job families''.
3.3 The job analysis process

In this section we will look at the steps in the job analysis process and at who should
conduct the job analysis.
3.3.1 Steps in the job analysis process

The following steps are outlined by Ivancevich in Albertyn-Neuper (1996:95):
Ð Define the need for job analysis and describe the desired outcomes or objectives.
These objectives may influence the selection of the job analysis process and the
techniques to be used.
Ð Determine why the analysis is needed and how the job analysis will be done.
Ð Examine the total organisation and where each job fits in (organisational charts
could be used). Then select the jobs to be analysed.
Ð Collect data by using an appropriate job analysis technique.
Ð Formulate a job description.
3.3.2 Who should conduct the job analysis?

This depends on various factors such as the needs and size of the organisations. If an
organisation only occasionally needs job analysis information, it may hire a temporary
job analyst from outside. Large organisations may employ full-time job analysis experts,
and others may use supervisors, incumbents or a combination of these to collect job
analysis information (Ivancevich in Albertyn-Neuper, 1996:95).
What is clear, however, is that whoever collects the information should have
considerable knowledge of how work is expected to flow within the organisation
and of the strategic plan of the organisation in order to determine what the job should
look like in future (Ivancevich in Albertyn-Neuper, 1996:96). They should also be able
to write clearly, be objective and analytical, and obtain the co-operation of all parties
involved (Vian in Albertyn-Neuper, 1996:96).
28
3.4 Job analysis techniques
A number of methods are available to study jobs. Cascio (2006:165) points out that no
one method by itself is sufficient. It is therefore important to use a combination of
methods to obtain a total picture of the task and the physical, mental, social and
environmental demands of a job.
Below are five common techniques of job analysis:
Job analysis techniques
3 "
Observation Critical incidents
"
3
Questionnaires ! Interviews
Diaries or logbooks
Let's consider each.
3.4.1 Observation
By means of observation a worker or group of workers is observed doing a job.
Without interfering, the analyst records the what, why and how of the various parts of
the job. This information is usually recorded in a standard format.
Job observation is appropriate for jobs that require a great deal of manual,
standardised, and short-cycle activities. The job analyst must observe a representa-
tive sample of individuals performing these jobs and may question them at any stage
of their performance for clarification (Albertyn-Neuper, 1996:100).
For example, the activity ``copes with emergencies'' may be crucial to effective nursing
performance; yet a continuous eight-hour observation of the activities of a group of
staff nurses tending to the needs of a dozen sleepy postoperative patients may reveal
little in the way of a valid picture of job requirements (Cascio & Aguinis, 2005:219).
The observation of several employees helps to avoid bias due to the unique manner in
which one employee may perform job tasks. Film or video recordings of job
activities may be a suitable indirect substitute for direct observations in manual
contexts.
Advantage of observation
Cascio (2006:167) identifies the advantage that direct exposure to jobs provides a
fuller understanding of job requirements than workers' descriptions of what they do.
Disadvantages of observation
Observation has the following disadvantages:
29
Ð It is limited to manual, standardised, short-cycle activities (Albertyn-Neuper,
1996:101).
Ð If the work in question is primarily mental, observations alone may reveal little
useful information or critical and rare job requirements, such as the ability to cope
with emergencies (Cascio, 2006:167).
3.4.2 Questionnaires
Albertyn-Neuper (1996:103) writes: `À structured questionnaire includes specific
questions about the job, job requirements, working conditions and equipment. A less
structured, more open-ended approach would be to ask incumbents to describe
their job in their own terms.''
Cascio (2006:165±166) identifies the position analysis questionnaire (PAQ) as one of
the most popular structured questionnaires, consisting of 194 items that fall into the
following categories:
Ð Information input Ð where and how the worker gets the information to do
the job
Ð Mental processes Ð the reasoning, planning and decision making involved in a
job
Ð Work output Ð physical activities as well as the tools or devices used
Ð Relationships with other people
Ð Job context Ð physical and social
Ð Other job characteristics Ð for example, apparel, work continuity, licencing,
hours and responsibility
The items provide for either checking a job element if it applies or rating it on a scale,
for example in terms of importance, time or difficulty (Cascio, 2006:166).
Cascio (1998:143) identifies the following advantages and disadvantages of structured
questionnaires.
Advantages of structured questionnaires

Advantages of structured questionnaires include the following:
Ð This method is generally cheaper and quicker to administer than other methods.
Ð Questionnaires can be completed off the job, avoiding lost productive time. Where
there are large numbers of job incumbents, this method allows an analyst to
survey all of them, providing a breadth of coverage that is impossible to obtain
otherwise.
Ð Data can be quantified and processed by computer, giving plenty of opportunity
for analytical possibilities.
Disadvantages of structured questionnaires

Disadvantages of structured questionnaires include the following:
Ð They are time-consuming and expensive to develop.
Ð Rapport between analyst and respondent is not possible unless the analyst is
present to explain items and clarify misunderstandings.
30
3.4.3 Interviews
The interview, according to Cascio & Aguinis (2005:222), `ìs probably the most
commonly used technique for establishing the tasks, duties, and behaviors necessary
both for standardized or non-standardized activities and for physical as well as mental
work''. It is necessary to use interviews because in some jobs it is impractical to conduct
observation of the workers (e.g. diamond divers in Swakopmund). In such cases it is
necessary to rely on the workers' own descriptions of what they do and why they do it.
As with recordings of observations, a standard format is used to collect input from all
workers sampled to interview. In this way all questions and responses can be restricted to
job-related topics. It is also possible to compare what different people are saying about
the job in question because of the standard format of the interview (Cascio, 2006:165).
Advantages of interviewing
Advantages of interviewing include the following:
Ð It is useful for jobs with both short- and long-cycle tasks and physical and mental
requirements (Albertyn-Neuper, 1996:101).
Ð Since the worker is his/her own observer, he/she can report on activities that
would not be observed often (Cascio, 2006:167).
Disadvantages of interviewing
Cascio (2006:167) names the following disadvantages of interviewing:
Ð Workers may be suspicious of interviewers and their motives.
Ð There could be a distortion of information (either as a result of honest
misunderstanding or as a result of purposeful misrepresentation).
Ð Interviews should never be used as the sole job analysis method but should be
used in combination with other methods, such as observation.
3.4.4 Critical incidents

Cascio (2006:165) describes critical incidents as brief actual reports that illustrate
particularly effective or ineffective worker behaviour, and he gives the following
example of effective behaviour:
On January 14, Mr. Vin, the restaurant's wine steward, was asked about an
obscure bottle of wine. Without hesitation, he described the place of vintage and
bottling, the meaning of the symbols on the label, and the characteristics of the
grapes in the year of vintage.
After collecting many of these little incidents from knowledgeable individuals, the
analyst abstracts and categorises them according to the general job area they describe.
The result is a fairly clear picture of actual job requirements (Cascio, 2006:165).
Activity 3.1
Provide an example of ineffective behaviour that you think could be used in a critical
incidents report.
31
.................................................................
.................................................................
.................................................................
Cascio (2006:167) gives the following advantages and disadvantages of critical

incidents as a method of job analysis:
Advantages of critical incidents

Advantages of critical incidents include the following:
Ð They focus directly on what people do in their jobs and provide insight into job
dynamics.
Ð Since the behaviours in question are observable and measurable, information
derived from this method can be used for most possible applications of job
analysis.
Disadvantages of critical incidents

Disadvantages of critical incidents include the following:
Ð It takes considerable time to gather, abstract and categorise the incidents.
Ð It may be difficult to develop a profile of average job behaviour.
3.4.5 Diary or logbook

With this method the incumbents keep a record of what tasks they have performed,
the frequency with which they carried out tasks and when they completed the tasks.
The assumption underlying this approach is that the person performing the job should
have the best knowledge of the tasks in the job (Middlemist, Hitt & Greer in Albertyn-
Neuper, 1996:104). Comparisons can be made daily, weekly or monthly.
Advantages of diaries or logbooks

Diaries or logbooks have the following advantages:
Ð If they are kept up to date, they provide good information about the job as the
incumbent should have the best knowledge of the job.
Ð They are useful when attempting to analyse jobs that are difficult to observe
(higher-level, more complex jobs) such as those performed by scientists and
senior executives.
Disadvantages of diaries or logbooks

Diaries or logbooks have the following disadvantages:
Ð The incumbent might not be disciplined enough to keep a proper diary or log on a
continuous basis.
Ð The information tends to be fairly subjective, as the incumbent decides what to
write down.
32
Activity 3.2
Describe the five job analysis methods you know and provide an example of a
suitable job that can be analysed by each method below.
Observation
Example of a suitable job that could be analysed through observation:
.................................................................
Questionnaires
Example of a suitable job that could be analysed by means of questionnaires:
.................................................................
.................................................................
.................................................................
Interviews
Example of a suitable job that could be analysed by means of interviews:
.................................................................
.................................................................
.................................................................
Critical incidents
Example of a suitable job that could be analysed by means of critical incidents
.................................................................
.................................................................
.................................................................
Diary or logbook
Example of a suitable job that could be analysed by means of a diary or logbook:
.................................................................
.................................................................
.................................................................
Activity 3.3
Describe the advantages and disadvantages of the various job analysis methods by
completing the table below.
METHOD ADVANTAGES DISADVANTAGES
Observation ............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
33
METHOD ADVANTAGES DISADVANTAGES
Questionnaires ............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
Interviews ............................................................ ............................................................

............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
Critical incidents ............................................................ ............................................................

............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
Diary or logbook ............................................................ ............................................................

............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
............................................................ ............................................................
3.5 Results of a job analysis

JOB ANALYSIS
(The process of obtaining relevant job information)
!
!
Job description Job specification

. Job title . Qualities necessary to perform the job
. Job summary . Required knowledge
. Nature and scope of activities . Training
. Tools, equipment and information required to . Experience
perform the job . Initiative
. Job environment Ð location of the job, work- . Communication skills
ing conditions, hazards and noise levels . Emotional character traits
. Physical skills
34
3.5.1 Job description
Activity 3.4
Take some time and consider what is involved in the job of a receptionist and then
write down all the tasks this person must carry out.
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
You have just performed a mini job analysis. A job description should, however,
provide more information than merely stating the tasks of the job. Let's take a look
at the criteria for a good job description.
A job description is a written description of what the job entails. According to Nel, Van
Dyk, Haasbroek, Schultz, Sono and Werner (2004:201±203), a specific job description
usually contains the following information in respect of job identification, job summary,
and job duties and responsibilities:
Identification information
The first part of the job description offers:
Ð The job title.
Ð The location of the job (department, branch, etc.).
Ð The reporting structure.
Ð The compiler of the job description.
Ð The date of the job analysis.
Ð Verification (name of the person authorising or approving the job description).
Job summary
This is a short written statement that concisely summarises the purpose of the job.
Job duties and responsibilities

This section must be comprehensive and accurate as it influences all other parts
of the job description. Job duties and responsibilities explain what is done, how it
is done, and why it is done.
Gerber, Nel and Van Dyk (1999:76±77) outline other aspects that may also be
included in the job description, such as the following:
Job standards state how the employee is expected to carry out each of the
main duties and responsibilities spelled out in the job description.
35
Work circumstances: The job description should indicate any special work
circumstances for the job, for example the noise level, heat and other risk factors
such as the placement of equipment.
3.5.2 Job specification
Activity 3.5
Look at the list you drew up of the tasks a receptionist has to do, and write down
what a receptionist would require in order to perform the work effectively. Refer to
the skills, knowledge, qualifications, etc. that this person will need.
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
Remember, each requirement you list must be one without which the receptionist
would not be able to perform the job. Thus a driver's licence would not be a
requirement. After completing this exercise, you will have drawn up a job
specification for the position of a receptionist.
The job specification covers the qualifications and attributes that an employee is
required to have in order to do the job. The job specification arises from the job
description. The information in the job specification will depend on the duties and
responsibiities specified in the job description.
Grobler et al. (2006:160) write that the job specification states the qualifications job
applicants must possess to be considered for the job:
These qualifications are often grouped into three categories: skills, knowledge
and ability (SKAs). Skills include observable capabilities performed on the job. In
order to avoid building on past disadvantages in South Africa, the role of skills
will become more prominent in the future rather than formal qualifications.
Knowledge constitutes the body of information in a particular subject area that is
required by a new employee to perform the job satisfactorily. Ability refers to any
mental or physical activities required of a new employee. For example, a section
supervisor might be required to know the safety regulations that affect the plant,
to have the skill to operate a quality-control laser machine and to have the ability
to write daily work assignments. SKAs are most useful in personnel decision-
making situations, such as selection, training and performance evaluation.
36
Which job analysis technique is the best to use?
The choice of a job analysis method is determined by circumstances such as the
purpose of the analysis, time and budget constraints (Albertyn-Neuper, 1996:105).
Please note that interviews as a method of job analysis should not be confused with
selection interviews (to be discussed in study unit 5).
3.6 Job analysis challenges

Grobler et al. (2006:160±161) indicate that the process of job analysis is not exempt
from challenges. Some of the challenges that come along with the implementation of
job analysis are as follows:
Ð Employees may fear that the process of job analysis will threaten their jobs and
lead to a reduction in their pay. This is more common today because of large-scale
restructuring programmes in many organisations.
Ð Another challenge is for analysts to update the information gathered. Job duties
and responsibilities evolve as the environment changes; hence a need to keep a
close check on the trends. The information gathered may be obsolete within a
short space of time if it is not updated.
Ð Where the job is held by only one or two employees, the analysis is often viewed
as an analysis of the person(s) concerned, not of the job itself. It is advisable that
the analyst focus on what the job entails, not on how it is performed.
Ð When the job description is handed over to the employees, there is often a
misconception that it is a contractual document spelling out what they should and
should not do. This becomes evident when employees are requested to provide
extra help in areas beyond their description. Such employees often resist being
deployed to do extra duties that are not prescribed in the job description. This also
becomes a pressing challenge with legal implications, especially when manage-
ment decides to amend the job description without the consent of the employee
concerned.
3.7 Summary
This study unit has focused on job analysis, which is the process of examining the
content of a job. The results of job analysis are described in a job description
(describing what needs to be done by the incumbent) and a job specification
(describing the minimum qualifications, skills and experience the incumbent should
have before he/she is appointed).
The uses of job analysis information are plenty. In this study unit, 11 uses of job analysis
information were pointed out to you. Five general job analysis techniques were
discussed that could be used separately or in combination. The multi-method approach
to job analysis uses a combination of these five general methods.
When doing a job analysis, it is important for you to be transparent about the process.
One of the most common problems related to job analysis is employee fear. They often
see it as a threat to their current jobs or pay levels. One of the most successful methods
of reducing employee fear and uncertainty is to involve employees and their
37
representatives in as much of the process as possible. Employees should be told why
job analysis should be done, who will initiate it, how they will be affected and why their
input is critical (Grobler et al., 2006).
Self-assessment
1. Job analysis is often referred to as the ``cornerstone'' of human resource

management. What is the reason for this? (4)
2. How can job analysis be helpful in the orientation of new employ-
ees? (3)
3. For what types of jobs are observation and the diary techniques
inappropriate? Why? (6)
4. Discuss the results of job analysis. (4)
5. What are the aspects that must be considered when choosing a job
analysis technique? (3)
6. What is meant by a multi-method approach to job analysis? (1)
7. Name the most common problem experienced in job analysis and
indicate a possible solution to this problem. (3)
8. Explain any four challenges that organisations experience when
implementing job analysis outcomes. (8)
NOTES
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38
Study unit 4
Employee recruitment
Contents Page
Key concepts 39
4.1 Introduction 40
4.2 Issues affecting recruitment 40
4.2.1 External environment 40
4.2.2 Internal environment 41
4.3 Recruitment methods 42
4.3.1 External recruitment 42
4.3.2 Internal recruitment 45
4.4 Selecting a recruitment method 47
4.5 Recruitment and the law 47
4.6 The cost of recruitment 49
4.7 Summary 50
Self-assessment 50
Learning outcomes

Ð describe the purpose of recruitment
Ð differentiate between the concepts of equal opportunity, employment equity,
diversity management and affirmative action
Ð describe aspects in the external environment that affect recruitment
Ð describe aspects in the internal environment that affect recruitment
Ð list the advantages and disadvantages of internal recruitment
Ð list and describe the most popular methods of external and internal recruitment
Ð list the criteria that can be used to assess the effectiveness of the recruitment
function
Key concepts
learning outcomes:
Recruitment process Equal opportunity
Employment equity Affirmative action
Internal recruitment Diversity management
External recruitment
39
4.1 Introduction
The recruitment process starts long before an organisation places an advertisement in
the press. Each organisation has a specific public image that either attracts or
discourages prospective employees. According to Cascio (2006:199), recruitment is a
form of business competition: In the same way businesses compete to develop,
manufacture and market the best product or service, so they must also compete to
identify, attract and hire the most qualified people. This process demands serious
attention from management. Although the needs of a small manufacturing business
will differ from a high-technology firm operating in global markets, both need people
with strategically relevant abilities.
When there is a vacancy, the recruitment process starts formally. The process begins by
specifying human resource requirements (numbers, skills mix, time frame), which are
the typical result of job analysis and HR planning activities (Cascio, 2006:199).
Recruitment is the process of acquiring applicants who are available and qualified to fill
vacant positions in the organisation. The general purpose of recruitment is to attract an
adequate number of applicants, from whom the most suitable person(s) can be
selected for employment.
A knowledge of the labour market is essential to ensure that recruitment is done cost-
effectively. For example, recruiting an expert computer programmer in a small village
where nobody even owns a computer would be a waste of money. You need to identify
first where the most likely candidates can be found, what kind of publicity will attract
them to the company and persuade them to apply for the job.
4.2 Issues affecting recruitment

Recruitment is affected by issues in both the external environment and the internal
organisation environment.
4.2.1 External environment

The most important elements which influence the external environment are the labour
market conditions and government and legal constraints, which Smit (1996a:127±
128) explains as follows:
Ð Labour market conditions. The labour market is that imaginary marketplace
where prospective employers and employees meet each other and negotiate. The
supply of labour in the market refer to the number of available candidates with the
required skills and competencies. The demand for labour refers to the need in the
market for the specified candidates. The match between the supply of and
demand for labour will be influenced by the remuneration package agreed upon
between candidates and employers.
Ð The government and legal constraints. Employers must do their own
recruitment and make their own employment decisions. However, the govern-
ment helps shape the environment in which recruitment is done by providing legal
constraints and obligations.
The Labour Relations Act 66 of 1995 and the Employment Equity Act 55 of 1998 form
part of the government's aim to regulate employment standards in South Africa. The
40
ultimate goal of the Employment Equity Act is to achieve a diverse work force that is
representative of the population. The Act makes provision for the elimination of unfair
discrimination and the implementation of affirmative action measures to promote
equity in the workplace.
There seems to be a fair amount of confusion with regard to various terms used in
relation to employment equity. The most important concepts in this wide field are
equal opportunity, affirmative action, employment equity and diversity management.
Description of concepts
Equal opportunity: Equal opportunity means providing all people with exactly the
same opportunities with regard to employment practices. According to the Employ-
ment Equity Act 55 of 1998, every employer must take steps to promote equal
opportunities in the workplace by eliminating unfair discrimination in any employment
policy or practice. This means that there should be no unfair discrimination on the
grounds of race, gender, pregnancy, marital status, family responsibility, ethnic or social
origin, colour, sexual orientation, age, disability, HIV status, conscience, belief, political
opinion, culture, language and birth.
Affirmative action: Section 15(1) of the Employment Equity Act of 1998 describes
affirmative action measures as ``measures designed to ensure that suitably qualified
people from designated groups have equal employment opportunities and are
equitably represented in all occupational categories and levels in the work force of a
designated employer''. Affirmative action includes the preferential treatment of
designated employees and setting of numerical goals (section 15(3)).
Diversity management: Diversity management is a comprehensive and holistic process
for creating and sustaining an environment in which all employees feel comfortable,
recognised, valued and appreciated, based on differences such as race, gender, culture,
religion, disability and sexual orientation (Meyer, 2006:99). Diversity management plays a
crucial role in complementing equal opportunity, affirmative action and employment equity
by preparing an environment conducive to a more diverse work force.
Employment equity: Employment equity is the end result of equal opportunity,
affirmative action and diversity management, in other words when real equality is
achieved in the workplace. An organisation will achieve employment equity when its
employee profile reflects that of the population at all organisational levels.
4.2.2 Internal environment

According to Smit (1996a:129±130), the most important influences inside the
organisation include the following:
Ð The needs of the organisation based on its strategic plans. The
strategic plans of the company will indicate the strategic direction required for the
company. From this, the nature of the skills required can be deduced, as well as the
time frame during which these skills will be required. The number and type of
vacancies to be filled are therefore determined by business decisions.
Ð Job analysis, job design and job specifications. Tasks must be combined
to ensure the effective execution of functions in the job. These jobs will require
specific skills and competencies, which must be the guideline for recruitment.
41
Ð The availability of required human resources within the organisa-
tion. It is essential to have knowledge of the base of skills within the organisation.
This will indicate the extent to which skills must be recruited either externally, or
from different levels and structures within the organisation.
4.3 Recruitment methods

Organisations have a wide variety of methods they can use to recruit new employees
to fill the vacancies. There are internal and external recruitment methods. Which
approach is best to use depends on the nature of the vacant position and well as the
policy and philosophy of the organisation concerned. The next sections present the
different types of external and internal recruitment methods as well as the advantages
and disadvantages of each approach.
4.3.1 External recruitment

Advantages of external recruitment
An obvious advantage of external recruitment is that the application pool is bigger. In
addition, Smit (1996a:131) notes the following:
Ð New people bring new ideas and skills into the organisation
Ð It is often more cost-effective to bring in skilled people from outside the
organisation than to train current employees
Disadvantages of external recruitment

A disadvantage of recruiting externally is that the individual's ability to adapt and fit in
with the rest of the organisation is unknown. In addition, Smit (1996a:131) notes the
following:
Ð Existing employees could reject the new employees.
Ð Employees could be aggressive towards new employees in an effort to ensure that
employers do not recruit external candidates.
Ð New employees require more time to adapt to the company. They are not
productive immediately.
Ð It is more expensive to recruit externally.
Methods of external recruitment

Walk-ins
~
Advertising 3 Employee referrals

"
EXTERNAL
RECRUITMENT
"
3 Public
Tertiary institutions ! employment
agencies
Private
employment
agencies
42
Advertising
Smit (1996a:132) writes:
Posts are advertised in newspapers, magazines, professional trade journals, on
television and in radio broadcasts. These advertisements are used to recruit
candidates for all levels in the organisation. Advertisements must be prepared
professionally to ensure that the information included is accurate and
justifiable, that the appearance is acceptable, and that the content is legally
correct.
For example, it is regarded as discriminatory to indicate preferred gender or age in an

advertisement, unless the discrimination can be proven fair Ð in other words, it should
be job-relevant.
AN EXAMPLE OF A RECRUITMENT ADVERTISEMENT

SOS CHILDREN'S VILLAGE ASSOCIATION OF LESOTHO
NATIONAL DIRECTOR POSITION
SOS Children's Village Association is an established international organisation, which for more than
fifty years has provided a family environment and education for orphaned and abandoned children in
more that 131 countries. In Lesotho, over 3000 beneficiaries are supported through the 6 projects the
Association operates. The National Director position is a unique opportunity for a socially minded
manager to build a better future for children and youth in projects around the country.
JOB SPECIFICATION
Critical/Key Area of Responsibility:
Ð Leadership of the Association's development & growth
Ð Leader of the executive team, focusing on the development of senior staff across the country
Ð Short-medium-long term Strategic Planning and Implementation of Plans
Ð Growth and Sustainability of the Association's image and credibility
Ð Lobbying/Nurturing of relationships with Government and other Key Partners
Ð Development & Empowerment of staff
Ð Effective implementation of policies, sustaining and improvement of operational standards,
Ð Effective Management of the Association's Resources.
CORE REQUIREMENTS
Qualifications & Experience:
Ð At least a University Degree
Ð At least 5 years working experience in Administration, Management, Finance and/or Accounting
from middle to top management levels
Ð Studies and/or working experience in Social Work, Education, Sociology, Psychology Child and/or
Youth development fields would be an advantage;
Ð Working experience and/or exposure to internationally networked organisation
Ð Proven good leadership and communication skills;
Character/Personality Attributes:
Ð Self motivated, professionally dedicated;
Ð Level headedness Ð Calm & Confident: assertive/Firm yet Fair;
Ð Open-minded on issues relating to different cultures, religions, and social beliefs;
Ð Good Listening Skills;
Ð Sociable Ð Friendly & Approachable; Empathetic;
Ð Trustworthy.
/continued ........
43
Inter-Personal Skills:
Ð Well organised & Disciplined;
Ð Good Communicator (Verbal & Written);
Ð Analytical Ð Broad outlook on issues;
Ð Practical in Problem Solving;
Ð Consultative;
Ð Ability to balance demands from different quarters at the same time; Adaptable;
Ð Good at follow ups;
Ð Good Computer Skills.
Interested candidates who fit the profile above should forward their applications together with
motivation letter to MR JOHN TUMA at the following:
Fax: 09266/22310386;
Email: [email protected]
ADDRESS:
Box 01180,
Maseru West (105),
Lesotho; ON OR BEFORE JUNE 30, 2006
(Source: Adapted from the Mail & Guardian, 09/06/2006)
Recruitment advertising should be placed in media which will result in a broadly

inclusive response. This is particularly challenging when one is recruiting people whose
literacy skills are limited.
The recruitment advertisement should be clear about essential information such as:
Ð the nature of the organisation Ð size, organisational culture, nature of ``business''
Ð the key aspects of the job and its major success criteria
Ð the key selection criteria
Ð major aspects of the conditions and benefits of service
The more accurate and informative the recruitment advertisement, the more
accurately people can assess their suitability for the job. This increases interest among
potentially suitable candidates and serves as a valuable, time-saving screening
mechanism to discourage entirely unsuitable applicants.
Private employment agencies

Although this is a popular method of recruitment, especially if there is no qualified or
skilled human resource practitioner available, it is an expensive method. Sometimes the
employer pays a percentage of the applicant's first-year salary as a fee to the agency.
However, in some cases, a good employment agency can save the personnel office
valuable time by screening out unqualified applicants and locating qualified ones.
Walk-ins
This term is used to describe those who literally walk into the organisation and ask for
employment, and also those who send in their CVs or letters asking for employment
(Smit, 1996a:134).
Employment agencies
Employers also use the service of employment agencies. There are many private
44
employment agencies (e.g. Capacity, Adcorp, DAV, Quest, Kelly Perms, PAG, etc.).
Some of these agencies also allow job seekers to submit their re
Â sumeÂ s for future job
opportunities free of charge, while others charge an administrative fee. In the event
where the private employment agency is contracted, they usually conduct the whole
employment process from recruitment to selection. They present the best candidate
for the vacant position to the employing client.
The only public employment agency in South Africa is the Department of Labour. This
department maintains a list of unemployed people at various skill levels. Applicants are
interviewed by officials of the department and their details are entered in a database.
Employers can approach the department and indicate their specific requirements, and
receive this service free of charge (Smit, 1996a:134).
Educational institutions
Recruitment at Further Education and Training (FET) colleges and higher education
institutions is done mostly by the large companies, who need large numbers of well-
prepared staff at entry levels (Smit, 1996a:134).
Professional organisations
Organisations may send delegates to professional bodies' meetings, conventions and
conferences in order to attract young graduates who are also members of these
bodies.
Employee referrals
Employees can be encouraged to help their employers locate and hire qualified
applicants by rewards, either money or otherwise, or by recognition for those who
assist the recruitment process. According to Grobler et al. (2006:176), `èmployees
who recommend applicants place their own reputation on the line; therefore, they are
usually careful to recommend only qualified applicants''.
Grobler et al. (2006:176) provide the following advice:
Before taking advantage of the relatively inexpensive and easy method of
recruiting employees through employee referrals, administrators should mini-
mise possible problems by:
Ð Conducting objective recruiting, which will ensure compliance with employ-
ment equity guidelines;
Ð Establishing specific policies on nepotism. For example, the company may not
allow relatives to work in the same department or to supervise each other.
4.3.2 Internal recruitment

Internal recruitment refers to attracting internal applicants for an internal position.
Advantages of internal recruitment

Internal recruitment has the following advantages:
45
Ð Internal recruitment considers the desires, capabilities and potential of present
employees.
Ð It boosts morale and portrays an image of a company that cares for their human
resources.
Ð Internal recruitment is cheaper than external recruitment.
Ð Existing employees know the company rules and don't need time to adjust to the
new environment.
Ð Existing employees' skills and performance are known.
Ð Internal recruitment results in opportunities for internal transfers and promotions.
Disadvantages of internal recruitment

Internal recruitment has the following disadvantages:
Ð Unhealthy competition may develop among employees.
Ð No new ideas from outside the business flow in and this may lead to stagnation.
Ð No growth in the number of staff occurs.
Ð Those who were unsuccessful may resent the organisation or the person who was
successful.
Ð A strong management development programme is needed.
Methods of internal recruitment
Job posting
Advertising of available jobs is done through job posting, for example on internal notice
boards or in internal memoranda (Cascio, 2006:208). Internal recruitment by means of
job posting must meet the same requirements as external advertisement Ð i.e. there
must be transparency, and job requirements must be well researched and
communicated throughout the organisation.
According to Grobler et al. (2006:173), job posting methods include at least three
proven, effective processes: (1) traditional bulletin boards, (2) computer email-based
systems and (3) telephone voicemail-based systems. Grobler et al. (2006:173)
continue as follows:
Managers should consider several aspects of the job-posting process.
First, the job-posting procedure should be clearly explained to the employees
and should be followed to the letter each time a position is open.
Second, job specification should be clear and should include the years of
experience, skills or training employees must have to apply for the posted
position.
Third, job-posting procedures should specify the exact period during which
posted positions will remain open.
Fourth, the application procedure should be clear. For example, an employee may
apply for a posted position through the HR department or a supervisor.
Finally, and perhaps most important, the HR department should ensure that
applicants receive adequate feedback once a selection has been made.
46
Activity 4.1
Read the case study below and then answer the questions that follow:
WHO WINS THE RACE?
Let's assume that you are employed as a chef at Happy Life Hotel. You have been
working for the hotel for five years and expect to be promoted to chief chef.
Magnus, your colleague, is also expecting to be promoted. He has attended several
workshops and has contributed a lot to improving the quality of the food prepared.
During the last few months he has turned out to be an excellent caterer at executive
functions. Unfortunately, he and Mrs Labala, the head of the Catering Services
Department, do not get on too well.
Mrs Labala is considering appointing someone from outside the organisation.
According to her, the kitchen staff are lazy and not performing well. She feels that
her cousin, July, will take things under control.
Required:
(a) If Mrs Labala goes ahead with her plans to appoint July, what problems do you
think will she face? (5)
(b) What do you think are the advantages of appointing someone externally? (5)
(c) The HR manager informs Mrs Labala that the recruitment policy stipulates that
employees may be recruited externally only if no suitable person can be found
internally. What possible reasons do you think the HR manager should use to
persuade Mrs Labala to appoint someone from within the department? (10)
4.4 Selecting a recruitment method

The following circumstances will determine which method or combination of methods
will be most appropriate (Smit, 1996a:135).
Ð Scarcity of potential candidates. The scarcer the potential successful
candidates in the labour market, the more intense the search will be. In such
cases, a larger population should be targeted. It is unlikely that walk-ins or word-
of-mouth will reach the same target market as successfully as advertisements in
national newspapers.
Ð Budget constraints. If the financial resources are limited, little opportunity
exists for using private employment agencies or newspaper advertisements. Walk-
ins, employee referrals and public employment agencies would be more
appropriate, provided it can be proven that there is no deliberate attempt to
exclude parts of the population.
Ð Required skill level. If highly developed skills are required, the recruitment
campaign should be targeted at universities through headhunting and specialised
employment agencies, again ensuring that people are not deliberately excluded.
Ð Urgency. If the position must be filled as a matter of urgency, it is advisable to
consult employment agencies in preparing and placing advertisements, allowing
for responses and selecting candidates.
4.5 Recruitment and the law

With the implementation of the Constitution of the Republic of South Africa, 1996, the
Labour Relations Act 66 of 1995 as amended (Act 12 of 2002), the Basic Conditions of
47
Employment Act 75 of 1997 as amended (Act 11 of 2002) and the Employment
Equity Act 55 of 1998, a number of important issues relating to the recruitment
process have risen in South Africa.
According to Grobler et al. (2006:182), `èmployers will now have to carefully
scrutinise their recruitment policies and procedures and, where necessary, compile new
recruitment and selection procedures to be applied consistently and fairly to all job
applicants''. A failure to do so could have major implications for business, including
possible litigation.
The Constitution of the Republic of South Africa, 1996

The Constitution gives all employees the right to be treated fairly at work. The Bill of
Rights says:
Ð everyone has the right to fair labour practices
Ð everyone has the right to equal treatment, and there can be no discrimination
against a person because he/she is a woman, disabled, old, and so on
The Labour Relations Act (LRA) 66 of 1995 (as amended by Act 12 of 2002)
The LRA gives employees the right to be treated equally. It is an unfair labour practice
to discriminate against an employee on any grounds, including race, gender, sex, colour,
sexual orientation, age, disability, religion, conscience, sexual orientation, belief, political
opinion, culture, language, marital status or family responsibility.
Discrimination is `àutomatically unfair'' if it breaks any of the basic rights of employees.
If a person is discriminated against because of his/her disability, for example, this is
automatically unfair and the case will go to the Labour Court. (In the next study unit,
see the Constitutional Court judgment in Mr. Hoffmann v South African Airways, 2000.)
The Employment Equity Act (EEA) 55 of 1998

The Employment Equity Act of 1998 aims to create equality in the workplace by
prohibiting unfair discrimination on the same grounds listed in the Constitution and the
Labour Relations Act (LRA).
Both the Constitution and the LRA protect people living with HIV/AIDS from being
treated unfairly at work, because both Acts say it is against the law to discriminate
unfairly against a person with a disability.
Activity 4.2
Read the case study below and then answer the questions that follow:
RIGHT IDEA, WRONG SONG
You are appointed as a human resource manager at Xerox. You are considering the
need to recruit qualified blacks when Betty walks into your office. You say to her, ``Betty,
can you help me with this problem? How can we get more black people to apply for
work here? We're running advertisements on Radio Jacaranda and placing classified
advertisements in the Sowetan. You and John have made recruiting trips to every
48
tertiary institution within 200 kilometres and we have also encouraged employee
referral. I still think that this is our most reliable source of new workers, but still we do
not seem to be able to persuade black people to apply for jobs.''
Xerox has not succeeded in increasing the percentage of black employees. The work
force of Xerox consists of 5% blacks although the surrounding community is 42%
black. Xerox is further known for its competitive wages and provisioning of good
training opportunities.
Xerox has a particular need for machine operator trainees. The machines are not
difficult to operate and no special skills are needed for the job. There are also several
clerical and management trainee positions vacant.
Questions:
(a) Evaluate the current recruitment effort at Xerox. Is your company using the
appropriate recruitment sources and methods?
(b) Explain what you would do to attract more black people to apply for jobs at
Xerox.
Activity 4.3
Which method of recruitment will you use to fill the following vacancies? Give a
reason for each answer.
(a) 10 newly qualified computer programmers
.............................................................
(b) 35 car watchers
.............................................................
(c) One senior lecturer: Human Resource Management
.............................................................
(d) One driver (heavy duty driver's licence, 1 year's experience)
.............................................................
4.6 The cost of recruitment

Recruitment planning is not complete until the costs of alternative recruitment
strategies have been estimated. Expenditures by source/method must be analysed
carefully in advance in order to avoid any subsequent `surprises'. In short, analysis of
costs is one of the most important considerations in determining where, when and
how to approach the recruitment marketplace (Cascio & Aguinis, 2005:265; Cascio,
2006:219).
At the most general level, the gross cost-per-hire figure may be determined by dividing
the total cost of recruiting (TCOR) by the number of individuals hired (NH).
Gross cost per hire = TCOR/NH
The following cost estimates are essential when embarking on a recruitment drive
(Cascio, 2006:219):
49
Ð Staff cost Ð salaries, benefits, and overtime payments of staff involved in the
process.
Ð Operational costs Ð telephone; recruiting staff travel and living expenses;
professional fees and services (agency fees, consultant fees, etc.); advertising
expenses (radio and TV, newspapers, technical journals, ads for field trips, etc.);
medical expenses for pre-employment physical examination (if applicable);
information services (brochures describing the company and its environment);
and supplies, material, and postage.
Ð Overhead Ð rental expenses for temporary facilities, office furniture, equipment,
etc.
Ð The cost of each recruited employee per recruitment source used
Ð The number and quality of re Â sumeÂ s per source
Ð Acceptance/offer ratio
Ð Salary offered Ð acceptances versus rejections
4.7 Summary
This study unit has focused on the recruitment process. This process results in the
applicant's first encounter with the organisation. It is essential for the organisation to
constantly be aware of the company image and the effect it could have on prospective
applicants. The organisation should also have a clear employment policy and act in
terms of this policy.
Self-assessment
1. What is the general purpose of recruitment? (3)

2. Describe the external environmental issues that could affect the
recruitment process. (6)
3. Differentiate between equal opportunity, employment equity and
affirmative action. (9)
4. Describe diversity management in your own words. (2)
5. What internal environmental issues should you consider when
recruiting? (3)
6. Describe the advantages and disadvantages of internal recruit-
ment. (10)
7. Describe the advantages and disadvantages of external recruitment. (8)
8. List five different jobs in your organisation. Indicate where you would
recruit candidates for each of the positions. Substantiate your
answer. (10)
9. How does an internal job posting differ from an advertisement? (3)
50
Study unit 5
Employee selection
Contents Page
Key concepts 52
5.1 Introduction 52
5.2 Selection steps and methods 52
5.2.1 Application forms 53
5.2.2 Interviews 55
5.2.3 Pre-employment testing 60
5.2.4 Assessment centres 63
5.2.5 Reference checks 64
5.2.6 Medical examinations 66
5.2.7 Security clearance 69
5.3 Record keeping 70
5.4 Selection procedure 70
5.5 Selection and the law 70
5.6 Recruitment and selection in practice 72
5.7 Summary 85
Self-assessment 85
Learning outcomes

Ð discuss the various tools that can be used in the selection process
Ð assess the content of the application form to ensure that relevant questions are
asked
Ð indicate measures to improve selection interviewing
Ð describe how line managers can use the results of psychological testing in the
selection procedure
Ð briefly discuss the various psychological tests mentioned in this study unit
Ð describe the nature of the information that line managers should obtain in a
reference check when they select candidates
Ð provide guidelines for line managers to use when providing a reference for an
applicant they know
Ð discuss the disadvantages and risks of using medical examinations for selection
purposes
Ð reflect on the impact of the South African labour law on the selection process
51
Key concepts
learning outcomes:
Selection process Medical testing
Interviews Assessment centre
Pre-employment testing Reference checking
5.1 Introduction
In the previous study units you learnt how a job analysis is done and that the job
description and job specification are based on information gathered by means of the
job analysis. This information is of the utmost importance when recruiting candidates
for the vacant positions. You also learnt how to recruit a pool of candidates.
The next step is to select the most suitable candidates from the pool. This study unit
deals with the methods that can be used to eliminate unsuitable candidates in the
fairest way possible.
Selection is a vital function in any organisation. When a suitable person is appointed,
this benefits both the organisation and the individual. If an unsuitable person is
appointed in a job, it is not easy to reverse such an appointment, and the expense to
both the organisation and the individual is high.
The line manager plays an important role in selecting and appointing the best
applicant. Contrary to what many line managers believe, selection is their task. The task
of the human resource practitioner is to assist the line manager with professional
advice and assistance.
5.2 Selection steps and methods

Greenguard (2002) writes:
As recruiting moves online, organisations face a growing array of choices about
how to conduct applicant tracking. ... Ultimately effective screening comes down
to meshing new technology with old-fashioned HR smarts [practices]. It's about
using software to improve applicant tracking and spot potential applicants, and
then relying on solid interviewing techniques to choose the right people.
Employment practitioners should therefore keep in mind that while applicant-tracking

systems can identify potential applicants, they cannot evaluate individuals in relation to
real-world challenges or replace human decision making.
With the above in mind, some of the various steps in the selection process, as
illustrated in figure 5.1, will be discussed in detail below.
52
PRELIMINARY INTERVIEW
!
REVIEWING APPLICATION FORMS AND REÂSUMEÂS

!
EMPLOYMENT TESTS
!
THE JOB INTERVIEW

!
BACKGROUND CHECKS
!
THE SELECTION DECISION

!
MEDICAL EXAMINATION
!
SELLING THE JOB TO THE APPLICANT

!
THE JOB OFFER
Figure 5.1: Steps in the selection process

Source: Adapted from Swanepoel, Erasmus, Van Wyk & Schenk, (2000:316)
Smit (1996b:151) writes: ``Various selection methods can be used. They can be applied
in isolation, but it is recommended that a combination be used, because each one has
its own weaknesses in addition to its strengths.''
It is advisable for each company to consider the cost-effectiveness of the various
selection methods before deciding on the final sequence of such methods.
The following are some of the selection methods that are available for employers to
use:
Ð Application forms
Ð Interviews
Ð Psychometric testing
Ð Assessment centres
Ð Medical examinations
Ð Reference checks
Let us look at each of these selection methods in more detail.
5.2.1 Application forms

The aim of the application form is to gather relevant biographical data and specific
information related to the requirements of the job.
An important requirement of all employment application forms is that they ask only for
53
information that is valid and fair with respect to the nature of the job. In the light of
Chapter 2 of the Constitution of 1996 (the Bill of Rights), the Labour Relations Act 66
of 1995 and the Employment Equity Act 55 of 1998, it is important to ensure that no
questions that could be considered discriminatory appear on the application form.
Questions about religion, age, gender or disabilities are no longer acceptable (Smit,
1996b:152).
The place of birth seldom has anything to do with ability to perform the job. Height
and weight requirements are often not adequate measures of physical strength,
although this is an inherent requirement for certain jobs. For example, air hostesses
have to be of a certain height and weight to be able to reach the overhead cabins inside
the plane and to be able to move with ease in the narrow space between the seats.
Smit (1996b:152) notes the following:
The application form can be used to decide whether the applicant meets the
minimum requirements of a position or not. This can be done only if these
minimum requirements have been well researched, and described in the job
specification. The strengths and weaknesses of different applicants can be
compared with the set requirements, and those applicants who deviate the most
from the requirements can be eliminated. Managers must be able to justify the
criteria used to eliminate applicants on the basis of information from the
application form.
According to Grobler et al. (2006:188±189), job applicants frequently use a curriculum

vitae (CV) to provide prospective employers with some background information.
Grobler et al. continue as follows:
While there are no hard and fast rules regarding the design of a CV, there are
some guidelines to follow. For example, the current address and telephone
number must be prominently located, as well as the opportunity desired. Also to
be shown are aspects related to: education, work experience, internships and
achievements.
Although future court decisions may alter the items that can lawfully appear on job
application forms, some of the items that can be included are as follows (Grober et al.,
2006:189):
Ð Applicant's name and surname
Ð Applicant's home/postal address and telephone number
Ð Applicant's educational background (if job-related)
Ð Applicant's work history, including dates of employment, salary progression, job
responsibility and duties and reasons for leaving
Ð Whether the applicant can meet special requirements, such as working irregular
hours or on weekends
Ð Applicant's special skills, abilities and training
Ð How the applicant heard about the position
Ð Membership of professional organisations (if job-related)
Ð Other current employment, either full-time or part-time
Cascio (2006:239) believes that at a pre-employment interview, after describing the

essential functions of a job, an employer may ask if there is any physical or mental
reason why the candidate cannot perform the essential functions.
54
According to Cascio (2006:239), the following questions should not be included on an
application form:
Ð Any question that might lead to an adverse impact on the employment of
members of groups protected under civil rights law
Ð Any question that cannot be proven as job-related or that does not concern a
bona fide occupational qualification
Ð Any question that could possibly be seen as an invasion of privacy
Activity 5.1
(a) Refer to the standard application form used in your organisation or which you
once completed. Which of the questions do not in any way relate to the
content of your own job and should not appear on the application form?
.............................................................
.............................................................
.............................................................
.............................................................
(b) Which of the questions you completed on the application form could be seen
as discriminatory? Why do you think they are discriminatory?
.............................................................
.............................................................
.............................................................
.............................................................
5.2.2 Interviews
A selection interview is a two-way process in which the candidate and interviewer(s)
exchange information that can be used to evaluate the suitability of the candidate to fill
the vacancy. It also provides the opportunity for the applicant to obtain information
about the job and the organisation (Smit, 1996b:153).
Although the interview can probably be regarded as the most common means of
selection, it remains a poor basis for employment decisions, as research has shown that
the selection interview is low in both reliability and validity. The interviewers' decisions
are influenced by factors such as first impressions, personal feelings about the kinds of
characteristics that lead to success on the job, and contrast effects.
Cascio (1998:221) explains contrast effects as follows:
Contrast effects describe a tendency among interviewers to evaluate a current
candidate's interview performance relative to those that immediately preceded
it. If a first candidate received a very positive evaluation and a second candidate is
just àverage', interviewers tend to evaluate the second candidate more
negatively than is deserved. The second candidate's performance is ``contrasted''
to that of the first.
55
According to Smit (1996b:153), the most common objections to interviews are the
following:
Ð Lack of interviewer training
Ð The fact that interview questions often are not related to the job content or
performance criteria
Ð Lack of structure in the interview
Ð Subjectivity of the whole process
One way to improve the interviewing process is to establish a specific system for
conducting the employment interview. According to Cascio (1998:222), the following
factors could be considered:
Ð Determine the requirements of the job through a job analysis that considers the
input of the incumbent with the inputs of the supervisor and the HR
representative.
Ð Focus on the competencies necessary for the job. Distinguish between entry-level
and full-performance competencies.
Ð Screen reÂ sumeÂ s and application forms by focusing on key words that match job
requirements, quantifiers that show whether applicants have these requirements,
and skills that might transfer from previous jobs to the new job.
Ð Develop interview questions that are based strictly on the job analysis results, use
open-ended questions, and use questions relevant to the individual's ability to
perform, motivation to do a good job and ability to be part of the organisation.
Ð Consider asking situational questions such as: ``What would you do if ...?'' With
these kinds of questions candidates are asked to describe how they think they
would respond in certain job-related situations. Alternatively, they could be asked
to provide detailed accounts of actual situations.
Ð Conduct the interview in a relaxed physical setting. Begin by putting the applicant
at ease with simple questions and general information about the organisation and
the position being filled. Take note of non-verbal cues, such as facial expressions.
Ð To evaluate applicants, develop a form containing a list of competencies weighted
for overall importance to the job, and evaluate each applicant relative to each
competency.
(a) Types of interviews

Interviews can be either structured or unstructured (Smit, 1996b:154±155):
Ð A structured interview is well planned in advance and the same questions are
asked of all applicants so that the interviewers have a basis for comparison.
Ð The unstructured interview is much less valid and reliable than the structured
interview, and could result in a hasty evaluation of the candidate.
Interviews can be classified into one-on-one interviews, group interviews and panel
interviews.
One-on-one interviews
This type of interview involves one interviewer interviewing one applicant in
preparation to making an employment decision. Smit (1996b:156) continues:
This is cost-effective because only one person needs to leave his or her work to
56
conduct selection interviews. However, it also places the interviewer in a position
where he or she can be accused of bias and nepotism. If the interviewer later
needed to justify his or her selection decision, it would be a case of the word of
the interviewer against the word of the applicant. The interviewer could also
make the wrong decision, and this could be costly for the organisation.
Group interview
One interviewer interviews a group of applicants, who have applied for a number of
similar vacancies, at the same time (Smit, 1996b:157). This could be useful where there is
no need for an intensive selection process, for example where a number of learners are
required to work at a big sports event, selling programmes and checking tickets.
Panel interview
A number of interviewers interview a single applicant. The panel usually consists of
people who are directly or indirectly involved with the relevant position. For example,
when there is a vacancy for an accountant, the interview panel could consist of the
human resource practitioner, the financial manager, a senior accountant and a trade
union representative.
57
It is important that all panel members receive the same training in interviewing skills
(Smit, 1996b:158).
(b) Types of questions

There are different ways of formulating interview questions. We'll look at three main
types: (a) narrow or closed questions, (b) open questions, and (c) multiple questions.
Narrow or closed questions

These questions are formulated in such a way that they require one specific answer
(Smit, 1996b:159).
For example: ``What is your favourite animal?''
Three variations of the closed question are the leading question, the yes/no question
and the limited choice question. These questions provide the applicant with an
opportunity to exercise a choice.
Ð An example of a leading question is: ``Do you still smoke?'' If you say ``yes'' you
acknowledge that you are still smoking; and if you say ``no'', it means that you
smoked in the past.
Ð An example of the yes/no question is: ``Did you have transport problems?'' The
candidate can only answer yes or no.
Ð An example of a limited choice question is: ``Do you travel to work by car or
by bus?'' This does not leave open the option of any other means of travel.
The advantage of such questions is that you get a specific answer to your question. The
disadvantage is that as an interviewer you have to provide all the information and do
not really obtain new information from the applicant. If you use only closed questions
in an interview, it could turn into an interrogation instead of a process of information
gathering.
Open-ended questions
These questions require explanatory answers and cannot possibly be answered with
``yes'' or ``no''.
For example: ``Please explain the process of binding a book.''
Or: ``How do you feel about the smoking policy of the country?''
The advantage of such questions is that you will obtain a lot of information from the
applicant. However, the applicant could provide you with irrelevant information and as
an interviewer you need to be well prepared to ensure that you obtain relevant
information.
Without going into too much detail, it is sufficient to note that there are many different
kinds of open questions, such as probe questions, reflective questions, summary
questions and comparative questions.
Multiple questions
This type of question entails more than one question in the same sentence.
58
For example: ``Do you prefer working alone or with a group of people, and would you
rather work in an open-plan office or in a traditional office with more privacy?''
It is hard to think of an advantage of this type of question! It could be very intimidating
to a nervous candidate who would not know which question to answer first.
Activity 5.2
The following are statements made by an interviewee during an interview. If you

wish to establish professional rapport, how would you, as the interviewer, reply to
each of the statements?
STATEMENT YOUR REPLY
1 `Ùnfortunately I am unemployed at
the moment because most organisa-
tions consider only affirmative action
applicants.''
2 `Ì was ... uh ... in jail for rape.''
3 `Ìt was a very embarrassing situa-
tion Ð being associated with a sexual
harassment case.''
4 `Ì really didn't steal the money, but I
decided to resign anyway.''
5 ``Because of my negligence, an explo-
sion at the workplace resulted in
damage to the amount of R5 000.''
6 `Ì did not get on with my boss and
therefore decided to resign.''
Activity 5.3
(a) List the three types of questions that you think could be asked during an interview.
.............................................................
.............................................................
.............................................................
.............................................................
(b) Provide two of your own examples of open-ended questions.

.............................................................
.............................................................
.............................................................
(c) Provide two of your own examples of closed questions.

.............................................................
.............................................................
.............................................................
59
(d) What, in your own view, are situational questions?
.............................................................
.............................................................
.............................................................
.............................................................
(e) Provide an example of a situational question.

.............................................................
.............................................................
.............................................................
.............................................................
Both line and staff managers often approach an interviewing situation not knowing
what to ask, but trying to sound intelligent because they have been told to participate.
They often come to interviews unprepared because they do not know what or how to
prepare. This dilemma can be solved if the line manager and the human resource
practitioner co-operate and if managers are provided with sufficient training.
Another very important factor is that an interviewer is there to listen to answers as much
as to ask questions. Good listening skills are discussed in study unit 18 in this study guide.
5.2.3 Pre-employment testing

Grobler et al. (2006:189) write: ``The use of testing during the selection process has
had periods of growth and periods of decline. Some tests were not reliable and others
were found not to predict employee job performance accurately.'' The most serious
pitfall in the past was that most tests were used without proper consideration of their
psychometric properties, such as validity and reliability.
Today, employers need to be ultra-conscious regarding the use of psychometric tests,
especially if they have to make hiring decisions. There are serious legal implications for the
use of such tests in making employment decisions. In terms of Chapter 2 of the
Employment Equity Act 55 of 1998 (section 8), psychological testing and other similar
assessments of an employee are prohibited unless the test or the assessment being used:
Ð has been scientifically shown to be valid and reliable
Ð can be applied fairly to all employees
Ð is not biased against any employee or group
There are a number of psychological tests available in South Africa. These tests are
classified into the following categories:
Ð Intelligence tests
Ð Personality tests
Ð Aptitude tests
Ð Interest tests
These tests are classified as A-level, B-level or C-level tests by the Test Commission.
60
A-level tests may be administered by a psychotechnician.
According to the Health Professions Council of South Africa, the registration of
psychotechnicians is closed and there shall be no more additions to it, but those already
on this register will remain on it.
B-level tests may be administered by a psychometrist and registered counsellors.
The Health Professions Council of South Africa (HPCSA, s.a.) has indicated that as from
1 January 2006 persons with academic honours degrees in psychology will not be able
to register as psychometrists with the Board. The last Board Examination for
psychometrists with an academic honours degree in psychology was conducted in
October 2005.
The requirements for registration as a psychometrist as from 1 January 2006 are as
follows (HPCSA, s.a.):
(i) Successful completion of a four-year degree in psychology that is accredited by
the Board for registration as a psychometrist (e.g. B Psych degree or an honours
degree that has been accredited by the Board as an equivalent to the B Psych
degree). The B Psych degree or equivalent degree is based on outcomes.
(ii) Successful completion of a period of 6 months (full-time) approved practicum.
The practicum forms part of the accredited 4-year degree in psychology, and
universities are responsible for the placement and oversight of the practicum.
(iii) Successful completion of the National Examination of the Board. Candidates are
required to obtain a minimum of 70% in the examination. This examination will be
conducted on the first Wednesday of February, June and October of each year.
Psychometrists have to register within two years of completion of the academic and
practical requirements for registration.
The requirements for registration as a Registered Counsellor are as follows (HPCSA, s.a.):
(i) Successful completion of a 4-year degree in psychology that is accredited by the
Board for registration as a registered counsellor (e.g. B Psych degree or an
honours degree that is based on outcomes and has been accredited by the Board
as equivalent to a B Psych degree).
(ii) Successful completion of an approved internship of 6 months' duration in the
designated practice area. The internship forms part of the accredited 4-year
degree in psychology, and universities are responsible for the placement and
oversight of the internships. The six months' internship included in the B Psych
must be done under supervision of a registered psychologist according to the
requirements for supervision, as determined by the Professional Board. This
internship may occur from the third year of the degree and shall be not less than
two months in any given setting. The internship may also occur after completion
of the degree.
(iii) Successful completion of the National Examination of the Board. Candidates are
required to obtain a minimum of 70% in the examination. This examination will be
conducted on the first Wednesday of February, June and October of each year.
C-level tests may be administered only by a psychologist.

The requirements for registration as a psychologist are as follows (HPCSA, s.a.):
61
Ð An accredited masters degree in the of the following registration categories:
. Clinical psychology
. Counselling psychology
. Educational psychology
. Industrial psychology
. Research psychology
Ð Successful completion of an approved internship of 12 months' duration.

Ð Successful completion of the National Examination of the Board. Candidates are
required to obtain a minimum of 70% in the examination.
This examination will be conducted on the first Wednesday of February, June and
October of each year.
According to the Health Professions Act 56 of 1974, only a registered psychologist is
allowed to interpret psychometric test results and convey the test results to the testees
and the interviewers. The reason for this is that the information obtained by means of the
tests is sensitive, and a large amount and depth of training is required to understand and
convey the test results in an understandable, sensitive and responsible manner.
The selection of the psychometric tests to be used during the selection process is, in
terms of the Health Professions Act 56 of 1974, the domain of the registered
psychologist. The psychologist, particularly the industrial psychologist, has an under-
standing of what the job entails and what type of person the organisation is looking for.
Psychologists also have expert knowledge regarding the attributes of psychometric
tests and can thus make an informed decision about test materials to be used in the
selection process.
The line manager can obtain information on psychometric test results from the
psychologist involved. However, the line manager also has a duty to respect the privacy
of testees and must co-operate fully with the psychologist in this matter.
Activity 5.4
(a) Are there facilities in your organisation for psychometric evaluation of

applicants?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) If so, do you use these facilities as an additional source of information about
applicants?
.............................................................
.............................................................
.............................................................
62
.............................................................
.............................................................
5.2.4 Assessment centres

Assessment centres are based on the same principles as structured interviews. The
assessment centre method, according to Cascio (2006:259), is a process that evaluates
a candidate's potential for management on the basis of three sources:
Ð Multiple assessment techniques, such as situational tests, tests of mental abilities,
and interest inventories
Ð Standardised methods of making inferences from such techniques because
assessors are trained to distinguish between effective and ineffective behaviour by
the candidates
Ð Pooled judgements from multiple assessors to rate each candidate's behaviour
Assessment centre exercises consist of the following (Smit, 1996b:171±172):

Ð The in-basket. This exercise consists of a number of documents that are similar
to what the employee would be required to deal with in his or her job. The person
is given some background about the situation and must respond in writing to the
correspondence. Afterwards the candidates are questioned about the reasoning
behind their written responses to get an indication of their thought processes.
Ð Leaderless group discussions. These discussions are designed to test the
managerial attributes such as assertiveness, problem-solving ability or commu-
nication that are involved in small-group problem-solving. No leader is appointed,
each group member is asked to play a certain managerial role related to the
problem. The assessors observe the group interaction and record the behaviour of
each group member for later analysis.
Ð Problem-solving case studies. These case studies require intensive reason-
ing, problem-solving and decision-making skills. The candidate is expected to
make a formal presentation on the results of a case study so that his or her
presentation skills can be observed.
Assessment centre exercise

!
In-basket exercise Problem-solving case

studies
!
Leaderless group
discussions
Activity 5.5
(a) Discuss the basis on which you think assessment centres measure a candidate's
potential for management.
.............................................................
63
.............................................................
.............................................................
.............................................................
.............................................................
(b) Explain the three most common assessment centre exercises that you may
know or have heard of.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
5.2.5 Reference checks

In recent years, thoroughly checking prospective employees has become increasingly
necessary and a cost-effective means of screening out undesirable applicants (Grobler
et al., 2006:196). Reference checks and recommendations are commonly used to
obtain information from the applicant's previous employers.
Four kinds of information can be obtained this way:
Ð Education and employment history
Ð Character and interpersonal competence
Ð Ability to perform the job
Ð Willingness of the previous or current employer to rehire the applicant
A recommendation will only be worthwhile if the person providing it has had adequate
opportunity to observe the applicant in job-relevant situations and is competent to
evaluate the applicant's performance.
When doing a reference check, the following should be considered:
Ð A reference check may be done only with the candidate's permission.
Ð Only job-related information should be requested. Questions about the
candidate's personality must be avoided.
Ð The reference must be obtained from a previous supervisor or manager.
Ð The information obtained should be validated by information obtained from other
selection methods as well.
When you are asked to provide information, take the following into account:
Ð The employee must give consent prior to providing the information.
Ð A written record of all released information should be kept.
Ð Avoid subjective statements, such as ``she is careless''. Be specific Ð rather provide
specific reasons.
Ð Only the following general types of information may be released: dates of
employment, job titles during employment, time in each position, promotions,
demotions, attendance record, salary and reason for termination.
64
As a line manager, you could either obtain these references yourself, or obtain the
information as a service from the human resource practitioner. In both cases, ensure
that the reference is based on a list of specific questions.
References could be obtained by means of a testimonial or an interview. Testimonials
with negative references simply do not exist. For this reason, testimonials should be
regarded with caution and key aspects of previous history should always be verified.
References obtained by means of an interview (either in person or by telephone) are
more reliable, provided they are based on specific, work-related questions and are
obtained by a skilled interviewer.
Activity 5.6
Read the following paragraphs and then answer the questions.
PLEASE TELL ME
You heard a long and uncomfortable pause on the other end of the phone line. You
understood the hesitation. You were, after all, seeking a vital piece of information from
someone you had never met. It wasn't as if you were a private eye or investigator
reporting a controversial story, though. You merely wanted a reference for a job
applicant named Ben who was seeking a mid-level accounting position. From the
hemming and hawing, you could tell that Ben's former supervisor, Donald, wished he
hadn't picked up the phone.
`Ì am really sorry,'' Donald said. `Ì can't tell you anything more than his job title and
dates of employment. Company policy.''
You understood and verified that Ben had been a staff accountant from May 2001 to
June 2006. Before you let Donald go, you asked if he would answer just one more
thing.
`Òkay,'' Donald replied.
``This is an important job, and it would really help me out if you could just give me an
indication of Ben's work performance. If you were going to rate what kind of employee
he was on a scale of 1 to 10, would you give him an 8, 9 or 10?''
Donald thought for a moment and said, ``No doubt. He was a 9.'' Without prompting,
Donald gave a couple of reasons for the high rating. Within a few minutes, the two of
you were chatting like old friends.
Source: Adapted from Mullich, 2003
Required
(a) What does Donald mean by ``company policy'' and why do organisations have
policies in respect of the giving of references?
(b) Why was Donald, after his initial reluctance to provide information, so co-
operative in giving a reference?
(c) Develop a background check form for a person seeking a job as a sales
representative.
(d) What type of questions would you ask an applicant's:
Ð supervisor
Ð colleague
Ð neighbour
65
Activity 5.7
(a) If you, as a line manager, are requested to provide reference information, what
guidelines would you follow to ensure that you are fair with regard to the
applicant?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) List the kinds of information about a job applicant that you think can be
provided by a reference check.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
Even though references are not the most reliable source of information about a
prospective candidate, `èmployers can be held liable for negligent hiring if they fail to
check closely enough on a prospective employee who then commits a crime in the
course of performing his or her job duties. The employer becomes liable if it knew, or
should have known, about the applicant's unfitness to perform the job in question''
(Cascio, 2006:242).
5.2.6 Medical examinations

After a decision has been made to extend the job offer, then follows a physical
examination. In terms of the Employment Equity Act 55 of 1998, sections 7(1) (a) and
(b), 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.
Section 7(2) states:

Testing of an employee to determine that employee's HIV status is prohibited unless
such testing is determined justifiable by the Labour Court in terms of section 50(4)
of this Act.
Section 50(4) states:

If the Labour Court declares that the medical testing of an employee as
66
contemplated in section 7 is justifiable, the Court may make any order that it
considers appropriate in the circumstances, including imposing conditions relating
to Ð
a. the provision of counselling;
b. the maintenance of confidentiality;
c. the period during which the authorisation for any testing applies; and
d. the category or categories of jobs or employees in respect of which the
authorisation for testing applies.
The word `èmployee'' signifies also an applicant for employment, and consequently
pre-employment medical and HIV testing is prohibited unless the above conditions are
met.
Medical testing is defined in the Employment Equity Act 55 of 1998 as `àny test,
question, inquiry or other means designed to ascertain, or which has the effect of
enabling the employer to ascertain, whether an employee has any medical condition''.
For example, if the medical examination reveals that an applicant has cancer, the
employer cannot use that information to the disadvantage of an applicant, because the
information has nothing to do with the job requirements. Smit (1996b:172) provides a
further example: `Ìf the medical examination reveals that the applicant is HIV positive
or an AIDS sufferer, the examining doctor will be breaching confidentiality if he or she
discloses this information on the medical form, and the employment officer will not be
allowed to consider this type of information in the employment decision.''
If medical testing is approved in terms of the above situation, such information is
confidential and should be used in such a way that the dignity of the applicant is
preserved.
Smit (1996b:173) states that ``before applicants are referred for medical examinations,
the relevance of the information that is obtained and the expense of such examinations
must be considered''.
Grobler, et al. (2006:198) write:
Thus, should such a test be allowed under the conditions mentioned above, the
process will normally consist of a health check list that asks the applicant to
indicate health information. If the answers provided cause any doubt about the
candidate's overall fitness, it will be supplemented with a physical examination by
a physician or company nurse. Physical examination can also include drug and
alcohol testing.
Read the Constitutional Court judgment below:
Mr Hoffmann v South African Airways (2000) CCT 17/00

This matter dealt with the practice of SAA of refusing employment, as cabin attendants, people who
are living with HIV.
Mr Hoffmann was at the date of his application and is, living with HIV. He was refused employment as
a cabin attendant by SAA because of his HIV positive status. Mr Hoffmann unsuccessfully challenged
the constitutionality of the refusal to employ him, in the Witwatersrand High Court.
SAA conceded in the proceedings that (a) it's employment practice of refusing to employ people as
cabin attendants because they are living with HIV cannot be justified on medical grounds and (b)
therefore, its refusal to consider employing the appellant because he was living with HIV was unfair.
67
SAA had argued that its flight crew had to be fit for world-wide duty which meant that they would
have to fly to yellow fever endemic countries. To fly to these countries they must be vaccinated against
yellow fever. Persons who are HIV positive may react negatively to this vaccine and may therefore not
take it. If they do not take it however, they run the risk not only of contracting yellow fever but also of
transmitting it to others, including passengers.
Medical evidence was placed before the court that showed that only those persons whose HIV
infection had reached the immunosuppression stage and whose CD4+ count had dropped below 300
cells per microlitre of blood were prone to the medical, safety and operational hazards asserted. The
court therefore found that the assertions made by SAA were not only true of all persons who are HIV
positive, but they were not true of Mr Hoffmann.
The court declined to comment on a request by SAA to express an opinion on its policy of testing
applicants for HIV, and thereafter of refusing employment if the infection has progressed to such a
stage that the person has become unsuitable for employment as a cabin attendant. The court declined
on the basis that (a) the policy was not in issue in the High Court and should therefore not be in issue
at the Constitutional Court and (b) the question of testing in order to determine suitability for
employment is governed by section 7(2) read with section 54(4) of the Employment Equity Act. (The
Employment Equity Act states that pre-employment testing for HIV is prohibited unless authorisation
is obtained from the Labour Court.)
The court concluded that the refusal by SAA to employ Mr Hoffmann as a cabin attendant because he
was HIV positive violated his right to equality guaranteed by section 9 of the constitution (the equality
clause).
The court ordered SAA to offer to employ Mr Hoffmann as a cabin attendant; provided that should Mr
Hoffmann fail to accept the offer within 30 days of the date of the offer, the order would lapse. The
court stated that ``legitimate commercial requirements are, of course, an important consideration in
determining whether to employ an individual. However, we must guard against allowing stereotyping
and prejudice to creep in under the guise of commercial interests. The greater interests of society
require the recognition of the inherent dignity of every human being, and the elimination of all forms
of discrimination. Our Constitution protects the weak, the marginalised, the socially outcast, and the
victims of prejudice and stereotyping. It is only when these groups are protected that we can be
secured that our own rights are protected.''
Having found that the denial of employment to Mr Hoffmann because he was living with HIV impaired
his dignity and constituted unfair discrimination, the court stated that it was unnecessary to consider
whether Mr Hoffmann was discriminated against on a listed ground of disability, as set out in section
9(3) of the Constitution.
Activity 5.8
(a) Define `èmployee'' in terms of the Employment Equity Act of 1998.

............................................................
............................................................
............................................................
............................................................
.............................................................
(b) When do you think medical testing of an employee can be legally allowed?
.............................................................
.............................................................
.............................................................
68
.............................................................
.............................................................
(c) Provide an example of a job you know for which medical testing would be
allowed. Substantiate your answer.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
Activity 5.9
Read the case study below and then answer the questions.
SORRY NURSE, NO JOB FOR YOU!

You are a qualified nurse who applied for a nursing position at the Medpark Hospital.
You completed the whole selection process in which your qualifications were assessed
and the requirements of the job were explained to you. Your work will entail
medicating the patients, attending to any open wounds, small surgical procedures and
other general functions that are within a nurse's reasonable capacity.
After numerous interviews and reference checks, the hospital is satisfied that you have
the required qualifications and experience to take up the available post. However,
before employing you, the hospital requests that you take a routine blood test to
determine whether you have any contagious illness or disease, such as Hepatitis B,
which you could pass on to your patients when coming into contact with their bodily
excretions (such as blood or saliva).
You refuse to take the medical test. You demand to be granted your constitutional right
to privacy. The hospital insists that the blood test is routine and that it is an inherent
requirement of the job that you should be free of any contagious disease that could be
passed on to your patients.
Required:
(a) Does the hospital have the right to insist that you should undergo the blood
test?
(b) On what grounds can the hospital prove that the test is justifiable?
(c) If you refuse to take the test, can the hospital discriminate against you by not
employing you?
5.2.7 Security clearance

There are certain positions which require security clearance. These positions include
those of police officer, security officer and metallurgical operator on a gold mine. This
security clearance is obtained from the South African Criminal Record Centre. The line
69
manager can obtain this information with the assistance of the human resource
practitioner, but only if it is relevant to the contents of the job for which the selection is
done.
5.3 Record keeping

Grobler et al. (2006:199) state as follows:
In view of the Employment Equity Act and the Labour Relations Act it has
become necessary for companies to keep a complete set of records pertaining to
the recruitment and selection of staff. This is especially important should a
company have to prove that it did not discriminate against an individual. It is
recommended that documents from every step in the process be kept Ð from
copies of advertisements and contracts with employment agencies, to CVs and
final decisions to hire or reject.
5.4 Selection procedure

After discussing all the different selection methods, we can summarise the steps of the
whole selection process as follows (Smit, 1996b:176):
Steps in the selection process
Ð Examine and evaluate all application forms and CVs.
Ð Decide which selection methods to use.
Ð Draw up a shortlist of applicants who appear suitable by comparing available
information on applicants with the job specifications.
Ð Invite candidates on the shortlist for selection.
Ð Schedule the candidates for the various selection methods.
Ð Integrate and discuss the selection results for each candidate with all the people
involved in the selection process, and decide on the suitability of each candidate.
Ð Negotiate with the successful candidate concerning conditions of service.
5.5 Selection and the law

Grobler et al. (2006:183) have highlighted the critical importance of the selection
process in South Africa in view of the implementation of the Employment Equity Act
55 of 1998:
All forms of discrimination, whether direct or indirect, are forbidden. Direct
discrimination would be where, on racial grounds, a person is treated less
favourably than others are, or would be, treated under the same or similar
circumstances. Indirect discrimination consists of applying a requirement or
condition that, although applied equally to persons of all racial groups, is such
that a considerably smaller portion of a particular racial group can comply with it
and that cannot be justifiable on other than racial grounds.
Section 6 (2) of the Employment Equity Act 55 of 1998 states:

It is not unfair discrimination to Ð
70
(a) take affirmative action measures consistent with the purpose of this Act; or
(b) distinguish, exclude or prefer any person on the basis of an inherent
requirement of a job.
However, the Act categorically states that an employer is not required to appoint
people who are not ``suitably qualified'' for the job. To assist employers in this regard,
section 20 (3) to (5) of the Act defines the term ``suitably qualified'' as follows:
20 (3) ... a person may be suitably qualified for a job as a result of any one of, or
any combination of that person's Ð
(a) formal qualifications;
(b) prior learning;
(c) relevant experience; or
(d) capacity to acquire, within a reasonable time, the ability to do the job.
20 (4) When determining whether a person is suitably qualified for a job, an

employer must Ð
(a) review all the factors listed in subsection (3); and
(b) determine whether that person has the ability to do the job in terms of
any one of, or any combination of those factors.
20 (5) In making a determination under subsection (4), an employer may not

unfairly discriminate against a person solely on the grounds of that person's
lack of relevant experience.
It is clear that any one of the factors mentioned above may amount to the person
being more suitably qualified.
Activity 5.10
Indicate whether the following statements are TRUE or FALSE.
STATEMENT TRUE FALSE

1 Selection decisions are based on predictions.
2 Selection interviews are the most valid predictors of
success on the job.
3 The most important purpose of the interview is to get to
know the applicant.
4 Primacy effects enable interviewers to evaluate intervie-
wees in an objective way.
5 Interviewees should ask about conditions of employment
when given the opportunity to ask questions.
6 Qualifications and experience do not influence the selec-
tion decision.
7 Interviewers are more impressed by the manner in which
an applicant responds than the content of his or her reply.
8 Interviewers should refer to the job description and the job
specification when making selection decisions.
71
Were you able to answer these questions? Compare your answers with the
following answers:
1 True 5 False
2 False 6 False
3 False 7 True
4 False 8 True
Activity 5.11
Now that you are familiar with the different steps in the selection process, complete
the following table:
STEPS IN THE SELECTION PROCESS PURPOSE OF THE STEP

Application form
Interview
Pre-employment testing
Reference checking
Medical examination
5.6 Recruitment and selection in practice

This section introduces you to the most transparent way of handling the employment
process, which most corporations in South Africa prefer. The focus is on the technique
of advertising, but this does not mean that other methods of recruitment are less
important. The value of the recruitment technique a company chooses depends on the
time limit and urgency to fill the vacant post, the financial position, the image as well as
the corporate philosophy of each company.
In some cases, the issue of transparency and a move to accelerate transformation also
play a big role in which technique to use. Assuming that the company you work for
intends to fill a vacancy and chooses advertising as a recruitment technique, the
process is likely to unfold in the way outlined below:
A Beginning the recruitment and selection process
Ð Advertising
Ð Receiving and acknowledging applications
Ð Scrutinising CVs or applications
Ð Preparing interview questions and information for candidates
Ð Developing a shortlist
Ð Setting up appointments
Ð Arranging the interview environment
B Conducting the interview
Ð Establishing rapport
Ð Outlining interview expectations
72
Ð Conducting background discussion
Ð Conducting the competency interview
Ð Closing the interview
C Post-interview actions
Ð Evaluating and rating the interview
Ð Integrating and selecting data
Ð Checking references
Ð Offering employment
Ð Advising unsuccessful candidates
Let's look at each phase.
A Beginning the recruitment and selection process

Advertising
Recruitment advertising should be placed in media which will result in a broadly
inclusive response. This is particularly challenging when one is recruiting people whose
literacy skills are limited.
The recruitment advertisement should be clear about essential information such as:
Ð the nature of the organisation Ð size, organisational culture, nature of ``business''
Ð the key aspects of the job and its major success criteria
Ð the key selection criteria
Ð major aspects of the conditions and benefits of service
The more accurate and informative the recruitment advertisement, the more
accurately people can assess their suitability for the job. This increases interest among
potentially suitable candidates and serves as a valuable, time-saving screening
mechanism to discourage entirely unsuitable applicants.
Receiving and acknowledging applications

All applications should be acknowledged as soon after receipt as possible. The
tendency these days is to incorporate a sentence such as this at the bottom of an
advertisement: ``Should you not hear from us within 3 months after the due date,
assume that your application is not successful.'' The legal implications of this practice
for job applicants are yet to be determined.
If the process of shortlisting for selection is sufficiently quick and efficient, feedback in
this connection can be given to applicants when their applications are acknowledged.
Be sure that you have either a telephone number or an address for each applicant.
Scrutinising CVs or applications

This is one of the more important steps in the whole process and acts as a first and
early filtering system in identifying appropriate candidates to pursue the selection
73
process. Clearly you will have a job analysis or description of the requirements of the
job and you will use this as a basis for including suitable applicants to pursue the
selection process.
Things to remember are the following:
Ð Subjectivity: Avoid subjectivity in selecting applicants i.e. on the basis of untidy
handwriting, not including photographs, etc.
Ð Personal prejudices and preferences: All people have personal preferences and
prejudices, and everyone uses stereotypes to classify and simplify the information
overload with which the senses would otherwise flood consciousness. In the
context of recruitment and selection for appointments, the aim is not to attempt
to rid ourselves of our natural biases, but to ensure that they do not unfairly
exclude potentially competent candidates or create unfair advantage for
potentially incompetent ones.
What to look for:

Ð Look for relevant experience, qualifications and further training.
Ð The right questions: Examine the track record of the applicant and develop
questions around that Ð e.g. if the applicant has had several jobs in a short period
of time, what has been the cause of this?
Ð Omissions: Is anything left out, and what would be the reasons for that?
Ð Traditions and assumptions: Traditionally, appointments have followed certain
patterns of gender and racial preference. Assumptions have also commonly been
made about the relevance of formal schooling for some jobs.
The law:
Many of the traditional bases of selection are illegal in terms of the anti-discriminatory
and anti-discriminatory clauses of the Constitution. Others are likely to fall foul of new
labour legislation and possible affirmative action legislation. In addition, the law lays
down certain procedural requirements which affect recruitment and selection of staff.
Preparing interview questions and information for candidates

Your scrutiny of the CV and familiarity with the job requirements will result in your
having queries (not identical for each candidate) about candidates' background and
also about their skills, abilities and competencies relative to the job for which you are
interviewing. You should have a list of ``starter questions'' prepared for each interview.
In addition, list questions which would help elicit the required information during the
interview, and perhaps also devise role plays to illustrate the required behaviour. A
large part of the potential success of the job interview lies in the quality of the
preparation for it.
Applicants will also need information from you, so prepare for this part of the interview
as thoroughly as you prepare to explore their background and skills.
Developing a shortlist
To facilitate this process it is helpful to prioritise selection criteria, so that candidates
meeting the most important requirements of the job have priority over others less
74
suitable. This part of the process is merely intended to set up a list of names you have
obtained from the CVs and applications which on paper seem to fit the requirements
of the position best. You may decide to limit your number of likely candidates.
Ð Be sure to have either an address or a telephone number for each applicant.

Ð Send letters of regret to job applicants who very clearly do not match what you
are looking and will not be considered for the position.
Setting up appointments
You are now ready to set up appointments and start interviewing the job applicants.
This is going to be your first contact with the applicant and it can tell both you and the
job applicant a lot about one another. But be wary of delegating this to someone else
who may not have the same understanding as you of what is required and what the
applicant will be expected to do.
Sometimes it is very difficult to make the contact telephonically, and therefore sending
a letter or telegram is the next best option. Rather than specifying that the applicant
should report for a job interview, it is better to ask the applicants to make contact with
you, providing them with an appropriate telephone number.
Other points to remember are the following:

Ð Make sure that you speak to the applicant directly.
Ð Should the applicant not be available, avoid giving the name of your organisation.
Ð Do not reveal to other people that the applicant is coming for a job interview.
Ð Once you speak directly to the applicant, mention who you are and which
organisation you are from, and enquire if it is convenient to speak to them at that
time. Often it will be very difficult to speak freely, as he or she will have other
colleagues or superiors in the near vicinity.
Ð Be sure that the applicant has a clear understanding of the date, time and venue
for the interview.
Ð Make sure that the applicants know how to locate the venue when presenting
themselves for the interview.
Ð Give them an indication of how long the interview will take.
Arranging the interview environment

Make sure that you have a venue available where you can interview the applicants. The
job applicants will be required to reveal quite a lot about themselves to you, and while
they probably will not have too much difficulty with this, they will be distinctly
uncomfortable if it is not in an environment where privacy and confidentiality can be
ensured.
Ð Avoid conducting the interview in an open plan environment.
Ð Make sure that you are free from interruptions Ð i.e. no telephone calls, people
coming in to the office to make enquiries, etc.
Ð Have the office setting arranged in such a way that the job applicant will not be
intimidated.
75
B Conducting the interview
The interview is a discussion with the purpose of discovering whether there is a good
match between the requirements of a particular job and the abilities and aspirations of
a particular individual. And, if there are a number of people interested in the job
opportunity, the interview also seeks to establish which of them is best suited to the
particular position in the circumstances prevailing at the time.
While it is clearly preferable to have more than one person seeing a job applicant, in
some instances this is not possible as it can be a fairly expensive process to pursue.
Establishing rapport
First impressions, whether we like it or not, do play a role in how people behave. As the
interviewer, you control and dictate the process to a large extent. You also have the
responsibility of making sure that every job applicant has an equal and fair chance of
being considered for the position. In establishing rapport, the following will help:
Ð Make eye contact
Ð Be friendly and responsive
Ð Avoid distractions or doing things which make the applicants feel that their
presence is a hindrance
Ð Engage in ``small talk'', i.e. whether they found the venue for the interview all right,
what the weather is like, or what other current events are on
Outlining interview expectations

After all of this, set the scene for what the applicant can expect in the interview and
roughly how long it will take. This could include:
Ð a brief discussion of the applicant's background
Ð more specific questions focusing on the applicant personally
Ð discussion of the position
Ð answering any questions the applicant may have
Ð closure
Conducting background discussion

This enables you to examine the applicant's work history and other experience and
qualifications in order to gain a better understanding of what he or she has to offer. Be
sure to have thoroughly prepared yourself prior to the interview by reading each
applicant's CV and preparing questions which you want to ask during the interview. It
creates an exceedingly poor impression if an interviewer is not familiar with the content
of an applicant's CV or application, or stumbles around looking for the right questions
to ask, or asks questions in a rote way from a list.
The background discussion should not take more than between 20 and 25% of the
total time allocated to the interview. Things to cover in the background discussion are
the following:
Ð The chronology of the applicants' previous jobs
Ð The training that they have experienced
76
Ð Specific detail of job responsibilities for each of the applicant's previous positions,
including limits of authority and responsibility and standards of performance if
these were specified
Ð Reasons for leaving the previous positions
Ð Their motivation for applying for the current position
Ð Their reasons for wanting to work for the particular organisation
Ð What their remuneration expectations are
Make a note during the background discussion of areas you want to explore further to
get information on the applicant's particular abilities or competencies in job-related
fields. Also make a note of any queries that you may wish to explore during the
reference checking phase of the selection process.
Conducting the competency interview

This is the heart of the interview process and focuses specifically on competencies and
behaviour, thereby ensuring that the selection process is a fair one, whereby people are
selected on the basis what they are able to do.
Exploring skills, abilities and competencies

Two major aspects are necessary for this phase of the selection process:
Ð A clearly defined concept of the skills, abilities and competencies which are
relevant to the job
Ð Effective methods of eliciting information and observing behaviour which
demonstrates the skills, abilities and competencies required
When asking competency-based questions, you must specifically focus on the forms of
behaviour and what the applicant has actually done.
Guidelines for asking competency-based questions

Ð Be familiar with each competency and its definition.
Ð Avoid asking leading questions.
Ð Keep questions brief, clear and simple.
Ð Avoid accepting information from applicants at face value; ask follow-up questions
and probe their responses further.
Ð Make sure that you receive responses about what the job applicant has actually
done personally (i.e. behaviour).
Ð Avoid eliciting theoretical answers, opinions, etc.
Ð Each competency can be dealt with by asking several questions rather than a
single one.
Ð Be sure that you have a good understanding of what the applicant is saying, and
when things are unclear, test your own understanding of the input.
Closing the interview

Both you and the applicant have to make a decision about the position to be filled.
Once you have obtained the information you need for your decision from exploring the
77
applicant's background and ability to function according to the competencies the job
requires, you need to provide any information the applicant may need to decide
whether he or she still wants the job.
Your organisation may want to provide any of the following items to help attract top
candidates for positions:
Ð Copy of the job description
Ð Annual report
Ð Recent press releases that say positive things about the organisation
Ð Copy of a recent in-house newsletter or other employee communications
document
Ð Summary of company benefits and conditions of employment
Ð Information on the local communities, housing, etc. (for people changing location)
For applicants to be able to make informed decisions about accepting the job if it is
offered to them, you need to give adequate information about the organisation (its
function, mission and organisational culture) and the significance of the job within it.
Inaccurate information at this phase in the interview can very easily result in expensive
labour turnover as applicants form inaccurate impressions of the nature of the
opportunity being offered. It is also important to keep this phase of the discussion to
the point, so pre-prepared notes are a good idea.
In the closure phase there are at least three key components which need to be covered.
These are:
1. discussion of the job as well as the organisation
2. clarification of expectations
3. discussion of concerns
1. Discussion of the job as well as the organisation

Here you need to discuss what the job requirements are of the position that the
applicant has applied for, explaining exactly what the job is all about, discussing the
positives as well as the negatives of the position. A discussion of the organisation is also
important.
2. Clarification of expectations
This provides you with an opportunity to explain the process that will be followed from
here onwards. You will indicate to the job applicant what still needs to be done before a
final answer can be given, i.e. the expected time by which you will be in a position to
make a decision. This will enable you to check out whether it fits with the applicant's
expectations as well.
3. Discussion of concerns
This is a closing stage which not only enables you to provide an end to the interview
but also allows you to give the job applicant an opportunity to express any concerns
which he or she may have, either about the interview or about his or her candidacy for
the position. One could use questions like the following:
78
Ð `Ìs there anything that you are uncertain about or anything that worries you about
the interview we have had?''
Ð `Ìs there anything that we have not yet covered during the interview but which
you feel is important for me to know about?''
C Post-interview actions
Evaluating and rating the interview
The interview with each application is evaluated and each competency is rated on a 5-
point scale. The rating scale is as follows:
5 = Excellent/outstanding
4 = Good
3 = Adequate for the position
2 = In need of some development
1 = Requires considerable development
Each competency is rated utilising the above scale, and the assessment of an applicant
would look something like the following:
Ratings of job applicants

Competencies John
Judgement 1
Self-confidence 3
Building rapport 3
Teamwork 2
Sales ability 1
Process operation 1
Performance under pressure 1
Action orientation 1
Integrity 3
Ability to learn 2
Total of competencies which are adequate 3
Integrating and selecting data

Once you have interviewed all the candidates, you will need to select the one that is
most suitable for the position. You would now insert all the job applicants' ratings on to
a grid, which would enable you to identify the most suitable job applicant.

Competencies John Mary Peter Susan
Judgement 1 3 3 2
Self-confidence 3 2 2 3
Building rapport 3 4 1 3
Teamwork 2 4 1 4
79
Competencies John Mary Peter Susan
Sales ability 1 1 4 3
Process operation 1 4 2 3
Performance under pressure 1 5 3 2
Action orientation 1 4 3 3
Integrity 3 4 2 3
Ability to learn 2 3 1 1
Total of competencies which are adequate 3 8 4 7
Checking references
This part of the selection process is often ignored or done poorly, and yet it can be the
single most important aid to your decision making. You will have obtained references
from the job applicants either from their CVs or during your interviews with them. A
number of suggestions pertaining to reference checking are as follows:
Ð Unless you obtain permission from the job applicant, do not do a reference check
with an existing employer.
Ð Prepare your reference check queries as thoroughly as you prepared for the
interview.
Ð On contacting the relevant person, first indicate the purpose of your telephone call
and then secondly enquire whether it is convenient for such a discussion to take
place. Alternatively, offer to call at a time which would be appropriate for such a
discussion. Normally reference checks take about 15 to 20 minutes at most over
the telephone.
Ð Begin with a few basic, non-threatening, standard questions, such as: So-and-so
worked for you, didn't she/he? From when until when was that? What was his/her
job? What were the main responsibilities?
Ð Some organisations believe in written reference checking. While this may have
some utility, the usefulness for decision making purposes is rather questionable.
Furthermore, it is a tedious task, often delegated to some clerk to do. The only
valid information gained from a written reference check is that regarding the
period of a person's employment and, if you are lucky, their salary and the
circumstances of their resignation.
Ð To get meaningful information from a reference check, focus on the incidents
which the applicant would have told you about during the interview to confirm or
disagree with the information which you have.
Ð To get even more meaningful information from a reference check, focus on the
skills and competencies you are looking for in the applicant. Your reference should
be someone who was/is close enough to the applicant to be able to confirm or
disagree with the information you obtained in the interview.
Ð The usual last question asked of a referee is still useful: `Ìf you had a vacancy in
your organisation, would you appoint this person or not, and why?''
No offer of employment should even be considered before reference checking has

been completed.
80
Offering employment
As soon as you have made a decision to appoint someone, you need to contact the
applicant as soon as possible to make the offer of employment. This you would
generally do over the telephone, and as a last resort you would do it by letter. Further
meetings may be necessary to finalise salary details, starting date, etc. As soon as all
relevant issue are agreed, a letter of appointment or written contract of employment is
essential to good human resource practice.
Advising unsuccessful candidates

Many organisations are inexcusably lax about advising unsuccessful candidates that
they have not got the job. It is never pleasant to have to disappoint people by telling
them that their application has been unsuccessful, but it is infinitely more stressful for
applicants to hear nothing at all.
Often there are large numbers of applicants for positions, and it is not practical to
telephone each applicant. A letter of ``regret'' could be sent, indicating that they have
been unsuccessful. This could be a standard letter, but it should nevertheless be
carefully constructed so as to reinforce the applicant's sense of self-worth and positive
impression of the organisation.
Useful elements to craft into the letter include:
Ð expressions of appreciation for the applicant's interest in the organisation
Ð information about the extent of the competition for the position
Ð a constructive reason for preferring the person or people appointed (e.g. ideally
relevant experience, extensive specialist skills, extraordinary competencies in
particularly problematic aspects of the job)
Ð good wishes for success in finding a rewarding/suitable job opportunity
COMPETENCY GRID
NAME: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interviews Group/Exec Problem solving Total
Impact and influence
Achievement orientation
Information seeking
Problem solving & analytical
thinking
Planning & organising
(+ visionary leadership)
Developing organisational talent
Sensitivity
Facilitating change
Tolerance for stress
81
COMPETENCY-BASED INTERVIEW GUIDE
NAME: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BACKGROUND INFORMATION
CLARIFICATION ON:
Ð Work experience
Ð Education and training
Ð Check motivational fit
MOTIVATION FIT
(1) What were your major duties? (most recent)
(2) What did you like best about the position? What did you like the least?
BEHAVIOURAL QUESTIONS
Situation Action Result
ADAPTABILITY
Maintaining effectiveness in varying environments and with different tasks,
responsibilities and people.
Key areas:
Adjust approach to match varied task requirements
Change priorities to meet changing demands
Questions
Ð Tell me about a situation when you had to adjust quickly to change in
organisational, department, or team priorities.
Ð Sometimes we have to work under new policies we don't agree with. Tell me
about the last time you disagreed with a new policy or procedure. (Why, what did
you do?)
Ð Did you ever work shifts or unusual hours or days. How did you arrange transport?
Ð Leaving school and starting a new job or looking for a new job can be a dramatic
change. Tell me about a particular problem you had when you made this
transition.
Situation Action Result

PERSEVERANCE
Staying with a position or plan until the desired objective is achieved
Key areas:
Ð Overcoming obstacles to achieve objectives
Ð Making repeated attempts to meet objectives
Ð Staying with a task until completed
Ð Knowing when to quit/stop
82
Questions
Ð Sometimes it is difficult to know when to quit a difficult project or job assigned/
given to you. Can you tell me about an experience in which you felt you persisted
too long? How could you have improved the situation?
Ð Things do not always go our way. Describe a situation when you tried your best
but did not achieve the result you wanted.
Ð Work assigned to you or that you do rarely proceeds without obstacles. Tell me
about a recent project or job that you had to do in which you encountered a major
obstacle.
Ð We all have subjects that are easier to learn than others. What school subject gave
you the most trouble? How did you handle it?
Situation Task Result

TEAMWORK
Willingness to participate as a full member of a team of which he/she is not
necessarily the leader.
Key areas: Ð Building relations
Ð Listening and responding with empathy
Ð Asking for help and encouraging involvement
Ð Contributing to team/organisational success
Ð Exchanging information freely
Ð Volunteering ideas and help
Ð Supporting group decisions
Ð Placing group goals ahead of own goals
Questions
Ð Working with other people can be challenging at times. Have you ever had
difficulty getting along with peers and others at work (or when you were at
school)? Tell me about a specific time this had happened. How did you handle the
situation?
Ð Tell me about a situation when a team member or peer strongly disagreed with
your ideas or actions. How did you handle this situation?
Ð Often we deal with people who waste our time at work. Tell me about a similar
situation and how you dealt with it.

ATTENTION TO DETAIL
Accomplishing tasks through concern for all areas involved, irrespective how small,
showing concern for all aspects of the job; accurately checking processes and tasks;
maintaining watchfulness over a period of time.
Key areas: Ð Clarifying details of task
Ð Completing all details
Ð Checking output for accuracy and completeness
Ð Following established procedures
Ð Maintaining a check list to cover details
83
Questions
Ð We've all experienced times when we were just too busy to check all the details of a
project. Tell me about a time this happened to you and some errors slipped through.
Ð Describe the things you do to control errors in your work. Tell me about a time
these methods helped you. What did you do?
Ð When working on repetitive tasks, we all get bored and overlook important details
that could cause problems later on. Describe a time this happened to you.
Ð Tell me about an important paper you had to write at school. What steps did you
take before you considered it complete?

WORK STANDARDS
Setting high goals or standards of performance for oneself, subordinates and
organisation; not being satisfied with average performance; imposing standards of
excellence on oneself
Key areas Ð Setting high performance standards
Ð Emphasising high standards to others
Ð Showing pride when standards are met
Ð Showing dissatisfaction with substandard performance
Questions
Ð At one time or another everyone is pressurised to get work done and sacrifices
quality. Tell me about a time this happened to you. What did you do?
Ð Tell about a time when you knew that a particular job or process was poorly done.
What did you do about it?
Ð We are not always satisfied with our performance. Tell me about the most
memorable time that you were not satisfied with your performance.

ENERGY
Consistently maintaining a high level of activity or productivity level; sustaining long
working hours.
Questions
Ð Tell me about a time when you worked at a fast pace for a long period of time.
What kind of work did you do? How did you maintain your pace?
Ð Everyone makes errors when tired on the job. Tell me about the last time you
were really tired while working. What errors did you make in your work?
Ð Tell me about a time when you worked long periods (evenings or weekends). How
did your family cope?
Ð What job activity did you find required the most energy? What did you do to
maintain your effectiveness?

JOB REQUIREMENTS
Ð Shifts, non-smoking, medical checks
84
Questions
Ð Are you prepared to work shifts? This includes Fridays, Saturdays, Sundays, public
holidays (including Christmas and New Year) and all religious holidays.
Ð How will you get to work?
Ð Do you smoke? Are you prepared to give up smoking completely while you are
working and even while you are on the work premises?
5.7 Summary
This study unit has focused on the selection process. The selection procedure in any
organisation can succeed only if the line manager and the human resource manager
work as a team. In this unit we looked at what methods are available for selection. A
combination of these methods and procedures should be used to ensure that all
relevant information is used in the selection procedure. The sequence in which the
different methods are combined is often based on the costs of each method. The
selection procedure must be logical and cost-effective.
Self-assessment
1 Give three examples of questions that should not be asked on an

application form. (6)
2 List four different positions in your organisation. For each position
indicate which type of interview you would use, and substantiate your
answer. (12)
3 Differentiate between individual, group and panel interviews. (6)
4 Give an example of each to illustrate the four different kinds of interview
questions. (4)
5 Describe three methods of selecting employees, and discuss the
advantages and disadvantages of each. (15)
6 Under which circumstances may psychological tests be conducted in
South Africa? (4)
7 What is an assessment center, and what accounts for the good
predictions of management success that come from such centres? (6)
8 State the implications of the Labour Relations Act and the Employment
Equity Act for the selection of employees. (6)
9 What is the real purpose of reference checks? (4)
10 What guidelines should the line manager follow when required to
supply reference information about employees? (4)
NOTES
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Topic 2
Human resource development and
utilisation
tions
Study unit 6:
Organisational sociali-
sation
Study unit 7:
Employee training and
development
Study unit 8:
Performance manage-
ment process
Study unit 9:
Career management in
organisations
Study unit 10:
Job evaluation systems
Introduction
Harbison and Myers (1964:2) write:
Human resources development is the process of increasing the knowledge, the
skills, and the capacities of all the people in a society. In economic terms, it could
be described as the accumulation of human capital and its effective investment in
the development of an economy. In political terms, human resource develop-
ment prepares people for adult participation in political processes, particularly as
citizens in a democracy. From the social and cultural points of view, the
development of human resources helps people to lead fuller and richer lives, less
bound by tradition. In short, the processes of human resource development
unlock the door to modernisation.
87
Reich (1992:264) writes:
The skills of a nation's work force and the quality of its infrastructure are what
make it unique, and uniquely attractive, in the world economy. Investments in
these relatively immobile factors of worldwide production are what chiefly
distinguish one nation from another; money, by contrast, moves easily around
the world.
A work force that is knowledgeable and skilled at doing complex things, and
which can easily transport the fruits of its labors into the global economy, will
entice global money to it.
TOPIC AIM
The aim of this topic is to introduce you to the processes of organisational socalisation,
training and development, performance management, career management and job
evaluation systems.
After completing this topic, you should be able to:

Ð explain the process of organisational socialisation without difficulty
Ð discuss various training and development techniques and how they impact on
organisational effectiveness
Ð explain the process of performance management
Ð discuss various job evaluation techniques and how they impact on employee
performance
Topic contents
The topic ``Human resource development and utilisation'' will involve the following
study units:
Study unit 6 Study unit 7 Study unit 8 Study unit 9 Study unit 10
Organisational so- Employee training Performance man- Career manage- Job evaluation sys-
cialisation and development agement process ment in organisa- tems
tions
88
Study unit 6
Organisational socialisation
Contents Page
Key concepts 89
6.1 Introduction 90
6.2 Organisational socialisation/orientation 91
6.3 The responsibility for socialisation/orientation 92
6.4 The objectives of socialisation/orientation 92
6.5 The content of the socialisation/orientation programme 93
6.6 Evaluation of the socialisation/orientation programme 96
6.7 Summary 96
Self-assessment 96
Learning outcomes

Ð describe the process of organisational socialisation
Ð understand the different stages of organisational socialisation
Ð specify the information that new employees need when joining the organisation
Ð describe the objectives of an orientation programme for new employees
Ð list the topics to be included in an orientation programme for new employees
Ð describe the roles of the line manager and the human resource practitioner in
the orientation programme
Ð evaluate the orientation programme for new employees in your organisation
Key concepts
learning outcomes:
Organisational socialisation/orientation
Anticipatory socialisation
Encounter
Change and acquisition
89
6.1 Introduction
Truesdell (1998) writes:
Remember your first day of school when you were just a youngster? It was a bit
frightening, if you were like most kids. You met a lot of new people and a
completely different environment.
You weren't quite sure how you would be accepted.
New employees feel much the same way. They are coming into a new
environment, meeting new people, and are not sure how they will be accepted.
Employers can ease the transition and take advantage of the opportunity to get
the relationship off to a good start.
Socialisation or orientation of a new employee to the company and its culture is, more
often than not, neglected. According to Cascio (2006:309), failure to provide a
thorough orientation can be a very expensive mistake, since most turnover occurs
during the first few months on the job. Cascio (2006:310) describes starting a new job
as a kind of culture shock, and new employees often find that the new job is not quite
what they had imagined it to be.
An effective orientation programme can help lessen the impact of this shock. ...
A new employee's experiences during the initial period at the new job can have a
major impact on his or her career. A new hire stands on the ``boundary'' of the
organization Ð certainly no longer an outsider but not yet embraced by those
within (Cascio, 2006:310).
The only way to reduce the stress is to become part of the organisation as soon as
possible. ``Consequently, during this period an employee is more receptive to cues from
the organizational environment than she or he is ever likely to be again'' (Cascio,
2006:310).
Ð Orientation is the familiarisation with and adaptation to a situation or an

environment.
Ð The orientation process can be described as the process of introducing the
employee into the organisation (Smit, 1996c:181)
90
6.2 Organisational socialisation/orientation
Regarding organisational culture and socialisation, Field (2002) has the following to
say:
An organization has a culture but its individual members will be replaced over
time. For the organization's culture to endure it must be transmitted from
current organizational members to new members. This process is called
organizational socialization. It is especially important in organizations with strong
cultures. Organizations with weak cultures have less to transmit and will tend to
experience culture change as members come and go with their own particular
societal cultures. Socialization has three phases: anticipatory socialization;
encounter; and change and acquisition.
Anticipatory Socialization
A certain degree of socialization occurs even before the new member joins the
organization. What a person has heard about working for a local fast food chain
can give him or her information of what to expect if hired. Individuals who do not
believe they would fit in may not even apply to join. The socialization of those
who do join is therefore easier.
Organizations use the interviewing process to begin the socialization of new
members. A realistic job preview attempts to paint a realistic picture of what to
expect from the job and the organization. The idea is that upon entry the recruit
is not shocked by unanticipated problems. Interviewing is also used to determine
the degree of match between the values of potential recruits and the values of
the organization. New recruits with personal values matching those of the firm
have been found to adjust to the organization's culture more quickly than
recruits with non-matching values.
Organizations also send cultural messages to potential new members during
interviews. When there are several rounds of interviews with progressively senior
members of the organization, the message sent is of the importance of finding
the best person for the position. In contrast, hiring for a part-time job at the
lowest level of the organization is often accomplished quickly, with a person
having minimally acceptable qualifications hired on the spot. The cultural
message in this case is that such employees are easily let into and out of the
organization.
Encounter
The first day on a new job is one of encounter. The new recruit is told what to do
and how to do it. A common feeling in the encounter phase is of being lost,
confused, and overwhelmed with information. Since many new employees do not
get a very good first impression of the organization, a practical way to help the new
member become socialized is to provide a newcomer's welcome package that
contains useful information about the organization and how it works.
Change and Acquisition

At this stage newcomers begin to acquire and internalize the culture of the
91
organization. This results in some change in their beliefs and values. When a
member of an organization is considered an old hand and is asked to show new
organizational members the ropes, that person may be considered to have
successfully acquired the organization's culture.
The change and acquisition process is made easier when organizational
newcomers are active in seeking information about their job, role, and the
organization's culture. This suggests that both the newcomer and the
organization affect socialization.
(Source: Field, 2002)
6.3 The responsibility for socialisation/orientation

Both the line manager and the human resource practitioner are responsible for guiding
the socialisation/orientation process. Smit (1996c:182) explains:
Ð The line manager introduces the employee to his or her work situation. He or she
must make sure that the employee feels comfortable and is accepted in the
workplace, and becomes productive in the shortest possible time.
Ð The human resource practitioner is responsible for the content of the
socialisation/orientation programme and monitoring its implementation. He or
she must make sure that the programme is well planned and that all employment
procedures and documentation are completed.
6.4 The objectives of socialisation/orientation

According to Cascio (2006:310), new employees are faced with three typical
problems:
Ð Problems with entering a group. New employees worry about whether the
other group members will accept them and whether they will be liked and be safe,
that is, free from physical and psychological harm. These issues must be resolved
before they can feel comfortable and productive in the new situation.
Ð Naive expectations. Organisations find it much easier to communicate factual
information about pay and benefits, vacations and company policies, than
information about employee norms (rules for acceptable behaviour) and company
attitudes. Organisations which present prospective candidates with realistic job
previews normally have lower labour turnover.
Ð First-job environment. Does the new environment help new employees in
becoming part of the organisation's culture? How and why were the first job
assignments chosen? Is it clear to new employees what they can expect to get out
of their first job assignments?
The objectives of orientation are as follows (Smit, 1996c:184):

Ð Promote productivity. The new employee needs time to become part of the
organisation and to become familiar with his or her new job before becoming fully
productive. If the relevant information is provided, this period can be shortened
92
and the employee can become productive sooner. Absenteeism as a result of high
levels of uncertainty, anxiety and frustration can also be prevented if an effective
orientation programme is followed.
Ð Prevent labour turnover. Most turnover occurs during the first few months of
service. The careful matching of company and employee expectations during the
first year of service can result in positive job attitudes and high standards, creating
a long-term commitment to the organisation.
Ð Prevent unnecessary costs. Lack of proper orientation can result in labour
turnover and unnecessary costs. More productive hours are lost and the selection
process has to start from scratch, with the accompanying costs involved.
Ð Reduce stress and frustration. A new position in a new environment causes a
lot of uncertainty. Lack of information may lead to stress, anxiety and frustration. A
proper orientation programme prevents this and creates a sense of belonging and
confidence.
Cascio (1998:284) warns against the following approaches during the

orientation phase:
Ð An emphasis on paperwork. In some organisations the human resources
department simply gives the new employee a cursory welcome and a few forms
to complete. Then the employee is directed to his or her immediate supervisor.
Without a doubt, an employee who is treated in this way will not feel part of the
company.
Ð A sketchy overview of the basics. The new employee is given a quick,
superficial orientation, after which he or she is immediately put to work Ð a ``sink
or swim'' approach.
Ð ``Mickey Mouse'' assignments. Minor, insignificant duties are assigned to the
employee to teach him or her the ``basics''.
Ð Suffocation. In this approach, the new employee is given too much information
too fast in an attempt to get him or her to work as quickly as possible. Although
this approach may be well-intended, the employee may feel overwhelmed.
6.5 The content of the socialisation/orientation programme

The orientation programme spells out what is going to be presented to the new
employee, by whom and when (Smit, 1996c:185).
According to Cascio (2006:314), the impressions formed by new employees within
their first 60 to 90 days on a job are lasting.
Day one
The first day is crucial Ð it is the most important part of the socialisation process.
This day must be well planned in advance to make sure that all necessary elements are
covered (Smit, 1996c:185). The following are important considerations (Cascio,
2006:314; Smit, 1996c:186):
Ð All the information the employee needs to feel comfortable in a strange
environment must be provided.
93
Ð Specific information about the new employee's own job and department must be
provided. The employee is interested in learning about the organisation as a whole
and how he or she fits into the bigger picture.
Ð The necessary policies and procedures of the organisation must be commu-
nicated.
Ð The employee must meet new colleagues, but not so many that he or she feels
overwhelmed.
Ð Care must be taken to prevent information overload Ð everything must be
provided in reasonable amounts.
Ð If possible the employee must be given or taught a job-related task which will help
him or her feel worthwhile during the first day.
Ð Arrange for someone to spend the day with the new employee and show him or
her around and have lunch with him or her.
Ð Make the immediate supervisor ultimately responsible for the success of the
orientation process.
A short meeting at the end of the day to summarise the day's events and answer any
questions will ensure that the new person does not leave with a lot of uncertainties and
unnecessary stress (Smit, 1996c:187).
Activity 6.1
(a) Indicate the specific information that you think new employees need when
they join an organisation.
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(b) Explain the importance of the very first day of the orientation programme
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Week one
The following should be attended to during the first week (Smit, 1996c:187±188):
Ð The employee should have one-to-one interviews with the supervisors and co-
workers to learn about the necessary aspects of the job and the company, such as
the mission and values of the company and organised labour agreements.
Ð The employee must be partly integrated into a group or team and any adaptation
problems must be addressed.
Ð The progress and problems the employee experiences need to be discussed.
Ð The supervisor and co-workers must make themselves accessible to the employee
if and when necessary.
At the end of the first week it is essential to discuss the new employee's progress with
him or her and to make adjustments where necessary.
Activity 6.2
(a) If you think back to your first day on your job, what were your first
impressions?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
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.............................................................
(b) What, if anything, would you have changed about your orientation
programme?
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Long-term orientation
Orientation is not an event but should be regarded as a long-term process. Over the
first year aspects such as the following should be attended to on a regular basis (Smit,
1996c:189):
Ð The policies and procedures that could affect the employee's job performance
Ð The training needs and objectives of the employee
95
Ð The allocation of specific tasks that will allow for growth in the person and the task
Ð Additional knowledge that the employee requires to become productive
6.6 Evaluation of the socialisation/orientation programme

According to Cascio (2006:314), the orientation programme needs to be reviewed at
least once a year, to determine if it is meeting its objectives and to identify future
improvements. Everybody involved in the programme needs to give comprehensive
feedback. This feedback could be obtained by means of discussions with new
employees after their first year on the job, through in-depth interviews with randomly
selected employees and supervisors, and through questionnaires completed by all the
recently employed employees (Cascio, 2006:314).
6.7 Summary
This study unit has focused on the socialisation or orientation of new employees. Smit
(1995:69) comments that this process is often squeezed into a day's work, and she
continues as follows:
Few people realize that the impressions an employee forms of an organization
during his/her first few work days, will make the employee decide either to stay
and be loyal and productive, or stay until a better opportunity presents itself.
The line manager has a responsibility to both the new employee and the
organization to ensure that orientation is successful. A successful orientation
programme needs to be well designed and have clear objectives.
Self-assessment
1 How would you describe the roles of the line manager and the human
resource practitioner in the orientation programme? (4)
2 Describe the objectives of orientation and give examples to illustrate
your answers. (8)
3 What general mistakes are normally made by supervisors or colleagues
during a new employee's first day on the job? (4)
4 Is it necessary to continue the orientation programme after the first day?
Give reasons for your answer. (3)
96
5 Design your own orientation programme for a new employee in your
organisation. (15)
NOTES
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97
Study unit 7
Employee training and development
Contents Page
Key concepts 98
7.1 Introduction 99
7.2 Training and development in South Africa today 99
7.3 Purpose of training and development 100
7.4 Assessing training needs and designing training programmes 101
7.5 Learning principles involved in training 103
7.5.1 Goal setting 103
7.5.2 Behaviour modelling 103
7.5.3 Meaningfulness of material 104
7.5.4 Practice 105
7.5.5 Feedback 105
7.6 Transfer of learning 106
7.7 Different training and development methods 106
7.8 Factors which determine training and development methods 107
7.9 Evaluating training programmes 107
7.10 Summary 108
Self-assessment 108
Learning outcomes

Ð describe the difference between training and development
Ð give an overview of training in South Africa
Ð explain the learning principles applicable to the learning of skills as well as to the
learning of facts
Ð define the term ``transfer of training''
Ð describe how transfer of training can be optimised
Ð discuss the objectives to be achieved by means of the training methods
Ð describe the criteria to be borne in mind when selecting a training method
Ð describe the four categories used as internal and external criteria to measure
changes as a result of training
Key concepts
learning outcomes:
98
Training Assessment/evaluation
Development Learning
7.1 Introduction
Cascio (2006:286) explains that training and development are interchangeable terms.
The term ``training'' is used to describe the minimum level of skills and knowledge
that employees require before they can be appointed in a specific position. Therefore,
employees are trained to do a job according to the minimum standards applicable to
that job. They cannot be appointed in the position unless they comply with the
minimum requirements of the position (Smit, 1995:72).
The term ``development'' is used to describe the additional skills and knowledge
that employees require to enable them to do the following (Smit, 1995:72):
Ð Perform above the minimum standard in their current position
Ð Become skilled to fill other future positions at the same or a higher level in the
organisation
According to Grobler et al. (2006:300±301), labour economists divide training

programmes into general and specific. General training refers to training in which
employees gain skills that can be used in most workplaces. Included in this definition is
employee education which involves basic skills training. Specific training refers to
the training process whereby employees gain information and skills which are
applicable to their specific workplace. Specific training might involve learning how the
specific company's budget system works.
Activity 7.1
How are the terms ``training'' and ``development'' defined in your organisation?
.................................................................
.................................................................
.................................................................
7.2 Training and development in South Africa today

One of the major issues in South Africa is the need for education, training and
development. It is important to note that not only designated employees need the
required training opportunities; all members of the organisation must be educated and
trained to deal with an increasingly diverse work force and changing customer profiles.
For example, managers and employees must be trained to understand and implement
the Employment Equity Act and develop the required employment equity plans and
support structures.
According to Grobler et al. (2006:300), the main question for HR professionals is no
99
longer whether there should be training, but which employees should be trained, in
what area(s), by what method(s), by whom, when or how often, what outcomes
should be expected and what the cost will be.
Three key areas have been identified in which training is necessary to start correcting
competency imbalances among employees:
Ð Literacy training for illiterate and semi-literate employees
Ð Skills training to allow semi-skilled and skilled employees to qualify in a specific
field of expertise
Ð Management training for employees with managerial potential
7.3 Purpose of training and development

Grobler et al. (2006:302) identify the following seven general purposes of training and
development:
Ð To improve performance
Ð To update employees' skills
Ð To avoid managerial obsolescence
Ð To solve organisational problems
Ð To orient new employees
Ð To prepare for promotion and managerial succession
Ð To satisfy personal growth needs
Let's consider each briefly.
Improving performance
`Èmployees who perform unsatisfactorily because of a deficiency in skills are prime
candidates for training'' (Grobler et al., 2006:302). Even though training is not the
answer to all ineffective performances, a sound training and development programme
can be extremely valuable in minimising these problems.
Updating employees' skills

``Technological change means that jobs change. Employee skills must be updated
through training so that technological advances are successfully integrated into the
organisation'' (Grobler et al., 2006:302).
Avoiding managerial obsolescence

Grobler et al. (2006:303) define managerial obsolescence as ``the failure to keep pace
with new methods and processes that enable employees to remain effective''.
Members of management who fail to adapt to the rapidly changing technical, legal and
social environments become ineffective and outdated.
Solving organisational problems

``Managers are expected to attain high goals in spite of personal conflicts, vague
policies and standards, scheduling delays, inventory shortages, high levels of
100
absenteeism and turnover, labour-management disputes and a restrictive legal
environment'' (Grobler et al., 2006:303). One way to address these problems is by
training and development courses.
Training personnel, educational institutions, and training and development consultants
assist employees in solving problems and performing their jobs more effectively.
Training and development courses for nearly every aspect in the day-to-day running of
a business are available, for example human resources, marketing, accounting, finance,
manufacturing, purchasing, information systems and general management (Grobler et
al., 2006:303).
Orienting new employees

As pointed out in study unit 6, the first few days on a job are crucial for the new employee.
During this time initial impressions of the organisation and its managers are formed.
New employees may experience a ``culture shock'' (in the words of Cascio, 2006:309)
when events do not conform to their expectations. Grobler et al. (2006:303) write:
``Their immediate need is to reduce any uncertainty about the job and find out how to
fit in socially.'' Well planned and monitored orientation programmes, as mentioned in
study unit 6, can reduce the difficulties encountered by new employees.
Preparing for promotion and managerial succession

`Òne important way to attract, retain and motivate personnel is through a systematic
programme of career development'' (Grobler et al., 2006:303). Training and
development helps employees to cope with the increased demands stemming from
promotion and enables them to acquire the skills needed for a promotion.
Satisfying personal growth needs

Most managers and front-line employees are motivated by achievement and need to
face new challenges on the job. Training and development can provide activities that
result in both greater organisational effectiveness and increased personal growth for all
employees (Grobler et al., 2006:303).
7.4 Assessing training needs and designing training pro-

grammes
Cascio (2006:292) writes:
The assessment (or planning) phase serves as a foundation for the entire
training effort. ... the training and development phase and the evalua-
tion phase depend on inputs from assessment. The purpose of the assessment
phase is to define what it is the employee should learn in relation to desired job
behaviors. If this phase is not carefully done, the program as a whole will have
little chance of achieving what it is intended to do.
Three levels of analysis for determining the needs that training can fulfil are organisational
analysis, operations analysis and individual analysis (Cascio, 2006:293±296).
101
Ð Organisational analysis focuses on identifying where training is needed within
the organisation. It involves analysing organisation-wide performance criteria (e.g.
accidents and injuries, absenteeism, turnover, productivity, quality, labour and
operating costs, sexual harassment charges, equal employment opportunity
problems, etc.).
Ð Operations analysis attempts to identify the content of training Ð in other
words, what is expected from an employee to perform competently. The purpose
is to determine how a job should be performed.
Ð Individual analysis determines how well each employee is performing the
tasks that make up his or her job. The purpose of individual analysis is twofold. It is
to find out the following: (1) Who currently needs training and development?
(2) What skills, knowledge, abilities or attitudes need to be acquired or
strengthened? This kind of analysis is important to ensure that employees who
need training are the ones who actually receive it and that programmes are
designed to fill the gap between actual and desired performance.
Cascio (1998:269) writes that it is important to analyse training needs with regard to
the organisation's goals and objectives before any decisions are taken. If this is not
done, time and money could be wasted on programmes that are not in the interest of
the organisation.
People may be trained in skills they already possess, the training budget may be wasted
on training sessions where entertainment forms the focus point and not learning job
skills or job knowledge or ``the budget may be spent on glittering hardware that meets
the training director's needs but not the organization's'' (Cascio, 1998:269, citing
Moore & Dutton).
Figure 7.1 helps to answer questions regarding training needs.
ENVIRONMENT
Unions
Economy
Laws
3 Training cycle 3
! O P E R AT I O N S
ANALYSIS INDIVIDUAL
ORGANISATION
ANALYSIS Specific beha- ANALYSIS
Yes Yes
" Training " viour: " Training " Knowledge
Objectives
need? What an employ- need? Skills
Resources
Allocation of ee must do in Attitudes
resources order to perform "
No job effectively No (a) Current 3 (b) Optimal
~ level of level of
performance performance
! !
Alternative Alternative
solutions solutions !
Training Yes
need?
Alternative 3 No
solutions
Figure 7.1: Training needs assessment model

(Source: Cascio, 1998:269)
102
7.5 Learning principles involved in training
To promote efficient learning that will not be forgotten the moment the trainer leaves
the training session, and to ensure that the staff members will be able to apply to their
job situations the skills or factual information learned in training, training programmes
should incorporate principles of learning developed over the past century (Cascio,
2006:297).
To be effective, the learning of skills should include the following four essential
ingredients: (i) goal setting, (ii) behaviour modelling, (iii) practice and (iv) feedback
(Cascio, 2006:297).
If the focus is on learning of facts, the sequence should change slightly: (i) goal
setting, (ii) meaningfulness of material, (iii) practice and (iv) feedback (Cascio,
2006:297).
7.5.1 Goal setting Ð motivating the employee

The need for development must come from the employees themselves. An employee
who is forced to go for training and development rarely ever succeeds. This illustrates
the role that motivation plays in training Ð to learn, you must want to learn. The most
effective way to raise a trainee's motivation is by setting goals (Cascio, 2006:298).
According to Cascio (2006:298), goal theory is founded on the assumption that:
an individual's conscious goals or intentions regulate her or his behavior.
Research indicates that once an individual accepts a goal, ... difficult but
attainable goals result in higher levels of performance than do easy goals or even
a generalized goal such as ``do your best''.
Three aspects should be considered in this goal theory (Cascio, 2006:298):

Ð The objectives of the training programme should be made clear from the start.
Ð The goals should be challenging and difficult enough that the trainees can derive
personal satisfaction from achieving them, but not so difficult that they are
perceived as impossible to reach.
Ð The ultimate goal of finishing the programme should be supplemented by
subgoals during the programme, such as trainer evaluations or work-sample tests.
As trainees achieve each one successfully, their confidence about attaining the
ultimate goal increases.
7.5.2 Behaviour modelling

``Much of what we learn is acquired by observing others'' (Cascio, 2006:298). In
subsequent study units it is pointed out that, for instance, one way of developing one's
self-image is by imitating others.
Other people's actions will be imitated if they lead to desirable outcomes (e.g.
promotions, better running times, better weight loss). The models' actions serve as an
example of what can be seen as appropriate behaviour (Cascio, 2006:299). A model is
someone who is seen as competent, powerful and friendly and has a high status within
an organisation or community. The model's behaviour is seen as desirable and
103
appropriate and will therefore be imitated. If the model's behaviour is rewarded (e.g.
pay, power, influence), the desire to imitate this model's behaviour is increased (Cascio,
2006:299).
For this theory to be successful, the following must be taken into account (Cascio,
2006:299±300):
Ð The model should be similar in age, gender and race. If the observer sees little
similarity between himself or herself and the model, it is unlikely that he or she will
imitate the model's behaviour.
Ð The behaviours to be modelled must be pointed out clearly and in detail. Cascio
(2006:300) supplies the following example: ``... when one group of supervisors
was being taught how to `coach' employees, the supervisors received a list of the
following key behaviours: (1) Focus on the problem, not on the person; (2) ask
for the employees' suggestions, and get their ideas on how to solve the problem;
(3) listen openly; (4) agree on the steps that each of you will take to solve the
problem; and (5) plan a specific follow-up date.''
Ð The behaviours to be modelled should be ranked in a sequence from least to most
difficult, and enough repetitions of the behaviours being modelled should be
observed by the trainees.
Ð More than one model should be used to portray the expected behaviour.
Behaviour modelling rests on the theory that showing is better than telling.
Activity 7.2
(a) Provide your own example of how behaviour modelling can be used in the
learning of skills.
.............................................................
.............................................................
.............................................................
.............................................................
(b) Try to think of any skill you have learned or tried to learn in the past. Was this
theory applied successfully or not, if it was applied at all? Substantiate your
answer.
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7.5.3 Meaningfulness of material

When learning facts, it is easier to learn and remember them when they are
meaningful. ``Meaningfulness refers to material that is rich in associations for the
trainees and is therefore easily understood by them'' (Cascio, 2006:300).
104
To maximise the meaningfulness of material, the following should be taken into
consideration (Cascio, 2006:300):
Ð Provide trainees with an overview of the material to be presented during the
training. If the overall picture is clear, it is easier to understand how all the units of
the programme fit together and how each contributes to the overall training
objectives.
Ð Present the material by using examples, terms and concepts that are familiar to
the trainees.
Ð Teach the more simple concepts before the complex ones. This is true regardless
of the subject, whether it be accounting, computer programming or learning a
foreign language.
7.5.4 Practice
Whether a skill or factual knowledge is learned, the learner must have the opportunity
to practise what he or she is learning. The following three aspects of practice should be
taken into account (Cascio, 2006:300±301):
Ð Active practice. During the initial stages of learning, the trainer should be
available to oversee the trainee's practice directly. In this way, inappropriate or
wrong behaviours can be corrected immediately, before they become ingrained in
the trainee's behaviour. This is why trainer±trainee (or teacher±pupil) ratios should
be low. It also explains why so many people go for private lessons when trying to
learn a sport or how to drive a car for instance, and why so many parents pay huge
amounts of money every month for private tuition (over and above the normal
school tuition) for their children, especially in subjects like mathematics and
accountancy.
Ð Overlearning. ``When trainees are given the opportunity to practice far beyond
the point where they have performed a task correctly several times, the task
becomes `second nature' and is said to be òverlearned' '' (Cascio, 2006:301).
Examples are driving a car, or attempting to kick a winning field goal with only
seconds left in a soccer match.
Ð Length of the practice session. Cascio (2006:301) uses the example of an
actor: If there is only one week to memorise the lines of a play, and during that
week only twelve hours are available to practise, would it be better to practise two
hours a day for six days (distributed practice), or should the practice take
place for six hours on the two days before the deadline (massed practice)?
Although there are a few exceptions, distributed practice is usually the better
option (for example, cramming the night before the examination does not usually
deliver the desired results).
7.5.5 Feedback
Feedback is the communication to the trainee about his or her actions. Feedback is
essential for both learning and trainee motivation. It is important to give the feedback
as soon as possible and to be specific in the feedback on where and how something
was done correctly. There should be no confusion regarding exactly what the trainee
did and the trainer's reaction to it Cascio (2006:302).
For example: ``Your speech yesterday was clear and to the point. I liked the way you
used the overhead projector.''
105
Feedback need not always be positive, but it is important that it should be given in a
non-threatening way. (Non-threatening feedback will be discussed in study unit 16 in
this study guide.)
Activity 7.3
(a) Distinguish between the sequence of steps when learning a skill and when
learning factual material.
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(b) Explain the sequence of steps in the process of learning how to drive a bus.
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7.6 Transfer of learning

It is of the utmost importance that the trainee be able to apply what he or she has
learned in the work situation. This process is called the transfer of training.
``Transfer of training refers to the extent to which competencies learned in training
can be applied on the job'' (Cascio, 2006:302). Trainees must be confident in using
their newly learned skills.
Transfer of training will be less of a problem if the following guidelines are taken into
account:
Ð Maximise the similarity between the training and the job.
Ð Make the trainees aware of the fact that their job performance will improve if they
use the new skills.
Ð The trainees must believe that the knowledge and skills emphasised in the training
programme are helpful in solving work-related problems.
7.7 Different training and development methods

Training methods can be classified into three categories: information presentation,
simulation methods and on-the-job training (Cascio, 2006:305):
106
Ð Information presentation techniques include lectures, conferences, corre-
spondence courses, videos, reading lists, closed-circuit TV, behaviour modelling
and systematic observation, programmed instruction, computer-assisted instruc-
tion, sensitivity training and organisation development.
Ð Simulation methods include role playing, programmed group exercises, the in-
basket technique and business games.
Ð On-the-job training methods include orientation training, apprenticeships,
on-the-job training, job rotation, on-the-job coaching and performance appraisal.
Training methods are also chosen for development of improved interpersonal

skills.
7.8 Factors which determine training and development

methods
Before a training method is chosen that best fits the given situation, a needs
assessment must take place. To be useful, the method should meet the minimal
conditions for effective learning.
According to Cascio (2006:305), the training method should meet the following
objectives:
Ð Promote self-insight and environmental awareness Ð make employees under-
stand how their actions affect others and how they are viewed by others
Ð Improve the ability of managers and low-level employees to solve problems and
make decisions in a constructive way
Ð Maximise the employee's desire to perform well
The training method that one chooses should meet the following minimal conditions
needed for effective learning to take place (Cascio, 2006:305):
Ð Motivate the trainee to improve his or her performance
Ð Clearly illustrate desired skills
Ð Allow the trainee to participate actively
Ð Provide an opportunity to practise
Ð Provide some means for reinforcement while the trainee learns
Ð Be structured from simple to complex tasks
Ð Be adaptable to specific problems
Ð Encourage positive transfer from the training to the job
7.9 Evaluating training programmes

How will one know whether the training has been successful or not? Cascio
(2006:306) states that in order to evaluate training, it is necessary to systematically
document the outcomes of the training in terms of how trainees actually behave back
on their jobs and the relevance of that behaviour in terms of the objectives of the
organisation.
Cascio (2006:306) suggests that the following questions should be asked in order to
evaluate the training:
107
Ð Have trainees achieved a specific level of skill, knowledge or performance?
Ð Did change occur?
Ð Is the change due to training?
Ð Is the change positively related to the achievement of organisational goals?
Ð Will similar changes occur with new participants in the same training programme?
Kirkpatrick's model is one of the most recognised and widely used evaluation models
within the training environment. Kirkpatrick (1994:21±26) identifies four levels at
which evaluation must take place:
Ð Level 1: Reaction Ð What is the reaction or feeling of the participants towards
the training programme?
Ð Level 2: Learning Ð To what extent have the trainees learned what they were
supposed to learn?
Ð Level 3: Behaviour Ð What changes in behaviour have occurred on the job
because of the attendance at the training programme?
Ð Level 4: Results Ð To what extent has training produced cost-related
behavioural outcomes (for example, reduced absenteeism or accidents, improved
sales figures or increased production rates)?
Reaction and learning are concerned with outcomes of the training programme itself,
and are therefore regarded as internal criteria. Behaviour and results concern the
impact of training on the job and are referred to as external criteria (Cascio, 1998:280).
Cascio (1998:280) also states that measures of reaction focus typically on
participants' feeling about the subject and the speaker, and the extent to which they
feel that the training will help them do their jobs better. The evaluation of what the
trainee has learned focuses on changing knowledge, skills, attitudes or motivation. It
is more difficult to measure changes in on-the-job behaviour, because factors other
than the training programme may also improve performance, such as changes in
supervision.
7.10 Summary
This study unit has focused on employee training and development. Training and
development is viewed as an expensive human resource function. Therefore, as Smit
(1995:82) writes, it is essential to plan this function carefully and to ensure that the
objectives of training and development are clearly stated. The training techniques
should also be selected carefully to ensure optimal learning.
Self-assessment
1 Explain the difference between training and development. (4)

2 Name three areas where training is necessary to correct imbalances
among employees. (3)
3 Briefly describe seven purposes of training and development. (21)
4 Give one practical example of a technological change that created the
need for training. (3)
5 Describe three levels of analysis for determining the needs that training
can fulfil. (6)
108
6 Briefly describe the steps involved when learning factual material. (12)
7 When learning a new skill, behaviour modelling forms a step in the
learning process. Describe this step in the learning process. (5)
8 Describe the aspects to consider when practising what has been
learned. (9)
9 Explain the term ``transfer of training''. (2)
10 Describe three main methods of training. (9)
11 Explain how you would determine whether the training of salespeople
had been successful or not. (10)
NOTES
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109
Study unit 8
Performance management
Contents Page

Key concepts 111
8.1 Introduction 111
8.2 Performance management 111
8.3 Requirements for successful performance management 112
8.3.1 Defining performance 112
8.3.2 Facilitating performance 112
8.3.3 Encouraging performance 113
8.4 Performance evaluation 113
8.5 Difference between performance management and performance evaluation 114
8.6 Purpose and value of performance evaluation 115
8.7 Requirements for effective performance evaluation systems 117
8.7.1 Relevance 117
8.7.2 Sensitivity 118
8.7.3 Reliability 118
8.7.4 Acceptability 118
8.7.5 Practicality 119
8.7.6 Legalities of performance appraisal 119
8.8 Performance evaluation methods 119
8.8.1 Behaviour-oriented rating methods 120
8.8.2 Results-oriented rating methods 123
8.9 Who is responsible for performance evaluation? 124
8.10 When and how often should performance evaluation be done? 125
8.11 Problems and errors in performance evaluation 125
8.12 Performance feedback 127
8.13 Summary 128
Self-assessment 129
Learning outcomes

Ð describe the process of performance management
Ð distinguish between performance management and performance evaluation
Ð explain the meaning and value of formal performance evaluation
Ð list and describe the requirements of an effective performance evaluation system
Ð describe how a line manager should deal with performance evaluation
Ð list the criteria for developing acceptable performance evaluation
Ð list and describe the different types of rating methods
110
Ð list and describe the most common types of rating errors
Key concepts
learning outcomes:
Performance management Performance appraisal
Performance evaluation Performance feedback
8.1 Introduction
Consider the following situations:
Ð The tennis player searching for a coach who really understands her
Ð The learner waiting for the assessment from his assessor
Ð The newly appointed worker, wanting to know if she is still on track
Ð A self-managing work team and a supervisor about to meet to discuss objectives
for the next quarter
According to Cascio (2006:328), all these situations have one thing in common,
namely the need to manage performance effectively, at the level of either the individual
or the work team. Cascio says performance management could be compared with a
compass Ð one that indicates an individual's or a team's actual direction as well as the
desired direction. Like a compass, the job of the manager (or the coach or the assessor)
is to indicate where the individual or team is now, and to help focus attention and effort
on the desired direction.
Performance management is part of a continuous process of improvement over time
which demands daily, not annual, attention. Think of it this way: why does a person
who goes to gym to stay fit and healthy pay a generous fee for a private instructor?
Not to participate in any body building competition or something like that, but so that
he or she can have a professional who understands and can demonstrate what good
performance looks like, observe the individual's exercise routine, make an appraisal of
it, and then provide real-time feedback to build sound habits and eliminate unsound
ones (Cascio, 2006:329).
8.2 Performance management

Performance management is a broader term than performance evaluation.
Typically, evaluation is done annually, or in some firms quarterly. Cascio (2006:329)
writes: ``Performance management requires willingness and a commitment to focus on
improving performance at the level of the individual or team every day.'' Sound
performance management requires managers to provide timely feedback about
performance, while constantly focusing everyone's attention on the ultimate objective
of the enterprise (Cascio, 2006:329).
111
Performance management is an ongoing process, which implies a continuous
action, and it refers to all the interaction between a team leader and a team member.
8.3 Requirements for successful performance management

According to Cascio (2006:329), the broad process of performance management
requires that managers do three things well:
Ð Define performance
Ð Facilitate performance
Ð Encourage performance
Let's look at each.
8.3.1 Defining performance

By defining performance, the manager makes sure that the teams know what is
expected of them, and that they stay focused on effective performance (Cascio,
2006:329). In this process of defining performance, careful attention should be paid to
three elements: goals, measures and assessment (Cascio, 2006:329±330).
Ð Goal setting: Goals direct attention to the specific performance in question,
increase the effort to accomplish higher levels of performance, and foster
persistence for higher levels of performance. To be effective, goals should be
challenging and specific because this clarifies precisely what is expected and leads
to high levels of performance (Cascio, 2006:330). (As pointed out in study unit 7,
goal setting also plays a major role in the process of learning.)
Ð Measures: The mere presence of goals is not sufficient. There must be measures
to establish to what extent the goals have been accomplished (Cascio, 2006:330).
Ð Assessment: Cascio (2006:330) writes: ``Here is where performance evaluation
comes in. Regular assessment of progress toward goals focuses the attention and
efforts of an employee or a team. If a manager takes the time to identify
measurable goals, but then fails to assess progress toward them, he's asking for
trouble.''
8.3.2 Facilitating performance

In order to attain maximum performance, adequate resources should be provided, and
any obstacles in the way of successful performance should be removed.
Cascio provides some examples of obstacles that can inhibit maximum performance
(2006:330):
Ð Outdated or poorly maintained equipment
Ð Delays in receiving supplies
Ð Inefficient design of work spaces
Ð Ineffective work methods
Employees are well aware of these, and they are only too willing to point them out Ð if
only they are asked! (Cascio, 2006:330)
The provision of adequate resources is another requirement for successful
112
performance Ð capital resources, material resources, or human resources. If employ-
ees lack the resources to reach the challenging goals they have set, they will become
frustrated and demotivated (Cascio, 2006:330).
`À final aspect of performance facilitation is the careful selection of employees. After
all, the last thing any manager wants is to have people who are ill-suited to their jobs ...
because this often leads to overstaffing, excessive labor costs and reduced productivity''
(Cascio, 2006:330).
8.3.3 Encouraging performance

According to Cascio (2006:331), this is the last area of management responsibility in a
co-ordinated approach to performance management. To encourage performance,
especially repeated good performance, managers must provide a sufficient number of
rewards that employees really value, and do so in a timely and fair manner (Cascio,
2006:331)
The elements of a performance management system are shown in figure 8.1.
Define
performance
Set objectives
!
TO ACTIVATE
Encourage EMPLOYEE
performance Facilitate
PERFORMANCE performance
!
!
Provide timely re-

wards that are valued Provide resources
by employees
Figure 8.1: Elements of a performance management system

8.4 Performance evaluation

Grobler et al. (2006:262) write:
Performance appraisal (PA) is the ongoing process of evaluating and managing
both the behaviour and outcomes in the workplace. ... Organisations use various
terms to describe this process.
Performance review, annual appraisal, performance evaluation, employee
evaluation and merit evaluation are some of the terms used.
Performance evaluation, according to Liebenberg (1996:291), is `àn integral part of

the process of performance management''.
After job analysis is done, candidates are recruited, selected and oriented to
113
occupy specific jobs. Through this process of performance management, the
energy of employees is directed towards delivering specific outputs. The extent
to which these outputs are delivered should be evaluated, among other things,
to determine training needs and levels of remuneration (Liebenberg, 1996:291).
Performance evaluation is thus an activity normally performed by the human resource

department to determine the extent to which an employee is performing the job
effectively. Liebenberg (1996:292) elaborates on this definition and says performance
evaluation implies the following:
Ð Some sort of agreed-upon rules for evaluation exist.
Ð A numerical scale is used.
Ð Performance evaluation may cover both work-related behaviour and work
outputs.
Ð Information on past performance is available.
Ð Performance standards exist.
Ð The outcome of the evaluation is used for specific purposes.
8.5 Difference between performance management and perform-

ance evaluation
It is easy to be confused between performance management and performance
evaluation. So, what are the differences between these two concepts? In table 8.1,
some of the fundamental differences between the two concepts are illustrated.
Table 8.1: Difference between performance evaluation and management
ELEMENT PERFORMANCE PERFORMANCE MANAGEMENT

EVALUATION
Purpose Reward allocation, personal de- Balancing individual, team and organisa-
velopment, HR planning tional purposes
Philosophy Judgement and comparison Improvement first priority; judgement second
Scope/basis Position, department Entire organisation
Job-defined criteria Performance defined by business strategy,
Goals and standards team mission, customers, situation, nature
of system and roles
Performer Individual employee Individual employee, team/unit, system/
process
Rater Direct supervisor of employee Direct supervisor, co-workers / team mem-
bers, performer, customers, others
Job Job-related criteria (trait or be- Broad measure based on negotiated, im-
haviour) provement-oriented and recurring (routine)
objectives (results)
Competencies aligned with strategy and
values (behaviour)
114
ELEMENT PERFORMANCE PERFORMANCE MANAGEMENT
EVALUATION
Focus Review of past performance Focus on entire performance management
process: defining, developing, reviewing
Assessment discus- Often one-way Collaborative
sion
Scheduling Annual, administratively driven Initiated by performer or supervisor
Aligned to natural organisational perform-
ance (planning) cycles and administrative
systems
Training Rater All participants
Link between per- Mostly direct Primarily reward higher-order unit of per-
formance and re- formance
ward Performance linked to predetermined con-
sequences
Promotion decisions Employee comparison methods Special assignments; simulations, e.g. as-
sessment centres; customer involvement
Therefore, performance management out
comes only one of a variety of inputs
Outcomes Individual effectiveness: evalua- Agreement on performance level
tion, guidance and development, Satisfaction (fairness and motivation)
motivation Individual growth, group and systems devel-
opment, organisational effectiveness and
change
(Source: Liebenberg & Van der Merwe, 1996:265, adapted from Spangenberg, 1994)
8.6 Purpose and value of performance evaluation

Performance evaluation is a feedback process that provides information for further
action. According to Cascio (2006:332), performance evaluation `ìs a measurement
process as well as an intensely emotional process'' and `àn inexact, human process''. So
why is it still used? Except for the obvious purpose of indicating how successful
employees are in the execution of their task, performance evaluation also serves the
following purposes (Cascio, 2006:332±333):
Ð Improves employees' work performance by helping them realise and use
their full potential in carrying out their firms' missions.
Ð Provides information to employees and managers for use in making work-
related decisions.
Ð Establishes training needs. Poor performance may indicate a need for
training.
Ð Placement decisions. Promotions, transfers or demotions are usually based on
past performance or expected performance. Promotion is often perceived as a
reward for past performance. Performance evaluation provides legal and formal
organisational justification for employment decisions to promote outstanding
performers, and to train, transfer or discipline others.
Ð Career planning. Feedback on performance provides important guidelines for
decisions about the investigation of specific career fields.
Ð Helps to diagnose organisational problems. Poor performance may be a
115
symptom of badly designed tasks; it may point to incorrect job analysis
information, inappropriate manpower plans or other weaknesses in the man-
power management information system.
Ð Performance evaluation is used as a criterion in test validation. Test results
are correlated with appraisal results to evaluate the hypothesis that test scores
predict job performance.
Ð Salary adjustments. Performance evaluation helps decision makers to decide
which employees qualify for salary increases.
Despite its shortcomings, performance evaluation continues to be used widely. To

simply discard appraisals because of these shortcomings is no solution. As Cascio
points out, wherever people interact in organised settings, appraisals will be made Ð
formally or informally. The best challenge is to identify appraisal techniques and
practices that are most likely to achieve a particular objective and are least vulnerable
to the above pitfalls (Cascio, 2006:333).
Improving employees' Providing information Establishing training

work performance ~ needs
~
~
PURPOSES OF
Diagnosing organisa- PERFORMANCE " Test validation
tional problems EVALUATION
!
!
Salary adjustments Career planning Placement decisions
Figure 8.2: Purposes of performance evaluation
Activity 8.1
Complete the following table by indicating how the results of a performance

evaluation can be used in the case of each of the HR functions below:
HR FUNCTION USE OF PERFORMANCE EVALUATION

RECRUITMENT .........................................
.........................................
.........................................
SELECTION .........................................
.........................................
.........................................
TRAINING .........................................
.........................................
.........................................
116
HR FUNCTION USE OF PERFORMANCE EVALUATION
COMPENSATION .........................................
.........................................
.........................................
LABOUR RELATIONS .........................................

.........................................
.........................................
Activity 8.2
(a) How often does performance evaluation take place in your organisation?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) For what purpose is performance evaluation used in your organisation?

.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
8.7 Requirements for effective performance evaluation systems

The key requirements for any evaluation system to be legally and scientifically accepted
are relevance, sensitivity and reliability. Another two key requirements in
carrying out performance evaluation are acceptability and practicality (Cascio,
2006:334).
Take note that reliability and relevance (or validity, as some authors refer to it) are also
important requirements of psychological tests.
8.7.1 Relevance
Relevance implies that there are clear links between the following (Cascio, 2006:334):
Ð Between the performance standards for a particular job and an organisation's goals
Ð Between the critical job elements identified through a job analysis and the
dimensions to be rated on an evaluation form (thus, relevance refers to the extent
to which dimensions on a performance evaluation form correspond to critical job
elements and the organisation's goals)
117
According to Cascio (2006:334), the essence of relevance lies in the question: ``What
really makes the difference between success and failure on a particular job, and
according to whom?'' Performance standards are the important job requirements
against which acceptable or unacceptable employee behaviour is measured. They play
a critical role in the linkage between job analysis and performance appraisal, as
indicated in table 8.2. Job analysis identifies what is to be done, while performance
standards indicate how well the work needs to be done. Such standards may be
quantitative (e.g. time, units produced, errors) or qualitative (e.g. quality of work, ability
to interpret market trends) (Cascio, 2006:334).
Table 8.2: Relationship of performance standards to job analysis and performance

appraisal
Job analysis Performance Performance
standards appraisal
Describes work Translate job Describes the
K K
and personal requirements job-revelant
requirements into levels of strengths and
of a particular acceptable weaknesses of
job performance each individual
8.7.2 Sensitivity
Sensitivity refers to the ability of an evaluation system to distinguish between effective and
ineffective performers. If there is no difference in ratings for the best and worst
performers, the whole exercise can be seen as pointless paperwork (Cascio, 2006:335).
8.7.3 Reliability
This requirement refers to consistency of judgement, usually across time, but also
across judges.
For any given employee, appraisals made by raters working independently of one
another should agree closely. To provide reliable data, each rater must have adequate
opportunity to observe what the employee has done and the conditions under which
he or she has done it, or else the difference in ratings could be the result of insufficient
information or lack of knowledge (Cascio, 2006:335).
8.7.4 Acceptability
According to Cascio (2006:335), acceptability is the most important requirement of all
in practice. Any human resource programme must have the support of those who will
use them, or else it could be thwarted. It is said that performance evaluation systems
often do not work because most were designed mainly by HR specialists with limited
input from managers and even less input from the employees.
The whole process can gain so much more credibility if the active support and co-
operation of subordinates or teams are enlisted by making it clear what aspects of job
performance they will be evaluated on (Cascio, 2006:336).
118
8.7.5 Practicality
Evaluation instruments must be easy to use and understand by those who are going to
use them (Cascio, 2006:336). In other words, the managers and employees must find
the system easy to implement.
8.7.6 Legalities of performance appraisal

Concerning the legalities of performance appraisal, Cascio recommends that the
following steps be taken, based on the conclusions reached by three reviews of the
case law on performance appraisal (Cascio, 2006:336±337):
Ð Conduct a job analysis to determine the characteristics necessary for successful job
performance.
Ð Incorporate these characteristics into a rating instrument.
Ð Train supervisors to use the rating instrument properly, including how to apply
performance standards when making judgements. The uniform application of
standards is very important. The vast majority of cases lost by organisations have
involved evidence that subjective standards were applied unevenly to members of
protected groups versus all other employees. Often, performance appraisal results
are used in the selection process to establish the validity of selection instruments.
Ð Include formal appeal mechanisms, coupled with higher-level review of appraisals.
Ð Document the appraisals and the reason for any termination decisions. This
information may prove decisive in court. Credibility is enhanced by documented
appraisal ratings that describe instances of poor performance.
Ð Provide some form of performance counselling or corrective guidance to assist
poor performers.
8.8 Performance evaluation methods

The following are some of the performance evaluation methods that are widely used in
organisations.
Ð Behaviour-oriented rating methods

. Narrative essay
. Ranking
. Paired comparisons
. Forced distribution
. Behavioural check list
. Graphic rating scales
. Behaviourally anchored rating scales (BARS)
Ð Results-oriented rating methods

. Management by objectives (MBO)
. Work planning and review
Let's consider each, as discussed by Cascio (2006:339±344).
119
8.8.1 Behaviour-oriented rating methods
Narrative essay
This method requires the evaluator to write down the employee's strengths,
weaknesses and potential, together with suggestions for improvement. Underlying
this approach is the assumption that a candid statement from a rater who knows the
employee's performance well is just as valid as more formal and more complicated
rating methods (Cascio, 2006:339).
The advantage of this method is that it can provide detailed feedback to subordinates
regarding their performance. The disadvantage is that comparisons across individuals,
groups or departments are almost impossible since different essays focus on different
aspects of each subordinate's performance (Cascio, 2006:339). The results of this
technique depend not only on the performance of the individual but also on the writing
skills of the rater.
Ranking
With this method the evaluator is asked to rank employees from the best to the worst
in terms of an overall criterion. The advantage of this method is that it is a quick and
fairly easy technique to use when a small number of employees are involved. The
disadvantages are that it is very difficult to appraise a group of more than 20
employees, and performance differences among subordinates are not indicated.
Although the top and worst performers are easily identified, the performers in the
middle group are not easily identified.
Paired comparisons
This is a more systematic method for comparing employees with one another. Each
employee is compared with every other employee with reference to each employee's
overall ability to execute a task (Cascio, 2006:339). The number of times one
employee is preferred to his colleagues is indexed and this determines his position on
the ranking order scale for appraisal.
The advantage of this method is that these comparisons are useful for purposes of
salary administration. The disadvantage is that these comparisons provide little basis
for individual feedback and development (Cascio, 2006:344).
Forced distribution
With this method the evaluator is asked to rate employees in a fixed category, for
example 10% in the weakest group, 20% in a low average group, 40% in an average
group, 20% in a high average group and 10% in an above average group.
The advantage of this method is that this type of distribution eliminates clustering
almost all employees at the top of the distribution (rater leniency), at the bottom
of the distribution (rater severity) or in the middle (central tendency). It is most
useful if a large number of employees must be rated and there is more than one
rater. The disadvantage is that it can lead to a great deal of employee resentment if
an entire group of employees as a group is either superior or substandard (Cascio,
2006:340).
120
An example of forced distribution is illustrated by figure 8.3.
10% 20% 40% 20% 10%
Figure 8.3: Example of a forced distribution

Behavioural check list

Here the rater is provided with a series of statements that describe job-related
behaviour. The rater must choose words which in his or her opinion best describe the
employee's behaviour or characteristics. Each category is weighted, for example from 5
(`àlways'') to 1 (``never''). By means of this list the evaluation is quantified so that a
total performance score can be calculated for each employee. Table 8.3 illustrates a
rating scale for evaluating a teacher's performance. The rater simply checks the
category that best describes the teacher's behaviour. A total score is computed by
adding up the points associated with each item (Cascio, 2006:340).
Table 8.3: Rating scale

MY TEACHER 5 4 3 2 1
1. is always in class on time
2. is well prepared
3. is enthusiastic about the subject
4. clearly explains the objectives and the value
of the course
5. makes lessons interesting and clear
6. makes difficult topics easy to understand
7. makes use of handouts to explain or simplify
topics
8. uses visual aids in presentations
9. use examples from the world of work to
explain topics
10. treats students with dignity and respect
11. is firm but fair in his/her dealings with
students
12. is always available to answer student queries
121
MY TEACHER 5 4 3 2 1
13. maintains discipline in the class
14. sets realistic tests
15. uses tests as learning opportunities
16. feedback is timeous and clear
17. makes use of previous exam papers for exam
preparation
18. encourages students to do well/study hard
19. assists students on how to study effectively
Graphic rating scales

This is a popular performance evaluation technique. The evaluator receives a list of
characteristics against which he or she must rate employees. A typical rating scale is
illustrated in table 8.4. The evaluator rates the employee by ticking off the appropriate
block. This rating is quantifiable because it is done on a scale of 1 to 9.
The advantages of graphic rating scales are that they allow results to be expressed in
quantitative terms, they consider more than one performance dimension, and since the
scales are standardised, they facilitate comparisons across employees (Cascio,
2006:342). The disadvantages are that they are very time-consuming to develop,
and sometimes the dimensions or scale points are not defined clearly (Cascio,
2006:344).
An example of a graphic rating scale is illustrated in table 8.4.
Table 8.4: A portion of a graphic rating scale

Level of performance
Rating
Factors Un- Above
Conditional Satisfactory Outstanding
satisfactory satisfactory
Attendance
Appearance
Dependability
Quality of
work
Quantity
of work
Relationship
with people
Job knowledge
122
Behaviourally anchored rating scales (BARS)
These scales make use of critical incidents as anchor statements on a scale. The major
advantage is that they define the dimensions to be rated in behavioural terms and use
critical incidents to describe various levels of performance (Cascio, 2006:342). The
disadvantage is that they are very time-consuming to develop (Cascio, 2006:344).
8.8.2 Results-oriented rating methods
Management by objectives (MBOs)

This method relies on goal setting to establish objectives for the organisation as a
whole, for each department, for each manager within each department, and for each
employee. MBO is not a measure of employee behaviour; rather, it is a measure of each
employee's contribution to the success of the organisation (Cascio, 2006:342).
To establish objectives, the key people involved should do the following three things
(Cascio, 2006:343):
Ð Meet to agree on the major objectives for a given period of time
Ð Develop plans for how and when the objectives will be accomplished
Ð Agree on the standards for determining whether the objectives have been met
The disadvantages of this method are that it is ``generally short-term-oriented,

provides few insights into employee behavior and does not facilitate comparison across
employees'' (Cascio, 2006:344).
The advantage is that it ``focuses on results and on identifying each employee's

contribution to the success of the unit or organization'' (Cascio, 2006:344).
Work planning and review

According to Cascio (2006: 44), this is similar to MBO, but `ìt places greater emphasis
on the periodic review of work plans by both supervisor and subordinate in order to
identify goals attained, problems encountered, and the need for training''.
The advantage of this method is that it requires frequent supervisor-subordinate

review of work plans (which could be seen as a disadvantage as well, depending on
how one looks at it). The disadvantage is that it is time-consuming to implement
properly and does not facilitate comparisons across employees (Cascio, 2006:344).
When should each technique be used?
Cascio (2006:344±345) points out that no method is perfect, and that the choice of a
rating method should be done by looking at the relevance and acceptability of the
rating system. The following advice is based on systematic comparisons of the various
methods (Cascio, 2006:345):
Ð If the objective is to compare employees across raters for important employment
decisions (e.g. promotion, merit pay), do not use MBO or work planning and
review. They are not based on a standardised rating scheme for all employees.
123
Ð If BARS is used, a diary should be kept during the process. This will improve the
accuracy of the ratings, and will help supervisors distinguish between effective and
ineffective employees.
Ð If objective performance data is available, MBO is the best strategy to use. Work
planning and review is not as effective as MBO under these circumstances.
Ð In general, appraisal methods that are best in a broad, organisational sense Ð
BARS and MBO Ð are the most difficult to use and maintain.
Ð Methods that focus on describing, rather than evaluating, behaviour (e.g. BARS,
summed rating scales) produce results that are the most interpretable across
raters. They help remove the effects of individual differences in raters.
Ð No rating method has been an unqualified success when used as a basis for merit
pay or promotional decisions.
Ð When certain statistical corrections are made, the correlations between scores on
alternative rating formats are very high.
8.9 Who is responsible for performance evaluation?

The most important requirement for any rater is that he or she has adequate
opportunity to observe the employee's work performance over a reasonable period of
time. Possible raters are the employee's immediate supervisor, peers or subordinates;
and self-appraisal could also be done (Cascio, 2006:346±347). Let's consider each.
Immediate supervisor
The supervisor is probably most familiar with the individual's performance as well as
most informed as to what is to be expected of the employee with regard to what the
department and organisation are trying to accomplish. The supervisor is also
responsible for reward or withholding reward decisions, and for managing the overall
performance management process. Feedback from the immediate supervisor is seen
as more reliable than from any other source (Cascio, 2006:346).
Peers
Cascio (2006:346) writes:
Peers can provide a perspective on performance that is different from that of
immediate supervisors. ... a member of a cross-functional team may be in a
better position to rate another team member than that team member's
immediate supervisor.
Peer assessment must only be seen as one part of the performance evaluation
process, which includes input from all sources that have information or
perspectives to offer concerning the job performance of an individual or a work
group (Cascio, 1998:316).
Subordinates
Evaluation by subordinates can be useful input with regard to the immediate
supervisor's development. These people know by experience how well the supervisor
communicates, the type of leadership style he or she is exercising and the extent to
124
which he or she plans and organises. Just like peer assessments, subordinate ratings
provide only one piece of evidence in the whole process of evaluation (Cascio,
2006:346±347).
Self-appraisal
Although self-appraisals tend to be more lenient, less variable and more biased, the
opportunity to participate in the performance evaluation process improves employees'
motivation and reduces their defensiveness during the evaluation interview (Cascio,
2006:347).
8.10 When and how often should performance evaluation be

done?
Performance evaluation traditionally takes place at least once or twice a year. Research
has indicated that this is far too infrequent. Unless a rater keeps a diary, he or she will
not be able to remember what several employees did over the previous six or twelve
months. This is why some firms do quarterly reviews between the bi-annual ones
(Cascio, 2006:351). (An example of the bi-annual performance contract between a
company and the employee is included at the end of this study unit Ð see annexure
A.)
More and more companies are realising that annual reviews do not work very well.
Many companies require managers to review employees formally at least twice a year
and to talk with them informally even more often about how they are doing (Cascio,
2006:351).
8.11 Problems and errors in performance evaluation

Evaluating human behaviour will always be a subjective process. Raters' memories are
fallible and their ratings are done according to their own sets of preferences,
expectations, relationship with the employee and personal objectives. The information
used for evaluation will never be totally complete and accurate.
One way to reduce subjectivity is to make evaluators aware of typical rating errors
made during the evaluation process. A few common rating errors that occur during
the performance evaluation process are:
Ð the halo error
Ð leniency
Ð strictness
Ð the recency error
Ð the contrast error
Ð the central tendency error
Let's look at each:
125
Halo error
The rater assigns his or her rating on the basis of an overall impression of the
employee. The rater focuses on only one or two good or weak attributes of the
employee (Meyer, 2000:90). For example, an employee who is an excellent public
speaker is seen as an excellent performer in all aspects and is given a high rating.
Leniency
The rater regards his or her subordinates as good performers and awards high marks.
This sometimes happens because the rater is inexperienced and/or wants to ``buy''
good relationships with his or her subordinates (Meyer, 2000:90).
Strictness
Sometimes supervisors consistently give low ratings even though some employees
may have achieved an average or above-average performance level. This could be due
to the fact that the rater feels that none of the subordinates is living up to standards of
excellence, or he or she wants to motivate them to excel in future, but this approach
can be very demoralising (Grobler et al., 2006:278).
Recency error
Here the rater assigns his or her ratings on the basis of the employee's most recent
performance. This is most likely to occur when evaluations are done only after long
periods (Cascio, 2006:355).
Contrast error
The rater compares several employees with one another rather than with an objective
standard of performance (Cascio, 2006:355). It could also be that the rater compares
the subordinates with himself or herself and then gives a low rating if their attitude or
approach differs from that of the rater (Meyer, 1990:91).
Central tendency error

All subordinates are evaluated as being average performers. According to Meyer
(1990:91), this often happens when the evaluator has insufficient performance
information and then allocates a ``safe'' mark.
What can be done to reduce subjectivity and rating errors? Cascio (1998:323) points
out that rater training should emphasise how to observe behaviour more accurately,
not how to or how not to rate.
Activity 8.3
Complete the following table by providing a practical example of the rater error and
an indication of how it should be rectified.
126
Rater error Practical example Corrective action
HALO EFFECT The employee is a very friendly Keep a list of all the strengths
person and is therefore seen as and weaknesses of each em-
competent and honest. ployee. Review this list before
evaluating an employee's per-
formance.
LENIENCY ........................ ........................
........................ ........................
........................ ........................
STRICTNESS ........................ ........................

........................ ........................
........................ ........................
RECENCY ........................ ........................

........................ ........................
........................ ........................
CONTRAST ........................ ........................

........................ ........................
........................ ........................
CENTRAL ........................ ........................

TENDENCY
........................ ........................
........................ ........................
8.12 Performance feedback

According to Cascio (2006:357), the policies of most companies require that appraisal
results be discussed with employees. The problem is that this feedback process is not
always implemented successfully. Evidence indicates that most supervisors still use a
``tell and sell'' approach instead of a problem-solving approach.
By ``tell and sell'' is meant that a manager completes an appraisal independently, shows
it to the subordinate, and then asks for the subordinate's reaction and sign-off on the
appraisal (Cascio, 2006:357). This leads to a feeling of resentment or at least no
improved job performance from the employees.
To avoid this, Cascio (2006:358±360) suggests the following activities before, during
and after the performance feedback interview:
Ð Communicate frequently with the employee about his or her performance.
Feedback has maximum impact when it is given as close as possible to the action.
Ð Get training in performance feedback and performance evaluation
interviewing. Training allows raters to observe behaviour more accurately and
fairly.
Ð Encourage subordinates to prepare. Research indicates that subordinates
who spend more time prior to performance feedback interviews analysing their
job responsibilities and duties, problems they experience on the job and the quality
127
of their performance are more likely to be satisfied with the performance
management process and more likely to be motivated to improve their
performance.
Ð Encourage participation. Participation creates a feeling of ownership Ð a
perception that the interview was a constructive activity, that some current job
problems were cleared up and that future goals were set.
Ð Judge performance, not personality. Steer away from personality issues;
focus on the job behaviour.
Ð Be specific, and be an active listener. Candid, specific feedback
demonstrates knowledge of the subordinate's level of performance and job
duties. By being an active listener, the supervisor demonstrates genuine interest in
the subordinate's ideas.
Ð Avoid destructive criticism. Destructive criticism produces negative feelings
and increases chances for conflict; it reduces the preference of individuals for
handling future disagreements in a positive manner; and it has a negative effect on
self-confidence.
Ð Set mutually agreeable goals. This fact has already been pointed out Ð
specific, challenging goals clarify precisely what is expected and lead to increased
levels of performance.
Ð Continue to communicate and assess progress toward goals reg-
ularly. This helps to keep behaviour on target; it provides a better understanding
of the reasons behind a given level of performance; and it enhances the
subordinate's commitment to perform effectively.
Ð Align organisational rewards with performance. If employees see a link
between evaluation results and rewards like merit pay and promotion, they are
more likely to prepare for performance feedback interviews, participate in them
and be satisfied with the overall performance management system.
8.13 Summary
This study unit has focused on the performance management process. As Cascio
(2006:361) notes, this process requires a commitment to improve performance or the
individual or team every day. An ongoing performance management system
provides instantaneous information that describes the difference between a person's
current and desired performance. Managers must provide timely feedback about
performance while keeping everyone's attention on the organisation's ultimate goal
(Cascio, 2006:361).
Performance evaluation serves two major purposes, namely to improve the job
performance of employees and to provide information to employees and
managers for use in making decisions. Performance evaluation should be done more
frequently than the traditional annual evaluation, such as upon the completion of
projects or upon the achievement of important goals (Cascio, 2006:361).
To improve the reliability and validity of ratings, raters should be trained to observe
behaviour more accurately (Cascio, 2006:362).
128
Self-assesment
1 Distinguish between performance management and performance

evaluation. (10)
2 List the purposes of performance appraisal. (6)
3 What are the requirements for successful performance manage-
ment? (6)
4 List and describe the requirements of effective performance evaluation
systems. (15)
5 List and briefly describe the five behaviour-oriented rating methods. (15)
6 List and describe two results-oriented rating methods. (6)
7 Discuss the various parties that could be involved in performance
evaluation. (10)
8 Explain six common rating errors made by supervisors when carrying
out performance evaluation. (12)
9 List the action that you as line manager could take before, during and
after the performance evaluation process. (9)
NOTES
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...................................................................
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129
Annexure A
COMPANY XYZ
PERFORMANCE CONTRACT
Name Unique number Post grade
``Home'' Business Unit (If applicable)
Production Support Centre Ð Corporate
Performance period
Team/cell name Role
Production Support Centre Ð Senior Advisor

Project System Cell
Contract acceptance
Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date . . . . . . . . . . . . . . . . . . . . . . . .
Cell leader . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date . . . . . . . . . . . . . . . . . . . . . . . .
CURRENT INDIVIDUAL RESPONSIBILITIES
Brief description of the current position held by the individual in this team/cell:
Involved in improvements/changes to the Project System and Investment Management
modules, assisting end-users in the PA and IM environment with respect to queries and
business issue resolution. Co-ordinates the process regarding transportation of solutions to the
different boxes as well as the testing of the solution prior to the transport, with regard to
planned as well as emergency transports.
End Ð User Functional Support,

Co-ordinate & Maintain Functional Ops (Periodic Processing, Interface Ops, Translation
Tables, Procedures)
Manages and controls the testing and transportation process between boxes.
Functional Operation of the Finesse solution
130
INDIVIDUAL DELIVERABLES (OUTPUTS), WEIGHTINGS and RATING
Rating equivalents. This is to facilitate the input of the Finesse ratings to the ``Home'' Business
Units
Rating Finesse Generation Transmis- Distribu- Services Corporate
sion tion
Exceeded E1 E2 E EP E TE TE1 TE2
Met/ M1 M2 M QP A TM TM1 TM2
achieved
Not met/ Z N UP Z TZ TZ
achieved
Not W R Z W TW TW
evaluated
Only deliverables are to be evaluated/rated and not input. The reference number refers to the
number on the project schedule/plan.
Reference Deliverables/responsibilities Weighting Rating

Number
Identify, design & implement areas for improvement & 5
maintain business processes and roles
Consulting with users for support and issue resolution 50
(through ARS monitoring, logging & monitoring OSS
notes, site visits, answering queries, arranging & facil-
itating workshops etc.)
Configure SAP PS to adapt the system with authorised 5
improvements and changes
Testing and control of the SAP PS solutions as required 5
(e.g. after changes or improvements to the system,
emergency and planned transports)
Improve and maintain knowledge base of existing and 5
new SAP PS, and related, functionality (through con-
tinuous self development & approved internal and
external interventions)
Knowledge transfer within PS cell (to & from others) 15
Perform Functional Reviews
Communication to users, stakeholders liaison and site 5
visits
Analysis of all change requests, draw up specs and 5
feedback to requestors
Assist with period processing 5
Total score 100

Total weighting 70%
131
INDIVIDUAL CONTRIBUTION TO TEAM EFFECTIVENESS
(Current period)
Definitions:
Co-operation
This relates to the degree of willingness to help other team members
Individual contribution
This relates to the degree of individual ability, knowledge and experience
Personal benefit to the team
This relates to the PERSONAL benefit that this individual provides to the cell.
This differs from the individual contribution as it focuses on the personal strength of the
individual as a person and covers words like friendly, hardworking, helpful, leader, calm,
dignified, spiritual, powerful, inspirational, sincere, bold, strong, caring, gutsy, tough, exciting,
talented, energetic, Miss/Mr/Mrs. Fix consistent, focused, ethical, helpful, humorous, etc.
Teamwork (participation)
This relates to the degree of interdependent working Ð work with each other regularly
Behaviour
This is how work is done and relates to attitude to work i.e. professionalism
Development
This is the maturation level and relates to the willingness to learn
Communication
This relates to the degree of openness and honesty when communicating
Handling conflict within the team

This relates to the ability to accept conflicts and work them through to a ``win/win''
conclusion
Deliverable (OUTPUT) Weighting Rating

Co-operation 15
Personal benefit to the team 10
Teamwork (participation) 15
Behaviour 15
Development 10
Communication 10
Handling conflict within the team 10
Total weighting 30%
132
AGREEMENT: OVERALL EVALUATION/RATING
Rating equivalents. This is to facilitate the input of the Finesse ratings to the ``Home'' business
Units
Rating Finesse Generation Transmis- Distribu- Services Corporate
sion tion
Exceeded E1 E2 E EP E TE TE1 TE2
Met/ M1 M2 M QP A TM TM1 TM2
achieved
Not Met/ Z N UP Z TZ TZ
achieved
Not W R Z W TW TW
evaluated
Period Rating
JANUARY±JUNE
JULY±DECEMBER
OVERALL
AGREEMENT
EMPLOYEE Date:
TEAM/CELL LEADER Date:
GROUP PROJECT LEADER/ Date:

GROUP REPRESENTATIVE
133
Personal Development Plan
Based on the feedback received, I need to:

Stop doing the following things:
........................................................................
........................................................................
........................................................................
........................................................................
........................................................................
Continue doing the following things:
........................................................................
........................................................................
........................................................................
Start doing the following things:
........................................................................
........................................................................
........................................................................
DEVELOPMENT PLAN
1. CURRENT ROLE(s)
Deliverable/ Competency gap Priority Proposed ac- Target date Indicator of
KPI/output identified tion success
2. FUTURE ROLE(s)
Competence gap identified Priority Proposed Target date Indicator of
action success
134
PREPARATION:
Self evaluation
This is where the individual looks at his/her own performance, developmental and
improvement areas.
If I were to do the following things (outputs, activities, behaviours) more or better it would
help increase my effectiveness.
........................................................................
........................................................................
........................................................................
........................................................................
........................................................................
If I were to do the following things (outputs, activities, behaviours) less of, or stop doing it
would help increase my effectiveness.
........................................................................
........................................................................
........................................................................
........................................................................
........................................................................
The following things (outputs, activities, behaviours) which I have been doing have helped to
increase me/my team's effectiveness.
........................................................................
........................................................................
........................................................................
........................................................................
........................................................................
I personally would like to develop further in the following areas.
Do the following Finesse Courses:
........................................................................
........................................................................
135
P.A. calculation
Dec-01
Weight Rating Result
FSC 20 100 20
Cell 20 106 21.2
Individual 60 69
User User User User User Cell lea-
der
Weight Rating Rating Rating Rating Rating Rating Result

1 2 3 4 5
Out- Description 80 92
put
1. Identify areas for improve- 2 110 2

ment
2. ARS's 5 110 6
3. Config SAP PS 5 118 6
4. Plant maintenance project 5 118 6
5 118 6
136
5. KT for conversion process
6. Testing for PS solutions 2 110 2
7. Knowledge base of PS/IM 5 118 6
8. Knowledge transfer with- 5 118 6
in cell
9. Comms to users/stake- 2 100 2
holders
10. Analysis of change re- 2 110 2
quests, spe
11. Assist periodic processing 2 110 2
12. Config tax client 20 118 24
13. Projects 40 115 46
14. 0
15.
Subtotal (Weighting to equal 100) 100 115

User User User User User Cell
leader
Weight Rating Rating Rating Rating Rating Rating Result

1 2 3 4 5
Soft issues 20 0 23
1. Co-operation 20 118 24
2. Teamwork 20 118 24
3. Behaviour 20 118 24
4. Development 20 118 24 Tx 0-80
5. Communication 20 115 23 TM2 81±90 TE2 101±110
Subtotal (weighting to equal 100) 100 117 TM1 91±100 TE1 111±120
Rating 100 111
137
Study unit 9
Career management in organisations
Contents Page

Key concepts 139
9.2 Definitions of various career-related concepts 139
9.2.1 Career 139
9.2.2 Career management 140
9.2.3 Career path 140
9.3 Role players in career management 141
9.4 Career management from the individual's perspective 141
9.5 Career phases and choices 143
9.5.1 Organisational entry 143
9.5.2 Early career: the impact of the first job 143
9.5.3 Mid-career 144
9.5.4 The mature worker 144
9.6 Career management from the organisation's perspective 146
9.7 Dual-career couples 147
9.8 Summary 149
Self-assessment 149
Learning outcomes

Ð define the concept of a career and other career-related terms
Ð give reasons why the management of individual careers is important for
organisations
Ð provide guidelines for employees who are considering changing jobs from one
organisation to another
Ð describe the value of career management
Ð discuss the stages of career development
Ð describe the role of the human resource practitioner and the line manager in
career management
Ð describe how dual-career paths should be managed in an organisation
Ð list the criteria that can be used to assess available career paths in the
organisation
Ð list and describe the four types of internal career moves in an organisation
138
Key concepts
learning outcomes:
Career Dual career
Career development Career management
9.1 Introduction
In the past, many organisations took responsibility for the career paths and growth of
their employees. There were predetermined career paths in place for employees. In
recent years acquisitions, rapid growth and downsizing have left many organisations
unable to deliver the promised careers to their employees. In some cases employees
who expected career growth within their company are now even finding themselves
without a job! (Cascio, 2006:373)
Career development is no longer the sole responsibility of the organisation. Each

individual is responsible for his or her own career development.
However, the organisation will assist in this task by communicating to
employees where it wants to go and how it wants to get there, providing employees
with information about the business, and responding to the career initiatives of
employees with complete and candid information (Cascio, 2006:374).
The approach to career management is one of dual responsibility Ð the employees

have responsibility for managing their own careers, and management should provide
the support to enable employees to do this (Cascio, 2006:374).
9.2 Definitions of some career-related concepts

In this section we will consider definitions of three main concepts:
Ð Career
Ð Career management
Ð Career path
9.2.1 Career
A career is a sequence of jobs held during a person's working life. Cascio (2006:375)
points out that the word ``career'' is used in a number of different ways in everyday
conversation:
People speak of ``pursuing a career''; ``career planning'' workshops are common;

colleges and universities hold ``career days'' during which they publicize jobs in
different fields and assist individuals through ``career counseling.'' A person may
be characterized as a ``career'' woman or man. ... We may overhear a person say,
139
``That movie `made' his career'' (i.e., it enhanced his reputation) or in a
derogatory tone, after a subordinate has insulted the CEO, ``she can kiss her
career good-bye'' (i.e., she has tarnished her reputation).
These examples clearly illustrate that the word ``career'' can mean different things.
According to Cascio (2006:375), there are two perspectives from which a career can
be viewed, namely an objective career perspective and a subjective career perspective.
Ð An objective career is a sequence of positions occupied by a person during the
course of a lifetime.
Ð A subjective career consists of a sense of where one is going in one's life. This
is influenced by one's perceptions of one's talents and abilities, basic values and
career motives and needs.
Both of these perspectives assume that individuals have some degree of control over
their destinies and can manipulate opportunities in order to achieve success and derive
satisfaction from their careers. Cascio (2006:375) continues: ``Career planning is
important because the consequences of career success or failure are linked closely to
each individual's self-concept, identity, and satisfaction with career and life.''
9.2.2 Career management

Career management is an ongoing process in which an individual does the following
(Greenhaus & Callanan in Swanepoel et al., 2000:437):
Ð Gathers relevant information about his or her own values, interests and skills,
strengths and weaknesses
Ð Identifies a career goal based on this information
Ð Develops and implements a strategy designed to achieve the career goal
Ð Obtains feedback on the effectiveness of the strategy and the relevance of the
goals
9.2.3 Career path

From the organisation's point of view, a career path can be seen as flexible lines of
progression through which an employee typically moves in his or her career.
Career paths indicate logical and possible sequences of positions that an employee can
hold to reach his/her destination or career goal.
Cascio (2006:391) points out certain guidelines for career paths to be successful:
Ð Career paths should represent real progression possibilities, whether lateral or
upward.
Ð Career paths should be flexible and responsive to changes in job content, work
priorities, organisational patterns and management needs.
Ð The skills, knowledge and other attributes required to perform effectively at each
position along the path should be specified, and also how they can be acquired.
140
Table 9.1: Development of a career system
STEP 1 Do job analysis to determine similarities and differences amongst jobs.

STEP 2 Group jobs with similar behavioural requirements into job families.
STEP 3 Identify career paths within and among job families.
STEP 4 Integrate the overall network of career paths into a single career system.
9.3 Role players in career management

An important question concerns who is responsible for career management. We have
already pointed out that it is not the sole responsibility of the organisation; yet at the
same time the individual cannot pursue career goals without the assistance of the
organisation. There are usually three role players: the employer, the employee, and the
human resource practitioner. Let's consider each briefly.
The employer/management
The organisation should decide on the availability of jobs and the budget for training
and development. The different career paths available should be made known to the
employees, and the means to achieve career goals must be made available. If the
organisation's structure does not have room for a certain career path, it would be of no
use for an employee to plan for that career path. The organisation has to specify career
opportunities for its employees (Neuper, 1996:69).
The employee
The individual employees are the ones who know what they want from a career and
how they intend to perform in the organisation. An employee's potential, commitment
and interest will largely determine the degree to which the employee will pursue career
goals. The employee is responsible for decisions that may influence his or her career
choices in the organisation (Neuper, 1996:69).
The human resource practitioner

According to Neuper (1996:69), the role of the human resource practitioner is to
facilitate the career management process. This entails initiating various career routes
on behalf of management as well as assisting the individual employee in career
exploration.
9.4 Career management from the individual's perspective

Few people retire from the same organisation they started working for. For most people
the relationship between them and their organisations is a temporary relationship. The
following quote from a victim of three corporate downsizings in four years sums up the
ever-changing world of work: `À job is just an opportunity to learn new skills that you can
then peddle elsewhere in the marketplace'' (Cascio, 2006:377).
141
Ultimately each individual is responsible for his or her own career management.
Unfortunately, this is not a skill that many prospective employees are prepared for at
high schools, colleges or universities.
Below are a few guidelines by Cascio (2006:378) to consider when deciding to make a
career change. The guidelines relate to:
Ð selecting a field of employment and an employer
Ð knowing where you are
Ð planning your exit
Selecting a field of employment and an employer

Take note of the following when selecting a field of employment and an employer:
Ð Managing one's career without a long-range objective is not possible. Think in
terms of where you ultimately want to be, while keeping in mind that your career
goals will change over time.
Ð View every potential employer and position in terms of your long-range career
goal.
Ð Accept short-term sacrifices for long-term benefits. Do not underestimate the
value of experience; even a low-paying job can provide valuable training
opportunities or career contacts.
Knowing where you are

To know where you are, do the following:
Ð Be aware of opportunities in your current position.
Ð Make use of training programmes that might further your career development.
Ð Assess your present level of knowledge, skills and performance. How do you think
your manager values your performance?
Ð Try to recognise when you and your organisation have nothing to offer each other
any more.
Cascio (2006:378) mentions five important symptoms that point towards the fact that
a change in your career should take place:
Ð You are not excited by what you are doing.
Ð Advancement is blocked.
Ð Your organisation is poorly managed.
Ð It is losing market share.
Ð You feel you are not adequately rewarded for your work or you are not fulfilling
your dreams.
Planning your exit

In planning your exit, do the following:
Ð Try to leave when it is convenient for you and not necessarily for the organisation.
Know when it is time to leave and establish networking relationships while you still
have a job.
142
Ð Don't burn bridges Ð leave your current organisation on good terms and not
under a cloud of suspicion or sour relationships.
Ð Do not leave your current job until you have secured another one. It is easier to
find a new job when you are currently employed.
9.5 Career phases and choices

In this section we will look at the employee's career in terms of the following four
phases:
Ð Organisational entry
Ð Early career
Ð Mid-career
Ð The mature worker
9.5.1 Organisational entry

Entry refers to the process of becoming part of a specific organisation. Once the work
force and a specific organisation are entered, the employee has to settle down and
start establishing a career there. For this initial stage to be successful, an essential
process of socialisation has to take place. During this process the mutual adaptation of
the new employee and the new employer takes place (Cascio, 2006:381).
Socialisation is the process through which the employees learn about the policies,
norms, traditions and values of the organisation, and get to know their peers,
supervisor and subordinates. Employee turnover mostly occurs during the early stages
of a person's work life, and one way to reduce early turnover is to make sure the
socialisation process is done properly. Three ways of doing this are through realistic job
previews, conducting a proper orientation programme (as discussed in study unit 6)
and mentoring (Cascio, 2006:381).
A mentor is a teacher, an advisor and a confidant; an experienced person who can help
the new employee understand the politics in the organisation and who is willing to
share his or her knowledge with the new employee. Cascio (2006:382) writes:
If successful, mentor relationships can help reduce the inflated expectations that
newcomers often have about organizations, can relieve the stress experienced by
all new hires, and, best of all, can improve the newcomer's chances for survival
and growth in the organization.
9.5.2 Early career: the impact of the first job

Research has shown that challenging initial job assignments have a positive impact
upon later career success and retention. The relationship with the first supervisor is also
crucial. The supervisor should not be threatened by the new employee's training,
ambition and energy, and should be able to communicate the organisation's norms and
values. Such a person should ideally be like a mentor: provide feedback, train, be a role
model and help to build the employee's self-esteem (Cascio, 2006:382±383).
During their early career, employees commonly experience some of the following
problems (Neuper, 1996:86):
143
Ð Dissatisfaction due to fact that the reality is not exactly as pictured and
expectations are not met
Ð Problems with the first supervisor
Ð Uncertainty in the new employee about what is expected of him or her
Ð Conflict between younger and older employees due to different experiences,
needs and interests (younger people are sometimes not as committed as older
employees, and this can cause tension)
9.5.3 Mid-career
This is a stage in which one's career is a major consideration. The rapid growth of
technology and the ever-increasing development of new knowledge require that a
person in midlife make some sort of change for his or her own survival (Cascio,
1998:349).
Between the ages of 35 and 55 the following issues may arise (Cascio, 2006:384):
Ð A search for new life goals
Ð An awareness of advancing age
Ð A change in family relationships
Ð A feeling of decreased job mobility and increased concern for job security
Ð A growing sense of obsolescence at work
Not everyone necessarily goes through these problems during this stage of life, and
some people are better equipped to cope than others. One way to handle midlife
career crises is to train mid-career employees to develop younger employees (i.e. to
serve as mentors) (Cascio, 2006:385). Other strategies for coping with mid-career
problems are to send employees to seminars, workshops and training courses, to vary
assignments, projects or jobs periodically, and to attach rewards to assignments.
There is, however, a bright side to all of this. Because of increased competition for
fewer jobs, the quality of middle managers should improve, and others may simply
readjust their life and career goals, become entrepreneurs and start their own
businesses (Cascio, 2006:386).
9.5.4 The mature worker

In this century the expected lifespan of the average person has increased by 27 years
(not taking into account the effect of HIV/AIDS), with the result that there is `àn army
of healthy, over-65, unemployed adults'' (Cascio, 2006:387).
Unfortunately, there are a lot of stereotypes about the older worker, which research
has shown to be untrue (see the myths below). Older employees feel their biggest
problem is discrimination by would-be employers who underestimate their skills.
During the late career two issues should be considered (Neuper, 1996:87):
Ð The employee must continue to be productive and contribute to the success of the
organisation.
Ð The employee must anticipate and plan for effective retirement.
144
Myths and facts about the older worker
Below are some of the myths and facts identified by Cascio (2006:388±389):
Myth: Older workers are less productive than younger workers.

Fact: Extensive research indicates that in both professional and non-professional jobs, age
and job performance are generally unrelated. Overwhelming evidence indicates that the
effects of aging on performance can be characterised by stability and growth, not necessarily
decline. Note, though, that individuals differ greatly in the timing and amount of change in
their ability to function.
Myth: Older workers are absent more often because of age-related infirmities and above-
average rates of illness.
Fact: Cumulative research has found that older workers tend to be absent less frequently, but
the duration of the absences that do take place tends to be longer.
Myth: Older workers do not get along well with other employees.
Fact: Older employees bring stability and relate well. The over-55 workers' sense of
responsibility and consistent job performance provide a positive role model for younger
workers.
Myth: Older people do not function well if constantly interrupted.
Fact: Neither do younger people!
Sure, not all older employees are model workers, and not all older employees fit
traditional stereotypes. But the fact remains that there is a growing group of able-
bodied older individuals that will have an implication for human resource management
(Cascio, 2006:390).
Two solutions are the following (Cascio, 2006:390):
Ð Make the job more attractive than retirement and keep employees who would
otherwise need replacing.
Ð Survey the needs of older workers and, where feasible, adjust human resource
practices and policies to accommodate those needs.
Here are a few ways of doing this (Cascio, 2006:390):

Ð Keep records of the reasons why employees retire and others continue to work
Ð Implement flexible work patterns and options
Ð If possible, redesign jobs to accommodate the physical capabilities of the aging
worker
Ð Provide retraining opportunities in technical and managerial skills
Activity 9.1
(a) List the various career stages that you think should be managed in an
organisation.
.............................................................
.............................................................
.............................................................
.............................................................
145
(b) At which stage of your career are you at the moment?
.............................................................
.............................................................
.............................................................
(c) What are the important issues you have to deal with in your career right now?
.............................................................
.............................................................
9.6 Career management from the organisation's perspective

From the organisation's point of view, there are four broad types of internal career
moves Ð namely up (promotions), down (demotions), over (transfers and
relocations) and out (retrenchments, retirements, resignations) (Cascio, 2006:392).
Promotions
Cascio (2006:392±393) writes:
Promoted employees usually assume greater responsibility and authority in
return for higher pay, benefits and privileges. Psychologically, promotions help
satisfy the employee's needs for security, belonging, and personal growth.
Promotions are important organizational decisions that should receive the same
careful attention as any other employment decision.
The problem with promotions is the people who have not been promoted. They often
feel they have not been treated fairly, with the result that they react with hostility
towards the promoted employee, their commitment decreases and their absenteeism
increases. The only way to minimise this is to make sure that the procedures used for
promotion decisions are acceptable, valid and fair to everybody (Cascio, 2006:393).
Demotions
Demotions `ùsually involve a cut in pay, status, privilege, or opportunity. They occur
infrequently since they tend to be accompanied by problems of employee apathy,
depression and inefficiency that can undermine the morale of a work group'' (Cascio,
2006:394).
Demotion could be the result of a disciplinary action, inability of an employee to handle
the requirements of a higher-level job, health problems or changing interests (Cascio,
2006:394).
Transfers and relocation

Transfers of men occur more regularly than transfers of women. Causes of transfers
include:
Ð promotions
Ð the opening of new offices in another part of the country
Ð the need for the person's skill or experience elsewhere
146
Relocations are not always welcomed by employees because of the costs of moving
and the complications resulting from upsetting routines, losing friends and changing
schools (Cascio, 2006:395).
Retrenchments, retirements and resignations

These involve employees moving out of the organisation.
Retrenchments
Retrenchments occur when organisations experience financial difficulties or cut back
production. Although retrenchments are intended to reduce costs, some costs may in
fact increase, such as severance pay, accrued vacation leave, pension and benefit pay-
offs and administrative processing costs. Some of the indirect costs are the low morale
among remaining employees, and the heightened insecurity and reduced productivity
of those who stay behind (Cascio, 2006:397).
One alternative to retrenchments is to start a programme of job sharing to undertake
the reduced workload. While no one is retrenched, everyone's work week and pay are
reduced. The advantages to this approach are that overtime is reduced, workers retain
a career orientation, and it eliminates the need for training a temporary employee.
However, disadvantages to this approach include a lack of job continuity, inconsistent
supervision, and accountability not being centred in one person (Cascio, 2006:397).
Retirements
Retirements usually take place due to age, normally between the ages of 60 and 65.
Some employees may be able to choose to retire early rather than being retrenched.
Cascio (2006:398) points out that there are many factors which influence people's
choice of retirement age. Research has shown that people with Type A personality
(hardworking, aggressive, impatient) are less likely to retire early, while those with
obsolete job skills, chronic health problems and sufficient financial resources are more
likely to retire early.
Resignations
Resignations occur because people seek greener pastures or new job opportunities, or
for personal reasons. This is a voluntary worker turnover and is increasing among
white-collar and professional workers (Cascio, 1998:363).
9.7 Dual-career couples

One of the obstacles in career planning and development is the challenge of reconciling
work and family responsibilities. Research indicates that dual-career couples now
comprise 45 percent of the work force (Cascio, 2006:379). The role of the employee
as a family member must be considered, especially if this role conflicts with work
activities.
147
According to Grobler et al. (2006:254, citing Giacalone) the personal and
organisational problems that dual-career couples face include the following:
Ð Conflicting alternatives: The advancement of the husband's or wife's career
often means a move in a different geographical direction, with unavoidable conflict
over deciding whose career is the more important. The ``trailing spouse'' often has
difficulty in finding employment again.
Ð Reluctance to approach the company: Many dual-career couples are
reluctant to discuss their problems with management; they are afraid that
openness about their career problems may harm their chances of advancement.
Ð Family versus work: If both husband and wife have professional jobs, who will
stay home when a child is sick? Who assumes responsibility for raising the children
when both have demanding jobs, requiring work over weekends or evenings?
Who goes to watch the hockey game, or attends the parent evening?
Ð Lack of experience with conflict resolution: Many couples lack the skills to
solve career-family crises, such as when to start with a family or how to divide the
family responsibilities.
Ð Baby panic: ``Should the dual-career couple have children, and if so, when?
Sometimes referred to as the 30-year baby panic, this problem is inevitably faced
by professional couples who postpone having children in their 20s for the sake of
their careers'' (Grobler et al., 2006:254).
Ð Possibility of a no-career couple: `Às downsizing continues in South Africa
an increasing number of couples are both retrenched within the same time period,
sometimes from the same company'' (Grobler et al., 2006:254).
From an organisational perspective, successful management of the dual-career couple

requires flexible work schedules, special counselling and the establishment of support
structures for transfers and relocations (Cascio, 1998:345).
Organisations should provide the prospective employee with a realistic view of the
company's workload as well as travel and career opportunities. Many employers have
revised their policies to allow both spouses to work for the company, as long as an
employee does not supervise a relative or participate in decisions concerning the
relative's salary, performance or advancement (Grobler et al., 2006:254).
Activity 9.2
(a) How does your organisation deal with the issue of dual-career couples when
key employees are transferred?
.............................................................
.............................................................
.............................................................
.............................................................
(b) Do you agree with the methods applied in your organisation? Substantiate
your answer.
.............................................................
.............................................................
.............................................................
148
(c) List the advantages and disadvantages of hiring the spouse of a transferred
employee.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(d) Do you perceive a need for child care programmes in South Africa?
Substantiate your answer.
.............................................................
.............................................................
.............................................................
.............................................................
(e) List any organisations you know of that offer child care programmes.
.............................................................
.............................................................
.............................................................
9.8 Summary
This study unit has focused on the process of career management. A career is a
sequence of positions occupied by a person during the course of a lifetime. Career
management involves a constant interaction between the employee, the employer and
the environment. Human resource practitioners play an integral part in this whole
process. Although they are not responsible for the actual career development of the
employees, they are able to provide the resources and infrastructure for effective
development to take place.
Self-assessment
1 Formulate your own definition of ``career''. (3)

2 Why is the design of one's first permanent job so important? (3)
3 What practical steps can you suggest to minimise mid-career crises? (4)
4 List the role players in career management and describe their roles. (6)
5 Provide guidelines for employees who wish to change employers. (10)
6 There are four major internal career moves in an organisation. List and
describe them. (16)
7 Why should career management be described as a process and not as
an event? (4)
149
Study unit 10
Job evaluation systems
Contents Page

Key concepts 150
10.2 Methods of job evaluation 151
10.2.1 Non-quantitative methods 151
10.2.2 Quantitative methods 152
10.3 Job evaluation methods used by some South African enterprises 154
10.3.1 The Paterson system 154
10.3.2 The Peromnes system 156
10.3.3 The Castellion method 157
10.4 The job evaluation committee 158
10.5 Summary 159
Self-assessment 159
Learning outcomes

Ð explain the difference between job evaluation and performance evaluation
Ð explain the importance of job analysis in the job evaluation process
Ð distinguish between the four basic job evaluation methods
Ð briefly discuss the Peromnes, Paterson and Castellion systems of job evaluation
Key concepts
learning outcomes:
Job evaluation Factor comparison
Job classification Point method
Job ranking
150
10.1 Introduction
Job evaluation is the process of evaluating every job in an organisation in terms of
every other job. This evaluation is used to place the jobs in a hierarchy and determine
the worth of the job in relation to other jobs. The emphasis is on the content of the
job and not on the incumbent. Job evaluation should not be confused with
performance evaluation, in which the incumbent is evaluated on how well he or she is
doing the job.
As with many other human resource management programmes, job analysis is the
foundation of job evaluation. Before jobs can be ranked in terms of their overall worth
to an organisation or compared with jobs in other firms for purposes of pay surveys, it
is important to understand what the jobs require. Job descriptions and specifications
(the results of job analysis) provide the necessary information to those who must make
job evaluation and compensation decisions (Cascio, 2006:159±60).
10.2 Methods of job evaluation

Job evaluation methods can basically be classified into quantitative and non-
quantitative methods (Gerber et al., 1998:194±195).
NON-QUANTITATIVE METHODS QUANTITATIVE METHODS

Job ranking Factor comparison
Job classification Point method
These are the so-called ``whole-job'' evaluation These methods produce a precise numerical score
methods because, as Schenk (1996:332) explains, for each job. Each job or task is allocated a
``they do not result in a precise numerical score numerical value, and these values are used for
for each evaluated job and because they deter- grading the jobs (Schenk, 1996:333).
mine the relative worth of jobs in a hierarchy on
the basis of an overall assessment of the content
of the jobs''.
10.2.1 Non-quantitative methods

We will look at two non-quantitative methods of job evaluation, namely job ranking
and job classification.
Job ranking
Job ranking is a simple, inexpensive method of job evaluation which only requires a job
evaluation committee of assessors to rank the jobs in accordance with the value they
would ascribe to each job. As already stated, the greatest advantage of this
method is that it is simple and cheap, but the method has several disadvantages
(Gerber et al., 1998:194; Schenk, 1996:334):
Ð The assessment is extremely subjective, as there is no predetermined scale of
values for each assessment team.
Ð Because subjective views are involved in the ranking of jobs, incumbents cannot
always understand why their jobs are evaluated in a particular way.
Ð Job ranking cannot indicate the degree of difference in worth between job levels.
Ð It cannot be used in organisations with a large number of jobs.
151
Job classification
This method entails the classification and grouping of jobs in a number of grades or job
classes. A scale of values is drawn up according to which jobs and their accompanying
job descriptions are compared. In contrast with the job ranking method, this method
makes use of a predetermined standard assessment scale (Gerber et al., 1998:194).
According to Grobler et al. (2006:356), this method has two major disadvantages:
Ð The classification descriptions are so broad that they do not relate to specific jobs,
and this causes employees to question the grades of their respective jobs.
Ð Because of the broad and general classifications, job evaluators may abuse the
system.
The popular Paterson job grading system is based on the classification method.
Activity 10.1
(a) What do you think is the main advantage of the non-quantitative methods?
.............................................................
.............................................................
.............................................................
.............................................................
(b) What do you think is the main disadvantage of the non-quantitative methods?
.............................................................
.............................................................
.............................................................
.............................................................
10.2.2 Quantitative methods

Here we will look at two quantitative methods of job evaluation, namely factor
comparison and the point method.
Factor comparison
This method entails a one-by-one comparison of tasks with reference to five factors,
namely mental requirements, skills requirements, physical requirements, responsibil-
ities and working conditions. A monetary value is allocated to each factor (Grobler at
al., 2006: 355; Gerber et al., 1998:195).
Schenk (1996:337) divides this method into the following steps:
Step 1: Select the key/benchmark jobs. These are usually jobs that are widely known
and have a relatively stable job content.
Step 2: Identify compensable factors Ð mental, skill and physical requirements,
responsibility and working conditions.
Step 3: Rank key jobs. Committee members rank the key jobs on each of the five
factors independently.
152
Step 4: Assign monetary amounts to each job on each factor. The committee agrees
upon the hourly rate for each of the key jobs and then allocates this base rate
among the five factors. These amounts then become standards according to
which other jobs in the organisation can be evaluated.
Step 5: Compare all other unique jobs with the key jobs.
The disadvantages of this method are its complexity and its dependence on key jobs
as anchor points. Most jobs change over time and so the whole process needs to be
repeated at regular intervals (Schenk, 1996:338).
An example of the factor comparison method is the Hay method (also known as the
Hay Guide Chart-Profile Method). This method is based on factors such as
know-how, problem solving, accountability and, where appropriate, working condi-
tions.
The point method

This method is a frequently used job evaluation method. In the point method a number
of factors or components are identified and then a numerical ranking order is applied
to those factors.
This method consists of the following steps:
Step 1: Select a number of job factors, such as skill and responsibility, which are
present in as many jobs or clusters of jobs as possible.
Step 2: A committee will formulate definitions for factors applicable to jobs in the
enterprise concerned.
Step 3: Assign a weight to each factor to define its relative value.
Step 4: Divide each factor weight into degrees to which specific points are assigned.
The total of the degree points within a factor is therefore that factor's
assigned weight.
Step 5: Evaluate each job in terms of the assigned point values. The relative value of
the job is determined by adding up the points for each factor in the job and
arriving at a total point value.
The disadvantage of this system is that it is expensive and time-consuming to

develop.
There are quite a few advantages attached to this method:
Ð It is flexible and easy to understand.
Ð It allows for differences between jobs to be explained in terms of job content.
Ð Common standards are set in terms of which raters can do their evaluation; they
are provided with a structural discipline which makes the point method the least
susceptible to rating errors of the four methods discussed (Schenk, 1996:341,
citing De Cenzo & Robbins).
The Peromnes job evaluation system is an example of the point method.
153
Activity 10.2
Give an example of how each of the following job evaluation methods can be
applied in an organisation:
Ð Classification method:
.............................................................
.............................................................
Ð Factor comparison method:

.............................................................
.............................................................
.............................................................
Ð Point method:
.............................................................
.............................................................
.............................................................
You may use the organisation where you are employed as a reference point.
10.3 Job evaluation methods used by some South African

enterprises
This section deals with the following three popular job evaluation methods used in
South Africa:
Ð The Paterson system
Ð The Peromnes system
Ð The Castellion method
10.3.1 The Paterson system

The Paterson system is used in a number of South African organisations. According to
Gerber et al. (1998:197), the Paterson system is based on the assumption that all jobs,
regardless of level or industry, can be compared in terms of the level of decision making
to be made by the incumbent. On the basis of the level of decision making, jobs are
grouped into six major decision-making bands. Job evaluation occurs by means of
defined levels (bands) that are described in clear terms.
Table 10.1 illustrates the various decision-making bands related to the different
activities within an enterprise.
The way in which the system works can be illustrated by referring to examples of two
extreme bands: A and F.
154
Band F Ð Policy making
Jobs in this band require decisions to be taken at the highest level in the organisation.
For example: ``Must a new branch be opened in another region to broaden the
market?''
Band A Ð Defined decisions

People in jobs in band A make no important decisions. Decisions have already been
made in advance by someone else and are carried out as an instruction Ð for example,
to paint the walls of the new office building in a specific shade of white.
The following procedures are followed to evaluate jobs in terms of the Paterson
system:
Step 1: Identify the band

Examine the job description and classify each task into one of the six decision bands.
The definition that agrees most with the job requirements is selected. In this way the
job is classified under a specific band.
Step 2: Identify the grade inside the band

In order to make a finer distinction between bands, various grades are identified inside
each band. With the exception of bands A and F, each band is further divided into an
upper and a lower band. For each grade inside the various bands, definitions are
provided with which to compare job requirements.
The final job grade is allocated on the basis of the definition which agrees most with
the job content. It is therefore more of a classification system than a quantitative
system.
A large company in South Africa using this system is Eskom.
Activity 10.3
Can you name any other two organisations in South Africa, besides the one
mentioned above, that use the Paterson method of job evaluation?
(a) .............................................................
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
155
Table 10.1: Paterson's job grading structure
Decision-making band Job Grade Sub-Grades
F Policy formulation Higher F Ð Coordinating Ð 11 F5
(Top management) Lower F Ð Policy formulating Ð 10 F4
Higher E Ð Coordinating Ð 9 E5
E4
E Programming
(Senior management) Lower E Ð Programming Ð 8 E3
E2
E1
Higher D Ð Coordinating Ð 7 D5
D4
D Interpreting (Middle management)
Lower D Ð Interpreting Ð 6 D3
D2
D1
Higher C Ð Coordinating Ð 5 C5
C4
C Routine (Skilled workers and
supervisory management) Lower C Ð Routine Ð 4 C3
C2
C1
Higher B Ð Coordinating Ð 3 B5
B4
B Automatic (Semi-skilled workers) Lower B Ð Automatic Ð 2 B3
B2
B1
Lower A only Ð Defined Ð1 A3
A Defined (Unskilled workers) A2
A1
(Source: Gerber et al., 1999:198)
10.3.2 The Peromnes system

The Peromnes system is widely used in South Africa and was derived from the
Castellion system originally developed for SA Breweries.
Each job is evaluated according to eight evaluation criteria. The first six are related to
the level of decision making in the particular job. The last two criteria involve,
respectively, the qualification and the experience required for the job.
The most important feature of the Peromnes method, according to Gerber et al.
(1992:463), is that it attempts to rate the job and not the person holding it.
The eight criteria referred to above pertain to the following factors:
Factor 1: Problem solving
Factor 2: Consequences of errors of judgement
Factor 3: Work pressure
Factor 4: Knowledge
Factor 5: Impact (influence) of job
156
Factor 6: Understanding
Factor 7: Educational qualifications
Factor 8: Training/experience
For each factor nine descriptions are compiled. Each of these descriptions is formulated
so that the intensity of the particular dimension increases progressively. The first
description, for example, will indicate that the job involves almost no problem solving.
The second description of the same factor implies a greater degree of problem solving,
up to the ninth description which indicates an extremely high degree of complicated
problem solving.
In respect of each factor and next to the nine descriptions, a scale of 0 to 36 is
provided. Next to the simplest description the scale is from 0 to 4, while the second
description has a scale of 5 to 8. The last description has a scale of 33 to 36. This
implies that the more complicated the factor is in the job, the more points are allocated
to it.
In the following table, approximate descriptions of grouped approaches are given.
Table 10.2: The Peromnes grades classification and description
Grades Description
1±3 Top executive officials and the most senior professional
people and specialists.
4±6 Senior managerial staff, as well as high level professional
7±9 Middle managers, supervisors and lower level professional
10±12 Supervisors and higher level skilled and clerical positions.
13±16 Low level skilled and clerical positions.
17±19 Low level skilled and unskilled positions.
(Source: Gerber et al. 1999:199)
10.3.3 The Castellion method

The Castellion method derives its name from Castle and Lion, the names of two beers
sold by South African Breweries, where this system was developed initially (Gerber et
al., 1992:462).
This method makes use of three work elements which are subdivided into nine factors,
as illustrated in the table on the next page:
157
Table 10.3: Castellion method elements and factors
WORK ELEMENTS FACTORS

Effort Decision making
Work pressure
Competence Numerical calculations
Comprehension
Education experience
Responsibility Control and inspection
Vigilance
Consequences of mistakes
(Source: Adaped from Gerber et al., 1992:462)
In the Castellion method, the factor of decision making underlies all other factors. It
may therefore be regarded as the main or most important factor.
Activity 10.4
(a) Describe the job grading method that is used in your organisation.
.............................................................
.............................................................
.............................................................
.............................................................
(b) What is your own assessment of the advantages and disadvantages of the
method used in your organisation?
.............................................................
.............................................................
.............................................................
.............................................................
10.4 The job evaluation committee

Job evaluation is a subjective process. No measurement can be done objectively by one
person; therefore a committee is usually appointed to carry out the job evaluation
process. Not only is the average assessment of a number of evaluators more accurate
than that of one person, but their different interests, background knowledge and
experience can also be utilised.
158
The committee should be composed of between three and eight members who have
all been trained in the use of job evaluation. A committee should consist of the
following (Schenk, 1996:343):
Ð Key members who attend each evaluation meeting and who have an expert
knowledge of job evaluation and can therefore ensure that the principles of job
evaluation are applied correctly.
Ð Expert members who should not only be trained in job evaluation but should also
have expert knowledge of the subject field of the post which is being evaluated.
Ð Co-opted members who represent the post which is being evaluated. These
members are usually the actual incumbents or their direct supervisors. They can
provide information concerning the job and job content.
10.5 Summary
This study unit has focused on the process of job evaluation. Job evaluation refers to
methods used to determine the relative worth of a job in an enterprise as well as to
indicate the monetary value linked to the various posts. Although a job evaluation
committee does much to limit subjectivity, they can also make mistakes. An appeal
procedure should therefore always be in place.
Self-assessment
1 Differentiate between job evaluation and performance evaluation. (4)

2 What role does job analysis play in the process of job evaluation? (3)
3 Briefly explain non-quantitative and quantitative methods of job
evaluation. (6)
4 Briefly explain the non-quantitative method of job ranking. (4)
5 Explain the factor comparison method of job evaluation. (4)
6 List the five steps in the point method. (5)
7 What is the underlying principle of the Paterson system? (3)
8 List the eight criteria in the Peromnes system of job evaluation. (8)
9 Is the Peromnes method an example of a quantitative or a non-
quantitative method of job evaluation? (1)
10 List the three work elements and the relevant factors for each element
that forms the basis of the Castellion system. (12)
11 What is the role of the job evaluation committee in the job valuation
process? (5)
159
NOTES
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160
Topic 3
Managing compensation systems
and employment relations
tions
Study unit 11:
Compensation systems
and employee benefits
Study unit 12:
Employee absenteeism
Study unit 13:
Managing labour turn-
over
Study unit 14:
South African labour
law
Introduction
According to the online HR guide (2000), compensation is a tool used by management
for a variety of purposes to further the existence of the company. It may be adjusted
according the business needs, goals, and available resources. It will be perceived by
employees as fair if based on systematic components. Various compensation systems
have been developed to determine the value of positions in organisations. These
systems utilise many similar components including job descriptions, salary ranges/
structures, and written procedures (HR guide, 2000).
These systems also have serious implications for employment relations in organisations
today. For example, the perceived fairness of a compensation system will determine
the degree of employee's loyalty to the organisation and the time and speed with
which negotiations over salary and other conditions of service can be finalised.
161
TOPIC AIM
The aim of this topic is to introduce you to various compensation systems; the
management of absenteeism and employee turnover; as well as the South African
labour legislation.

Ð explain the different compensation systems
Ð manage absenteeism in organisations with guidance
Ð discuss the process of managing labour turnover
Ð discuss the South African labour legislation
Topic contents
The topic ``Managing compensation systems and employment relations'' will involve
the following study units:
Study unit 11 Study unit 12 Study unit 13 Study unit 14

Compensation systems Employee absenteeism Managing labour turn- South African labour
and employee benefits over law
162
Study unit 11
Compensation systems and employee benefits
Contents Page

Key concepts 164
11.2 Components of a compensation administration system 164
11.3 Objectives of compensation systems 165
11.4 Determinants of pay structure and level 167
11.4.1 Labour market conditions 167
11.4.2 Legislation 167
11.4.3 Collective bargaining 168
11.4.4 Organisation's ability to pay 168
11.5 Wage and salary surveys 168
11.6 Pay structuring 168
11.7 Incentive schemes 169
11.7.1 Requirements of incentive schemes 170
11.7.2 Types of incentive schemes 171
11.8 Employee benefits 173
11.8.1 Benefits required by law 173
11.8.2 Paid time off 174
11.8.3 Voluntary benefits 174
11.8.4 Flexible benefit plans 175
11.9 Summary 175
Self-assessment 176
Learning outcomes

Ð identify the components of a compensation administration system
Ð discuss the concepts of internal, external and individual equity
Ð list the objectives of a compensation system
Ð list and describe the factors that influence wage levels
Ð explain why wage and salary surveys are conducted
Ð describe the development of a pay structure
Ð list the requirements of effective incentive systems
Ð explain the link between benefit programmes and strategic programmes
Ð distinguish between compulsory and voluntary benefits
163
Key concepts
learning outcomes:
Compensation Wage Pay structure Equity
Reward Salary Employee benefits Incentive
11.1 Introduction
It should very clear to you that all employees must be rewarded for their labour. This is
partly because compensation affects their productivity and their willingness to stay
with the organisation. Every employee has the need to be treated fairly by the
organisation, which makes the development of the compensation programme one of
the most important and sometimes most difficult tasks of the human resource
department.
According to Grobler et al. (2006:350), the term ``compensation'' is a broader concept
than wage and salary administration. Cascio (2006:418) explains that compensation
refers to both financial and non-financial rewards: Financial rewards include payments
such as salary as well as indirect payments in the form of benefits. Non-financial
rewards include everything in a work environment that enhances a worker's sense of
self-respect and esteem, such as achieving personal goals, autonomy, recognition and
more challenging job opportunities.
Compensation refers to `àll forms of financial returns and tangible services and
benefits employees receive as part of an employment relationship'' (Grobler et al.,
2006:351)
Reward systems
3 "
Financial Non-financial
Direct payments Recognition
(wages and salaries) Training opportunities
Indirect payments Supportive, positive organisation
(benefits) culture
Health care programmes
Involvement in decision making
Figure 11.1: Financial and non-financial reward systems

11.2 Components of a compensation administration system

According to Gerber et al. (1992:455±456), the establishment of a sound
compensation administration system requires the following steps:
Ð Job analysis: This provides the foundation for the development of a
164
compensation system. Job analysis is the process of obtaining information about
the jobs in question. As mentioned before, job analysis has many uses Ð these
include remuneration and compensation management. In this context job analysis
is done to determine the value of a particular post in order to attach a monetary
value to it.
Ð Job description: Job description is a component of job analysis and it spells out
the purpose, responsibilities and tasks of a particular job. Effective job descriptions
provide the basis for establishing a job evaluation system.
Ð Job specification: Job specification and job description are the results of job
analysis. A job specification describes the minimum skills, qualifications and
experience the incumbent should have before he or she is appointed. These
requirements play a specific role in the establishment of an effective compensation
administration system.
Ð Job evaluation: Job evaluation is the process of evaluating every job in an
organisation in terms of every other job. This evaluation is used to place the jobs in
a hierarchy and determine the worth of the job in relation to other jobs.
Ð Compensation surveys: These are extremely important in the job evaluation
process. Compensation surveys outside an enterprise affect the compensation
structure during the process of job evaluation by making information available on
current compensation for similar jobs in other enterprises. It would be risky to
make salary comparisons in accordance with post gradings only. Other influencing
factors like conditions in the labour market and geographical position of the
organisation should be taken into account.
11.3 Objectives of compensation systems

Cascio (2006:418) says that, in a broad sense, organisational reward systems include
`ànything an employee values and desires that an employer is able and willing to offer
in exchange for employee contributions''. Rewards are the link between organisational
goals on the one hand and employee expectations and aspirations on the other hand.
According to Cascio (2006:419), effective organisational rewards should

provide four things:
Ð A sufficient level of reward to fulfil basic needs
165
Ð Equity with regard to the external labour market
Ð Equity within the organisation
Ð Treatment of each member of the organisation in terms of his or her individual
needs
According to Grobler et al. (2006:351±354) the compensation system should achieve

the following objectives:
Ð Attract good applicants Ð The organisation should conduct a wage survey to
determine the going rate in the labour market.
Ð Retain good employees Ð The compensation system of the organisation
should be perceived to be equitable by employees.
Ð Motivate employees Ð The compensation system should reward good
performance. It should offer incentives.
Ð Comply with the law Ð The compensation system should comply with
legislation and other regulations by government, such as the Basic Conditions of
Employment Act 75 of 1997.
The most important objective of any compensation system is fairness or equity.

Equity can be measured in terms of three types of equity, namely internal equity,
external equity and individual equity (Cascio, 2006:419).
Ð Internal equity refers to the relative worth of individual jobs to the
organisation.
Example: How important to the company is the work of the computer technician
in comparison with the work of the filing clerk?
Ð External equity is concerned with the wages paid by the organisation
compared to the wages for similar jobs paid by other organisations.
Example: Does a teller in bank A receive the same wage as a teller in bank B?
Ð Individual equity refers to how much an employee is being paid compared
with employees doing the same or similar jobs inside the same organisation.
Example: Does the filing clerk in the administration department receive the same
wage as the filing clerk in the sales department, both working for ABC company?
If the answer to any one of the questions asked in the examples above is no, then there
is no equity in that specific area, be it external, internal or individual equity.
Activity 11.1
(a) Write down a few of the reasons why an organisation should pay you a salary
after you have worked for it.
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(b) What do you think the organisation hopes to achieve by doing so?
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166
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(c) Why do you think employees are often dissatisfied with their salaries?
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11.4 Determinants of pay structure and level

The most important factors in determining wage levels are labour market conditions,
legislation, collective bargaining, managerial attitudes and the organisation's ability to pay.
11.4.1 Labour market conditions

If the demand for a certain skill is high while the supply is low, there tends to be an
increase in the price organisations are willing to pay for these skills. On the other hand,
if the supply of labour is high relative to the demand for it, wages tend to decrease
(Cascio, 2006:421).
11.4.2 Legislation
The compensation system must comply with relevant legislation and wage
agreements, such as legislative measures to protect and encourage collective
bargaining and determine minimum wages.
The Basic Conditions of Employment Act of 1997 stipulates how payment of
remuneration must take place (refer to study unit 14 in this study guide). For example,
section 32 (1) states the following:
An employer must pay to an employee any remuneration that is paid in
money Ð
(a) in South African currency
(b) daily, weekly, fortnightly or monthly; and
(c) in cash, by cheque or by direct deposit into an account designated by the
employee.
This Act also refers to:

Ð deductions and other Acts concerning remuneration
Ð the calculation of remuneration and wages
Ð the payments on termination
Ð severance pay
Ð payment instead of notice
167
11.4.3 Collective bargaining
Wages can be determined by collective bargaining whereby unions and employers or
groups of employers bargain collectively on wages and other conditions of employ-
ment. Collective bargaining affects two key factors, namely the level of wages and the
behaviour of workers in relevant labour markets. In addition to wages and benefits,
collective bargaining is also used to negotiate procedures for administering pay,
procedures for resolving grievances regarding compensation decisions, and methods
that can be used to determine the relative worth of jobs (Cascio, 2006:424).
11.4.4 Organisation's ability to pay

Cascio (2006:424) points out that regardless of the expected competitive position of
the organisation and the effect of that position on wages, the organisation's ability to
pay will ultimately be a key factor that limits actual wages. Cascio (2006:425) writes:
Ultimately, top management renders judgments regarding the overall compe-
titive pay position of the firm (above-market, at-market, or below-market rates),
factors to be considered in determining job worth, and the relative weight to be
given seniority and performance in pay decisions. Such judgments are key
determinants of the structure and level of wages.
11.5 Wage and salary surveys

Wage and salary surveys are concerned with the question of external equity. Once
the job evaluation process is finished, and jobs have been graded, the monetary
worth of these jobs or grades of jobs must be determined (Schenk, 1996:344).
Wage and salary surveys are conducted to provide information on how other
employers compensate similar jobs and skills in an organisation's labour market, and
thus make it possible to reconcile internal with external job worth (Schenk, 1996:344).
Surveys on pay and benefits can provide the following (Burgess in Schenk, 1996:344):
Ð Information about particular jobs for which there is a great demand
Ð Information on whether the organisation's entire pay structure is too low
Ð Information on starting rates for entry-level jobs
Ð Information about related issues such as hours of work, frequency of pay reviews,
merit pay increases and trends in pay and benefits
Organisations can obtain information by conducting their own surveys, according to

their specific information requirements, or by subscribing to a number of surveys
conducted by large national compensation consultancies (Schenk, 1996:344).
11.6 Pay structuring

Once the job evaluation and salary surveys have been conducted, the final step is to
attach a rand value to jobs. One way of doing this is to establish an appropriate pay
level for every job and to group these different pay levels into a manageable structure
(Schenk, 1996:345).
168
Generally compensation systems are based on a graded structure. A graded structure
consists of a sequence of pay grades or ranges, each one with its own minimum and
maximum rate. All jobs falling into a particular grade are of broadly equal value
(Schenk, 1996:345).
The actual development of a pay structure is not an easy process, but Cascio
(2006:430) gives the following guidelines:
Ð Jobs of the same general value should be clustered into the same pay grade.
Ð Jobs that clearly differ in value should be in different pay grades.
Ð There should be a smooth progression of point groupings.
Ð The new system should fit realistically into the existing allocation of pay within a
company.
Ð The pay grades should conform reasonably well to pay patterns in the relevant
labour markets.
Once the pay structure is in place, the determination of each individual's pay (based on
experience, seniority, length of service and performance, etc.) is a more structured,
systematic procedure (Cascio, 2006:430).
11.7 Incentive schemes

Compensation seldom comprises only wage or salary; it usually also includes incentive
and benefits components.
Incentive schemes are based on the general belief that ``pay can be used to motivate
individuals or groups of employees to exceed minimum performance require-
ments and increase organisational effectiveness'' (Schenk, 1996:349).
Cascio (2006:436±441) distinguishes between merit systems and incentive
systems:
Ð Merit systems are implemented to reward employees in the form of
permanent increases to their basic pay. The goal is to tie pay increases to the
performance of each employee.
Ð Incentives (e.g. sales commissions, profit sharing) are one-time additions to the
basic wage or salary. Incentives are also awarded on the basis of job performance.
It is clear from the above that an objective and credible performance appraisal
system is absolutely essential to both merit systems and incentive systems (Schenk,
1996:349).
Activity 11.2
Refer to study unit 8 and answer the following questions.

(a) What do you think are the requirements for valid and effective performance
appraisal?
.............................................................
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169
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(b) What do you think are the objectives of performance appraisal?
.............................................................
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Properly designed incentive programmes work because they are based on two well-
accepted psychological principles (Cascio, 2006:437):
Ð Increased motivation improves performance.
Ð Recognition is a major factor in motivation.
11.7.1 Requirements of incentive schemes

Incentive systems should be properly designed and should adhere to certain principles
to be effective.
There are four requirements for an incentive system to be effective (Cascio,
2006:437):
Ð It must be simple. The rules of the system should be brief, clear and
understandable.
Ð It must be specific. Employees must know precisely what they are expected to do.
Ð It must be attainable. Awards must be within the reach of every employee.
Ð It must be measurable. The system must be based on measurable objectives.
Simple
~
Effective
Measurable 3 employee incentive " Specific
programmes
!
Attainable
Figure 11.2: Requirements of effective incentive systems

170
11.7.2 Types of incentive schemes
The following are some of the types of incentive schemes that organisations use to
motivate employees:
Ð Individual incentive schemes
. Piece-rate plans
. Standard-hour plans
. Commission plans
. Individual bonuses
Ð Group incentive schemes
. Gain sharing
. Profit sharing
. Employee share ownership plans (ESOPs)
Individual incentive schemes

The goal of individual incentive schemes is to motivate employees towards increased
performance by creating the expectancy that extra effort will lead to higher
performance and in return will receive higher levels of reward (Schenk, 1996:351).
There is a visible link between effort and reward.
Unfortunately, this type of reward has the following disadvantages (Schenk,
1996:352):
Ð Employees may become less co-operative because of the competition aspect; they
may become reluctant to share good ideas with colleagues because this could
affect their chance for ``first prize''.
Ð It could affect quality because the employees' efforts would be focused on those
aspects of their jobs that were being measured and rewarded, and other
important aspects of their jobs may be neglected.
Ð For example, if teachers are rewarded for the number of distinctions their learners
achieve in the grade 12 examination, they may pay so much attention to the
above-average learners that they neglect the average learners.
Popular individual incentive schemes include piece-rate plans, standard-hour plans,

commission plans, and individual bonuses, which Schenk (1996:352±353) explains as
follows.
Piece-rate plans
These are the most common incentive plans. With this incentive scheme, individual pay
is directly linked to the number of units produced.
Standard-hour plans
Standard-hour plans differ from piece-rate plans only in the sense that the productivity
standard is set not in terms of output units but in terms of time units needed to
complete a particular task. If the employee completes his or her task in less than the
standard time, an award is given for the time saved.
171
Piece-rate and standard-hour plans are commonly implemented for production workers.
Commission plans
Commission plans are popular among salespeople, whose type of work demands
independent and competitive performance. Financial rewards help to keep these
people motivated and enthusiastic about their work. With straight commission
plans, pay is determined only by the volume of sales, while combination plans
include a guaranteed basic salary plus a commission (usually smaller) on sales.
Individual bonuses
A bonus is an additional cash award for high performance or excellent achievement
and is not guaranteed. It does not become part of the recipient's basic salary and does
not increase benefits such as pension. Bonuses are often used for managerial or
professional employees.
Group incentive schemes

With group incentives, a distinction is made between group incentives awarded to a
certain group within the organisation and organisation-wide incentives:
Ð In the case of group incentives, all members receive incentive rewards based on
the collective performance of the entire group or team. Bonuses are usually used
as the incentive mechanism (Schenk, 1996:353).
Ð Organisation-wide incentives reward all members based on the overall
performance of the organisation, but the size of the reward will usually depend
on the salary level of each individual (Schenk, 1996:354).
Popular group incentive approaches include gain sharing, profit sharing and employee
share ownership plans, which Schenk (1996:354±355) explains as follows.
Gain sharing
Gain-sharing plans aim to bring about co-operation between employees and
management through the sharing of ideas, problems and goals. Bonuses are based
on improved productivity or tangible savings in costs and are usually paid quarterly.
Profit sharing
In the case of profit-sharing plans, employees share in the organisation's profit over and
above their normal wage or salary. Allocation of money from profit sharing to
individuals may be based on the level of responsibility, seniority or merit, and payments
are usually annual.
Employee share ownership plans (ESOPs)

ESOPs constitute a trust fund into which an organisation makes contributions of shares
or cash. Proceeds are then used to buy company shares for allocation to individual
employee accounts.
The idea behind ESOPs is that employees with ownership interests in the organisation
172
will be more concerned about the efficiency and profitability of the organisation than
employees who do not share in such ownership (Grobler et al., 2006:369; Schenk,
1996:355).
Activity 11.3
Distinguish between individual incentive schemes and group incentive schemes.

INDIVIDUAL INCENTIVE SCHEMES GROUP INCENTIVE SCHEMES
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................
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2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................
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3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................
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11.8 Employee benefits

Benefits are usually not awarded on the basis of performance; instead, benefits such as
paid vacations and pension plans are tied to factors other than performance, for
example seniority (Grobler et al., 2006:374).
The government influences employee benefits through regulations concerning safety,
health care, retirement and unemployment compensation, and workers' compensation
(Grobler et al., 2006:374).
11.8.1 Benefits required by law

Certain benefits are compulsory and must be provided in a non-discriminatory way.
These benefits include unemployment insurance, compensation for injuries, and paid
time off. These benefits are briefly discussed below:
Ð Unemployment insurance: The Unemployment Insurance Act 63 of 2001
provides for the insurance of employees who are contributors to the Unemploy-
ment Insurance Fund against the risk of loss of earnings arising out of
unemployment, illness, maternity, payments to female contributors who adopt
children, and payments to the dependants of deceased contributors (Grobler et al.,
2006:374).
Ð Compensation for injuries and diseases: The Compensation for Occupa-
tional Injuries and Diseases Act 130 of 1993 regulates the payment of
173
compensation to persons who are injured or who contract a disease while
working. All employers who have one or more employees in connection with their
business or farming activities are required to register and to pay annual
assessments to the Compensation Fund (Grobler et al., 2006:375).
Ð Annual leave: The Basic Conditions of Employment Act 75 of 1997 (sections
20 and 21) stipulates the following: Employees are entitled to three weeks' fully
paid annual leave after every 12 months of continuous employment. An employer
cannot pay an employee instead of granting annual leave. However, an employee
whose employment is terminated must be paid out any leave pay due that he or
she has not taken.
11.8.2 Paid time off

Employees expect to be paid for any holidays, vacations and miscellaneous days when
they do not work paid time off. Policies that cover these benefits differ from company
to company.
However, the most common instances of time off with pay are the following (Grobler
et al., 2006:376±377):
Ð Public holidays: The Public Holidays Act 36 of 1994 provides a schedule for
public holidays on which employees will have a paid holiday. If the holiday falls on a
Sunday, the following Monday shall be a public holiday.
Ð Sick leave: Employees generally accrue sick leave at a specific rate, for example
one day per month from the first day of employment (section 22 of the Basic
Conditions of Employment Act 75 of 1997).
Ð Maternity leave: Leave of absence associated with the birth of a child is
normally granted to all female workers (section 25 of the Basic Conditions of
Employment Act 75 of 1997).
Some other types of paid time off are:

Ð study leave
Ð time off to vote
Ð time off to testify in court
Ð sabbatical leave
Ð compassionate leave
Ð paternity leave
11.8.3 Voluntary benefits

There are as many voluntary benefits as the organisation's budget or management's
creativity allows. The most popular benefits found in organisations today include
retirement plans, time off from work, disability, medical and life insurance plans,
childcare programmes, education expenses (partial or total tuition reimbursement),
transportation programmes and housing subsidies.
174
Activity 11.4
(a) List any five benefits offered by your organisation or the organisation where
you wish to be employed.
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(b) Which ones do you think are required by law and which ones are voluntary?
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11.8.4 Flexible benefit plans

The principle behind this type of benefit is that instead of offering all workers at a
company the same benefits, the benefits programme allows each worker the option to
choose the benefits they believe will best meet their needs from a wide range of
benefits. Cascio (2006:492) refers to this type of benefits programme as a ``cafeteria
style'' programme.
Usually this type of plan works like this: Workers are offered a package of benefits that
includes ``basic'' and `òptional'' items. Basic items may include medical coverage, life
insurance equal to a year's salary, vacation time based on length of service, and some
retirement pay. Optional items would then include full medical coverage, dental and
eye care, more vacation time, additional disability income, and higher company
payments to the retirement fund (Cascio, 2006:429±430).
If, for example, the husband's medical insurance covers the children, the mother may
choose legal and motor insurance from her employer instead of medical insurance. The
young worker would be more interested in a cash bonus than extra medical cover; and
the employee near retirement would opt for extra retirement coverage.
11.9 Summary
This study unit has focused on the compensation systems used in organisations. It is
imperative to acknowledge that compensation issues are very important for every
organisation. Compensation packages are often taken for granted by line managers.
Such packages are most effective when they not only reward employees for their
labour but also take the needs of individuals into consideration. Line managers should
be actively involved in compiling compensation packages in consultation with human
resource practitioners.
175
Self-assessment
1 Define compensation. (2)

2 Explain the relationship between compensation and the following:
(a) Job analysis (3)
(b) Job description (3)
(c) Job specification (3)
(d) Job evaluation (3)
3 List four essential aspects of an effective organisational reward

system. (4)
4 Describe the most important objective of any pay system. (6)
5 Give an example of each dimension of equity. (3)
6 Discuss the determinants of pay structure and level. (8)
7 What is the main concern of wage and salary surveys? (1)
8 What other kinds of information could be collected by means of these
surveys? (4)
9 What can be done to ensure that a pay structure is properly
designed? (5)
10 What are the requirements of effective incentive systems? (4)
11 List and discuss four types of individual incentive schemes. (8)
12 List and discuss three types of group incentive schemes. (6)
13 Distinguish between voluntary and compulsory benefits. Provide
examples of each. (12)
14 Explain what is meant by ``cafeteria style'' benefits. (3)
NOTES
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176
Study unit 12
Employee absenteeism
Contents Page

Key concepts 177
12.2 Definition of absenteeism 178
12.3 Causes of absenteeism 178
12.4 Classification of absenteeism 181
12.4.1 Sickness 182
12.4.2 Authorised absence 182
12.4.3 Unauthorised absence 183
12.5 Measuring and recording absenteeism 183
12.5.1 Measuring absenteeism 183
12.5.2 Recording absenteeism 185
12.6 Control of absenteeism 185
12.7 Reducing absenteeism 187
12.8 Relationship between absenteeism and labour turnover 188
12.9 Summary 189
Self-assessment 189
Learning outcomes

Ð categorise and describe the causes of absenteeism
Ð describe the categories of leave and how they affect absenteeism
Ð calculate absenteeism rates with guidance
Ð define the concept of absenteeism
Ð calculate the cost of absenteeism in a section or the entire organisation
Ð describe how absenteeism can be controlled
Ð describe the relationship between absenteeism and employee turnover
Key concepts
learning outcomes:
Absenteeism Unauthorised absence
Authorised absence Sickness
177
12.1 Introduction
Think of the number of days you have been absent with or without notice this year. Have
you ever thought that your absence affected the organisation in any way? Imagine if all
the employees in your organisation were absent for a day Ð what could happen?
Absenteeism is a serious problem in many workplaces and industries. It has costly and
far-reaching implications, not only for effective functioning and productivity, but also
for relationships among the people in an organisation. And, contrary to the belief that
it affects only the employer, it also has disruptive effects on the workers and their trade
unions (Van der Merwe & Miller, 1988:3).
How should the line manager deal with absenteeism? Line managers often believe that
absenteeism is an unavoidable fact of life that they cannot do anything about. This
study unit will deal with absenteeism and its implications.
Wood (1998:26) writes:
Whatever its causes, absenteeism erodes productivity. When absenteeism is
abnormally high management intervention will result in fewer employees being
absent from work. But for absenteeism to be normalised a relationship of trust
must be built between all levels of employees.
12.2 Definition of absenteeism

According to Grobler et al. (2006:123), South African managers consider absenteeism
to be their most serious discipline problem. This problem is not unique to any industry
or geographical area. `Èxcessive employee absenteeism can significantly drain
productivity and profits, creating innumerable problems for supervisors and the
employees who work regularly'' (Grobler et al., 2006:123).
Absenteeism occurs when employees are absent from work during periods when they
are scheduled to work and supposed to be on duty.
The term ``scheduled to work'' excludes non-attendance because of vacations, holidays,
study leave, military service and suspension (Van der Merwe & Miller, 1988:3).
12.3 Causes of absenteeism

Absenteeism is not a clear-cut behavioural act Ð each absence event may differ from
others, because there could be a mixture of causes, and the various causes could result
in the same types of absence events. Nevertheless, considerable research has shown
that absenteeism in the workplace can be described under three main headings,
namely personal, organisational and attitudinal factors (Van der Merwe &
Miller, 1988:7).
Personal factors
Personal factors are those that are unique to the individual, such as the following (Van
der Merwe & Miller, 1988:7):
178
Ð Age of employee
Ð Gender
Ð Length of service
Ð Marital status
Ð Income level
Ð Education
Ð Health
Ð Previous attendance record
Ð The personal value each individual attaches to non-work activities
However, you should keep in mind that the work force consists of unique individuals,
and you should be careful not to generalise. Now, let us look at some of these factors
more closely.
Age of employee
A fair amount of evidence supports the findings that older workers, with a longer
service record, are absent less frequently (Compare this with myths and facts about
older workers in study unit 9.). As the person/work relationship develops, there is an
increase in stability and responsibility towards the workplace.
Marital status
It seems that married people tend to be more responsible and will therefore be less
absent than younger, unmarried people. On the other hand, family responsibilities, such
as sick children, could cause one of the spouses to be absent.
Income level
People who earn lower salaries seem to be absent more frequently. This could be due
to fewer responsibilities in the workplace or general dissatisfaction with their income.
Employees who are paid less are generally also less educated Ð see the following
point.
Education
Education seems to develop people's sense of responsibility towards most aspects of
life, including their attitude towards their employer. Upbringing also plays a role in how
people view their responsibility towards their employer.
Health
Sickness falls under unavoidable causes of absenteeism. More and more emphasis is
placed these days on educating employees on how to lead healthier lifestyles.
Previous attendance record

A person whose attendance at work has tended to be poor is likely to keep this
tendency in future.
179
Personal value attached to non-work-related activities
People who participate seriously in activities outside the workplace (e.g. hobbies,
sports, part-time work) could become so involved in them that they would rather
face the consequences of being absent from work than neglect those outside
activities.
Activity 12.1
Can you describe three examples of your activities outside the workplace that could
cause you to be absent from work the following day?
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Organisational factors
These factors refer to aspects related to the organisation, such as the following (Van
der Merwe & Miller, 1988:7):
Ð The size of the organisation
Ð Size of the work group
Ð Quality of supervision
Ð Shift work
Ð Overtime
Ð Organisation control systems and absence control policies
Ð Incentive schemes
Ð Type of work
Research has found a correlation between higher rates of absenteeism and larger
groups, but only for blue-collar workers. This is probably because of poor
communication and lower group cohesiveness among large work groups, making it
more difficult for employees to feel part of the company and to fulfil their expectations
(Porter & Steers in Van der Merwe & Miller, 1988:7).
Attitudinal factors
Employees who are dissatisfied with their jobs are more inclined to stay away from
work. Job satisfaction tends to be associated with less absenteeism, especially when
employees have some control over absences, that is, when they are not really sick or
injured (Lussier, 1990:64).
The state of the economy also contributes to rates of absenteeism. When there is a
high rate of unemployment, workers place a high value on their jobs, fearing dismissal,
and will not stay away from work for any reason (Van der Merwe & Miller, 1988:8).
180
Social factors
Social problems such as an inadequate transportation system, violence, HIV/AIDS and
other difficult community circumstances may also contribute quite significantly to
employees' absenteeism.
Activity 12.2
You have been requested by the management of your organisation to investigate

the main causes of absenteeism among workers. From your own experience, what
do you think are the main causes of absenteeism in your workplace and in the
general working environment? How do you think this problem should be solved?
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Causes of absenteeism
Another classification of the causes of absenteeism, according to Sherman et al.
(1988:622), is to divide it into unavoidable and avoidable causes.
Table 12.1: Causes of absenteeism
Unavoidable Avoidable
Sickness Internal problems in the work situation
Accidents
Serious family problems
Other legitimate reasons
12.4 Classification of absenteeism

The problem of absenteeism can be dealt with most effectively when:
Ð the problem is analysed systematically
Ð pressure to be at work is increased by defining expected and acceptable standards
of behaviour
Ð steps are taken to encourage employees to maintain physical health
According to Van der Merwe and Miller (1988:9), analysis of the problem includes
documenting the causes of absenteeism (as indicated above) and classifying the causes.
Before proceeding to classify the causes, it is important to note that there are mainly
two types of absenteeism, namely authorised and unapproved absence:
181
Ð Authorised absence implies that, in the eyes of the employer, the employee's
absence is beyond the employee's control, or at least it will not be held against the
employee.
Ð Unapproved absence is seen as deliberate or irresponsible; the employee may
have an excuse, but the employer does not accept it as valid.
Authorised absence need not be paid absence. For example, an employee who is paid
hourly may spend a day in court through no personal fault, but the employer may
decide not to pay him or her. The classification of absence can be broadly categorised
as follows (Van der Merwe & Miller, 1988:9):
Ð Sickness
Ð Authorised absence or absence with permission
Ð Unexcused absence, or absence without leave
12.4.1 Sickness
This includes absenteeism due to both physical and mental illness, ranging from a few
days to much longer periods. In terms of the Basic Conditions of Employment Act 75
of 1997, paid sick leave is compulsory. During every sick leave cycle (that is, a period of
36 months' employment with the same employer), an employee is entitled to an
amount of paid sick leave equal to the number of days the employee would normally
work during a period of six weeks. Most employers require a doctor's certificate for
absences of three days and longer.
Employees should be encouraged to notify the employer if they cannot be at the
workplace; they should not merely return after one or two days with the excuse that
they had been ill.
12.4.2 Authorised absence

This is absenteeism with permission and it refers to all absences other than sickness
where a valid excuse is offered and accepted. Van der Merwe and Miller (1988:11)
point out that this type of absence relies heavily on the credibility of the employee's
story or on the gullibility of the supervisor or manager who has to make the
classification decision.
Generally, when the employer is given advance notice of the absence, it will be more
readily authorised than when the employee makes excuses upon his or her return.
There are always exceptions to the rule, such as when the reason is accepted as having
been outside the employee's control and it is agreed that the employee had been
unable to seek prior permission (Van der Merwe & Miller, 1988:11).
Absenteeism with permission can be divided into three categories, as indicated in the
table below.
182
Table 12.2: Categories of absenteeism with permission
AUTHORISED PAID LEAVE SPECIAL PAID LEAVE AUTHORISED UNPAID
LEAVE
Vacation leave Military leave Leave for domestic problems
Study leave Examination leave Leave to appear in court
Leave to attend funerals Leave to obtain a driver's licence
Leave to participate in sports at
national level
12.4.3 Unauthorised absence

This is described as leave for which a reason is not given or not accepted, and for which
authorisation is not granted. In other words, all absences not falling into the above two
categories and for which a reason is not given or not accepted are regarded as
unauthorised (Van der Merwe & Miller, 1988:11).
The above classifications are general classifications and may vary according to the
specific needs of an organisation and its employees.
Activity 12.3
(a) Find out if there is a classification system for absenteeism in your organisation.
If so, write it down and compare it to the one given by Van der Merwe and
Miller.
(b) Which of the mentioned leave categories cause(s) the biggest problems in your
organisation?
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12.5 Measuring and recording absenteeism

Absenteeism rates provide a benchmark for management to determine the
seriousness of the problem in the organisation. To this end, the accurate measuring
and recording of absenteeism is essential.
12.5.1 Measuring absenteeism

According to Van der Merwe and Miller (1988:12±13), there are two measures for
computing absenteeism rates (ARs):
Ð Gross absence rate (GAR)
Ð Absence frequency rate (AFR)
Let's look at each, as explained by Van der Merwe and Miller (1988:13±14).
183
The gross absence rate (GAR)
This measures the extent of absence, where lost time is expressed as a percentage of
the total possible working time. GAR is normally calculated at month end, and the total
possible working time is calculated by multiplying the average number in employment
for that month by the total working days in the period.
Total days lost through all absences
GAR = 6 100
Total possible working days
The gross absence rate is often referred to as just the absence rate (AR).
In organisations where work is done in shifts, the gross absence rate can also be
expressed as:
Shifts lost
GAR = 6 100
Total possible shifts
A disadvantage of the GAR is that it is an overall figure, gives no indication of the kind
of absence (reason or duration) and tends to be distorted by single, long absences Ð
particularly in groups smaller than 50 (Van der Merwe & Miller, 1988:13).
The absence frequency rate (AFR)

To overcome the disadvantages of the GAR, a supplementary rate is used, called the
absence frequency rate. This formula uses the number of incidents of absence per
employee, regardless of length. The AFR focuses on absences of shorter duration.
Total number of absence incidents over period
AFR =
Average in employment for that period
The AFR counts each absence, irrespective of length, as one incident; and the normal
period for data collection is one month. The rate is expressed as a ratio; this in effect
means that it is an expression of the number of absence incidents per person per
month (Van der Merwe & Miller, 1988:13).
Activity 12.4
(a) Which formulas are used in your organisation to measure the rate of
absenteeism? If a different formula is used, describe it and write it down.
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(b) Calculate the cost of absenteeism in your section over the last month.
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184
12.5.2 Recording absenteeism
Absenteeism figures for individuals should be recorded, indicating the individual
involved, period of absenteeism and reasons for each absence. Where applicable, proof
of the reason for the absence should be obtained, such as sick notes or court orders.
Individual records should be analysed regularly to establish whether steps can be taken
to reduce the absenteeism. The absenteeism records of a work group should also be
analysed to establish whether there are discernible trends and also whether specific
action steps can be taken to prevent or reduce the absenteeism.
For example, some employees regard paid sick leave as a fringe benefit they lose if they
do not take it. This results in absenteeism that cannot be justified. Such employees
should be taught that paid sick leave is a privilege that should not be abused.
Activity 12.5
(a) Are absenteeism records regularly analysed in your workplace? If they are
analysed, what are the conclusions about the reasons for absenteeism?
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(b) If these records are not analysed, do you think there is a need to do so?
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12.6 Control of absenteeism

Sherman et al. (1988:368) indicate that supervisors can control absenteeism only with
the support of management. Members of management are required to set acceptable
standards of behaviour and express their views on absenteeism clearly.
Absenteeism records of employees can be given more prominence in the organisation
by:
Ð providing information on attendance in references given
Ð discussing attendance with new employees during orientation
Ð including attendance records in the staff appraisal procedures
Van der Merwe and Miller (1988:26) believe that the mere fact of introducing absence
records brings down absenteeism. Reasons given for this are that individual workers
become aware that:
Ð they have to report to the supervisor on their return after the absence and offer
some sort of excuse
185
Ð continuing records of the absences are being kept
Ð they are now being looked at as individuals
Ð their record, if unsatisfactory, could be used against them
Supervisors (including line managers) have an important role to play in the control of
absenteeism. Van der Merwe and Miller (1988:27±28) recommend the following:
Ð Supervisors should be consulted when absenteeism control measures are
designed.
Ð Employees should be encouraged to make arrangements when they are absent
from work. Supervisors should not be placed in the position of having to approve
absenteeism on the employee's return to work.
Ð There should be regular communication between the supervisor and human
resource practitioner about problem cases. This will help to obtain the supervisor's
co-operation in influencing employees to reduce their absenteeism rates.
Ð Once a month the human resource department should provide the line manager
or supervisor with information on absenteeism in an understandable format.
Ð The importance of absenteeism control should be emphasised on a regular basis.
If attention to absenteeism lapses, improvements in attendance will not be
maintained.
Even if an absence control method is used, Grobler et al. (2006:124) believe that the
problem of absenteeism will continue if there is:
Ð no written absenteeism policy
Ð inconsistent enforcement
Ð a lack of documentation on absenteeism
Grobler et al. (2006:124±125) feel that effective forms of employer discipline for
absenteeism should include the following measures:
Ð There should be a written policy statement.
Ð A distinction should be made between absenteeism and other forms of employee
misconduct as a reason for discipline.
Ð A definition of excessive absenteeism should be provided.
Ð Progressive discipline should be used on the absence record, and should be
separated from other misconduct issues.
Ð Employees should be allowed to improve their records through good attendance.
Ð The policy should be applied consistently.
There is a new approach to absenteeism in the international field, namely no-fault

absenteeism. This approach doesn't distinguish between excused and unexcused
absenteeism but incorporates a point system for various forms of absenteeism and
defines the types of absenteeism that will receive no penalty (Grobler et al., 2006:125).
Table 12.3 provides an example of a no-fault policy.
186
Table 12.3: A no-fault absentee programme
As a result of excessive absenteeism and/or tardiness, disciplinary action may be
required and will be based on frequency of occurrences in accordance with the
following:
Ð Absenteeism is defined as being absent from work on any scheduled work day,
whether the absence is excused or unexcused.
Ð Each period of consecutive absence will be recorded as `òne occurrence''
regardless of the number of days' duration.
Ð Tardiness will be considered reporting to work within ten (10) minutes of the
scheduled starting time. One occasion of tardiness will be charged as one quarter
(1/4) occurrence of absenteeism.
Ð Employees who report to work late, as provided for in the reporting regulations,
or who leave before the end of the shift (with management's permission) will be
charged with one-half (1/2) of an absence occurrence for either of these.
Ð Employees who are absent without call-in will be charged with two occurrences
of absence for that occasion.
Ð Absence due to funeral leave, military obligation, or union business (each as
defined by the contract), and further including hospital confinement and work-
incurred injury will not be recorded as an occurrence of absence for purposes of
disciplinary action.
Ð For each calendar month of perfect attendance, an employee with an absentee
record will have one occurrence deducted from his or her absentee record.
Ð Absence records will be maintained for a consecutive twelve-month period,
starting with the employee's first occurrence of absence. All absence records and
warning slips that are one year old, or older, shall not be considered for purposes
of disciplinary action under this policy.
Corrective discipline will be administered according to the following:

Ð Three occurrences, or ``points'', within a twelve-month period Ð oral warning.
Ð Five occurrences, or ``points'', within a twelve-month period Ð written warning.
Ð Seven occurrences, or ``points'', within a twelve-month period Ð second written
warning.
Ð Twelve occurrences, or ``points'', within a twelve-month Ð discharge.
The above policy is in addition to action that may be taken when cumulative time lost
from work for any reason substantially reduces the employee's services to the
company, or as may be related to provisions of the contract (Grobler et al., 2006:126).
(Source: Adapted from Grobler et al., 2006:126)
12.7 Reducing absenteeism

One way to reduce absenteeism is to control it as discussed above. Another way is to
address both the motivation and the ability of the employee to attend work. Grobler et
al. (2006:124) point out numerous strategies to achieve this, such as the following:
Ð Job enrichment
Ð Rewards for good attendance
Ð People-oriented supervision
187
Ð Creating a safe and healthy work environment
Ð Providing day-care facilities at the workplace
Ð Creating programmes to assist troubled employees
Ð Providing programmes for reducing job stress
Ð Providing recreational and exercise facilities
12.8 Relationship between absenteeism and labour turnover

Van der Merwe and Miller (1988:32) note that several studies have investigated the
relationship between absenteeism and labour turnover. For instance, Herzberg,
Mausner, Peterson and Capwell feel that both variables are on the same continuum
of withdrawal, with absenteeism as a temporary withdrawal at one end and turnover at
the other end, when withdrawal becomes permanent. Other studies have found that
absence is a means of temporary withdrawal from the strains and stresses of work and
provides an alternative to labour turnover.
Four important aspects of the differences and relationship between the two
phenomena are their negative consequences, their degree of permanence, the effect
of absenteeism on turnover, and the external environment (Van der Merwe & Miller,
1998:32±34). Let's look briefly at each aspect.
The negative consequences

The negative consequences of absenteeism for the employee are far less than those
associated with labour turnover. To be absent from one's job is relatively easy in
comparison to resignation, which is a more premeditated and far more serious step.
The permanence of each action

Absence is a temporary withdrawal Ð the employee stays part of the working group
and returns to work after the absence. Turnover is a permanent withdrawal; it is a
move beyond the boundaries of the organisation.
The effect of absenteeism on turnover

Generally, in groups where there are high levels of absence, labour turnover will be
high, because dismissals will take place due to poor attendance. High absenteeism
rates may be a warning sign of problems in the workplace, which, if not dealt with, may
lead to the resignation of the employee.
The external environment

The external environment also plays a role. When the cost of living is high and the rate
of unemployment is high, labour turnover will be low. The rate of absenteeism will also
decrease, because workers will be careful not to jeopardise their work record,
especially if attendance figures are reflected in performance appraisals and employees'
personal files.
188
12.9 Summary
This study unit has focused on the problem of absenteeism in organisations.
Absenteeism in the workplace cannot be avoided, for example paid sick leave and
annual leave. There will always be circumstances which will encourage employees to be
absent from the workplace. However, absenteeism records need to be analysed
regularly to ensure that avoidable reasons are identified and steps are taken to
eliminate these problems. Proper control of absenteeism can save the organisation a
lot of money and increase productivity. Woods (1998:28) writes: ``The bottom line is
that to normalise absenteeism levels management must work to build trust with
employees as well as act in a firm and fair manner with those abusing sick and
compassionate leave.''
Self-assessment
Read the case study below and answer the questions that follow.
CASE STUDY
Absenteeism at Parker Electronics
Paul Walker, HR manager for Parker Electronics, quickly glanced over his quarterly
personnel report. He was due to go over the report with plant manager Jane Newberry
in about five minutes. The report contained information on a wide range of HR areas,
including direct and indirect labour costs, cost of employee benefits, new hires,
transfers, resignations and discharges, and data on the firm's absenteeism rate. Parker
Electronics is a medium-sized maker of computer components located in Midrand,
Gauteng. It sells its parts to large computer manufacturers. The firm has enjoyed
relatively peaceful labour relations and is not unionised. Paul walked a few doors down
to Jane's office and took a seat. After exchanging a few pleasantries, they turned their
attention to the report.
Newberry: Paul, all the data look pretty good. Our labour costs are in pretty good
shape, and our turnover is a little below the industry average. But there
seems to be one problem Ð absenteeism. I see our overall absenteeism
rate is 8,5%. That's pretty high, I believe. And the quarterly trends are
slightly increasing. How do our absenteeism rates compare with industry
averages?
Paul: Uh, Jane, I'm not sure. It's quite hard to find comparable absenteeism
data. I suppose most firms don't want to air their dirty laundry. But I'll
check around and see what I can find.
Newberry: Okay. Incidentally, just what does that 8,5% absenteeism rate represent?
How is it figured? Do you have departmental breakdowns so we can see
where the problem is the greatest?
Paul: Well, the 8,5% figure is for the whole company Ð all twelve hundred
employees. I'm sure it represents the total time lost to all kinds of
absenteeism. My assistant prepares the data, and I'm not positive just
how the statistic is computed. I'll check when I get back to the office. I
don't have any breakdown on the figure, but it shouldn't be too hard to
get.
Newberry: I think we'll need some more details on that 8,5% figure. We need to
compare departments, shifts and maybe even look at male and female
rates. But Paul, the real question is, how can we get that rate down to
about 3 or 4%?
189
Paul: Well Jane, I'm not sure. You know, absenteeism is a really tough problem,
but I don't think there's a whole lot that can be done about it. Maybe we
should hire a consultant to look into the problem.
Required:
1. How is the gross or `òverall'' absent rate calculated? (4)
2. What is the disadvantage of using this formula? (2)
3. What would you advise Paul to do in order to calculate a more accurate
absenteeism rate? (4)
4. Newberry pointed out that their turnover was `à little below average''.
Is there always a relationship between labour turnover and absentee-
ism? Discuss this in detail. (10)
5. What should the management of Parker Electronics do to control the
high rate of absenteeism? (10)
6. What causes employee absenteeism? (12)
7. List three aspects that should be considered in order to deal with
absenteeism effectively. (3)
8. Briefly explain the classification of absenteeism. (15)
9. Write down the three formulas given in this study unit for calculating
absenteeism. (9)
10. Whose responsibility is it to control employee absenteeism Ð that of
the line manager or the HR manager? Explain how responsibility for
controlling this problem might be shared. (10)
11. Name a few positive measures that can be taken to reduce
absenteeism. (6)
12. Discuss the relationship and differences between absenteeism and
labour turnover. (8)
NOTES
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Study unit 13
Managing labour turnover
Contents Page

Key concepts 191
13.2 Definition of labour turnover 192
13.3 Classification and measurement of labour turnover 193
13.4 Causes of labour turnover 194
13.4.1 Individual factors 194
13.4.2 Organisational factors 194
13.4.3 Environmental factors 195
13.5 Measurement of turnover 196
13.6 Components of turnover costs 197
13.7 Control of labour turnover 198
13.8 Summary 199
Self-assessment 199
Learning outcomes

Ð define labour turnover
Ð categorise labour turnover
Ð calculate the rate of labour turnover
Ð describe the causes of labour turnover
Ð describe and calculate the cost of labour turnover
Ð describe methods to reduce the cost of labour turnover
Key concepts
learning outcomes:
Labour turnover Functional turnover
Turnover costs Dysfunctional turnover
191
13.1 Introduction
In the previous study unit we said that absenteeism may be an indication of
dissatisfaction. If this dissatisfaction is not identified and resolved in time, the employee
may decide to leave the organisation. Many of the reasons for measuring absence can
also be applied to labour turnover, although turnover is more easily measured than
absenteeism.
Van der Merwe and Miller (1988:37) point out that turnover measures are indicators
which may be used to locate problem areas within an organisation and to pinpoint
possible causes. Excessive turnover is costly and disruptive. However, not all turnover is
undesirable. A certain amount of turnover is unavoidable and even beneficial to the
organisation. New employees bring with them new ideas and methods, new ways of
doing things, and prevent the organisation from stagnation. Turnover also helps to get
rid of poor performers and can help to rectify poor selection and placement decisions
(Grobler et al., 2006:125).
13.2 Definition of labour turnover

There are a number of definitions of labour turnover, such as the following:
Ð ``Turnover may be defined as any permanent departure beyond organizational
boundaries'' (Cascio, 2006:54, citing Macy & Mirvis).
Ð ``... turnover consists of movement into and out of the boundaries of an
organisation'' (Van der Merwe & Miller, 1988:38).
Ð ``Turnover is the rate at which employees leave an organization'' (Lussier,
1998:64).
One thing is clear from all the above definitions Ð they all exclude the interdepart-
mental movement of employees. In study unit 9 we discussed the internal career
movements of employees: up (promotions), over (transfers and relocations), down
(demotions) and out (resignations, retrenchments and retirements). Labour turnover
refers to the `òut'' movement.
Grobler et al. (2006:125) and Cascio (2006:55) distinguish between functional and
dysfunctional turnover.
Functional turnover Dysfunctional turnover

. The employee's departure beneficial to the . The employee's departure is not beneficial
organisation. to the organisation, it is someone the
organisation would like to retain.
. Low performers who are easy to replace. . High performers who are difficult to re-
place.
In short, some types of turnover are advantageous for the organisation (functional
turnover), and other types of turnover do not hold any advantages for the organisation
(dysfunctional turnover).
192
13.3 Classification and measurement of labour turnover
First of all, turnover can broadly be divided into voluntary and involuntary turnover.
LABOUR TURNOVER
3 "
Voluntary turnover Involuntary turnover
This type of turnover is controllable. This type of turnover is uncontrollable,
The employee voluntarily departs normally due to retirement, death,
from the organisation. ill health, pregnancy, etc.
Van der Merwe and Miller (1988:45) classify turnover into the following four
categories:
Ð Voluntary turnover
Ð Dismissed
Ð Retrenched
Ð Other
Let's look briefly at each.
Voluntary turnover
This refers to voluntary terminations or resignations. It also includes desertion or
absence without leave (where the employee does not return to work). One should ask
who initiates the separation. Thus, if the separation is initiated by the deserter, then the
classification is ``voluntary''. On the other hand, if the employee returns after an
unexcused absence, and the employee's contract is terminated for this reason, the
classification is ``dismissal'' (Van der Merwe & Miller, 1988:45).
Dismissal
Dismissal refers to the discharge of the employee because of unsatisfactory
behaviour Ð whether for disciplinary reasons or because of unsuitability. Also included
in this category are dismissals following strike action.
Both voluntary turnover and dismissals are controllable turnover. Dismissals are
considered controllable because they can be avoided if due attention is given to proper
selection and induction procedures and training programmes (Van der Merwe & Miller,
1988:45).
Retrenchments
Van der Merwe and Miller (1988:46) define retrenchment as a discharge due to a
reduction in the size of the work force because of restructuring in the organisation or
department. This is uncontrollable turnover, because retrenchments are due to
external economic factors or internal factory reorganisation.
193
Other
This category includes terminations of service as a result of ill health, retirement, death
and pregnancy. These, too, are part of uncontrollable turnover.
13.4 Causes of labour turnover

Van der Merwe and Miller (1988:74) classify the causes of labour turnover in terms of
individual, organisational and environmental factors.
13.4.1 Individual factors

Individual factors include length of service, age, and other variables.
Length of service
According to Van der Merwe and Miller (1988:74), it is not the length of service per se
which affects employee stability but factors such as the formation of group ties, a sense
of familiarity with the job situation, and other benefits which arise from long service.
Resignations are most likely to occur in the first few weeks of employment when the
person/work relationship has not yet been formed. This is also why a well-planned
induction programme is essential, so that the new employee is given an opportunity to
adjust to the new social, psychological and physical environment.
Age
Numerous studies have proven that younger people tend to be involved in increased
turnover. This is closely related to length of service in that younger people do not stay
long enough to become integrated into the organisation.
Other variables
Other personal factors that are positively related to high turnover include marital
status, attitude to work, socio-economic background, educational level, family stability,
and standards and norms of the community from where the worker comes (Van der
Merwe & Miller, 1988:75). For example, the extent to which an employee is bound to a
particular area because of family or other social ties is a decisive factor in the worker's
decision to leave or to stay in a particular job. Employees with relatively large families
and family responsibilities tend to remain in one job.
13.4.2 Organisational factors

Organisational factors are those that are external to the individual, including
compensation, size, supervision, and satisfying work and working conditions.
Compensation
Companies that pay relatively higher salaries and wages tend to have a lower turnover
rate.
194
Size
The size of the work group has been found to be more related to turnover than the
size of the organisation itself. Some of the largest firms have relatively low turnover
and so do some of the smaller organisations, depending on other factors such as job
satisfaction, remuneration and work climate. But if there are poor relationships in the
work group, turnover rates increase.
Supervision
The quality of supervision has a serious influence on turnover figures.
Satisfying work and working conditions

Job satisfaction can contribute substantially to reducing turnover figures.
13.4.3 Environmental factors

Environmental factors include geographic location and the state of the economy (Van
der Merwe & Miller, 1988:77).
Geographic location
Van der Merwe and Miller (1991:77) mention that similar employment available in the
area will influence ease of movement and may also mean competition from other
employers in the labour market. Other factors that influence the mobility of employees
are transport facilities and distances to work.
Grobler et al. (2006:126) point out that general economic conditions have an
important effect on the overall availability of jobs. Turnover is generally high during
periods of growth or prosperity and low during recessions. The supply of and demand
for specific kinds of occupations and professions in the labour market also play a
decisive role in the mobility of employees.
CAUSES OF LABOUR TURNOVER
!
!
INDIVIDUAL ! ENVIRONMENTAL
FACTORS ORGANISATIONAL FACTORS
FACTORS
! ! !
Length of service Compensation Geographic location
Age Size of the workgroup State of the economy
Marital status Supervision
Education Job satisfaction
Gender
Grobler et al. (2006:127) point out that an interesting way to research turnover is to
determine why people stay. Attention is given to four profiles to describe most
employees:
195
Ð Turnovers Ð These include people who are highly dissatisfied at work, free of
external pressures to stay and will quit at the first chance.
Ð Turn-offs Ð These involve people who dislike the job but will stay because of
the pay, benefits or some extrinsic job reward.
Ð Turn-ons Ð These are employees who are highly satisfied and motivated at
work, but may leave if external pressure becomes significant.
Ð Turn-ons plus Ð These include employees who are highly motivated at work
and satisfied with the local environment. They are likely to stay and continue to be
productive.
13.5 Measurement of turnover

According to Van der Merwe and Miller (1988:48), the labour turnover rate can be
measured as follows:
Number of leavers during a period
Labour Turnover Rate (LTO) = 6 100
Average number in employment during period
The number of leavers during a period includes voluntary turnover and dismissals.
Grobler et al. (2006:126) mention three formulas for computing turnover for a given
period of time:
Separations
Total Separation Rate = 6 100
Average number of employees
Resignations
Resignation Rate = 6 100
Total separations ± Unavoidable separations
Avoidable Turnover Rate = 6 100
Activity 13.1
(a) Does your organisation pay attention to the turnover rate? That is, does it
measure turnover, investigate the causes of turnover, carry out exit interviews,
etc.?
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(b) If your organisation does not pay attention to turnover, do you think it should?
What are the reasons for not paying attention to turnover?
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196
(c) If the organisation does pay attention to turnover, which formula does it use for
measuring turnover?
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(d) What was the turnover rate at your workplace for the last year or six months?
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(e) What are the main causes of turnover at your workplace?

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13.6 Components of turnover costs

According to Cascio (2006:55±57), there are three broad categories of turnover
costs Ð namely separation costs, replacement costs and training costs.
Separation costs
Separation costs relate to the following:
Ð The exit interview (cost of interviewer's time, cost of the terminating employee's
time)
Ð Administrative functions related to termination (removal of the employee from
the payroll, any other administrative work that needs to be done to finalise the exit
of the employee)
Ð Separation pay if applicable
Replacement costs
Replacement costs relate to the following:
Ð Advertisement of the available job
Ð Administrative functions with reference to the recruitment process (screening
application forms, checking references, etc.)
Ð Selection procedures (interviewing, testing and other assessment procedures)
Ð Staff meetings (to determine if replacements are needed, verify job analyses and
job specifications, gather information, finalise selection decisions)
Ð Travel and moving expenses (travel expenses for applicants, travel and moving
expenses for new appointments if applicable)
Ð Medical examinations (if applicable and approved by law)
197
Training costs
Training costs relate to the following:
Ð Informational literature (written information about the organisation)
Ð Training by means of a formal training programme
Ð On-the-job training, simulation training, training courses, seminars
13.7 Control of labour turnover

The first step in controlling labour turnover is to measure it by means of an appropriate
measure. Van der Merwe and Miller (1988:78) write: `Ònce the extent of turnover is
established and it is known which section, department or group of workers contribute
most to its occurrence, it is then possible to examine all the factors which have a
bearing on the problem.'' Effective control over turnover will not only benefit the
organisation, but also the community in which it operates, as well as the economy of
the region.
The causes of labour turnover are complex, and there are no easy and foolproof
remedies. However, attention to the following aspects could help control the problem:
Ð Job satisfaction
Ð Selection
Ð Induction
Ð Training
Let's look at each.
Job satisfaction
Lussier (1990:64±65) points out that there are a variety of determinants of job
satisfaction, which differ in their level of importance to different people:
Ð Satisfaction with the work itself: People who view their work as boring,
meaningless and unchallenging tend to have low levels of job satisfaction. One
way to prevent this is to give prospective employees realistic job previews to make
sure that they understand what their future job is all about. In study unit 9 we
mentioned that realistic job previews are important when one decides on a career.
Ð Compensation: Dissatisfied employees may steal from the company, perform
below their potential and have a higher absenteeism and turnover rate. Various
factors influence the employees' acceptance or non-acceptance of a certain
wage Ð such as the availability of jobs, motivation, status, fringe benefits and
perceptions of fairness.
Ð Growth and upward mobility: People with a need for challenge and
development may not be satisfied if there is no room for growth and promotion.
Ð Supervision: The relationship between the supervisor and subordinate affects
job satisfaction. Too much control, no control or direction, poor human relations
and incompetence on the part of the supervisor all affect job satisfaction.
Ð Work group: People who like their co-workers often have higher levels of job
satisfaction than employees who do not like their co-workers.
198
Ð Attitude toward work: This is internal to the employee. Lussier (1990:65)
points out that ``people with a positive attitude toward work tend to have higher
levels of job satisfaction''.
Selection
Research has found that organisations which had tightened their selection standards
had lower levels of turnover. A few steps that can prevent an expensive ``hire and fire''
attitude are:
Ð ensuring that proper job descriptions and job specifications are available
Ð maintaining close contact between the persons responsible for selection and
management
Ð proper pre-screening
Induction
The importance of a well-planned induction programme is stressed in study unit 6. If
the socialisation process does not take place successfully and no satisfying person/
work relationship is formed, turnover tends to be high, especially during the first few
months of employment.
Training
There are few things so frustrating and demotivating as not knowing how to do the job
you are supposed to do. According to Van der Merwe and Miller (1988:80, citing
Lefkowitz), it has been found that the greatest contribution towards decreased
turnover is a three-day, on-the-job training programme. However, training pro-
grammes should be undertaken according to the needs of the different groups of
employees in the enterprise. Feedback is essential so that trainees stay motivated,
especially where longer training programmes for more complex jobs are involved.
13.8 Summary
This study unit has focused on the challenge of labour turnover. This challenge can be
confronted by taking appropriate action. Although a certain amount of turnover is
expected and may even be to the advantage of the organisation, excessive turnover
can be costly and harmful to the organisation's image. The line manager can play a
major role by being aware of the causes of labour turnover and making an effort to
eliminate or reduce these causes in the work situation.
Self-assessment
1 Do you think that turnover has any advantages for an organisation?

Substantiate your answer. (6)
2 What are the major disadvantages of labour turnover for an
organisation? (4)
3 Distinguish between voluntary and involuntary turnover. (4)
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4 Write down the classification of labour turnover according to Van der
Merwe and Miller (1998). (12)
5 Discuss the major causes of labour turnover. (15)
6 Which formula can be used to measure the labour turnover rate for a
specific six-month period? (2)
7 Discuss the three components of labour turnover costs. (12)
8 Briefly discuss four aspects in the control of labour turnover. (12)
NOTES
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Study unit 14
South African labour law
Contents Page

Key concepts 202
14.2 Overview of South African labour law 203
14.3 Labour Relations Act 66 of 1995 204
14.3.1 Purpose and scope of the Act 204
14.3.2 Freedom of association and general protections 205
14.3.3 Protection of employees and persons seeking employment 205
14.3.4 Employers' rights to freedom of association 205
14.3.5 Protection of employers' rights 205
14.3.6 Rights of trade unions and employers' organisations 205
14.3.7 Workplace forums 208
14.4 Workings of the CCMA 208
14.4.1 Functions of the CCMA 208
14.4.2 Resolution of disputes through conciliation 209
14.4.3 Con-arb processes 209
14.4.4 Arbitration processes 209
14.5 Principles of grievance and disciplinary codes 210
14.5.1 Discipline 210
14.5.2 Dismissal 213
14.5.3 Grievance procedure 213
14.6 Overview of the collective bargaining process 214
14.6.1 The objectives of collective bargaining 214
14.6.2 The structure and function of a bargaining council in the private
sector 215
14.7 Basic Conditions of Employment Act 75 of 1997 216
14.7.1 The purpose and scope of the Act 216
14.7.2 Application of the Act 217
14.7.3 Work time and rules 217
14.7.4 Payment of remuneration and deductions 218
14.7.5 Termination of employment 218
14.8 Employment Equity Act 55 of 1998 219
14.8.1 The purpose of this Act 219
14.8.2 Effect of Employment Equity Act on human resources 220
14.8.3 Employment equity plan 222
14.9 Skills Development Act 97 of 1998 223
14.9.1 Purposes of Act and interpretation 223
14.9.2 Questions and answers on skills development legislation 224
14.10 Summary 232
201
Learning outcomes
After studying this unit you should be able to:

Ð explain the components of labour relations
Ð explain the purpose, role and function of the Labour Relations Act of 1995
Ð explain the workings of the CCMA
Ð explain how resolutions of disputes work through conciliation
Ð explain both effective and ineffective ways to discipline employees, with
emphasis on effective disciplinary techniques
Ð name the objectives of collective bargaining
Ð explain the purpose and different aspects of the Basic Conditions of Employ-
ment Act of 1997
Ð point out the effect of the Employment Equity Act of 1998
Ð explain the purpose of the Skills Development Act of 1998
Key concepts
learning outcomes:
Labour relations Collective bargaining Leave
Discrimination Affirmative action Dismissal
Accreditation discipline Lockout Strike
Skills development levy Workplace skills plan
Employment equity Learnerships
14.1 Introduction
Labour relations and all its related aspects constitute one of the greatest challenges for
South Africa. Grobler et al. (2006:416) write:
Without sound labour relations, or better still, work relations, South African
organisations can forget about becoming more competitive. Whether you are
self-employed, work for a company or are employed by the government, you will
be working with people, and good relationships between people in the
workplace are a key requirement for sound labour relations.
The aim of this study unit is to provide you with an overview of the legislation affecting
employers and employees in South Africa. This study unit merely points out the most
relevant aspects of labour legislation. Should you require further detail, refer to the
original texts of the applicable laws, signed by the President. You can obtain copies of
these Acts from the nearest Government Printer office or from the website of the
Department of Labour (www.labour.gov.za).
202
14.2 Overview of South African labour law
There is no simple definition of ``labour relations''. It may be a simple interpersonal
process involving only two people; or it may occur between groups at a workplace, for
instance between management and a group of shop stewards. It covers a broad,
interdisciplinary field of study and practice that includes all aspects of the employment
relationship.
Although one tends to think of strikes the moment labour relations is mentioned, it is a
stable, ongoing activity at countless workplaces all over the world. However, the mere
fact that people with different needs, beliefs and objectives are put together in the
same environment gives ample opportunity for conflict.
Before considering the different aspects of South African labour law covered in this
unit, it is important to note that the provisions of all South African statutes must
conform to the basic principles contained in South Africa's Constitution. The
Constitution of the Republic of South Africa, 1996 gives very clear guidelines with
regard to labour relations. Section 23 stipulates the following regarding labour
relations:
Ð Everyone has the right to fair labour practices.
Ð Every worker has the right to form and join a trade union, to participate in the
activities of a trade union, and to strike.
Ð Every employer has the right to form and join an employers' organisation and to
participate in the activities of an employers' organisation.
Ð Every trade union and employers' organisation has the right to determine its own
activities, to organise, to bargain collectively and to form and join a federation.
Ð Every trade union, employers' organisation and employer has the right to engage
in collective bargaining.
Statutes impacting on the employment relationship in South Africa
Unemployment Basic Conditions of Labour Relations

Equity Act 55 of Employment Act 75 Act 66 of 1995
1998 of 1997
3 ~
~
Unemployment Occupational Health

Employers and
Insurance Act 63 of 3 " and Safety Act 85
employees
2001 of 1993
!
3
!
Compensation for
Occupational Injuries Skills Development Skills Development
and Diseases Act 130 Levies Act 9 of 1999 Act 97 of 1998
of 1993
Figure 14.1: Acts relevant to labour relations in South Africa
203
In this study unit we will look specifically at the Labour Relations Act, Basic Conditions
of Employment Act, Employment Equity Act and Skills Development Act.
14.3 Labour Relations Act 66 of 1995

In this section, we will consider the following aspects:
Ð The purpose and scope of the Act
Ð Freedom of association and general protections
Ð Protection of employees and persons seeking employment
Ð Employers' right to freedom of association
Ð Protection of employers' rights
Ð Rights of trade unions and employers' organisations
Ð Workplace forums
14.3.1 Purpose and scope of the Act

Section 1 states the purpose of the Act as being to advance economic development,
social justice, labour peace, and a democratisation of the workplace by fulfilling the
primary objectives of the Act, which are to realise and regulate the fundamental rights
of workers and employers.
The Act applies to all employment relationships between employers and employees
and makes no distinction as to whether these relationships are in the private or the
public sector. The only exclusions, according to section 2, are:
Ð members of the National Defence Force
Ð members of the National Intelligence Agency
Ð members of the South African Secret Service
An employee is defined in section 213 as:

Ð any person, excluding an independent contractor, who works for another person
or for the state and who receives or is entitled to receive any remuneration
Ð any other person who in any manner assists in carrying on or conducting the
business of an employer
The Act concerns mainly seven aspects:

Ð Freedom of association
Ð Collective bargaining
Ð Strikes and lockouts
Ð Workplace forums
Ð Trade unions and employers' organisations
Ð Dispute resolution
Ð Unfair dismissal
Here we will discuss only the first five briefly. Dispute resolution and unfair dismissal will
be discussed in section 14.6 (``Workings of the CCMA'').
204
14.3.2 Freedom of association and general protections
One of the rights of freedom of association, stated in section 1 of the Labour Relations
Act, is that workers have the right to form and to join trade unions, and employers
have the right to form and to join employers' organisations.
Another right, stated in section 4 of the Act, is that of union members to elect office
bearers, officials, or trade union representatives (shop stewards).
14.3.3 Protection of employees and persons seeking employment

Section 5 states that no person may discriminate against an employee for exercising
any right conferred by the Act. Nobody may force an employee or a person seeking
employment not to be or become a member of a trade union or workplace forum, or
to give up membership of a trade union or workplace forum. Furthermore, no one may
offer or promise an employee favourable treatment if he or she waives any rights
granted to him or her or desists from any activities in terms of the Act.
14.3.4 Employers' right to freedom of association

Every employer has the right to assist in forming an employers' organisation or a
federation of employers' organisations and to join an employers' organisation (section
6).
14.3.5 Protection of employers' rights

No person may discriminate against an employer by forcing an employer not to be or
become a member of an employers' organisation, or to give up membership of an
employers' organisation, or to take part in such an organisation's activities (section 7).
14.3.6 Rights of trade unions and employers' organisations

Employers are granted essentially the same rights as employees in respect of freedom
of association and freedom from victimisation. The following seven aspects are
pertinent:
Ð Collective bargaining
Ð Organisational rights
Ð Trade union access to the workplace
Ð Leave for trade union activities
Ð Disclosure of information
Ð Collective agreements
Ð Strikes and lockouts
Let's look at each.
Collective bargaining
The Act promotes collective bargaining, in particular sectoral level collective
bargaining, as the desired method of settling wages and conditions of employment.
205
Organisational rights
Unions have the right to access the workplace, to hold meetings with employees
outside working hours, to conduct an election at the workplace, and to be granted stop
order facilities (sections 12 and 13).
Trade union access to the workplace

According to section 12 of the Act, any office bearer or official of a representative trade
union is entitled to enter the employer's premises to recruit, to communicate with its
members, or just to serve its interests. Trade unions are entitled to hold meetings with
employees outside their working hours at the employer's premises and with members
of a representative trade union, and are entitled to vote at the employer's premises in
any election in terms of that trade union's constitution.
Leave for trade union activities

Section 14 (5) of the Act provides that an employee who is an office bearer of a
representative trade union is entitled to take reasonable leave during working hours to
perform the functions of that office and to be trained in any subject relevant to the
performance of those functions.
Disclosure of information
Section 16 provides that an employer must disclose to a trade union representative all
relevant information needed for the effective performance of his or her functions.
However, if any information disclosed is confidential, the representative should be
notified in writing.
Collective agreements
A collective agreement is a written agreement between one or more registered trade
unions and one or more employers or registered employers' organisations concerning
terms and conditions of employment or any other matter of mutual interest (section
213).
Strikes and lockouts

In terms of the Act, every employee has a fundamental right to strike (section 64).
Definition of a strike: The partial or complete considered refusal to work or the

retardation or obstruction of work by persons who are or have been employed by the same
employer or by different employers, for the purpose of remedying a grievance or resolving a
dispute in respect of any matter of mutual interest between employer and employee.
Definition of a lock-out: The exclusion by an employer of employees from the employer's
workplace, for the purpose of compelling the employees to accept a demand in respect of any
matter of mutual interest between employer and employee, whether or not the employer
breaches those employees' contracts of employment in the course of or for the purpose of
that exclusion.
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The right to strike is subject to certain limitations concerning:
Ð forbidden strikes and lockouts
Ð procedures for engaging in protected strike action
Ð strikes and lockouts in compliance with the Act
Ð secondary strikes
Ð essential and maintenance services
Let's look at each.
Strikes and lockouts which are forbidden

A person may not take part in a strike or a lockout, or in any conduct in contemplation
or furtherance of a strike or a lockout, under the following circumstances (section 65):
Ð If a collective agreement that binds that person prohibits a strike or lockout for the
issue in dispute
Ð If a collective agreement or an arbitration award that binds that person regulates
the issues in dispute, unless the collective agreement permits it
Ð If there is a collective agreement that became a determination by the minister,
unless the collective agreement permits it
Ð If it is during the first year of a wage determination made in terms of the Wage Act
5 of 1957 that regulates the issue in dispute
Ð If the person is engaged in an essential or a maintenance service
Procedures to be followed to engage in protected strike action

According to section 64 (1) of the Act, the dispute must be referred to either a
bargaining or statutory council or to the CCMA, and a certificate is issued stating that
the dispute remains unresolved. These institutions have 30 days, or any further period
as agreed by the parties, to attempt to resolve the dispute. At least 48 hours' written
notice of either strike or lockout must be given to the other party or parties.
Strikes and lockouts in compliance with the Act

Section 67 of the Act includes the following provisions:
Ð Any person who takes part in a strike or lockout which complies with the required
procedures. or conducts himself or herself in contemplation of or furtherance of
such a strike or lockout, does not commit a delict or a breach of contract.
Ð An employer is not compelled to pay employees not working as a result of a strike
or a lockout, whether protected or not (i.e. the ``no work, no pay'' rule still applies).
Ð An employer may not dismiss an employee for having participated in a protected
strike, except for a fair reason connected with the employee's conduct during the
strike, such as theft, wilful damage to property, assault, or endangering the safety
of the employer, other employees or the public.
Secondary strikes
Section 66 contains provisions relating to secondary strikes. A secondary strike is one
which supports other workers who are on strike against their employer. In other
207
words, the employees go on strike to pledge their solidarity with fellow unionists who
are on strike, and their action has nothing to do with their own employer and is not
even directed at their employer (Gerber et al., 1998:386±387).
Essential and maintenance services

The Act outlaws strikes in respect of essential services or maintenance services.
Employees engaged in essential services and maintenance services are prohibited from
embarking on industrial action or socio-economic protest action (Gerber et al.,
1998:387±388).
14.3.7 Workplace forums

Workplace forums are structures that are made up of representatives of workers and
junior management employees. In terms of the Act, the role of a workplace forum is to
promote the interests of all employees in the workplace (irrespective of whether they
are trade union members) excluding senior managerial employees (Gerber et al.,
1998:389). The term `èmployee'' specifically precludes senior managerial employees,
who are viewed as `èmployers''.
In terms of section 79 of the Act, the functions of a workplace forum are to:
Ð promote the interests of all employees in the workplace
Ð enhance efficiency in the workplace
Ð be consulted by the employer, with a view to reaching consensus about related
matters
Activity 14.1
(a) Discuss in detail the meaning of `èmployee'' in terms of the Labour Relations
Act of 1995.
(b) Discuss the main objectives and the application of the Labour Relations Act of
1995.
(c) What is the meaning of a secondary strike?
(d) Employee A works for employer B and wishes to become a member of trade
union C. Employee A's employment contract stipulates that A does not have the
right to become a member of any trade union. Discuss whether this stipulation
in A's contract is valid.
14.4 Workings of the CCMA

One of the major innovations of the Labour Relations Act (Chapter VII, part A) is the
establishment of the Commission for Conciliation, Mediation and Arbitration (CCMA).
The CCMA has jurisdiction in all the provinces of the Republic and must maintain an
office in each province.
14.4.1 Functions of the CCMA

Section 115 of the Act stipulates that the CCMA must:
208
Ð attempt to resolve, through conciliation, any dispute referred to it in terms of the
Labour Relations Act
Ð arbitrate disputes if the Act requires arbitration or if the dispute remains
unresolved after conciliation, or any party has requested that the dispute be
resolved through arbitration
Ð assist in the establishment of workplace forums
Ð compile and publish information and statistics about its activities
The CCMA must attempt to resolve disputes through conciliation and/or arbitration.
These approaches are briefly outlined in the next three subsections.
14.4.2 Resolution of disputes through conciliation

When a dispute has been referred to the CCMA, it must appoint a commissioner to
attempt to resolve it through conciliation (section 135).
The commissioner must attempt to resolve the dispute within 30 days of the CCMA
receiving the referral.
The commissioner must determine a process to attempt to resolve the dispute, which
may include mediating the dispute, conducting a fact-finding exercise, and making a
recommendation to the parties.
At the end of the 30-day period or the period agreed between the parties:
Ð the commissioner must issue a certificate stating whether or not the dispute has
been resolved
Ð the commissioner must file the original of the certificate with the CCMA
Ð the CCMA must serve a copy of that certificate on each party to the dispute or his
or her representative
14.4.3 Con-arb processes

A new form of dispute resolution was introduced in amendments to the Labour
Relations Act in 2002. Grobler et al. (2006:436) explain: ``Provision is made for an
arbitration to commence immediately after a conciliator has certified that conciliation
has failed. This provision effectively combines conciliation and arbitration into a single
process thus streamlining dispute resolution.''
The con-arb dispute procedure `ìs applied in cases relating to disputes concerning
unfair dismissal or unfair labour practices related to probation. It may be applied in
other disputes where the parties all agree to the dispute being settled by means of such
a process'' (Grobler, et al., 2006:436, citing Finnemore & Van Rensburg).
14.4.4 Arbitration processes

The Act provides access to dispute resolution outside the Labour Court so as to move
away from an excessively legalistic approach and prevent the long delays that
characterised the old industrial court system. The objective of the CCMA is to
provide an arbitration system that is accessible, quick, cost-effective and
just.
209
The Act makes provision for arbitration under the auspices of the CCMA in the
following cases:
Ð Disclosure of information disputes
Ð Disputes relating to collective agreements Ð interpretation or application
Ð Alleged unfair dismissal concerning misconduct
Ð Alleged unfair dismissal concerning incapacity
Ð Alleged unfair labour practice
Ð Unfair suspension of an employee or other disciplinary action short of dismissal
Ð Failure to pay severance pay
Ð Disputes concerning organisational rights of trade unions
Ð Where the Labour Court has jurisdiction, but parties agree to refer the dispute to
arbitration under the CCMA rather than the court
Activity 14.2
(a) Explain the main objective of the CCMA.

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(b) What is meant by the so-called ``con-arb'' process?

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(c) Discuss the functions of the CCMA.

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14.5 Principles of grievance and disciplinary codes

Effective grievance and discipline handling are essential tools of good human resources
management practices in any organisation.
14.5.1 Discipline
Grobler et al. (2006:453) write:
The primary objective of disciplinary action is to motivate an employee to
comply with the company's performance standards. An employee receives
discipline after failing to meet some obligation of the job. The failure to perform
as expected could be directly related to the tasks performed by the employee or
to the rules and regulations that define proper conduct at work.
A second objective of discipline is to create or maintain mutual respect and trust
between the supervisor and employee. Improperly administered discipline can
create such problems as low morale, resentment and ill-will between the
supervisor and the employee.
210
Grobler et al. (2006:453) differentiate between incorrect discipline, preventive
discipline and positive discipline.
Incorrect discipline
Grobler et al. (2006:453±454) compare incorrect discipline with the type of punitive
discipline parents apply in supermarkets Ð it is done by means of threats, harassment
and intimidation. The authors describe other characteristics of incorrect discipline as
follows:
Ð Negative feedback Ð This is feedback only when unsatisfactory performance
occurs.
Ð Late intervention Ð This occurs when supervisors allow a problem to drag on
until it reaches a serious level.
Ð Inadequate definition Ð This occurs when telling an employee he or she is
`ùncooperative'', ``disloyal'', or ``not a team player''. These terms are vague and
ambiguous and serve only to confuse and frustrate the employee.
Ð Labelling employees, not behaviour Ð Unsatisfactorily performance may result in
an employee being labelled ``lazy'' or ``shiftless'', etc. The problem with this is the
employee may carry the label over to other jobs, and it may serve as a self-fulfilling
prophecy.
Preventive discipline
Of all the approaches, this type is the most desirable. By means of preventive discipline,
people are managed in a way that prevents behaviour that would need to be
disciplined (Grobler et al., 2006:454).
Positive discipline
Grobler et al. (2006:454±455) comment as follows:
Positive discipline corrects unsatisfactory employee behaviour through support,
respect and people-oriented leadership. The purpose of positive discipline is to
help rather than harass the employee: it is not an attempt to soft-pedal or
sidestep an employee problem. Rather it ... assumes that improved employee
behaviour is most likely to be long-lived when discipline is administered without
revenge, abuse or vindictiveness.
Steps in the positive discipline process

Grobler et al. (2006:455) identify a number of steps in the process of positive discipline.
Five such steps are:
Ð clarify responsibility for discipline
Ð define expected employee behaviour
Ð communicate disciplinary policies, procedures and rules
Ð collect performance data
Ð administer progressive discipline
Let's look at each briefly.
211
Clarifying responsibility
In theory, responsibility for discipline should fall on an employee's immediate
supervisor. In practice, ``many organisations give the supervisor authority to administer
less severe forms of discipline, such as an oral warning or a written notice. For
situations involving suspension or dismissal, the supervisor is often required to consult
with an HR representative'' (Grobler et al., 2006:455).
Defining performance expectations

Grobler et al. (2006:455) write: ``Management must ensure that employee standards
are consistent with the organisation's objectives and that standards are revised as new
organisational goals are developed.''
Communicating disciplinary policies, procedures and rules

Management must ensure that employees know what is expected from them and that
all standards, rules, and regulations are clearly communicated (Grobler et al.,
2006:456).
Collect performance data

``Before an employee is disciplined there must be indisputable proof that some
standard, rule or regulation was violated'' (Grobler et al., 2006:456).
Administer progressive discipline

This step in the positive discipline process entails four steps of its own:
1. Verbal warning. An employee who commits a minor violation receives a verbal
warning from the supervisor.
2. Written warning. The employee violates the same rule within the specified
time period and now receives a written warning from the supervisor. This warning
goes into the employee's records.
3. Suspension. The employee still fails to respond to warnings and again violates
the work rule. The employee is now suspended from employment without pay for
a specific amount of time. He or she receives a final warning from the supervisor,
indicating that dismissal will follow upon violating the rule within a specified time
period.
4. Dismissal. The employee violates the rule one more time within the specified
time period and is dismissed. The employer must conduct a proper investigation
to determine whether there are grounds for dismissal.
It is important that a fair procedure be applied when disciplinary action is to take place.
Schedule 8 of the Labour Relations Act provides the following guidelines for
disciplinary action:
Ð The employer should notify the employee of all the allegations using a form and
language that the employee can reasonably understand.
212
Ð The employee should be allowed the opportunity to state a case in response to
the allegations.
Ð The employee should be given a reasonable time to prepare the response and to
obtain the assistance of a trade union representative or fellow employee.
Ð After the enquiry, the employer should communicate the decision taken, and
preferably furnish the employee with written notification of that decision.
14.5.2 Dismissal
A disciplinary dismissal occurs when an employee has done any of the following:
Ð Committed a serious offence
Ð Repeatedly violated rules and regulations
Ð Shown a consistent inability to meet performance expectations
Note that if an employee is laid off because a company has severe financial problems or
a plant closes, this is not part of disciplinary dismissal.
14.5.3 Grievance procedure

The grievance procedure starts when the worker raises a grievance with his or her
immediate supervisor and should end at the highest authority in the organisation, the
managing director or someone of similar rank. The roles of the employee
representative and of the human resources department must be specified, as should
the time limits within which grievances must be lodged and within which grievances
must be lodged and appeals heard.
Employees should be taught during their induction how to utilise the procedure, and
employee representatives and supervisors need to be trained in the performance of
their respective roles. Records of the proceedings must be kept. If no solution to a
grievance can be found, external intervention follows, for example by the CCMA. The
process should adhere to the prescribed dispute procedure as set out in the Labour
Relations Act.
Grobler et al. (2002:551±552) write as follows:
Employers are often required to consider disciplining employees in respect of

misconduct that occurs outside of normal working hours.
... The guiding principle is to determine whether the misconduct constitutes a breach
of the employment contract or has the effect of destroying or seriously damaging
the relationship of the employer and employee ... .
... An example used by the Labour Appeal Court and reproduced below
demonstrates the above-mentioned principle:
A machine operator in a factory slaps his wife around a few times and is convicted
of assault. It can hardly be suggested, in those circumstances, that there are good
enough grounds for dismissing him. On the other hand, if the accused against
whom charges were withdrawn by the state in the celebrated Amy Biehl case had
in a disciplinary enquiry been found on balance of probabilities to be a party to her
murder, there would be little quarrel with an employer who dismissed him. (SA
Polymer Holdings t/a Megapark v CWIU and Others ...)
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Activity 14.3
(a) What are the three broad categories of accepted reasons for dismissal?
.............................................................
.............................................................
.............................................................
(b) If an employee shows up at work intoxicated, what action should the

supervisor take? Should the supervisor counsel the employee about the evils of
drinking?
.............................................................
.............................................................
.............................................................
(c) Write down the guidelines to be followed when disciplinary action is taken.
.............................................................
.............................................................
.............................................................
(d) Go to the library or search the Internet and look for an explanation of unfair
dismissal. Write down at least three characteristics of unfair dismissal.
.............................................................
.............................................................
.............................................................
14.6 Overview of the collective bargaining process

Concerning collective bargaining, Finnemore (2002:133) writes:
Collective bargaining is the most common form of employee participation in the
world. The word ``collective'' refers to the fact that employees join together in
trade unions to enhance their power in bargaining with employers over wages
and working conditions.
Finnemore (2002:127±128) gives the meaning of collective agreements as follows:

A collective agreement means a written agreement concerning terms, conditions
of employment or any other matter of mutual interest concluded by one or more
registered trade unions and one or more employers and/or registered
organisations.
14.6.1 The objectives of collective bargaining

Finnemore (2002:133±134) formulates the four main objectives of collective
bargaining as follows:
Ð The provision of institutionalised structures and processes whereby potential
214
conflicts over matters of mutual interest, for instance wages and working
conditions, may be channelled and resolved in a controlled manner thus reducing
unnecessary disputes
Ð The creation of conformity and predictability through the development of and
commitment to collective agreements which establish common substantive
conditions and procedural rules
Ð The promotion of employee participation in managerial decision-making that
concerns the working lives of employees
Ð The enhancement of democracy, labour peace and economic development at a
national and even international level
Concerning bargaining forums and their levels, Finnemore (2002:134) writes:

Bargaining forums may be established at a highly centralised or decentralised
level. Bargaining levels may range from a decentralised position involving a single
trade union and employer in a particular workplace to a centralised national
position, incorporating trade union and employer federations in a centralised
bargaining forum.
For the purpose of this course only the bargaining council in the private
sector will be discussed.
14.6.2 The structure and function of a bargaining council in the private sector
Finnemore (2002:135±136) writes as follows:
A bargaining council is an organisation, registered by the Department of Labour,

comprising one or more registered trade unions and one or more registered
employer organisations. These organisations are termed the ``parties'' to the council.
Membership of a bargaining council is on a voluntary basis, and the following
general provisions apply:
Ð the parties to the council must adopt a constitution which complies with the
Labour Relations Act
Ð half the council representatives must be appointed by the employer party and
the other half by the union parties
Ð there is equal voting power
Ð provision must be made for the representation of small and medium enterprises
to ensure that their specific interests are not overlooked
Ð the parties to the council appoint the chairperson and the other office-bearers
Ð minutes must be kept of every meeting
Ð in order to finance the administration of the council, small levies are paid by
employers and employees.
The constitution must make provision for the banking and investment of funds.
The main functions of bargaining councils are to:
Ð conclude collective agreements concerning wages, working conditions and other
procedural issues
Ð promote, monitor and enforce agreements, usually by means of designated
agents, who are employed to check that agreements are being adhered to and, if
215
necessary, issue compliance orders requiring any person bound by a collective
agreement to comply within a specific period
Ð prevent and resolve labour disputes, thus every bargaining council must make
provision for dispute resolution procedures by means of conciliation and
arbitration
Ð promote and establish training and educational schemes
Ð establish and administer benefit schemes, such as pension and provident funds,
medical aid, sick pay, holiday, unemployment and training schemes or funds
Ð develop proposals for submission to NEDLAC or any other appropriate forum on
policy and legislation that may affect the sector and area
Ð deal with requests for exemptions from the agreement
Source: Finnemore (2002:135±136)
Matters included in bargaining council agreements:

Generally the following matters are included in bargaining council agreements
(Finnemore, 2002:138):
Ð Minimum wages per job grade
Ð Annual across-the-board increases which may be linked to inflation
Ð Hours of work and agreement to reduce them to 40 hours per week as required
by the Basic Conditions of Employment Act
Ð Annual leave
Ð Sick leave and provision for sick pay
Ð Public holidays
Ð Overtime hours and payment therefor
Ð Benefit funds, for instance provident, pension and medical aids
Ð Retrenchment procedures, packages of work security funds
Ð Moratoriums on retrenchment
Ð Maternity and paternity leave and benefits
Ð Closed shop or agency shop provisions
Ð Education and training
Ð Job grading restructuring
Ð Affirmative action policies
Ð Health and safety provisions
Ð Aids policies
Ð Environmental issues
Ð Any other issues relevant to the sector
14.7 Basic Conditions of Employment Act 75 of 1997

14.7.1 The purpose and scope of the Act
Section 2 of the Act reads as follows:
The purpose of this Act is to advance economic development and social justice by
fulfilling the primary objects of this Act which are Ð
(a) to give effect to and regulate the right to fair labour practices conferred by
section 23(1) of the Constitution Ð
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(i) by establishing and enforcing basic conditions of employment; and
(ii) by regulating the variation of basic conditions of employment;
(b) to give effect to obligations incurred by the Republic as a member state of the
International Labour Organisation.
14.7.2 Application of the Act

The Act applies to all employees and employers except members of the National
Defence Force, the National Intelligence Agency and the Secret Service as well as
unpaid volunteers working for charitable organisations (section 3).
The basic conditions of employment established by the Act form part of every contract
of employment in South Africa, unless they have been replaced, varied, or excluded in
accordance with the Act, or unless the employee has personally, or via a bargaining
council agreement, contracted for more favourable terms of employment (Nel,
1997:103).
14.7.3 Work time and rules

Ordinary hours of work
Section 9 (1) of the Act stipulates that the maximum ordinary weekly hours of work for
all employees is 45 hours. The maximum daily hours that an employee may work is 9
for employees who work 5 days or less a week, and 8 for employees who work 6 days
a week. The limits on hours of work do not apply to senior managers and travelling
sales personnel.
Overtime
In terms of section 10, overtime may be worked only by agreement. An employee may
not work more than 3 hours' overtime in a day, or 10 hours' overtime in a week.
Overtime work must be compensated by paying the employee at 1,5 times the
employee's normal wage, or if agreed, by granting the employee a period of paid time
off, equivalent to the value of the overtime pay (Nel, 1997:103).
Meal intervals
Section 14 prescribes that an employee must have a meal interval of at least 60
minutes after five hours. This may be reduced to 30 minutes by agreement.
Daily and weekly rest period

Nel (1997:103) writes:
An employee must have a daily rest period of at least 12 hours between ending
work and starting work the following day. Every employee must have a rest
period of at least 36 consecutive hours each week. The rest period must include
a Sunday, unless otherwise agreed.
An employee who works on a Sunday must receive double pay. An employee
217
who normally works on a Sunday must be paid at 1,5 times his or her normal
wage. By agreement, an employer may compensate an employee for Sunday
work by granting paid time off.
Night work
Section 17 of the Act stipulates that employees doing night work (between 18:00 and
06:00) must be compensated by the payment of an allowance or by reduction of
working hours. Transportation must be available for employees.
Public holidays
Public holidays are covered by section 18. Nel (1997:104) explains: `Àll employees
must be paid their normal wage for a public holiday that falls on a working day. Work
on public holiday must be remunerated at double rates.''
Annual leave
According to section 20, employees are entitled to three weeks' fully paid leave after
every 12 months of continuous employment. (This may also be calculated as one day's
leave for every 17 days of employment.) An employer must not pay an employee
instead of granting annual leave.
Sick leave
Sick leave is covered by section 22. Nel (1997:104) writes:
An employee is entitled to six weeks' paid sick leave for every 36 months of
continuous employment. However, during the first six months of employment an
employee is entitled to only one day's paid sick leave for every 26 days worked.
An employer may require a medical certificate from an employee who is away
from work for more than two days ... .
Maternity leave
An employee is entitled to four months of maternity leave (section 25).
14.7.4 Payment of remuneration and deductions

Payment of remuneration and deductions are covered by sections 32 to 34 of the Act.
Nel (1997:105) writes:
An employer must pay an employee according to the arrangements made
between them. ... An employer may only deduct money from an employee's pay
if permitted or required to do so by law, collective agreement, court order or
arbitration award.
14.7.5 Termination of employment

In this regard, Nel (1997:105) writes:
218
During the first four weeks of employment, an employment contract may be
terminated on one week's notice. The notice period during the remainder of the
first year of employment is two weeks, and 30 days for employees with more
than a year's service. Notice must be given in writing.
An employer may pay the employee the remuneration for the notice period instead of
giving notice (section 38).
Activity 14.4
(a) In terms of various pieces of labour legislation in South Africa, the rights of
women in the workplace are a high priority. In what ways do you think the Basic
Conditions of Employment Act of 1997 reflects this?
(b) State whether the following statements are true or false and substantiate your
answer:
(i) Employers cannot address employees regarding their absenteeism due to
medical reasons until the employees have exhausted their sick leave in a
particular cycle.
(ii) Employees can stay away from work for up to two days, often linked to
weekends or public holidays, without being ill.
(c) Explain the ordinary hours of work as prescribed by the Basic Conditions of
Employment Act of 1997.
14.8 Employment Equity Act 55 of 1998

The terms `èqual opportunity'', `àffirmative action'' and `èmployment equity'' are
discussed in study unit 4 of this study guide. However, it is a good idea to look at the
two fundamental differences between `èmployment equity'' and `àffirmative action''
again. Whereas the term `èmployment equity'' refers to the concept of fairness and
equal opportunity for all employees, the term `àffirmative action'' refers to a process
that is targeted at specific, or designated, groups of employees.
14.8.1 The purpose of this Act

Section 2 of the Act states:
The purpose of this Act is to achieve equity in the workplace by Ð
(a) promoting equal opportunity and fair treatment in employment through the
elimination of unfair discrimination; and
(b) implementing affirmative action measures to redress the disadvantages in
employment experienced by designated groups, in order to ensure their
equitable representation in all occupational categories and levels in the work
force.
The most important provisions in the Act to achieve these objectives can be
summarised as follows:
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Ð All employers are required to take steps to end unfair discrimination in their
employment policies and practices (section 5).
Ð Medical testing of employees and psychometric testing are prohibited unless
justified (section 7).
Ð Designated employers must prepare and implement employment equity plans
(section 13).
Ð Designated employers must report to the Department of Labour on their
implementation and progress of employment equity (section 13).
Ð Designated employers must take measures to progressively reduce dispropor-
tionate income differentials (section 27).
Ð Any employer who intends to contract with the state must comply with its
employment equity obligations (section 53).
14.8.2 Effect of the Employment Equity Act on human resources

The Act impacts greatly on employment policies and practices in all sectors of the
South African economy (Nel et al., 2004:85). Impacted areas include the following:
Ð Recruitment, selection and placement
Ð Job classification and grading
Ð Remuneration, benefits and terms and conditions of employment
Ð Skills development, succession planning and retention
Ð Performance evaluation systems
Ð Training and development
Section 6 of the Act prohibits direct and indirect discrimination on a number of

grounds, including the following:
Ð Race, ethnic or social origin, colour and culture
Ð Gender, sex, pregnancy and sexual orientation
Ð Disability and HIV status
Ð Religion, conscience, belief and language
Discrimination on one or more of the above grounds is unfair unless it is established

that the discrimination is fair. In other words, the burden of proof of innocence on a
charge of unfair discrimination rests with the employer.
According to section 6 (2), discrimination is not unfair if it is:
Ð part of affirmative action measures which are in line with the Act; or
Ð an inherent requirement of the job
Example of an advertisement containing aspects of both fair and unfair discrimina-

tion, which was placed in The Star, a national newspaper:
BIG AND BEAUTIFUL
The above ladies' clothing store that specialises in fashion clothing for the ``fuller
figure'' is looking for sales ladies for their store in a well-known shopping mall in the
East Rand. A market-related salary will be offered.
If you are an enthusiastic lady under the age of 25, and you meet the following
minimum entry requirements, please send your CV to:
Mr E Gobi, PO Box 1443, Germiston
220
Requirements:
Ð Have a dress size between 16 and 28
Ð Be presentable in appearance
Ð Have excellent customer service skills
Ð Be proficient in English
Ð Preferably be unmarried as working overtime is inevitable
As this position entails contact with the public, a pre-employment HIV test is
compulsory.
Big and Beautiful is an affirmative action employer.

Discussion of the advertisement
The advertisement contains three elements of unfair discrimination:
Ð It discriminates on the basis of age (``be under the age of 25'').
Ð It discriminates on the basis of marital status (``preferably be unmarried as
working overtime is inevitable'').
Ð It discriminates on the basis of HIV status (``pre-employment HIV test is
compulsory'').
None of the above is a valid job requirement for this position. The requirements have
no relevance to the nature of the position, which requires excellent customer service
skills, presentability, English proficiency and a fuller figure. The target market is ``the
fuller figure'' and the age requirement is therefore irrelevant.
No mention should be made of marital status, since it is up to the candidate to decide
whether it is possible for her to work overtime.
Although the position entails contact with the public, it does not necessitate a pre-
employment HIV test as the risk of HIV transmission in this workplace is minimal.
Testing of an employee (which includes an applicant for employment) is prohibited.
The advertisement contains the following fair discrimination:
Ð The employer can discriminate on the grounds of size, the rationale being that the
employees must be able to wear and promote the garments, and customers
would relate better to a saleswoman with a fuller figure.
Ð ``Be presentable in appearance'' and ``Have excellent customer service skills'' are
inherent requirements of the job, as the salesperson must be able to promote the
garments, which entails that she relate to all kinds and levels of people and be well
groomed and presentable.
The advertisement complies with section 2 (b) of the Employment Equity Act as it
addresses affirmative action issues. Firstly, an advertisement may state that the
employer is an `àffirmative action employer'', thereby indicating to persons from non-
designated groups (white males) that they need not apply for the position. Women
(the target market for this advertisement) are part of the designated groups.
Secondly, it was placed in a national newspaper. This ensures that the recruitment
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message will reach or be exposed to a broad range of groups. The advertisement has
not been confined to a specific area, which avoids excluding or minimising applicants
from a particular group.
14.8.3 Employment equity plan

One of the Employment Equity Act's major requirements of the ``designated''
employer is that the employer prepare and implement an employment equity plan
which will achieve reasonable progress towards employment equity in that employer's
work force (section 20). The plan must include the following:
Ð The objectives to be achieved for each year of the plan
Ð The affirmative action measures to be implemented
Ð The numerical goals to achieve the equitable representation of suitably qualified
people from designated groups within each occupational category and level
Ð The timetable within which this is to be achieved and the strategies intended to
achieve those goals
Ð The timetable for each year of the plan for the achievement of objectives other
than numerical goals
Ð The duration of the plan
Ð The procedures for monitoring and evaluating the plan and whether reasonable
progress is being made
Ð The internal dispute resolution procedures to resolve disputes about the
interpretation or implementation of the plan
Ð The persons, including senior managers, responsible for monitoring and
implementing the plan
Activity 14.5
Describe the following from your own perspective:

(a) Employment equity
.............................................................
.............................................................
.............................................................
(b) Discrimination in the workplace

.............................................................
.............................................................
.............................................................
(c) Affirmative action in the workplace

.............................................................
.............................................................
.............................................................
(d) Diversity in the workplace

.............................................................
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.............................................................
.............................................................
14.9 Skills Development Act 97 of 1998

The aim of the Skills Development Act is to improve the working skills of South
Africans so that the economy can grow and all South Africans can live a better life. The
Skills Development Act changes the old way of vocational training by introducing
learnerships and skills programmes.
Summary of the Act's intention

The Act summarises its intention as follows:
To provide an institutional framework to devise and implement national, sector
and workplace strategies to develop and improve the skills of the South African
work force; to integrate those strategies within the National Qualifications
Framework contemplated in the South African Qualifications Authority Act,
1995; to provide for learnerships that lead to recognised occupational
qualifications; to provide for the financing of skills development by means of a
levy-grant scheme and a National Skills Fund; to provide for and regulate
employment services; and to provide for matters connected therewith.
14.9.1 Purposes of the Act and interpretation

Sections 2 and 3 of the Act read as follows:
2. Purposes of Act
``(1) The purposes of this Act are Ð
(a) to develop the skills of the South African work force Ð
(i) to improve the quality of life of workers, their prospects of work
and labour mobility;
(ii) to improve productivity in the workplace and the competitiveness
of employers;
(iii) to promote self-employment; and
(iv) to improve the delivery of social services;
(b) to increase the levels of investment in education and training in the
labour market and to improve the return on that investment;
(c) to encourage employers Ð
(i) to use the workplace as an active learning environment;
(ii) to provide employees with the opportunities to acquire new skills;
(iii) to provide opportunities for new entrants to the labour market to
gain work experience; and
(iv) to employ persons who find it difficult to be employed;
(d) to encourage workers to participate in learnership and other training
programmes;
223
(e) to improve the employment prospects of persons previously dis-
advantaged by unfair discrimination and to redress those disadvantages
through training and education;
(f) to ensure the quality of education and training in and for the workplace;
(g) to assist Ð
(i) work-seekers to find work;
(ii) retrenched workers to re-enter the labour market;
(iii) employers to find qualified employees; and
(h) to provide and regulate employment services.
(2) Those purposes are to be achieved by Ð

(a) establishing an institutional and financial framework comprising Ð
(i) the National Skills Authority;
(ii) the National Skills Fund;
(iii) a skills development levy-financing scheme as contemplated in the
Skills Development Levies Act;
(iv) SETAs;
(v) labour centres; and
(vi) the Skills Development Planning Unit;
(b) encouraging partnerships between the public and private sectors of the
economy to provide education and training in and for the workplace;
and
(c) co-operating with the South African Qualifications Authority.''
3. Interpretation
`Àny person applying this Act must interpret its provisions to give effect to Ð
(a) its purposes; and
(b) the objects of the South African Qualifications Authority Act.''
14.9.2 Questions and answers on skills development legislation

The questions and answers in this section provide information about the obligations of
various SETA stakeholders in terms of the Skills Development Act 97 of 1998 and the
Skills Development Levies Act 9 of 1999. These questions and answers are derived
from the website of the Services Sector Education and Training Authority (Services
SETA, 2007).
What is the purpose of the Skills Development Act?

The short supply of skilled staff is a serious obstacle to the competitiveness of industry
in South Africa. The levy grant scheme, imposed by the Skills Development Act, 1998
and the Skills Development Levies Act, 1999 aims to expand the knowledge and
competencies of the labour force. Improvements in employability and productivity will
be achieved through new approaches to planning for training, learning programmes,
incentives and an improved employment service. Participating fully in the scheme will
allow you to reap the benefits of a better-skilled and more productive work force.
224
Who must pay the levy?
Payment towards the levy grant scheme is legislated in terms of the Skills Development
Levies Act, 1999. Under this Act every employer in South Africa who is registered with
the South African Revenue Service (SARS) for PAYE and has an annual payroll in excess
of R500 000 must register with SARS to pay the skills development levy.
How does an employer register for the levy?

Every employer who is liable to pay the levy must register for the payment of the levy
with SARS by completing a registration form (form SDL 101 available from all SARS
offices). In order to register the employer must:
Ð obtain a registration form (SDL 101) from any SARS office, if not received by mail
Ð choose the sector education and training authority (SETA) most representative of
the employer's activities from a list of registered SETAs as indicated in the SETA
classification guide provided with the registration form
Ð choose a standard industry code (SIC) from the SETA classification guide which
most accurately describes the nature of the employer's business
What is a sector education and training authority (SETA)?

Twenty-five SETAs were established by the Minister of Labour on 20 March 2000, each
of which represents an industry sector in South Africa. This number was reduced to 23
as a result of some SETAs not delivering on their mandate. The members and
stakeholders of a SETA include employers, learners, providers, trade unions,
government departments and bargaining councils from each economic sector.
The main tasks of SETAs are:
Ð to develop a sector skills plan for the sector
Ð to identify, design, promote and register learnerships for the sector
Ð to be accredited as an education and training quality authority (ETQA) for
standards and qualifications in the sector
Ð to disburse skills development levies
How does the skills development levy work?

The skills development levy was launched in 2000. This monthly levy, equivalent to 1%
of payroll, is mandatory for all companies that pay PAYE or have an annual wage bill of
R500 000 or more. This levy is paid to the South African Revenue Service (SARS), who,
after deducting a 2% handling fee, allocates the funds as follows:
Ð Eighteen per cent (18%) goes to the National Skills Fund (NSF), which approves
and finances skills development and training projects at a national level.
Ð Eighty per cent (80%) goes to the appropriate sector education and training
authority (SETA).
All employers need to complete a form, which is provided by the South African
Revenue Services, and select the SETA which best represents their core business Ð e.g.
if the employer is an insurance company or an insurance intermediary, it will register
225
with the Insurance SETA (INSETA). Once the employer has completed the form and
submitted it to the South African Revenue Service, SARS will register the employer
with the SETA that the employer has selected.
What are the benefits of the skills development levy?

If the employing company promotes training and learning in the workplace and pays its
skills development levy every month, it is entitled to:
Ð skills development grants
Ð substantial tax allowances when implementing learnerships in the company
How does an employer apply to claim back grants?

Mandatory grants
An employer can recover 15% of the total levy payment for nominating and
registering a skills development facilitator and preparing and submitting a workplace
skills plan (which is approved by the SETA). A workplace skills plan or WSP is a
document in which the employer describes the skills needs of its staff and the training
plans that it wishes to implement.
The employer can recover a further 45% of the total levy payment by preparing and
submitting an annual training report or ATR, based upon the approved WSP. An annual
training report describes all the training (in-house and external) completed over the
past year.
Discretionary grants
Each SETA is allowed to make grants available of up to 10% of the total levy payment
paid by the employer for specific sector skills plan initiatives. Each SETA determines the
criteria for these initiatives as well as the amount of the grant, which is dependent upon
the funds available.
How does an employer determine which SETA it belongs to?

The primary focus of the business is determined by what approximately 60% of the
employees do (according to the skills profile of the company). This will determine the
relevant SETA for the company. To reap the benefits offered by the SETA, companies
must ensure that they are registered with SARS.
How will the employer know what to do in order to comply with the requirements?
The SETA will send the employer all the information needed, including the
requirements and timetable for action. The employer will be supplied with contact
details of employees of the SETA who are available to help maximise the benefits of the
employer's participation.
226
Are any employers exempt from paying the levy?
Yes. The exemptions are applicable if certain provisions are met. Application for such
exemptions is made on the SDL 101 form, issued by the Commissioner of SARS, who
will ultimately adjudicate whether the employer qualifies for exemption or not.
To whom are levies payable?

Levies are payable to the South African Revenue Service, which acts as a collecting
agency for the Department of Labour and the SETAs.
How are levies payable?

Each month SARS will provide all registered employers with a ``Return for remittance''
form (SDL 201), which enables them to calculate the amount payable and to effect
payment.
What amount is payable?

The amount payable will be calculated as follows from 1 April 2001 onwards: 1% of
the total amount of remuneration paid to employees. Any prescribed exclusions that
are not leviable are subtracted from the total remuneration.
By when is the levy payable?

The levy must be paid over to SARS (after registration) not later than seven days after
the end of the month in respect of which the levy is payable, under cover of an SDL 201
return form.
Is any interest and penalty incurred for late or non-payment?
SARS will impose both interest and penalties for late or non-payment of levies.
What is proof of expenditure?

Proof of expenditure is very important when completing and submitting the annual
training report. Proof of expenditure relates to all training costs that the organisation
has spent on the employees of the company. If the training was done internally, then
the organisation needs to submit all attendance registers; but if the training was done
by a training provider, then all invoices are required.
What is the purpose of a workplace skills plan?

There is interaction between management and employees as they start to discuss skills
in the workplace. Skills as well as shortfalls are identified and discussed. Management
starts to discuss the company's goals with employees, who in turn commit to the
process of achieving these goals. Management gets the opportunity to discover talent
as well as skills that they did not know they had.
What is an annual training report?

Basically this report consists of all attendance registers, proof of expenditure and
227
training provided. Using this report, the SETA can establish whether training has been
done or is in the process of being done. This report will allow the SETA to compensate
the employer for money spent when implementing the workplace skills plan for the
training that the employer has funded for its staff.
Why is it important to use an accredited training provider?

It is important to use an accredited training provider because it enables the SETA to
establish that the training provider used is not a ``fly-by-night'' training provider but
instead is a recognised training provider, with recognised standards.
Does one get 50% of monies spent on training?

No, this is where the misconception lies. The organisation will be refunded on 50% of
all monies contributed towards the skills development levy and not on monies spent on
training. During year one, an employer can claim up to 50% of its levy back:
Ð Fifteen per cent (15%) can be claimed if the employer appoints a skills
development facilitator.
Ð The next 10% of the grant money will become available on submission of a
workplace skills plan (WSP).
Ð If the employer can also show that the WSP was implemented, another 20% will
be granted.
Ð The last 5% is earmarked for special skills and exceptional training matters, such
as for affirmative action, disabled staff and unique skills required in the
organisation.
How do all grant monies received benefit the organisation?

The employer will use monies received from grants to increase the competency level
and upskill the staff in the organisation, making it a force to be reckoned with in its
particular industry.
What are the requirements for claiming back discretionary grants?

Each funding window has a different set of rules.
Must internal training departments also be accredited by the ETQA?

Yes, if the company intends to claim back for the training provided.
For which different kinds of registered providers can the organisation make a claim
for training completed?
There are four kinds of recognised providers for which claims will be recognised:
Ð Internal education and training providers, such as human resources or training and
development departments
Ð External education and training providers, such as training companies and
consultancies
228
Ð Education and training quality assurance bodies (ETQAs), who will be responsible
for assessing the quality of training, as well as the moderation of learnerships and
qualifications
Ð Recognition of prior learning (RPL) providers, who will be responsible for
assessing and moderating applications for qualifications based on prior learning
What is the difference between an external provider and a vendor?

A vendor is contracted by a provider to provide training and can be considered a
member of the provider organisation's non-permanent staff. The provider organisation
is responsible and accountable for all aspects of training and quality management. A
vendor is therefore accountable to the ETQA and does not have to register as a
provider, whereas an external provider has to fulfil the stipulated requirements in the
same way that internal providers do.
Why is it important for a company to use ETQA-accredited and/or registered

providers?
According to the Skills Development Act, organisations will be able to claim grants only
on the basis of NQF-registered unit standards and qualifications. While there may be a
grace period while the SETAs and SAQA get established, in future organisations will be
able to register claims only if they make use of accredited and/or registered providers.
Does this mean that employers will not be able to claim for employees sent
overseas for training?
Any training towards unit standards and qualifications will be eligible. Training not
associated with credits for unit standards and towards qualifications will not be eligible
for grant funds.
How will workplace assessment be conducted if an organisation uses only external

providers?
Organisations will have to ensure that adequate provision is made for the capacity to
conduct assessment when external providers are employed to do training in
organisations. The external provider will have to assume full accountability for all
aspects of training, including that of quality assurance.
How does an employer know which ETQA it should use to accredit its training
programmes?
SAQA's organising principle for the provider-to-ETQA relationship is a simple one-to-
one relation, namely that the provider is accredited by one ETQA on the basis of
primary focus. The first issue to be decided would be which ETQA sector the provider
falls within, and then which NQF-registered standards or qualifications it wishes to
provide. This should indicate the ETQA to which the provider should apply. There may
be some instances in which the indication is not clear as it should be.
The provider is then advised to approach SAQA for further guidance. Providers should
note that even if they are multi-purpose providers for a range of standards and
229
qualifications in different areas of learning, there will probably be a number of ETQAs
involved in the ongoing accreditation and quality assurance of the institution,
particularly in relation to the different learning programmes, courses and assessments
on offer. To all intents and purposes this multiplicity of relations will not impact on the
provider in that the accrediting, primary-focus ETQA will take responsibility for
organising the necessary evaluations and even site visits with all relevant parties.
If the majority of the employer's learning programmes (its primary focus) fall within
the scope of one SETA ETQA but some programmes fall within the scope of other
ETQAs, does the employer need to apply to the other relevant ETQAs as well to get
all its programmes accredited?
If the employer's primary business focus falls within the scope of one SETA ETQA, it is
that SETA' s responsibility to take the training programmes that do not fall within their
primary focus to the relevant ETQA to be accredited. They will sign a memorandum of
understanding with other SETAs in this event and will ensure that the responsible
authorities thus accredit the training courses. Please note: one training provider, one
ETQA.
What is the accreditation process?

The first step in the accreditation process is the completion of a letter of intent that is
submitted to the ETQA body. This is a one-page document that covers aspects such as
contact details, the type and form of the training programmes and the titles of the
training courses that are offered. This will be looked at to ascertain whether the
majority of the education and training provision does indeed fall within the relevant
SETA.
The employer will then receive a letter of confirmation of receipt of its letter of intent,
and its details will be captured on the relevant SETA's database, after which the
employer will receive the application for accreditation documents that it will need to
complete and return to its relevant SETA.
The application is then recorded and an initial check for compliance conducted, after
which an investigation team is tasked to assess and evaluate the application. The
assessment includes staff accreditation and a site visit. The intention of the Services
Sector Education and Training Authority ETQA (SETQAA) to accredit the provider is
published on the SETA website for SETA stakeholder comment. Should the
accreditation be granted, the SETA would issue a certificate to that effect.
What does the employer present to its clients as proof that it is in the process of
becoming accredited?
At this moment the only documentation the SETA can provide with regard to proof of
a company going through the accreditation process is the confirmation of the receipt
of the letter of intent, the confirmation of receipt of application for accreditation letter,
the confirmation of compliance letter, the confirmation letter that the provider is in the
evaluation for quality phase, and the confirmation letter of application to serve in front
of the ETQA committee for ratification. It should be noted that no evaluation has yet
230
taken place of providers who have only submitted letters of intent to be accredited. For
this reason the Services SETA is willing to confirm that the provider has applied and is
in the process of accreditation.
If the provider decides to develop more courses or diversify after it has been
accredited, does it need to go through the whole process again?
Should the provider decide to diversify at a later stage, it needs only apply for an
extension of accreditation for those courses it wishes to add. Should the extension
mean that another ETQA must get involved, the primary-focus ETQA will still manage
and administer the extension of accreditation but will establish a framework for
collaboration with the secondary ETQA.
What does provisional accreditation mean?

Provisional accreditation means that the provider meets the eight core criteria as
specified by SAQA in the document ``Quality management systems for education and
training providers''. It also means that the learning programmes are aligned with NQF-
registered qualifications and unit standards.
What does `ìnterim registration'' mean?

Interim registration means the provider meets the eight core criteria as specified by
SAQA in the document ``Quality management systems for education and training
providers''. In the absence of NQF-registered standards, the learning programme is
designed according to outcomes-based principles.
What does ``not yet recommended'' mean?

``Not yet recommended'' means that the provider does not meet the eight core criteria
as specified by SAQA in the document ``Quality management systems for education
and training providers'' and/or the programmes are not outcomes-based or aligned
with NQF unit standards.
What will happen to the provider's business if it is found to be ``not yet

recommended''?
The SETA ETQA is committed to the development of providers. Therefore companies
that are paying their skills levies to the SETA and utilising the education and training
services of providers who are not yet recommended for accreditation and/or
registration may still claim grants from the SETA during the four-month remediation
period during which a provider can remediate its application.
What can a provider do if it needs help with its application for accreditation?
To help providers understand the application for accreditation documentation, the
SETQAA has trained a group of consultants (internal and external) who will sit with
providers at their premises for a maximum of two hours to answer questions. The
231
consultant will not complete the documentation for the provider, but will assist the
provider in understanding the requirements of the SETQAA. No fee is charged to the
provider.
14.10 Summary
This study unit has focused on South African labour law. From the foregoing, it is
evident that the spate of labour legislation that has been promulgated in South Africa
since 1994 has had significant implications for the practice of human resource
management today. Human resource practitioners have to be very cautious about the
decisions they make, as they may be in contravention of these labour laws. Thus, this
legislation provides a framework for the development of policies and procedures that
are consistent with the provisions of the Constitution, especially Chapter Two (the Bill
of Rights).
NOTES
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232
Topic 4
Human relations in modern
organisations
tions
Study unit 15:
Understanding the self-
concept
Study unit 16:
The dynamics of self-
disclosure in interper-
sonal relations
Study unit 17:
Interpersonal trust
Study unit 18:
Communication pro-
cess and interpersonal
relations
Study unit 19:
Interpersonal behaviour
and expression of feel-
ings
Study unit 20:
Resolving interpersonal
conflict
Study unit 21:
Workplace stress man-
agement
Introduction
The Southwest Center for Human Relations Studies (Southwest, 2003) writes:
... human relations provide the catalyst for achievement in a society of social
233
beings. At the center of every human endeavor or cooperative venture is a
relationship. Relationships that exist among individuals Ð whether in the family,
in the community, or in the society Ð define the essence of the group. The
strength of each relationship defines the effort and commitment of the group.
The spirit of each relationship defines the group's purpose and direction. The
quality of each relationship defines the value and growth of the group and each
person involved. Human relations define our groups, our society, and even
ourselves. At the center of every social issue is a human aspect; at the center of
every social change is a human relations dimension.
The study of human relations therefore focuses on key factors that help and hinder
effective relationships in the work environment. It seeks to understand those aspects of
interpersonal relations most directly linked to the attainment of organisational and
individual goals in work settings.
TOPIC AIM
The aim of this topic is to help you to improve your understanding of people and the
relationships that evolve between them, and how this impacts on individual and
organisational goal attainment.

Ð understand and explain yourself to others
Ð discuss the dynamics of self-disclosure
Ð explain the dynamics of interpersonal trust
Ð explain the communication process
Ð explain the dynamics of self-expression
Ð explain the challenges of interpersonal conflict
Ð discuss the process of stress management
Topic contents
The topic ``Human relations in modern organisations'' will involve the following study
units:
Study unit Study unit Study unit Study unit Study unit Study unit Study unit
15 16 17 18 19 20 21
Understand- The dy- Interperso- Communica- Interpersonal Resolving in- Wor k p l a c e
ing the self- n a m i c s o f nal trust tion process b e h a v i o u r terpersonal stress man-
concept self-disclo- and interper- and expres- conflict agement
sure in inter- sonal rela- sion of feel-
personal re- tions ings
lations
234
Study unit 15
Understanding the self-concept
Contents Page

Key concepts 235
15.2 The self 236
15.2.1 Definitions 236
15.2.2 Development of a self-concept 237
15.3 Interpersonal relations and personal wellbeing 238
15.4 Self-actualisation 241
15.4.1 Maslow's hierarchy of needs 241
15.4.2 Characteristics of a self-actualised person 244
15.5 Summary 245
Learning outcomes

Ð define ``self-concept''
Ð describe how the self-concept develops
Ð describe how successful interpersonal relations contribute to personal well-
being
Ð describe self-actualisation using Maslow's hierarchy of needs and give practical
examples
Ð describe the characteristics of the self-actualised person
Key concepts
learning outcomes:
Self Self-actualisation Self-image
Self-concept Identity
15.1 Introduction
In the previous study units we looked at various aspects of human resource
management. In this study unit and those that follow, we are going to deal with
235
interpersonal relations. Although human resource management and interpersonal
relations focus on different aspects, both will help you in your daily interactions with
your staff and colleagues.
Interpersonal relations are important for all people who have to deal with other people
in their daily tasks. Whether you are a police officer, housewife, engineer or teacher,
you will always have to interact with other people. This study unit and the subsequent
units will deal with the various aspects of interpersonal relations and problems which
might arise as a result of such relations.
Although this study unit might at first seem very theoretical, you will be able to put the
theory into practice in your job and in your private life. However, to be able to do this, it
is imperative that you complete the activities and questions in each study unit.
At the end of study unit 21, you will find a list of questions for self-assessment. These
questions are directly linked to the learning outcomes and will therefore provide you
with a good indication of what to expect in the examination. They have been
specifically designed to check your ability to integrate the different study units of this
study guide.
15.2 The self

In this section we will consider the meaning of key terms related to the self and then
look in some detail at what developing a self-concept entails.
15.2.1 Definitions
Various words are used to describe the self, such as ``self-concept'', ``self-image'', ``self-
perception'' and `ìdentity''. The following definitions illuminate the meaning of ``self''.
Johnson (1986:174) describes identity as a consistent set of attitudes that defines
who a person is.
Moorhead and Griffin (2000) describe the self-concept as a person's perception of
himself or herself. We tend to refer to a positive self-concept when people see
themselves and the world in a positive light. We refer to a negative self-concept when
people are ready to believe the worst of themselves or the world around them.
Luthans (2005:198) describes the self-concept as a person's attempt to understand
himself or herself. People cannot have any self-worth or understand others if they do
not first have knowledge of themselves.
In addition, a person's self-concept largely determines how a person will react in a
particular situation (Sherman, Bohlander & Chruden, 1988:291). If an individual's self-
concept can be understood, the person's behaviour can also be understood. It is
therefore very important for you, as a manager or supervisor, to understand what self-
concept means and how it develops.
236
Activity 15.1
(a) How would you define the concept of self?

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(b) Describe your own self-concept. How do you see yourself?

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(c) Why would your self-concept be important in the work situation?

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15.2.2 Development of a self-concept

Johnson (1986:174±176) describes five ways in which our concept of self develops:
Ð Observing one's own behaviour
Ð Comparing ourselves with others
Ð Obtaining feedback from others
Ð Adopting social roles
Ð Identifying with other people
Observing one's own behaviour

We observe our own behaviour, try to explain it and draw conclusions about ourselves.
We attribute our behaviour either to internal factors (e.g. own effort and ability) or to
external factors (e.g. the behaviour of others or coincidence). For example, if you are
promoted, you may believe that you have been promoted as a result of hard work and
intelligence (an internal attribution) or you may believe that there was no one else
available for promotion (an external attribution).
237
Comparing ourselves with others
We compare ourselves with others and form an impression of ourselves. We can
compare ourselves with reference groups that include people who are similar to us in
certain key ways, and in this way we can form an impression of what we are like
(Johnson, 1986:175).
Obtaining feedback from others

We receive feedback from others (such as parents and peers) about our identity.
Adopting social roles

We adopt a number of social roles that result in different experiences from which we
gain more knowledge about ourselves. By adopting the roles of boss or subordinate,
for example, we acquire social roles that define us both to ourselves and to other
people (Johnson, 1986:175).
Identifying with other people

We identify with other people who play a significant role in our own lives (such as
parents, teachers or friends) by imitating and internalising their behaviour.
Activity 15.2
Describe how your self-concept developed, based on each of the above points.
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15.3 Interpersonal relations and personal wellbeing

People need other people if they want to function in society. However, people are not
238
born with the skills they require for successful interpersonal relations. These skills are
learnt when a person interacts with other people and gains experience and insight into
his or her own behaviour.
A small child is not interested in interpersonal skills because its own needs are most
important. When children go to school and start interacting with other children, they
need to learn to deal with conflict, anger, sharing and other emotions and situations.
These skills are acquired by receiving feedback about your own behaviour and how
others perceive you, and by noting the responses of others to your actions.
This learning process continues every time we experience something unfamiliar or new
situations Ð for example, when we study after school or are employed and have to
deal with colleagues.
Learning about ourselves and obtaining more information about how others perceive
us is essential to our psychological health. For example, if a battered wife is told by her
husband every day that she is inadequate and needs to change her behaviour, she will
eventually believe that she is not acceptable, and act in a way that will prove her
husband's words. Her belief in herself and her abilities will be destroyed and she will
become an inadequate person. However, if a woman is told every day how much her
family appreciates her and how much she means to her husband, she will strive to meet
the positive image that other people have of her.
As Johnson (1986:3) puts it, ``we need to be confirmed as a person by other people.
Confirmation consists of response from other people in ways that indicate we are
normal, healthy, and worthwhile''.
This also applies to the work situation. It is very important that you answer the
following questions because these will help you to gain an understanding of your own
behaviour, which is essential for successful interpersonal relations.
Activity 15.3
(a) How did you experience your first days at work? Were you required to deal
with people in different ways from before? Substantiate your answer.
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239
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(b) What kind of feedback do you receive about yourself from your supervisor?
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(c) How does this make you feel about yourself?

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(d) Think about the subordinate whom you like most. What kind of feedback do
you give this person about himself or herself?
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(e) Think about the subordinate whom you like least. What kind of feedback do
you give this person about himself or herself?
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(f) Why do we need to learn how others perceive us?

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240
(g) How can we obtain information about how others perceive us?
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15.4 Self-actualisation
15.4.1 Maslow's hierarchy of needs
The term ``self-actualisation'' was coined by Maslow when he described the hierarchy
of needs. This hierarchy is illustrated in figure 15.1, and organisational examples of
each need are given below.
Self-actualisation needs
Esteem needs
Social needs
Security needs
Physiological needs
Figure 15.1: Maslow's hierarchy of needs

(Source: Adapted from Luthans, 2005:241)
Physiological needs
Physiological needs refer to the need for food, air, water and shelter. These are the
strongest of all the needs because they focus on the physical survival and biological
maintenance of the body. A person who is hungry and thirsty will not pay attention to
the other needs before these physical needs have been satisfied. The basic salary or
wage can be used to fulfil these needs.
241
Security needs
Security needs refer to the need for a secure environment free from threats of physical
or psychological harm. These needs include stability, protection, structure, order and
obedience. The satisfaction of this need can be achieved by means of taking out a
pension plan or medical aid plan, or by guarantees of permanent employment
(Greenberg & Baron, 2003:193).
Social needs
Social needs are also known as affiliation needs.
These needs are satisfied when a person has friends and feels loved and accepted by
others. At work social needs are satisfied by having friends in the workplace,
participating in sports or taking coffee breaks with colleagues.
Esteem needs
Esteem needs refer to `à person's need to develop self-respect and to gain the
approval of others'' (Greenberg & Baron, 2003:193). There are two parts to this need:
Ð Needs that are based on a person's achievements: The individual wants to feel
that he or she has achieved something, has self-confidence and is independent.
Ð The need to be respected by other people: The individual wants his or her status
to be acknowledged, wants to feel important and appreciated, and wants to be
treated with respect and dignity.
In the workplace these needs are satisfied when the employee has an impressive job
title, receives recognition for achievements, qualifies for a private parking space, is
selected as the `èmployee of the month'', and so on.
EMPLOYEE OF THE MONTH: MRS SMITH
242
Self-actualisation
Self-actualisation refers to the ability to use all of one's talents and potential and to
become all one wants to become. When the other needs are satisfied on a regular
basis, the individual will reach the level of self-actualisation. This need is fulfilled in the
work situation when employees have challenging jobs or autonomy and responsibility
in their job.
Activity 15.4
(a) Provide two examples of how each of the following needs can be satisfied in
the workplace:
Physiological needs:
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Security needs:
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Social needs:
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Esteem needs:
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Self-actualisation needs:
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(b) Which of the above needs is most important in your life right now?
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(c) What are you doing to satisfy your most important needs?
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(d) In what ways does your organisation help you to satisfy these needs?
243
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Self-actualisation is not easy to achieve in the work situation because most jobs are
clearly defined and limited in scope. Therefore the person who strives for self-
actualisation cannot rely on the organisation to provide these opportunities for self-
actualisation.
15.4.2 Characteristics of a self-actualised person

Maslow described the self-actualised person as having the following seven
characteristics (Gibson, Ivancevich & Donnelly, 1994:142):
(i) Accurate perception of people and events. Self-actualised people have
the ability to perceive people and events accurately.
(ii) Ability to remove themselves from the normal turmoil of life. They
have the ability to distance themselves from their daily concerns. They are able to
deal with their affairs and, when necessary, distance themselves from these
affairs.
(iii) A problem and task orientation. Self-actualised people are oriented to
dealing with problems and tasks. They have certain goals towards which they
strive.
(iv) Ability to experience personal satisfaction. They are able to obtain
personal satisfaction from their own personal development in doing something
worthwhile. Self-actualised people know themselves well and are able to
perceive changes which result in a higher level of maturity, without having to rely
on feedback from others.
(v) Capacity to love and experience life intensely. This capacity of the self-
actualised person indicates an emotional maturity and caring for others.
(vi) Interest in their goals. Self-actualised people have an interest in the goals
towards which they are working. For example, a successful supervisor capable of
doing an excellent job might become involved in a welfare organisation after
work hours. He or she will find out everything about the organisation and spend
time assisting in areas where his or her talents can be put to optimum use.
(vii) High degree of creativity. They are highly creative in their work. They are
competent and enjoy their job, and are able to try out and experiment with new
ideas and methods.
244
The characteristics of a self-actualised person, as described above, indicate that such
people use their own resources to find opportunities for self-actualisation. Since all
their other needs have been satisfied, they can be creative and spend time and energy
exploring talents they have not used before.
The line manager needs to be aware of this and should encourage employees to find
ways of self-actualisation which can also benefit the organisation.
Activity 15.5
(a) Which characteristics of the self-actualised person apply to you?

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(b) Which aspects of your job allow for self-actualisation? How can you use them
for your own benefit and the benefit of the organisation?
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15.5 Summary
Knowledge of the self is essential for successful interpersonal relations. This knowledge
can be obtained in various ways. The organisation can contribute towards a positive
self-concept and make opportunities available for self-actualisation, but ultimately the
onus is on the individual to find opportunities for improving their interpersonal
relations and growing on a personal level.
NOTES
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245
Study unit 16
The dynamics of self-disclosure in interpersonal
relations
Contents Page

Key concepts 246
16.2 What is self-disclosure? 247
16.3 Johari dynamics 249
16.3.1 The Johari window applied to intergroup relations 250
16.3.2 Principles of change within the Johari window 250
16.4 Self-disclosure and self-awareness 253
16.5 Feedback 255
16.6 Interpersonal effectiveness 257
16.7 Summary 258
Learning outcomes

Ð define self-disclosure
Ð describe the rewards of self-disclosure in the work situation
Ð describe the components of the Johari window and their effect on commu-
nication and conflict
Ð describe ways of improving self-disclosure and self-awareness using your
knowledge of the Johari window
Ð discuss the characteristics of non-threatening feedback
Ð explain how self-disclosure, self-awareness and feedback can improve inter-
personal effectiveness
Key concepts
learning outcomes:
Self-disclosure Self-awareness
Interpersonal effectiveness Feedback
246
16.1 Introduction
In the previous study unit, we explained that the information individuals receive about
themselves from other people influences their self-concept. However, the individual can
receive such information from others, whether positive or negative, only if he or she is
aware of and willing to receive it.
In this study unit we are going to look at the concept of self-disclosure and its role in
interpersonal relations.
16.2 What is self-disclosure?

On self-disclosure Johnson (1986:18) writes as follows:
Self-disclosure may be defined as revealing how you are reacting to the present
situation and giving any information about the past that is relevant to the
understanding of your reactions to the present. ... To be self-disclosing means to
share with another person how you feel about something he or she has said or
done, or how you feel about events that have just occurred. Self-disclosure does
not mean revealing intimate details of your past life.
According to Schultz, Bagraim, Potgieter, Viedge and Werner (2003:131), the ability to
disclose one's own feelings promotes trustworthiness and credibility. However, it is
important that the self-disclosure be `àppropriate'', with a fine line being drawn
between too much and too little. Appropriate self-disclosure of feelings can facilitate
dialogue and sharing of work-related problems.
On this subject, Reece and Brandt (2006:42) write:
Self-disclosure is the process of letting another person know what you think,
feel, or want. It is one of the important ways you let yourself be known by others.
Self-disclosure can improve interpersonal communication, resolve conflict, and
strengthen interpersonal relationships.
People do not respond to one another's feelings but to one another's reactions. For
example, if you feel embarrassed I may not know it. But if your face turns red, you
avoid eye contact, you speak more softly and you try to withdraw from the situation, I
will identify with these reactions and remember that this happened to me the last time
I felt embarrassed. I will then be able to deduce that you feel embarrassed, but I can be
sure of this only once you have confirmed it.
I will only know how you experience a situation once you have disclosed your feelings
about it. If you are not prepared to do this, I will not be able to learn more from you or
give you accurate feedback on how I perceive you.
Self-disclosure contains an element of risk, because the feedback you receive could be
either positive or negative. However, your own judgement will help you decide
whether or not you should accept the feedback you receive.
Self-disclosure means sharing a moment and experience with another person, so that
you get to know yourself and the other person better.
247
Activity 16.1
Do you believe that self-disclosure can be used in the work situation? Substantiate
your answer.
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Benefits gained from self-disclosure

Reece and Brandt (2006:43±44) describe the following basic benefits to be gained
from self-disclosure:
Ð Increased accuracy in communication. There is increased accuracy in
communication. If a person conveys both facts and feelings to colleagues, there is
no need to guess how the person feels or to draw the wrong conclusions.
Ð Reduction of stress. Stress can be reduced. When a person is not allowed to
express feelings, this causes inner stress that can be detrimental to that person's
ability to perform in the work situation.
Ð Increased self-awareness. Self-disclosure results in increased self-awareness.
You can develop and change your behaviour consciously only if you are aware of
how you behave and how your behaviour affects others. Once you are aware of
the effect of your behaviour on others, you can decide whether you are prepared
to change your behaviour.
Ð Stronger relationships. Stronger interpersonal relationships result from self-
disclosure. People who are willing to disclose their feelings to others develop a
high regard for the views of others.
Activity 16.2
(a) We have all experienced frustration in the work situation because of actions
taken by other people. Describe a situation in which you experienced
frustration but did not disclose your feelings.
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(b) Why did you decide not to disclose your feelings?
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248
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(c) How could you have benefited by disclosing your feelings to the other person
involved?
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.............................................................
.............................................................
16.3 Johari dynamics

Self-disclosure is based on an exchange of knowledge between people. Joseph Luft and
Harry Ingham have designed a model known as the Johari window, in which they
explain the roles of the self and others in disclosing information about themselves. The
Johari window model is a simple and useful tool for illustrating and improving self-
awareness and mutual understanding between individuals within a group. The Johari
window tool can also be used to assess and improve a group's relationship with other
groups. The model is indicated below:
THE JOHARI WINDOW: OVERALL MODEL

FEEDBACK "
Known to Self Unknown to Self
D ?
I
Known to Public Blind
S Others Area ? Area
C
L ?
O
?
S
U Unknown Hidden Unknown
R to Others Area Area
E
Figure 16.1: The Johari window
The different quadrants of the Johari window signify the following:

Ð Quadrant I, the area of free activity or the public area, refers to behaviour
and motivation known to the self and known to others. This quadrant is also called
the `àrena''.
Ð Quadrant II, the blind area, is where others can see things in ourselves of
which we are unaware.
249
Ð Quadrant III, the avoided or hidden areas, represents things we know but
do not reveal to others (e.g. a hidden agenda, or matters about which we have
sensitive feelings). This quadrant is also called the ``facËade''.
Ð Quadrant IV, the area of unknown activity, is where neither the individual
nor others are aware of certain behaviour or motives. Yet we can assume their
existence because eventually some of these behaviours and motives have
influenced our relationship all along.
Phillips (s.a.) comments on the quadrants as follows:

In a new group, Quadrant I is very small; there is not much free and spontaneous
interaction. As the group grows and matures, Quadrant I expands in size, and
this usually means we are freer to be more like ourselves and to perceive others
as they really are. ...
Quadrant III shrinks in area as Quadrant I grows larger. We find it less necessary
to hide or deny things we know or feel. In an atmosphere of growing mutual
trust, there is less need for hiding pertinent thoughts or feelings.
It takes longer for Quadrant II to reduce in size, because usually there are ``good''
psychological reasons to blind ourselves to the things we feel or do.
Quadrant IV changes somewhat during a learning laboratory, but we can assume
that such changes occur even more slowly than shifts in Quadrant II. At any rate,
Quadrant IV is undoubtedly far larger and more influential in an individual's
relationships than the window [figure 16.1] illustrates.
16.3.1 The Johari window applied to intergroup relations

On this topic Nagdev (s.a.) writes as follows:
Quadrant I refers to behavior and motivation known to the group, and also
known to other groups.
Quadrant II signifies an area of behavior to which a group is blind, but other
groups are aware of this behavior, e.g., cultism or prejudice.
Quadrant III, the hidden areas, refers to things a group knows about itself, but
which is kept from other groups.
Quadrant IV. The unknown areas, means a group is unaware of some aspects
of its own behavior, and other groups are also unaware of this behavior. Later, as
the group learns new things about itself, there is a shift from Quadrant IV to one
of the other quadrants.
16.3.2 Principles of change within the Johari window

Nagdev (s.a.) formulates the principles of change as follows:
1. A change in any one quadrant will affect all other quadrants.

2. It takes energy to hide, deny, or to be blind to behavior, which is involved in
interaction.
250
3. Threat tends to decrease awareness; mutual trust tends to increase awareness.
4. Forced awareness (exposure) is undesirable and usually ineffective.
5. Interpersonal learning means a change has taken place so that Quadrant I is
larger, and one or more of the other quadrants has grown smaller.
6. Working with others is facilitated by a large enough area of free activity. This
means more of the resources and skills in the membership can be applied to the
task at hand.
7. The smaller the first quadrant, the poorer the communication.
8. There is universal curiosity about the unknown area; but this is held in check by
custom, social training, and by diverse fears.
9. Sensitivity means appreciating the covert aspects of behavior, in Quadrants II, III,
IV, and respecting the desire of others to keep them so.
10. Learning about group processes, as they are experienced, helps to increase
awareness (larger Quadrant I) for the group as a whole as well as for individual
members.
11. The value system of a group and its membership may be noted in the way
unknowns in the life of the group are confronted.
12. A centipede may be perfectly happy without awareness, but after all, he restricts
himself to crawling under rocks.
Let us look at each component of the model in more detail.
Arena
The arena is the area containing information known to the self and to others. This area
contains information others have about you and which you do not mind sharing with
others. The larger this area, the more open the communication will be, and the less
conflict there will be as a result of misunderstanding.
Blind spot
The blind spot contains information known to others but not to the self. This includes
other people's perceptions of your behaviour or attitudes. Since this information is
known to others but not to you, you cannot learn from it or reduce negative
perceptions about you. As a result both communication and interpersonal relationships
are hampered.
FacËade
The facËade or false front contains information about the self of which the self is aware
but is not prepared to share with others. We tend to withhold this information out of
fear, a desire for power or a need to reduce potential prejudice. We do not know how
other people will react if they have this information, and we feel safer when we
withhold it.
251
This could reduce interpersonal communication and increase the potential for conflict,
because we expect others to understand our behaviour while they do not have all the
relevant information which we have.
Unknown
The unknown contains the information not known by the self or by others. The
unknown may contain information such as unrecognised talents, unconscious motives
or early childhood memories that influence your behaviour but of which you are not
aware.
The four parts of the Johari window are not necessarily of equal size. For example, at
the beginning of a relationship the Johari window of a person may be as follows:
Known by self Unknown by self
Known by others Arena Blind spot
Unknown by others FacËade Unknown
Figure 16.2: Johari window at the beginning of a relationship

(Source: Adapted from Gibson et al., 1994:585)
After a closer relationship has developed, the same person's Johari window may be as
follows:
Known by self Unknown by self
Known by others Arena Blind spot
Unknown by others FacËade Unknown
Figure 16.3: Johari window for closer relationships

(Source: Adapted from Reece & Brandt, 1990:219)
This second Johari window indicates improved communication and openness.
252
Activity 16.3
(a) Describe the four components of the Johari window.

.............................................................
.............................................................
.............................................................
.............................................................
(b) What are the consequences of the size of the arena in your Johari window in
terms of communication and potential for conflict?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
The Johari window can help you to identify your own possible weaknesses in terms of
self-disclosure in interpersonal relations. Depending on the feedback you receive from
others, you will then be able to confirm or reject these weaknesses.
16.4 Self-disclosure and self-awareness

As we mentioned earlier, the first step in developing relationships involves self-
disclosure. Johnson (1986:18) explains that this means being able to share how you
feel about events that have just occurred with another person. This does not mean
revealing intimate details of your past life. People get to know you by learning how you
react, not by learning what happened in your past history. Past history helps only if it
clarifies why you are reacting in a certain way. People who self-disclose too much can
scare others away. Likewise, not enough closes you off to new relationships (Johnson,
1986:18±21). Getting the balance right is important!
Activity 16.4
What can you do to increase the size of the arena in your Johari window?
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
253
.................................................................
.................................................................
.................................................................
You can disclose your feelings, opinions and perceptions to others only if you are
aware of what they are. You can also respond to feedback from others only if you
are prepared to accept the feedback (Johnson, 1986:22).
Cycle of self-disclosure, feedback and self-awareness
Self- " Self-

Awareness Disclosure
"
Feedback 3
Figure 16.4: Cycle of self-disclosure, feedback and self-awareness
Johnson (2006:55±57) describes six ways of becoming more aware of your self:
Ð Introspection. ``You can look inward and examine the ìnside information' that
you, and you alone, have about your thoughts, feelings, and motives. Introspection
does help you become more aware of who you are and how you are feeling and
reacting'' (Johnson, 2006:55).
Ð ``Watch'' yourself in order to understand how you are feeling and
reacting and what is causing your feelings and reactions. This is called
the self-perception theory.
Ð Practise expressing your feelings, perceptions, reactions and experi-
ences in words. This will not only make you more aware of your feelings but
also help you express them when you want to disclose information about yourself
to the people around you. Expressing yourself will help reduce the size of the
facËade.
Ð Compare yourself to others. It is easy to evaluate your physical appearance,
such as how tall or old you are, but there is no objective standard to determine
how kind, considerate, intelligent, assertive or clever you are socially. By
comparing yourself with others, especially with groups who have much in
common with you, you discover similarities and differences and your own
uniqueness. ``From knowing others you know yourself'' (Johnson, 2006:56).
Ð Interact with a wide variety of diverse people. Much of your self-
awareness arises from your interaction with other people. As you get to know
others, you get to know yourself.
Ð Request feedback from others. You can reduce the size of the blind spot by
indicating to others that you would appreciate feedback, and even by specifically
asking for feedback on how they see you and how they react to your behaviour.
254
Answering the following questions will help you become aware of your own feelings,
opinions and perceptions.
Activity 16.5
(a) Describe some feelings, perceptions or experiences you would like to

communicate to others in an effort to reduce the size of the facËade in your
Johari window.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) Ask a colleague to give you a description of yourself. Listen carefully to what is
said to you, and do not attempt to either defend or deny the information you
obtain. Write the information in the space below and consider how you could
use this information to reduce the size of your blind spot.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(c) Think of a specific colleague at work to whom you would like to give feedback
about his or her behaviour. What would you say to the person?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
Benefits of self-disclosure include:

Ð increased accuracy in communication
Ð reduced stress
Ð increased self-awareness
Ð stronger relationships
16.5 Feedback
The purpose of feedback is to provide constructive information to help a person
become more aware of how his or her behaviour affects others and is perceived by
others. The person receiving the feedback can decide whether his or her present
behaviour is going to continue or be changed. By increasing another person's self-
255
awareness through feedback, you provide him or her with a more informed choice for
future behaviour. It is important to give feedback in a way that will not be threatening
to the receiver and make the receiver defensive.
Johnson (2006:59±60) describes the following eight characteristics of non-threatening
feedback you could apply when giving feedback to another person about his or her
behaviour:
(i) Focus on behaviour. Focus your feedback on the behaviour, not the
personality. Anyone can observe and describe behaviour, whereas few people
are competent to describe personality.
(ii) Provide descriptions. Provide descriptions rather than judgement. For
example, say ``Your presentation was difficult to follow because I could not
discern the structure you used'' rather than ``You talked a lot of nonsense which
nobody understood''.
(iii) Refer to a specific situation. Refer to a specific situation when giving
feedback, instead of generalising. For example, say ``You did not acknowledge
my presence in the meeting yesterday, even when I raised my hand'' rather than
``You are always ignoring me''.
(iv) Give feedback about the present. Give feedback about the present rather
than the past. A person can do something to correct the effect of yesterday's
behaviour but cannot do anything about something said three years ago.
(v) Express your own perceptions and feelings. Express your own
perceptions and feelings when giving feedback and be careful not to give
advice. The person who receives the feedback must have the opportunity to
interpret your feedback and change his or her own actions. When you give
advice, you tell the person what to do.
(vi) Do not force feedback on other people. Do not force feedback on other
people. People stop listening when they do not want to listen. When you give
unsolicited feedback you are wasting your time, and ill feelings may result.
(vii) Do not give too much feedback. Give only as much feedback as the
receiver can understand at the time. If you give too much feedback, the person
will not be able to remember everything.
(viii) Give feedback on aspects the person can change. Give feedback on
those aspects the person can change. For example, do not tell a person that he
or she is too tall or too short. Nothing can be done about that.
Activity 16.6
Review the feedback that you gave your colleague in the previous exercise. How
would you reword the feedback in the light of the above rules?
256
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
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.................................................................
16.6 Interpersonal effectiveness

Johnson (2006:399) defines interpersonal effectiveness as ``the degree to which the
consequences of your behavior match your intentions''. This means that you must have
sufficient self-awareness to realise how other people will perceive your behaviour. You
must be able to decide whether their perceptions would be an accurate reflection of
your intentions.
You may improve your interpersonal effectiveness by disclosing your intentions,
receiving feedback on your behaviour, and changing your behaviour until it has the
effect you intend it to have.
For example, suppose you are a calm, quietly-spoken person by nature. You would like
to make people in your workplace more aware of safety measures by enforcing the
wearing of safety clothing. You could opt for loudly reprimanding all employees who
do not wear safety clothing on a specific day. However, this will probably be so out of
character that employees will wonder whether you had a bad night's sleep and they
will not even think about work safety.
Alternatively you could wear the safety clothing and tell a person who is not wearing it
why you prefer to reduce your own chances of injury at work. You could then ask the
other person why he or she had chosen not to wear safety clothing. This would make
the other person think about personal safety, and he or she would probably take the
necessary corrective action.
257
Activity 16.7
(a) Describe a situation in which your supervisor said one thing, while you believed
he or she meant something else. Why did you believe that the person did not
mean what he or she said?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) What behaviour by the supervisor would have been more appropriate in the
above situation?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
16.7 Summary
We can take specific measures to improve our interpersonal relations. Such an
improvement requires that we be willing to accept criticism and to give information
about ourselves to others. We tend to perceive self-disclosure as a threat until we start
to practise it and experience positive consequences. Self-disclosure is not always easy,
but the benefits of practising it far outweigh the losses.
NOTES
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258
Study unit 17
Interpersonal trust
Contents Page

Key concepts 259
17.2 Definition of interpersonal trust 260
17.3 Building up interpersonal trust 261
17.4 The two sides of trust in a relationship 263
17.5 Trust and the self-fulfilling prophecy 264
17.6 Summary 265
Learning outcomes

Ð define the concept of trust by describing its elements
Ð explain how trust can be built up in a relationship
Ð describe behaviour that is detrimental to the building of trust
Ð explain the difference between trusting and being trustworthy
Ð discuss the effect of the self-fulfilling prophecy on the level of trust in a
relationship
Key concepts
learning outcomes:
Trust
Interpersonal trust
17.1 Introduction
In study unit 16 we learnt that interpersonal relations can be improved through self-
disclosure and feedback. However, as we explained, there is always a risk involved,
because self-disclosure can be rejected and feedback may be negative. This risk is
acceptable if the receiver believes in the honesty and integrity of the giver and trusts
the giver.
259
In this unit we will look at the effect of trust on interpersonal relations. Remember to
complete the activities and questions, which will help you to apply the concepts in your
work situation and master the theoretical content of this study unit.
17.2 Definition of interpersonal trust

De Furia (s.a.) writes:
Interpersonal trust is the perception you have that the other person will not
intentionally or unintentionally do anything that harms your interests. It is the
feeling that you can depend upon that other person to meet your expectations
when you are not able to control or monitor the other person's behavior.
Interpersonal trust always involves one person making him/herself vulnerable to
another person's behavior. Usually, what you get from the expected behavior is
not as valuable as what you could lose if your trust is violated. Trust is violated
when you don't get the behaviors you expected from the trusted person or you
get unexpected behavior.
Activity 17.1
How would you define or describe trust?

.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
Ð Trust can be described as a high regard for another person and a belief that the
person will act morally or ethically.
Ð Reece and Brandt (1999:214) maintain that trust implies an instinctive,
unquestioning belief in another person or thing. They say that trust exists when
you believe fully in the integrity or character of the other person.
Elements of trust
According to Johnson (2006:95, citing Deutsch), trust contains the following elements:
Ð Risk: You could gain or lose from trusting another person. Thus there is a risk
involved in trusting.
Ð Beneficial or harmful consequences: You are aware that beneficial or
harmful consequences could result from the behaviour of the other person.
Ð Suffering and gain: You are aware that you could suffer more from the harmful
consequences than you could gain from the beneficial consequences.
Ð Behaviour of the other person: You have reason to believe that the other
person will behave in a way that would benefit you.
260
Activity 17.2
(a) How will the extent to which you trust a colleague affect your willingness to
risk self-disclosure?
.............................................................
.............................................................
.............................................................
.............................................................
(b) How will you perceive feedback about your behaviour from a person who has
acted to your detriment in the past?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
17.3 Building up interpersonal trust

Activity 17.3
Remember the discussion on the Johari window in study unit 16? Use the
information provided there to indicate how a trust relationship can be built up
through disclosure and feedback.
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
The facËade includes information about yourself that you prefer to conceal because you
believe that it could be detrimental to your relationship with another person. The only
way to reduce the facËade is to risk disclosing such information.
The response you would hope for is continued acceptance in the relationship. If you
risk disclosing information about yourself and the other person reacts by continuing to
261
support and accept you, you will tend to place your trust in that person. If the other
person in turn discloses personal information, you could in turn accept them and be
supportive.
This process of disclosing information and accepting disclosures from another person
in a supportive way takes place over time. One such exchange will not necessarily build
up trust.
Activity 17.4
What type of behaviour will ensure that trust is not the result of self-disclosure?
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
................................................................
Harmful behaviour
Johnson (2006:100) describes three types of behaviour that will harm trust in a
relationship:
Ð Rejection, ridicule or disrespect: One person reacts with rejection, ridicule
or disrespect to the other's self-disclosure. This will ensure that there is no further
disclosure in future.
Ð Failure to disclose personal information reciprocally: One person

discloses personal information and the other person does not reciprocate. The
result could be that the person who has disclosed the information feels vulnerable
and threatened, and will refrain from disclosing personal information in future.
Ð Refusal to disclose personal information: One person shows considerable
acceptance and support, while the other refuses to disclose personal information.
The person who has shown support and acceptance will feel rejected and
withdraw from the relationship.
262
Activity 17.5
Think of a person you do not trust. What behaviour did this person exhibit to
convince you that he or she should not be trusted? Could you take any action to
create a trust relationship?
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
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.................................................................
17.4 The two sides of trust in a relationship

When you form part of a relationship, you are expected to be both trusting and
trustworthy (Johnson, 1993:68)
Ð When you are trusting, you are willing to risk the positive or negative
consequences of self-disclosure that make you vulnerable to another person. A
trusting person is on the receiving side of the relationship.
Ð When you are trustworthy, you are willing to respond to the risk another
person takes when disclosing personal information in such a way that the other
person will benefit from confiding in you. This places a trustworthy person on the
giving side of a relationship.
The people involved in a relationship will both disclose and receive information. This
means that each person must be both trusting and trustworthy.
263
Activity 17.6
(a) Think about a fulfilling relationship in which you are involved. Does trust have
anything to do with the success of the relationship? Substantiate your answer.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) Think about an unsatisfactory relationship in which you are involved. What role
does trust play in the relationship?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
17.5 Trust and the self-fulfilling prophecy

According to Greek legend, Pygmalion, the king of Cyprus, wanted the ideal wife. Of
course no woman could meet all his requirements. King Pygmalion then had a statue
made of his ideal woman and fell in love with this perfect woman. His desire to marry
this statue became so intense that the statue came to life and he was able to marry her.
It could happen in the workplace that a person makes wrong assumptions about a
situation and then acts on the basis of these assumptions. The actions of that person
then make the assumptions come true, and the person believes that he or she was
right in the first place. This is known as the Pygmalion effect.
For example, Mary and John commence duties on the same day. They report to the
264
same supervisor. Mary believes that the supervisor is not to be trusted. The supervisor
is friendly and encourages self-disclosure from her, but Mary perceives the friendliness
as a deceptive facËade that proves the supervisor cannot be trusted, and she withdraws.
The supervisor becomes less friendly because of Mary's withdrawal, and the result is a
lack of trust between them.
John believes that the supervisor is trustworthy and returns the friendliness extended
to him. The supervisor and John both disclose information about themselves and build
up a relationship of trust based on positive impressions of each other. John regards this
relationship of trust as proof that his original belief in the trustworthiness of the
supervisor was correct.
The moral of the story is that it is to our advantage to assume that a person is
trustworthy until that person proves us wrong. Not all people can be trusted. However,
if we mistrust all people until we are proven wrong, we may lose valuable friends and
isolate ourselves from those around us.
Activity 17.7
(a) Think of a person you do not trust because you believe that he or she is not
trustworthy. Could your perception be a self-fulfilling prophecy?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) What can you do to correct your perception of the person above? What action
can you take as a line manager to ensure that you are not rejected as a result of
incorrect perceptions?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
17.6 Summary
Interpersonal trust is an essential component of a healthy relationship. However, trust
is not given by only one person to the other. Both individuals in a relationship have to
work constantly at earning each other's trust.
265
Study unit 18
Communication process and interpersonal relations
Contents Page

Key concepts 266
18.2 The communication model 267
18.3 Requirements for sending messages 270
18.4 Transactional analysis 270
18.4.1 Ego states 271
18.4.2 Types of transactions 273
18.5 Listening and reaction 275
18.5.1 Indications of poor listening habits 276
18.5.2 Active listening 276
18.6 Summary 277
Learning outcomes

Ð illustrate and discuss the process of communication with the aid of a diagram
Ð explain the requirements for sending clear messages
Ð discuss the ego states used in transactional analysis
Ð explain the two major types of transactions in transactional analysis
Ð analyse transactions so as to identify the relevant ego states and suggest
replacement statements for these
Ð list the indications of poor listening habits
Ð discuss means of improving active listening habits
Key concepts
learning outcomes:
Communication
Message
Active listening
266
18.1 Introduction
Self-disclosure and feedback can take place only as part of the communication process.
In this study unit we will discuss this process and the processes of transactional analysis
and active listening which you can use to improve your understanding of
communication.
18.2 The communication model

The process of communication is illustrated in the diagram below:
**** ! ****
Communicator Who
****! ****
Encoding
**** ! ****
Message and says what
in what way Feedback
medium
**** ! **** with

what
Decoding effect
**** ! ****
Receiver to whom
**** = Noise
Figure 18.1: The communication model

(Source: Adapted from Gibson et al., 1994:575)
What do the main components of the model refer to?

Ð The communicator: The communicator is the person who has information to
communicate to another person.
Ð Encoding: Encoding takes place when the information is expressed in a language
or some other system of symbols.
267
Ð The message: The message can be either verbal or non-verbal.
Ð The medium: The medium is the means by which the message is sent. Examples
are face-to-face communication, telephone calls, fax messages, internal memos,
meetings and policy statements.
Ð Decoding: Decoding takes place when the receiver interprets the message and
attaches a meaning to it.
Ð Feedback: Feedback is given to the communicator who sent the message, which
means that the receiver indicates what was received. This allows the commu-
nicator to correct any errors and ensure accurate communication.
Figure 18.2: The communication process
Noise
Noise can be defined as anything that interferes with the communication process. For
example:
Ð The communicator chooses ambiguous words with which to send the message.
Ð The verbal message is friendly but the body language accompanying it is
threatening.
Ð The medium is inappropriate, such as when one describes a diagram over the
telephone when a fax would be more appropriate.
Ð The message is decoded inaccurately because the receiver does not have the same
vocabulary as the communicator.
Ð There is interference from noise in the true sense of the word (like a machine
making a noise that prevents people from hearing each other).
Ð The sender does not speak loudly enough or clearly enough.
268
Activity 18.1
(a) Write down a message you would like to communicate to another person.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) Send the message, and then analyse the message and the feedback you have
received by indicating the different components of the communication process.
Communicator:
.............................................................
.............................................................
Encoding:
.............................................................
.............................................................
Message:
.............................................................
.............................................................
Medium:
.............................................................
.............................................................
Decoding:
.............................................................
.............................................................
Receiver:
.............................................................
.............................................................
Feedback:
.............................................................
.............................................................
Noise encountered:
.............................................................
.............................................................
269
(c) How could you improve the quality and understanding of the message you
sent?
.............................................................
.............................................................
.............................................................
.............................................................
18.3 Requirements for sending messages

The requirements that Johnson (2006:132±134) lists for sending clear messages
include the following:
Ð Clarity and specificity: Ensure that your message is clear and specific.
Remember that if you make assumptions and do not communicate them, the
receiver will attach his or her own meaning to the message, and misunderstand-
ings could occur.
Ð Congruence: Ensure that your verbal and non-verbal messages are congruent.
For example, if you say ``Congratulations on your promotion'' while speaking with
clenched teeth and avoiding eye contact, the receiver will not know whether you
are sincere or sarcastic.
Ð Repetition: Repeat your message more than once and use more than one
channel of communication. This will improve the understanding of the receiver.
Ð Feedback: Ask for feedback to your message. This will ensure that you identify
errors and reduce misunderstandings.
Ð Orientation to the receiver's frame of reference: Bear the receiver's
frame of reference in mind when sending a message. For example, you would use
certain words to explain a concept to an engineer but different words to explain
the same concept to an unskilled employee.
18.4 Transactional analysis

Suppose a new form was introduced at your workplace while you were on leave. You
were not there when the supervisor explained to your work group how to complete
the form.
270
So you approach your supervisor and ask him to explain how to complete the new
form. The supervisor throws his arms in the air and shouts `Ì have explained this
already. Why did you not listen like the rest of the group? Go and find out from them
what you must do!''
Transactional analysis is a theory of communication that can help you to

understand the dynamics of the above exchange and respond in a constructive manner.
This section explains the communication theory of transactional analysis and gives
practical examples for better understanding.
18.4.1 Ego states

Eric Berne asserts that people interact with one another from one of three different
psychological positions called `ègo states'' (Davis & Newstrom, 1989:261). Berne
called these ego states parent, adult and child. People's ego states can change
throughout the day, and a series of transactions can take place between different ego
states. People can operate from any of the three ego states in different situations. Let's
look at each.
Parent ego state

The parent ego state refers to the standards and rules you have gathered throughout
your life. When you use this ego state, you talk down to other people and treat them
like children (Luthans, 1992:379).
271
There are two different types of parent ego states, namely the sympathetic parent
state and the critical parent state:
PARENT EGO STATES
Sympathetic parent Critical parent

. The sympathetic parent is supportive, protec- . The critical parent is critical of others, opinio-
tive and caring. For example, a person who nated and judgmental. For example, managers
functions from this ego state will tell you that functioning from this ego state will tell you that
things are not as bad as you think or that you should work according to the rules, your
everything will be taken care of. work leaves a lot to be desired, or you are not
allowed to learn new skills unless they have
approved it.
. Words used to describe the sympathetic parent . Words used to describe the critical parent are
include comforting, reassuring, protective, per- inhibiting, judgemental, demanding, disciplin-
missive, consoling, caring (Reece & Brandt, ing, critical, disapproving (Reece & Brandt,
1990:242). 1990:242).
. Managers using the consultative and participa- . Managers using the autocratic style tend to be
tive styles tend to be in the sympathetic parent in the critical parent ego state because they use
state because they are using high supportive high task behaviour.
behaviour.
Child ego state

The second ego state, the child ego state, relates to all the joyous and fearful emotions
you experienced as a child. A person acting from the child ego state displays immature
behaviour.
There are two different types of child ego states, namely the natural child state and the
adapted child state:
CHILD EGO STATES
Natural child Adapted child

. The natural child is affectionate, impulsive or . The adapted child does the right thing, even
joyful. A person functioning from this ego state against his or her will, so that he or she can be
will giggle at silly jokes, question everything praised all the time. This ego state is sometimes
(like a toddler asking ``why'' all the time) and called the ``little professor''. A person function-
refuse to share important information. ing from this ego state will tell you that you will
be punished if you do not follow the rules (even
when there is a better way), or that he or she
would rather not try to do something, because
somebody else could do it better.
. Words used to describe the natural child are . Words associated with this ego state are angry,
curious, intimate, fun-loving, joyful, fanciful, fearful, anxious, inadequate, rebellious, pouting
impulsive, and selfish (Reece & Brandt, and procrastinating (Reece & Brandt,
1990:243). 1990:243).
. Successful managers do not operate from the . Managers should avoid behaving from the
natural child ego state all the time. adapted child ego state because this type of
behaviour often leads to the employee becom-
ing emotional and behaving in a similar manner.
Adult ego state

The last ego state is called the adult ego state. The adult ego state is described as
272
rational, calculating, factual, and unemotional (Davis & Newstrom, 1989:261). The
adult bases decisions on objectivity and is the rational, analytical thinker. The person
functioning in this ego state is relatively free of feelings and opinions and is not easily
upset when unreasonably accused of something, being more inclined to focus on facts
The most effective behaviour, human relations and performance generally come from
the adult ego state.
Any transaction between two people can be analysed on the basis of these ego states.
For example, the transaction between you and the supervisor at the beginning of this
section reflects both the adult and critical parent states:
Adult: You approach your supervisor and ask him to explain how to complete the
new form.
Critical parent: The supervisor throws his arms in the air and shouts `Ì have
explained this already. Why did you not listen like the rest of the group? Go and find out
from them what you must do!''
Activity 18.2
(a) From which ego state did you respond to your supervisor when you wrote
down your response above?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) Would you like to write a new response to the comment of the supervisor that
could improve communication?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
18.4.2 Types of transactions

There are two main types of transactions: complementary transactions and crossed
transactions.
273
Complementary transactions
A complementary transaction occurs when a message sent from one ego state evokes
the predicted or desired response from a specific ego state in the other person (Reece
& Brandt, 1990:249).
Examples:
Philemon: `Ì've got the flu and feel terrible!'' (Natural child)
Bongi: ``You sure do look ill. Here, drink this medicine.'' (Sympathetic parent)
Anne: ``How many times have I told you to close the safety door behind you?''
(Critical parent)
Melanie: `Òh, all right! You don't need to perform like this!'' (slams the door)
(Adapted child)
Chris: ``The boss isn't here today. Let's sneak off and have a pub lunch.''
(Natural child)
Andre
Â: `Òkay, I'll meet you at my car.'' (Natural child)
Crossed transactions
A crossed transaction occurs when the sender of the message does not evoke the
required or expected response from the other person (Reece & Brandt, 1990:249).
Examples:
Client: `Ì've noticed on a number of occasions that you have not had the correct
change for me. Would it be acceptable if I paid by cheque instead?''
(Adult)
Salesperson: `Àre you telling me that I cannot do my job?'' (Adapted child)
Bonga: `Ìf that man insults me again, I'm going to hit him across the mouth.''
(Adapted child)
Gladys: `Ìf you do that, a disciplinary complaint will be laid against you.'' (Adult)
Activity 18.3
(a) How would you describe the effect of complementary transactions on

communication?
.............................................................
.............................................................
.............................................................
(b) How would you describe the effect of crossed transactions on communication?
.............................................................
.............................................................
.............................................................
(c) A number of transactions are described below. For each statement indicate the
ego state from which the speaker functions. If communication is hampered,
replace the damaging statement with one that would improve communication.
274
STATEMENT EGO STATE OF REPLACEMENT
SPEAKER STATEMENT
A You have deviated from
the rules again. What's
wrong with you?
B Stop preaching to me, I did
the job and that's all that
counts.
A This is the most difficult
project I have ever dealt
with.
B So far you're on schedule,
and you're being consid-
ered for promotion.
A Do you have information
on absences from work on
Monday?
B Yes, I have. I also noticed a
problem with absences on
Friday and I will provide
this information as well.
A I noticed that you leave the
office five minutes earlier
than the others every day.
Would you like to talk
about it?
B Are you spying on me?
A John really behaved badly
at the office party. Did you
notice how he flirted with
that new secretary?
B Yes, they stood talking the
whole evening. I'm sure
that they must be having
an affair.
(d) As a line manager, how can you use transactional analysis to improve
communication in the workplace?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
18.5 Listening and reaction

Why is listening important? Can listening skills be taught? How can we become better
listeners and improve our communication skills? This section contains information on
poor listening habits and how we can improve them.
275
Activity 18.4
List four reasons why you sometimes do not remember what you have been told.
.................................................................
.................................................................
.................................................................
.................................................................
18.5.1 Indications of poor listening habits

Reece and Brandt (1990:44) list the following poor listening habits:
Ð Thinking about something else while the other person is talking.
Ð Ceasing to listen when you no longer understand.
Ð Prejudging that the person talking will not have anything interesting to say.
Ð Being distracted by other sights and sounds when someone is talking to you.
Activity 18.5
Which of the above poor listening habits do you sometimes display? Try to think of
specific examples to prove this.
.................................................................
.................................................................
.................................................................
.................................................................
18.5.2 Active listening

Active listening is described as the process of giving feedback to the speaker on what
the listener thinks the speaker meant (Reece & Brandt, 2006:39).
We can take specific actions to improve our listening skills. They are listed below
(Gordon, 1993:295):
Ð Be quiet. Have you noticed how people sometimes seem to be conversing but
speak at the same time and give inappropriate responses? You cannot speak and
listen at the same time.
Ð Ensure that the other person knows you are listening. Regard the person as
worthy of your attention, and give your full attention without guessing what you
are going to hear.
Ð Indicate that you are listening by maintaining full eye contact and leaning forward.
Focus on the person speaking to you and do not be distracted.
Ð Paraphrase the message you have received. (This means repeating what you have
heard in your own words.) The sender will then be able to correct you if you have
received the wrong message. For example, if you present a report and your
supervisor says `Ì really do not like what I am hearing'', you could paraphrase this
276
by asking `Àren't you satisfied with the content of the report?'' or ``Don't you like
the words I've used?'' The supervisor will then be able to respond and indicate
exactly why he or she is dissatisfied.
Ð Ask questions that will improve your understanding of what has been said to you.
Ð Describe the behaviour of the other person or your own feelings. This will allow
the sender of the message to assess whether you have received the correct
message and to make any corrections.
Activity 18.6
(a) What are active listening skills?

.............................................................
.............................................................
.............................................................
(b) Paraphrase the following sentences (repeat them in your own words as you
understand the message).
`Ìs this the best you can do?''

.............................................................
.............................................................
.............................................................
`Àre you listening to me?''

.............................................................
.............................................................
.............................................................
``You've been late five days in a row. This is unacceptable.''

.............................................................
.............................................................
.............................................................
``We'll need to put in more hours.''

.............................................................
.............................................................
.............................................................
18.6 Summary
Effective interpersonal relations depend on effective communication. The line manager
must ensure that the messages sent are clear and unambiguous and that the correct
medium is used. Feedback also plays an important role in the communication process.
Feedback makes communication a two-way process.
277
Communication can be improved by listening carefully to the sender of a message, by
responding from an ego state that can contribute to communication, and by creating
an atmosphere of trust.
NOTES
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278
Study unit 19
Interpersonal behaviour and expression of feelings
Contents Page

Key concepts 279
19.2 What are feelings? 280
19.3 Suppression of feelings 280
19.4 Your perception of others' feelings 283
19.5 Non-verbal communication 284
19.6 Summary 286
Learning outcomes

Ð define the concept of feelings
Ð discuss the consequences of inadequate expression of feelings
Ð indicate how perceptions of other people's feelings can be checked
Ð define non-verbal communication
Ð explain how inaccurate perceptions (misunderstandings) of non-verbal com-
munication can hamper communication
Key concepts
learning outcomes:
Feelings Non-verbal communication
Perceptions
19.1 Introduction
Interpersonal communication is based on facts and feelings. A computer can process
facts but cannot feel anything. A person who interacts with others must understand his
or her own feelings and be able to deal with the feelings of other people. In this study
unit we will look at the role of feelings in interpersonal communication.
279
19.2 What are feelings?
Johnson (2006:169) defines feelings as internal physiological reactions to our
experiences. These cause external physical reactions that others can observe. These
observed physical reactions communicate our feelings to others.
For example, when a person scowls, clenches his fists, glares at another person and
raises his voice, we can assume that the person is angry.
Activity 19.1
In the table below, list a number of feelings you experience regularly. Indicate what
physical reactions can be observed for each feeling.
FEELINGS OBSERVED REACTIONS
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........................
19.3 Suppression of feelings

Activity 19.2
Should you express your feelings in the work situation? Substantiate your answer
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
It is not always easy to express feelings. People often believe that there is no place in
the work situation for feelings. However, a human being is an emotional being, and we
spend at least a third of each day at work. We have no option but to express feelings in
the work situation. The important issue is whether we express our feelings
appropriately.
280
Consequences of suppressing feelings
What will happen if we do not express our feelings? Johnson (2006:176±177)
describes the following six consequences of suppressing or expressing feelings in an
unconstructive way:
Ð Misunderstandings and increased conflict
Ð Difficulty in resolving relationship problems
Ð Ignoring facts (selective perception)
Ð Biased judgements
Ð Power struggles
Ð Denial of feelings
Misunderstandings and increased conflict

Suppressed feelings result in misunderstandings and increased conflict. This has a
negative effect on a relationship. For example, a supervisor who does not have a family
may believe it is reasonable to ask you to work overtime regularly. If you believe this is
unreasonable but you do not say so, you will resent working overtime and will
eventually resent working with this supervisor.
Difficulty in resolving relationship problems

If you are unable to express your feelings, you will find it difficult to resolve problems in
a relationship. If you deal only with the facts of a problem, you will not be able to deal
with the way feelings influence the facts. This may result in a superficial resolution of
the problem, but the hidden feelings will explode at a later stage and aggravate the
problem.
For example, if you are told that you cannot get a salary increase even though you
qualify, because the company has temporary financial problems, you will probably feel
forced to say that you will be patient. However, if you are expected to work harder and
after six months have still not received your salary increase, it will be difficult to
convince your supervisor that you have been unhappy about the situation right from
the beginning even though you did not say so.
Ignoring facts (selective perception)

If you suppress your feelings, you will also tend to ignore the facts relating to the
feelings. The result will be that the unresolved problem will become worse instead of
going away when you ignored it.
For example, if you feel that it is unfair that your supervisor always takes the credit for
jobs you do well, you may think you have to suppress this feeling as being disloyal to
your supervisor. If other employees start commenting on this, you may prefer not to
respond, because if you respond you will have to acknowledge the problem. If the
supervisor is eventually promoted on the basis of your performance, management will
find it difficult at that stage to believe anyone who claims that the supervisor is not as
good as he or she has seemed to be.
281
Biased judgement
Your judgement will be biased when you suppress your feelings. For example, if you
really dislike a person but do not acknowledge this (even to yourself), you may find that
you cannot accept good ideas suggested by that person. You may not realise that this
is because you dislike the person rather than his or her ideas.
Power struggles
If you express your feelings, you must concentrate on doing just that. Expressing your
feelings in the form of a demand for another person to change his or her behaviour
could result in a power struggle.
For example, suppose a person says to you: ``You are really the most competent person
and I would be very happy if you would accept this responsibility.'' The person may not
be expressing satisfaction with you but rather trying to force you into accepting an
unpleasant task, knowing that it might be embarrassing for you to refuse. If you refuse,
the other person will have ill feelings. If you accept, you may have ill feelings, because
you could feel forced into doing something you would rather not do.
Denial of feelings
Other people often ask you to suppress or deny your feelings. For example, suppose
you say of someone: ``He makes me so angry!'' Somebody may respond: ``Just ignore
him. He is really not so bad.'' You are entitled to express your feelings in an appropriate
manner and you cannot take responsibility for the fact that other people may not be
able to deal with your feelings.
Activity 19.3
(a) Describe a work situation in which you suppressed your feelings. If you are not
working, describe a social situation in which you did this. What was the
situation?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) Why did you feel that it was appropriate to suppress your feelings?
.............................................................
.............................................................
.............................................................
.............................................................
(c) What were the consequences?

.............................................................
282
.............................................................
.............................................................
.............................................................
19.4 Your perception of others' feelings
Activity 19.4
How do you know what a colleague feels if he or she frowns while you are talking to
him or her?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
We have described feelings as psychological reactions that manifest in observable

physical reactions. However, if a person's face turns red, how do we know if the person
is angry, embarrassed or excited? If a person holds a fist in the air, how do we know if
the person is angry or excited?
Johnson (2006:187) suggests that we do a perception check. The perception check
consists of three parts:
Ð In your own words, describe what you think the other person's feelings are.
Ð Ask the other person whether your perception is accurate. For example, the
colleague in activity 19.4 above could frown because she is unhappy about what
she hears from you, or because she is thinking about the problem you are
discussing, or because the sun is shining in her eyes. You will only know which
assumption is right if you ask her.
Ð Do not express approval or disapproval of the feelings. All you want to do
is confirm your own perception of the person's feelings.
Activity 19.5
(a) Why do you need to confirm your perception of another person's feelings?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
283
(b) What benefit could confirming perceptions have for you in the work situation?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
19.5 Non-verbal communication

Activity 19.6
How can you communicate with another person if you are not allowed to speak?
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
Barney and Griffin (1992:325) describe non-verbal communication as any

communication exchange that does not use words, or that uses words to carry more
than a literal meaning.
Examples of non-verbal communication include facial expressions, tone of voice,
posture, eye contact and position in a room (Arnold & Feldman, 1986:161).
Luthans (2005:324) adds the following examples:
Ð Time Ð for example being late or early
Ð Space Ð for example, how close one is to another person during a conversation;
or the seating arrangements in a meeting
Feelings are often communicated in a non-verbal manner. However, non-verbal

communication is limited when compared to verbal communication, and feelings can
be misunderstood or misinterpreted.
Reasons for misunderstandings

According to Arnold and Feldman (1986:161), feelings may be misunderstood or
misinterpreted for the following reasons:
Ð Ambiguity
Ð Contradiction
Ð Cultural differences
284
Ambiguity
As we have seen, non-verbal messages can be ambiguous Ð reread the examples in
section 19.6 of this study unit.
Here is another example: Anne is a member of a group discussing different methods of
conflict resolution. Early in the discussion Anne folds her arms. As the discussion
progresses, she hunches her shoulders and sits forward. She looks more and more
uncomfortable. Eventually John says: `Ànne, I notice that you've folded your arms.
Don't you want to participate in the discussion?'' She replies: `Òh, yes Ð I find the
discussion fascinating, but this room is very cold and I'm sitting like this to feel warmer.''
Activity 19.7
(a) What assumption could John have made about Anne's non-verbal commu-
nication if he had not asked her for confirmation?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) What lesson can we learn from the above example about interpreting non-
verbal communication?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
Contradiction
Non-verbal messages can contradict verbal messages, and then the receiver does not
285
know what message to accept. For example, if I congratulate you on an achievement
but I do not smile, look into your eyes or extend my hand, you will not be sure whether
I admire or resent your achievement.
Cultural differences
There are cultural differences in the interpretation of non-verbal behaviour. For
example, in some cultures it is customary for a person to sit down in the presence of a
superior, while in others it is customary to stand.
Activity 19.8
How can you ensure that you correctly interpret the non-verbal communication of a
person from another culture?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
19.6 Summary
People are often embarrassed when required to express their feelings. However, we
express our feelings all the time without being aware of it. Therefore, when we
become aware of the benefits of expressing our feelings, we tend to believe that it is
something new.
The newness is not in expressing feelings but in concentrating on the appropriate
expression of feelings and in understanding the feelings expressed by others. This does
not mean that we need to express our emotions all the time. The emphasis is still on
the appropriate expression of feelings.
NOTES
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286
Study unit 20
Resolving interpersonal conflict
Contents Page

Key concepts 287
20.2 Definition of conflict 288
20.3 Dimensions and sources of conflict situations 288
20.4 Dimensions of conflict 289
20.4.1 Sources of conflict 289
20.5 The distinction between constructive and destructive interpersonal conflict 290
20.6 How to resolve conflict 291
20.7 Accurate communication as a conflict management tool 294
20.8 Summary 295
Learning outcomes

Ð define conflict
Ð describe the dimensions of conflict
Ð distinguish between constructive and destructive interpersonal conflict
Ð explain the different strategies that you can use to resolve conflict
Ð explain how the dynamics of the communication process can resolve conflict
Key concepts
learning outcomes:
Conflict
Constructive interpersonal conflict
Destructive interpersonal conflict
Conflict management
20.1 Introduction
Successful interpersonal communication has many benefits for the participants. As we
have seen in previous study units, there are many ways to improve interpersonal
287
communication. However, things cannot always go well. Every relationship contains
elements of conflict, disagreement and opposed interests. What do we do when there
is conflict in interpersonal relations? What is conflict?
20.2 Definition of conflict

Moorhead and Griffin (2000:296) define conflict as disagreement among parties.
They go further and state that conflict occurs between individuals or groups when they
compete for the same resources, or when one group believes that another group is
deliberately obstructing them from reaching their goal.
Activity 20.1
(a) How would you define conflict?

.............................................................
.............................................................
.............................................................
(b) How do you deal with conflict in your work situation? Illustrate your answer by
describing a specific situation.
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
20.3 Dimensions and sources of conflict situations

Conflict is often a matter of perception. When people perceive a situation in different
ways and have different goals, there is potential for conflict.
288
20.4 Dimensions of conflict
According to Johnson (1993:254), the following four dimensions are found in almost
any conflict situation:
Ð Mirror image: Party A believes that they represent truth and justice and want a
just solution to the conflict. Party B believes the same about themselves.
Ð Mote-beam mechanism: Each party clearly sees the underhand tactics of the
other while being blind to the identical acts they are engaging in themselves.
Ð Double standard: Even if both parties are aware of identical acts that they are
both engaged in, each party strongly believes that what is legitimate for them is
not legitimate for the other.
Ð Polarised thinking: Each party has an oversimplified view of the conflict. Each
believes that what they do is good, and everything the other party does is bad.
Activity 20.2
(a) Think of a conflict situation in which you were involved. Which of the above
four dimensions were present?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
(b) How can you, as a line manager, reduce the effect of these dimensions in a
conflict situation?
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
.............................................................
20.4.1 Sources of conflict

Greenberg and Baron (2003:416) identify at least five important sources of conflict and
explain them as follows:
Ð Perceptual distortion. In general, people tend to see situations in ways that
favour themselves. This type of distortion can prevent us from recognising
another's position on a matter of disagreement.
289
Ð Grudges. Conflict is often caused when people who have lost face in dealing with
someone plan some form of revenge to `get even'.
Ð Distrust. People who suspect that some other individual or group is out to get
them are more likely to have a conflictual relationship with that person or group.
Ð Competition over scarce resources. Because organisations never have
unlimited resources, conflict inevitably arises over distributing those resources.
Ð Destructive criticism. Communicating negative feedback in organisations is
inevitable but often arouses unnecessary conflict. To avoid this, the most effective
managers use constructive criticism instead.
20.5 The distinction between constructive and destructive

interpersonal conflict
Should conflict always be avoided at all costs? Is a good relationship necessarily one in
which there are no conflicts? Johnson (1986:199) points out that a lack of conflict may
be a sign of apathy and non-involvement Ð definitely not a sign of a healthy
relationship.
Activity 20.3
Do you think conflict can be constructive? Substantiate your answer and give
relevant examples.
.................................................................
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Johnson (2006:258, 271) states that conflict is constructive under the following
conditions (the opposite is applicable to destructive conflict):
Ð The relationship is stronger and interaction is improved as a result of the successful
resolution of the conflict.
Ð The people involved in the conflict trust each other more as a result of its
resolution.
Ð The conflict clarifies how you need to change.
Ð Everybody involved is satisfied with the outcome of the conflict.
Ð All participants improve their ability to resolve future conflicts.
290
Activity 20.4
(a) Describe a situation at work in which you had to resolve conflict.

.............................................................
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.............................................................
.............................................................
(b) Why was there conflict?
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(c) How did you resolve the conflict?
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(d) Evaluate the situation you described above in terms of the requirements for
constructive conflict. Was your solution to the conflict constructive? Why?
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20.6 How to resolve conflict

Different strategies can be used to resolve conflict. The best strategy depends upon the
situation and the participants. Johnson (2006:259) proposes the following five
strategies to deal with conflict:
Ð Withdrawing
Ð Forcing
Ð Smoothing
Ð Compromising
Ð Confronting
The strategy you use depends on how important your personal goals are to you and
how important the relationship is to you. Let's look at each of the five strategies.
291
Withdrawing
When both the goals and the relationship are unimportant, it is not worth
trying to resolve the conflict. It is wiser to withdraw from the conflict situation.
For example, when two people argue about the best location for a wastepaper basket,
leave them to resolve their own problem.
The withdrawing style is appropriate when:
Ð one's interest in the issue is not high
Ð confrontation would damage a critical working relationship
Ð there is no time for interference
Forcing
When the goals are extremely important and the relationship is less
important, the solution to the conflict is to force all parties to realise the goals at all
costs.
For example, if one of the engines of an aeroplane fails and the other engine shows
signs of malfunctioning, there is no time to be concerned about offending the
commanding officer if a subordinate can deal with the situation more competently.
The forcing style is appropriate to use when:
Ð maintaining close, supportive relationships is not critical
Ð the conflict resolution is urgent
Smoothing
When the goals are less important than the relationship, the correct strategy
is to smooth over the conflict. This means that one party will have to give up its goals
to ensure that the relationship improves.
For example, if your supervisor feels threatened by your competence and you are not
able to find another job because of the economic recession, you may find it easier to be
friendly towards your supervisor until you can find another job.
The accommodating or smoothing strategy is appropriate when:
Ð the importance of the relationship outweighs all other considerations
Ð the changes agreed to are more important to the other party than to the
accommodator
Ð time to resolve the conflict is limited
Compromising
When the goals and the relationship are highly important, the aim should
be to find a middle ground where both parties sacrifice part of their goals.
For example, a trade union demands a 20% increase in wages with no increase in
productivity, while management insists on a 20% increase in productivity without
improving the equipment. Both parties will have to settle for less than originally
demanded.
292
The compromising style is appropriate when:
Ð the issues are complex and critical, and there is no simple and clear solution
Ð all parties have a strong interest in different solutions
Ð time is short
Confronting
Where the goals and the relationship are moderately important, it is wise
to confront the problem and search for a solution that satisfies both parties.
For example, if the production division continually manufactures fewer products than
the marketing division sells, staff from the two divisions should sit together and discuss
the problem. They should find a way of working together that will solve their problems
and improve their relationship.
Activity 20.5
(a) Which of the above strategies for conflict management do you normally
prefer? Give a first and second choice, and substantiate your answer.
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(b) Would you agree that each of the above strategies could be used by the same
person in different situations? Substantiate.
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(c) A list of methods that can be used to resolve conflict is given below. Next to
each, indicate which of Johnson's five conflict resolution strategies is relevant.
An example is given at the start.
293
METHOD STRATEGY
Example: Put people in a posi-
tion where they have to compete Forcing
more for scarce resources.
Ð Train people to recognise
the value of conflict. ......................................
Ð Alter objectives, resources
or the organisation itself to
resolve the conflict. ......................................
Ð Ignore the conflict. ......................................
Ð Tell people how the conflict
will be resolved and do not
accept any objections. ......................................
Ð Convince both parties to
lower their demands. ......................................
Ð Rely on rules and procedures
to resolve conflict. ......................................
Ð Form task forces. ......................................
Ð Integrate departments. ......................................
Ð Find an intermediary who
can negotiate with both par-
ties. ......................................
Ð Form a task force to resolve
the conflict. ......................................
20.7 Accurate communication as a conflict management tool

In study unit 18 we discussed the effect of communication on interpersonal relations. If
necessary, study that unit again before applying the basic principles/components of the
communication model, Johari window and transactional analysis.
Activity 20.6
(a) How could you use the components of the communication model to manage
conflict more effectively?
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(b) How could you use the dynamics of the Johari window to resolve conflict?
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294
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(c) How could you use transactional analysis to resolve conflict?

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Johnson (2006:263) suggests using the following communication skills in resolving

conflict:
Ð Communicate to the party with whom you are in conflict how you will act in order
to try to resolve the conflict, and indicate what behaviour you expect from the
other party in return.
Ð Make an effort to understand the response of the other party by paraphrasing and
asking for feedback on your understanding of the situation.
Ð Be open about your position, motivations and feelings.
Ð Provide the other party with constructive, non-evaluative feedback.
Ð Communicate acceptance of the other party as a person, and indicate that the
person is acceptable to you but not his or her behaviour.
20.8 Summary
Interpersonal conflict can be dealt with constructively. It is essential for a line manager
to identify a conflict situation early and assess the seriousness of the situation. If it is
necessary to be involved, a number of communication skills can be used to resolve the
conflict.
NOTES
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295
Study unit 21
Workplace stress management
Contents Page

Key concepts 296
21.2 The causes of stress 297
21.2.1 Extra-organisational stressors 298
21.2.2 Organisational stressors 298
21.2.3 Group stressors 298
21.2.4 Individual stressors 298
21.3 Strategies for coping with stress 299
21.3.1 Organisational coping strategies 300
21.3.2 Individual coping strategies 300
21.4 Summary 301
Self-assessment 302
Learning outcomes

Ð describe the different types of stress
Ð explain the various causes of stress
Ð discuss organisational and individual strategies that can be used to cope with
stress
Ð use different strategies to cope with stress in the workplace as well as with
personal stress
Key concepts
learning outcomes:
Stress Coping strategies
Stressors
21.1 Introduction
In this study unit we will discuss a major source of conflict, namely stress, which can
result in lower levels of interpersonal trust and, eventually, lower productivity in the
workplace.
296
Everybody needs stress to be able to function well. However, if you are under too much
or too little stress, you will experience distress.
Ð Distress resulting from too much stress may take the form of health problems
such as high blood pressure, ulcers or headaches.
Ð Distress resulting from too little stress may take the form of boredom and
irritation.
Distress is caused by negative experiences (Luthans, 2005:377). When we have to deal

with distress, we tend to use negative mechanisms such as anger or aggression.
The right amount of stress is called eustress. Eustress allows us to maintain life, resist
aggression and adapt to the constantly changing world around us (Johnson,
2006:300). Eustress is caused by positive experiences (Luthans, 2005:377).
In this study unit we will look at the causes of stress in the workplace and at
constructive means of dealing with stress.
21.2 The causes of stress

Luthans (2005:379) identifies causes of stress in the workplace and divides them into
four stressor categories:
CAUSES OF STRESS
extra-organisational organisational group individual
Figure 21.1: Stressor categories
Activity 21.1
Think of occasions when you experienced stress at work. What were the reasons or
causes?
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297
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21.2.1 Extra-organisational stressors

Extra-organisational stressors are factors outside the organisation that cause stress.
People experience such stressors outside the work situation and may transfer the
resultant stress to the work situation.
Examples of such extra-organisational stressors are changes in society (all South
Africans have experienced stress over the past few years), family problems such as
illness, troubled relationships, economic and financial concerns, and the relocation of a
family due to a transfer or promotion.
21.2.2 Organisational stressors

The causes of stress inside an organisation can be divided into the following four
groups:
Ð Policies and strategies. These stressors include ambiguous procedures,
frequent relocation, inflexible rules, and unrealistic job descriptions.
Ð Structures. Stressors include lack of participation in decision making, a high
degree of specialisation that can be a limiting factor, and line staff conflicts.
Ð Physical conditions. Stressors include crowded offices, excessive noise/heat/
cold, safety hazards and inadequate lighting.
Ð Processes. Stressors include poor communication, inadequate information,
unfair control systems and conflicting goals.
21.2.3 Group stressors

The group to which you belong in the work situation can be a potential source of
stress. Group stressors include lack of group cohesiveness, lack of social support, and
conflict between members of the group.
21.2.4 Individual stressors

All the above stresses affect people in different ways. There are various reasons why
some individuals experience more stress than others. Luthans (1998:335-337)
identifies the following individual stressors: role conflict and ambiguity, type A
characteristics, personal control and learned helplessness. Let's consider each.
Role conflict and ambiguity

We must all play a number of roles at the same time Ð for example, a person could be
an employee, a student, parent, friend, spouse, supervisor and voluntary worker all at
the same time.
298
These roles all have their own demands and may cause conflict and stress. For example,
if the child of the accountant is hospitalised during the financial year end, what should
the accountant do?
Type A characteristics
Personality theories indicate that a certain type of personality is more prone to stress.
This is called the type A personality. Typically a person with such a personality works
long hours under pressure, takes work home, sets high standards of productivity and
behaves in an aggressive and competitive manner. The opposite of this is the type B
personality, which is far more relaxed, fun-loving and patient.
Personal control and learned helplessness

When people lose control over their jobs, they experience stress. When this stress
continues over a period of time, they give up trying to avoid the stressor and become
helpless. For example, if you continually have to beg another department to provide a
support service, you will eventually give up in despair and accept that you will not
receive support. When that department suddenly starts offering support, you will not
believe that the offer is sincere, and you will continue to find your own ways of doing
the job.
Activity 21.2
(a) Is your work stress always caused by stressors in the workplace? Substantiate
your answer.
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(b) Which of the stressors described above have you experienced in your work
situation? Give an example of each one.
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21.3 Strategies for coping with stress

Activity 21.3
What strategies do you use to deal with stress? Describe any five that you have used
in the past.
299
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Luthans (1998:342±347) recommends the following organisational and individual

ways of coping with stress:
21.3.1 Organisational coping strategies

There are four organisational strategies for coping with stress (Luthans, 1998:344±
346):
Ð Create a supportive organisational climate. A supportive organisational
climate can be created by assessing the organisation structure and changing it
where necessary to improve the flow of communication and encourage
participative decision making.
Ð Enrich the design of tasks. A more challenging job can result in greater
responsibility, a sense of control and a sense of meaningfulness in the workplace.
Ð Reduce conflict and clarify organisational roles. If, as an employee, you
know what is expected in your work situation, you will find it much easier to deal
with the demands of your roles outside the organisation.
Ð Plan and develop career paths and provide counselling. If you have a
fair idea of what to expect from the organisation and your job in terms of future
planning, you can use your energy constructively to cope with the present.
21.3.2 Individual coping strategies

The following five individual coping strategies can be used (Luthans, 1998:342±344):
Ð Exercise. An important individual strategy for coping with stress is exercise.
Physical exercise helps people to relax, enhances their self-esteem and takes their
mind off work.
Ð Relaxation. Relaxation as a way of coping with stress could be physical (such as
taking a bath) or mental (for example meditation).
Ð Behaviour control. You should identify the stressors in your environment and
deliberately manage or control your resultant behaviour. For example, if you know
that a rude customer will make you angry, be mentally prepared not to take it
personally and not to become angry. A quick transactional analysis can help you
deal with such a situation (refer to study unit 18).
Ð Cognitive therapy. A psychologist can help you identify destructive behaviour
and its causes, and teach you how to change your behaviour to reduce stress.
Ð Networking. This means making friends with people who are in similar
positions or who have empathy with your position and can help you deal with job
stress and build your self-confidence.
300
Activity 21.4
(a) Which of the above coping strategies can you use to cope better with stress in
your job? Substantiate your answer.
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(b) What steps can you take as a line manager to help your subordinates cope
better with their stress?
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21.4 Summary
We experience many feelings in the work situation. Often we tell ourselves that in the
workplace there is room only for facts, and that feelings should be dealt with at home.
However, this is not possible because we are human. We even respond to our jobs and
employers with emotion.
Study units 15 to 21 should help you to recognise and deal with the role of feelings in
the workplace. Some techniques for understanding and coping with your own feelings
and those of other people have been described. Now it is your responsibility to
acknowledge and deal with your own feelings. Once you can do this, you will
experience an improvement in interpersonal relations.
This study unit marks the end of your prescribed work for this course.
301
Self-assessment
1 Explain the effect of the following on interpersonal communication:

(a) Self-actualisation according to Maslow's hierarchy of needs (3)
(b) Self-disclosure (3)
(c) Self-awareness (3)
(d) Non-threatening feedback (3)
(e) Understanding your own feelings and those of other people (3)
(f) The components of the Johari window (3)
(g) Transactional analysis (3)
(h) Active listening (3)
(i) The self-fulfilling prophecy (3)
(j) Eustress (2)
(k) Distress (2)
2 Discuss how the following can help to resolve conflict:

(a) The dynamics of the communication process (5)
(b) Transactional analysis (5)
(c) The Johari window (5)
3 Explain the effect of the following on the level of trust in a relationship:

(a) Self-disclosure (3)
(b) Non-threatening feedback (3)
(c) The Johari window (3)
(d) The self-fulfilling prophecy (3)
4 Explain how the following can lead to a reduction of stress:

(a) Self-disclosure (2)
(b) Self-awareness (2)
(c) Non-threatening feedback (2)
(d) Transactional analysis (2)
5 Draw a Johari window for a person who does not get along with his or
her supervisor and who is constantly in conflict with that supervisor.
Explain your drawing. Also refer to the state that best permits openness
and better communication. (12)
6 Which strategy for resolving conflict would you choose in the following
situations? Substantiate your answer.
(a) A supervisor needs two of the three women in his or her office to
work on a public holiday. The supervisor asks them individually, but
each claims she has made a date that she cannot cancel. The fact
that working on a public holiday pays double does not interest
them. If you were the supervisor, what would you do? (3)
302
(b) An airline has to choose a new uniform for its stewardesses to
mark the introduction of the company's new jet. The uniform
should match the design of the plane's interior decor. How would
you go about resolving the conflict between management and the
stewardesses? (3)
(c) Two men are arguing about which team will win the rugby Currie
Cup final. How could you resolve the conflict? (3)
(d) A parent has to decide which of his or her two children's tennis
matches (being played at the same time) he or she is going to
watch. If you were the parent, what would you do to resolve the
potential conflict situation? (3)
7 Describe five ways in which the self-concept develops, and provide your
own example of each method. (10)
8 (a) Read through the characteristics of non-threatening feedback and
decide whether or not the following feedback complies with these
characteristics. If the feedback is ineffective, also indicate what you
would have said to make it non-threatening. (4)
Mpho: ``We've been working at this for 20 minutes now Jabu!
You think you're such an expert!''
Jabu: ``Well, if you would just pay attention, you might also
eventually get something right!''
(b) Paraphrase the message that Jabu received above so that Mpho
would be able to correct Jabu if she felt he had received the wrong
message from her. (2)
9 Explain the difference between trusting and trustworthy by giving your

own example of each. (4)
10 Explain the difference between complementary transactions and crossed
transactions by giving your own example of each. (4)
11 Provide your own example to illustrate how inaccurate perceptions of
non-verbal communication can hamper communication. (2)
NOTES
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303
Glossary of terms
Absenteeism Failure of an employee to report for work/duty irrespective of the reason.
Affirmative action Ð A response to the underuse of previously disadvantaged groups in

various job categories. Business thus attempts to attract and advance people from such groups
to remedy the unjust discriminatory effects of their failure to do so in the past.
Career Ð The series of work-related positions occupied by a person throughout life.
Career planning Ð An ongoing process by which an individual sets career goals and
develops a plan to achieve them.
Collective bargaining Ð A process whereby representatives of management and union

representatives negotiate a written agreement covering issues such as wages, hours of work,
and other terms and conditions of employment for a specific period of time.
Compensation Ð Extrinsic and intrinsic rewards given to employees for performing

organisational tasks. These rewards include salary, incentives or bonuses and benefits, greater
autonomy, and the opportunity to take on more challenging responsibilities and to achieve
personal goals.
Delphi technique Ð Judgemental method of forecasting that uses a panel of experts to

make independent estimates of future demand. Each person's forecast is then presented to the
other members, and the members revise their forecasts as desired. The process continues until
some consensus is reached.
Distress Ð Harmful stress characterised by a loss of feelings of security and adequacy.
Dual-career couples Ð Couples in which both the husband and wife follow their own
careers and support each other.
Employee assistance programme (EAP) Ð Services provided by employers to help

troubled employees deal with issues such as burnout, alcohol and drug abuse, and other
emotional disturbances.
Eustress Ð Positive or good stress that accompanies achievement and exhilaration.
Halo effect Ð Occurs when an appraiser rates an employee high (or low) on all items due to
performance in one area.
Human resource planning Ð An effort to anticipate future business and environmental

demands on an organisation, and to provide qualified people to fulfil that business and satisfy
those demands.
Job Ð A group of tasks and duties that must be performed if an organisation is to achieve its
goals.
Job analysis Ð A systematic process of obtaining information about the content, context and
human requirements of a job.
Job description Ð A document containing a written summary of the tasks, duties and
responsibilities of a job.
Job evaluation Ð A systematic process of determining the relative worth of jobs within an
organisation in order to establish which jobs should be paid more than others.
304
Job posting Ð A method of making employees aware of job vacancies through bulletin
boards, in employee publications and on company intranets and giving them a specific period
of time to apply for the jobs.
Job specification Ð A written summary of the minimal knowledge, skills and abilities a
worker needs to perform a job.
Labour market Ð The external supply pool (i.e. geographical area) from which organisations
obtain their staff.
Leniency or strictness error Ð The tendency to rate employees either unusually high or
unusually low.
Merit pay Ð Pay increase given to employees based on their performance appraisal ratings.
Orientation/socialisation Ð A formal process of familiarising new employees with their

jobs, their co-workers and the organisation.
Panel interview Ð An interview in which several interviewers meet to interview a single

candidate at the same time.
Progressive discipline Ð A formal discipline process that proceeds from an oral warning to
a written warning to a suspension and finally dismissal.
Stress Ð The body's non-specific reaction (e.g. physical, mental or emotional) to any demand
made on it.
Structured interview Ð An interview in which the interviewer asks all applicants a

predetermined set of questions.
Training Ð Planned programmes designed to improve performance at the individual, group

and/or organisational levels.
Turnover Ð Any permanent loss of employees from an organisation who have to be
replaced.
305
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TOPIC 1: FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 1

TOPIC 2: HUMAN RESOURCE DEVELOPMENT AND UTILISATION 87

TOPIC 3: MANAGING COMPENSATION SYSTEMS AND EMPLOYMENT

TOPIC 4: HUMAN RELATIONS IN MODERN ORGANISATIONS 233

GLOSSARY OF TERMS 304

Purpose of this course

The key concepts icon draws your attention to certain keywords or

Learning outcomes and assessment criteria

An assessment criterion is a standard used for assessing the achievement of

Link to other courses

Prescribed and recommended books

Note that it is very important for you to consult other sources of

How to use this study guide

Framework of this course

Composition of the learning material

The study process

Our expectations of you

What you can expect from Unisa

Learning outcomes for topic 1

After completing this topic you should be able to:

After studying this unit, you should be able to:

1.1.1 The human factor

1.1.2 Co-ordinated, goal-directed teamwork

1.2 Human resource management activities

Line management HR department

(Source: Adapted from Cascio, 2006:8)

1.3 The relationship between strategic planning and human

1.4 Evaluation of the human resource management function

(i) Performance measures

(ii) Compliance measures

(iv) Indirect measures of employee performance

1.5 Human resource management and the legislative frame-

1 State what you think the following organisations have in common: a

After studying this unit, you should be able to:

2.2 The importance of human resource planning

2.3 Types of plans

2.3.1 Strategic planning

2.3.2 Tactical or operational planning

2.3.3 Human resource planning (HRP)

2.4 The relationship between human resource planning and

(a) Give a brief description of the strategic planning process.

2.5 Human resource planning Ð a practical approach

1. Organisational goals and purpose

9. Constant control and evaluation

2.5.1 Establishing human resource objectives

2.5.2 Compiling personnel inventories

FIGURE 2.3: Uses of a personnel inventory

2.5.3 Doing a human resource forecast

Forecasting external human resource supply

Forecasting internal human resource supply

Forecasting the demand

The Delphi technique

2.5.4 Formulating action plans

(b) Describe the Delphi technique in your own words.

2.5.5 Controlling and evaluating the human resource planning system

Ð Actual staffing levels compared with forecast staffing requirements