People Dynamics Jan 2012

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Jan 2012 • Vol 30 No. 1

People

Dynamics

Convention report back issue

Journal of the South African Institute of People Management www.ipm.co.za



CONTENTS Editor’s letter

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Institute news

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IPM Convention 2011 – Competing successfully in a new economic order Scenes from the Gala dinner

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IPM Awards Citations 2011

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UNISA Programme in Human Resource Management

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IPM Events for 2012 Make every workplace a training space

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Ipm’s newly elected national President and two board directors are from Kzn

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IPM committee member is National Woman of the Year (Motor Industry) 11 By Jannie Rossouw Competencies 12 Competencies for HR Professionals Working Outside/In TRAiNING 16 In-house training programmes are most effective in skills development

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By Pauline Mahlangu Training and development

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Computer based simulation technology By Jan H vd Westhuizen PERFORMANCE REVIEWS

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Keep employee performance reviews short and frequent By Phil Meyer WORKSPACE 20 Colour your workspace with productivity, quality and optimism By Kim Meszaros Mentor matters

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The communication dilemma for HR By Gary Taylor INSURANCE 22 Students’ insurance needs can be addressed By Mandy Barrett MANPOWER PLANNING

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Money can’t buy you love…or employee loyalty By Ken Blanchard Management 24 Management or Values-Driven? By Nene Molefi Forthcoming ISSUEs features February 2012 – Recruitment & Retention, Job Enrichment, Career and Talent Management March 2012 – Training, Skills Development & Competencies, Performance Management and Appraisals, Training Institutions.


Editor’s letter

W

elcome to 2012 and a happy New Year to all our readers. In this issue we give you a feedback on what was a very memorable and informative IPM Convention which took place in November 2011. The convention covered relevant topics facing Africa today amongst the turmoil of worldwide financial and in turn human resources markets. Key trends that will drive HR strategies in the new year and assist companies in finding and retaining the best human resources for their growth and strategic development will be imperative for the way forward. The address by Mr Blade Nzimande, Minister of Higher Education, on the importance of training in the workplace was highly informative and outlined the need for dialogue and collaboration between the public and private sectors, an important way forward in many aspects of South Africa. Congratulations go to all the winners of the IPM Citations Awards, which are outlined on page 6 of this issue and to Raj Seeparsad, the newly elected National President of the IPM, we wish him luck in his tenure, and may he continue his long and distinguished relationship with the IPM. Best wishes also go to Dayalan Govender and Elaine Boulton on their election as directors to the board. We hope that 2012 brings with it new beginnings and happier times after the global turmoil of 2011. Human resources will have an increasingly important role to play in terms of recruitment, retention and up-skilling and training staff for effective and efficient roles within companies.

   

Editorial Alex Bouche E-mail: alexandra@eaglepub.co.za Advertising Bookings Helen Bennetts Tel: 011 326 0303 Fax: 011 501 2878 E-mail: helen@eaglepub.co.za Publisher The Eagle Publishing Company Tel: 011 326 0303 Fax: 011 501 2878 E-mail: rob@eaglepub.co.za www.eaglepub.co.za Rob Furney Tel: 011 326 0303 Fax: 011 501 2878 E-mail: rob@eaglepub.co.za Tony Proudlock Tel: 011 326 0303 Fax: 011 501 2878 E-mail: tony@eaglepub.co.za Design Margie Carter Tel: 011 326 0303 E-mail: studio@eaglepub.co.za IPM Central Office 287 Kent & Harley Street, Randburg PO Box 3436, Randburg 2125 Switchboard: 011 329 3760 Keith Pietersen Tel: 011 329 3760 Fax: 011 329 3765 e-mail:keith@ipm.co.za www.ipm.co.za

People Dynamics is the monthly journal of the South Africa Institute of People Management (IPM). The IPM is dedicated to the effective development of human potential. In terms of fast emerging global challenges, it is critical to champion the strategic role of human resources and to acknowledge that both development and management are catalysts for growth. In the spirit of progress and support, the IPM provides members with effective leadership and access to appropriate knowledge, information and the opportunity to network with key local and international players. People Dynamics provide a forum for debate and discussion on all issues affecting people managers in South Africa, the African continent and beyond. People Dynamics is distributed to all members of the South African Institute of People Management (IPM), and to other key decision-makers in the industry. To receive People Dynamics regularly and enjoy additional benefits, including discounts on HR-related services, professional networking events and HR vacancy postings on the IPM web-site, contact the membership manager of the IPM.

INTERNATIONAL FEDERATION OF TRAINING AND DEVELOPMENT ORGANISATIONS

WORLD FEDERATION OF PERSONNEL MANAGEMENT ASSOCIATIONS

No part of this publication may be reproduced without prior written approval from the IPM.

ISSN 0261-2399 The views expressed in this publication do not necessarily reflect the values of the IPM.


BHP Billiton SA Ltd

BHP Billiton is the world’s largest diversified natural resources company with 40,990 employees and 58,000 contractors working in more than 100 operations in over 25 countries. In southern Africa we have a corporate centre in Johannesburg, and operate three BHP Billiton Energy Coal collieries in the Mpumalanga Province. Our Aluminium business includes two smelters in Richards Bay and a 47.1 per cent interest in the Mozal joint venture outside Maputo in Mozambique. Our Manganese business includes interests in Hotazel Manganese Mines, Manganese Metal Company and Metalloys. While operating a global company responsibly in an increasingly complex world presents us with a range of challenges, we remain committed to ensuring the safety of our people and respecting our environment and the communities where we work. In South Africa we strive to transform this commitment into reality across all our operations.

That’s why we have invested over R300 million across a broad range of sustainable development projects in southern Africa over the past five years to make a long term difference in the areas of health, social and youth development, education, environment and enterprise development.

With a unique and varied portfolio, our breadth and diversity provides us with the flexibility to manage our growth in line with global demand. At BHP Billiton we are resourcing the future.

www.bhpbilliton.com


Institute news

IPM Convention 2011 – Competing successfully in a new economic order T

he IPM’s 55th annual convention at Sun City in November proved once again that it’s without doubt the premier HR and business leadership event in South Africa. An estimated 800 delegates heard a plethora of top speakers broadly discussing the strategies required to face the current global economic turmoil. The theme of the convention was: “Resourcing the Future – Positioning Africa for Success”. The convention more than lived up to the high standards set over the years. One delegate described the proceedings as “awesome”. In his opening message Elijah Litheko, IPM Ceo and Executive Director, set the scene by stressing that global financial problems had brought with them unprecedented change, complexity and key trends that would reshape the future of businesses and society. Speakers had been secured particularly to share and further explore concepts, ideas, frameworks, processes, latest trends and best practice aimed at assisting companies to compete successfully in the global arena. Some of the key points to be examined by speakers were: l Operating successfully in complex and ever changing environments. l Opening up new perspectives . new models and changing deeply entrenched behaviours. l Defining the most effective strategies for creating a high performance culture.

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People Dynamics January 2012

l The combined consequences of the global financial crisis and its impact on the global banking sector. l The reward landscape of the future. l The features of world-class learning and development practices. l Strategic approaches to resourcing in Africa. l The value of employer branding. l How companies could use analytics to solve specific human capital challenges. l Strategies to deal with multiple stakeholders. l Key trends shaping the future practice of human resource management. Many of the speakers underlined the fact that the battle for skilled and talented people was a current challenge and would remain one of the primary hurdles for business and government in the future. Elizabeth Mooketsi-Choonara,the Convention Committee Chairperson said: “Companies will need to think seriously about their strategies for sourcing talented employees. Looking at trends, it is apparent that more employers are starting to focus on helping their employees to manage change, building those skills needed for competitive advantage.” On a more upbeat note, Mooketsi-Choonara said that despite the challenges of the economic downturn Africa was poised for growth. “There is a growing awareness that Africa, with a population of one billion is probably the largest untapped market left in the world. But


Institute news

Scenes from the Gala dinner

as we all know, learning and skills are central components of a growing economy,� she stressed. “The IPM conventions continue to create a platform for HR professionals to exchange views with leading specialists in the people management fields. Concern over volatility of markets in years to come,

adaptability and awareness of risk and responsiveness to changing customer demands have necessitated a fresh and focused view on how strategic management challenges can be addressed. Also, South Africa needs to be able to focus on building a vision for long-term growth and development in order to catch up with its BRICS counterparts.� January 2012 People Dynamics

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IPM Awards Citations 2011 CEO of the Year This award recognises CEOs and MDs for their contributions to HR. For HR to be successful in any organisation, senior management buy-in is critical. HR champions are those who have gone the extra mile and who drive successful HR strategy from the top. Entries for this award should detail examples of a CEO/MD who will act as an ambassador to promote strategic people management in the executive community Winner: Greg Solomon Greg, the MD of McDonalds was recognised for his exceptional commitment to building an engaged employee workforce. Greg has been a part of the McDonalds organisation for many years, and during this time has demonstrated a passionate commitment to furthering the people agenda. This is evident in the excellent results achieved as winners of the Deloitte Best Company to Work for in 2011. McDonalds South Africa is also consistently recognised within the global McDonalds organisation as leaders in people practices. This in one of the most admired organisations in the world, positions McDonalds South Africa and its leadership as true world leaders in people leadership. Runner-up: Mark Cutifani As CEO of AngloGold Ashanti, Mark has driven a holistic transformation of this organisation, centred on people. He has introduced a more consistent philosophy and process for managing people, known as the System for People, that creates a pervasive common understanding of the roles and accountabilities of people across the organisation. Mark not only spearheads this people-centric approach but is personally involved on a day to day basis; for example he holds one-on-one discussions with each of his subordinates, no mean feat while leading a 63 000 person organisation, with 20 operations on 4 continents. HR Director of the Year In today’s business environment, strategic HR leadership at Board level is becoming critical for sustainable organisational success. This award recognises HR Directors who operate at Board or Exco level and have demonstrated a track record of excellence in HR leadership, by ensuring sound HR principles are included in all aspects of the business. Winner: Greg van Wyk Greg, the HR Director of Landbank has been central to the successful turnaround of the Landbank. One cannot question Greg’s role as an executive and leader in Landbank. He has played an integral part in transforming a failing, mismanaged organisation into one that now appears in the press for all the right reasons. As a result of Greg’s strategic interventions, he was given control of the bank’s Corporate Strategy portfolio as part of his remit. He is a true thought leader in the field of HR with a real and passionate ability to marry strategic business issues, human capital imperatives and the greater good of the country to provide sustainable solutions. Runner-up: Elsie Pule Elsie has been instrumental in enabling SARs business strategy in her role as HR Director.A truly inspirational and learned HR expert, Elsie has the ability to transcend all levels within the organisation by getting buy-in at the highest levels whilst ensuring that the human capital issues are taken care of across the entire organisation. Key aspects of her impact are: - Launched a leadership effectiveness tool - Introduced a blended learning process whereby identified talent can learn at their own pace through multiple mediums - Introduced a management and leadership style (Managing the SARS

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People Dynamics January 2012

way and Leading the SARS way) - Application of discipline to the area, scrapping costly projects with little value add - Implementation of a ‘back to basics’ initiative to ensure the HR fundamentals were sound HR Practitioner of the Year This award recognises those deep experts, whether it be in the field of Industrial Labour Relations, Employee Relations, Talent Management, Learning and Development, Organisational Development, Performance Management, Transformation, Reward Management, Skills Development or any other area within the HR field, who drive significant value in their organisation through the design and implementation of policies, practices, tools and guidance which they provide. Winner: Sibusiso Mpungose Sibusiso heads up the Leadership Development Centre of Excellence for the Gauteng City. The committee were inspired by his professionalism, innovation and commitment to excellence. He has developed, designed and rolled out a new leadership assessment and development process and programmes in the city. Such is the impact of his role that he has now been asked to assist the KZN region in rolling out similar leadership development practices. Runner-up: Fritz Jordaan Fritz heads up the reward division for Man Truck and Bus. He has been commendable for his enhancement of the reward area in the company through the introduction of more consistent, effective job evaluation and pay practices. Beyond this he has demonstrated a focus on building HR capability in the reward area to ensure the application and sustainability of reward policies and practices. Finally, when a vacuum existed where no head of transformation was in place, Fritz stepped in and drove the development and application of a transformation strategy and policies that shifted the organisation’s BBBEE rating a level. His passion and proactivity inspired both his nominator and the committee. HR Business Partner of the Year In any organisation the HR business partner, irrespective of level, plays a pivotal people management role, and this award recognises those with a demonstrated track record of excellence in developing and implementing people strategies and plans that enable the business strategy.These business partners will also have worked effectively with line managers to attract, develop, engage and retain employees in the organisation. Winner: Lusani Madzivhandila Lusani has had a significant impact on the Gauteng Economic Development Agency. As Head of HR at the Agency Lusani coordinates HR functional issues in line with business units requirements, manages transformation within the Agency. She is responsible for policy formulation, implementation and administration and skills development, performance management and management of the Employee Wellness programme Runner-up: Juanita Peters An HR Business Partner at Microsoft, Juanita was recognised for her passion, commitment and professionalism in supporting her business clients. Her efforts are evident in the 100% compliance rates she has achieved in KPI setting and career management. She received extremely positive feedback from her clients and was awarded an internal Microsoft regional award for her excellence in people leadership and in business partnering.


Institute news

UNISA Programme in Human Resource Management T

he IPM is at the forefront of providing you with hard-hitting and effective HR products and services. In association with Centre for Business Management (UNISA), we offer a HR programme accredited at: NQF Level 6 with 96 Credits Duration : 1 Year Covered in detail in the 4 essential modules as outlined below: l The Human Resource Function (24 Credits) l Labour Relations ( 24 Credits) l Training and Development ( 24 Credits) l Human Relations ( 24 Credits)

management functions at the foundation level in an organisation. This programme, which is accredited by the South African Board for People Practice, affords students the opportunity to develop essential competencies needed within an HR context.

PURPOSE AND EXIT LEVEL OUTCOMES: The purpose of this programme is to equip students with the necessary knowledge, skills and abilities in order to perform various human resource

Registration closes : 14 February 2012 Registration requirements All registration must be submitted with a copy of Senior certificate or Identification document Resume Tel: 011 329 3760 Fax: 086 680 8398 Website: www.ipm.co.za

IPM Events for 2012 February 9 28

IPM and Empowerworx Breakfast The collective wisdom of 300 years- HR veterans share their wisdom Courageous HR Provides HR delegates with a handson experience of a powerful consulting framework, including a range of HR techniques.

March 5 - 7

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Human Resource Business Partner Master Class Positioning HR effectively within the organisation and Partnering with line executives on the delivery of HR services. Human Resource Directors Leadership Summit To provide an interactive forum for HR leaders to not only prepare for the future, but also provide the necessary leadership to the HR profession.

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July 24-26

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Diversity Management

June 7

BEE Seminar 40 out of 100 of the BEE scorecard standard points focuses on people. The seminar will focus on best practice research, case studies and enabling processes and tools

DG Review Sharing best practice; Presenters are employment equity experts

August 21-22

Human Resource Development Audit Sharing best practice; international perspectives & India experience by Steve Kgatuke

May

Human Resource Business Partner Master Class Positioning HR effectively within the organisation and Partnering with line executives on the delivery of HR services.

September

April 18

Mini Conference Provides the how to in terms of strategy developments, operations, systems and aims at improving the competencies of HR Practitioners as well as building capacity.

Womens Conference Driving the women’s agenda in the workplace and the barriers to progress; employment practices that facilitate gender equality in the workplace; taking responsibility for your own personal and career development; the role of the law and civil society in advancing gender equality in the workplace; and attitudes and societies that succeed versus those that fail.

November 11-14

Annual Convention Sun City A forum where thought leaders share leading practices, operating modules and frameworks with delegates.

January 2012 People Dynamics

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Institute news

Make every workplace a training space A

welcome guest to the convention was Blade Nzimande, Minister of Higher Education who addressed delegates. In his speech, the Minister highlighted the third National Skills Development Strategy (launched earlier this year by his department) and its role in developing critical skills for economic growth. He stressed that: “Improved training and education are fundamental to higher employment, the introduction of more advanced technologies, and reduced inequalities. New and better skills are urgently required if we are to see improvement in our economic performance and social development. “There is a mutual need and benefit here, the HR and business leaders gathered here are both the users and producers of skills for economic growth, which in essence begins with the growth and positive performance of your respective businesses. As the government, we have a social responsibility to ensure that the appropriate skilled people are produced, not only for the sake of the economy but also to address social stability and build a responsible citizenry. For that to happen, government needs the commitment and a working relationship with business. The private sector, like the public sector, must play an important role in meeting our national objectives of accelerating economic growth and development and creating decent employment. As is well known, creating more and decent jobs is at the heart of the government’s strategy to fight poverty, reduce inequalities and address rural underdevelopment. Unemployment is the greatest challenge facing South Africa today; it leads to misery and hopelessness for millions of our people and has the potential of leading to major social instability if it is not tackled energetically and successfully. Creating a skilled and educated population, while not creating jobs on its own, is an important part of any strategy of employment creation, especially in an economy requiring an ever more sophisticated workforce. The New Growth Path, the Industrial Policy Action Plan and other strategic documents of government speak clearly about the importance of skills for economic development and the NSDS III sets out strategic directions for accelerating skills development in SA.” He reported that social partners represented in NEDLAC – government, business, labour and community representatives – had recently signed the National Skills Accord.This recognised that addressing the challenges related to skills development in this country was a responsibility for all. Government had committed to expanding opportunities for skills development in public

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institutions and employers in both the private and public sectors had made specific commitments regarding providing more apprenticeships, learnerships and internships and, in general, opening up their workplaces as places of learning. “We must thus encourage dialogue about skills development and training between employers, labour, training providers and other stakeholders, mediated within each sector by the SETAs,” the Minister continued. “Central to the National Skills Accord is the identification and utilisation of both existing and additional unused training capacity in our companies.We have agreed at NEDLAC that such trainees additional to companies needs shall not be guaranteed employment. Similarly such trainees must not be used to replace permanent workers.” “I also wish to inform thus conference that 18 months ago we established the Human Resources Development Council for South Africa, led by the Deputy President, and made up of representatives of the social partners from NEDLAC, as well as experts drawn from various section of our society, and is managed by our department. The aim of this council is to drive an overall strategy for human resources in our country, with a particular focus on scarce skills.We would need to think about how, through our department, the IPM interfaces with the work of the HRD Council.” “Our department has been doing a lot of work in strengthening and improving quality in our FET colleges, especially in strengthening governance, financial management, curriculum, programme mix and training of college lecturers. I would urge you, as human resources development practitioners, to get closer to the FET Colleges.” The Minister then moved on to discuss the National Skills Development Strategy.” He stressed: “The creation of the department of higher education and training presents the country with an opportunity to integrate further and higher education and training institutions with the levy-grant institutions (i.e. the with SETAs and the National Skills Fund). The NSDS III seeks to take advantage of the considerable resources available and use them effectively to produce a skilled and capable workforce for an inclusive growth path.The National Skills Development Strategy is not a panacea, but it is one of the most important interventions that we have put in place to address the skills challenges.”


Institute news “One of the key fundamental principles of the strategy is the building of partnerships with all the necessary stakeholders in bringing about change in the system and ensuring that we improve the outcomes in skills development.” “One of the key principles of the NSDS III is that we want to make work integrated learning a critical component of education and training.We want every workplace in both public and private sectors to open up training opportunities for young people.” A number of qualifications – especially in those areas where we are experiencing shortages – which require students to have a practical, workplace experience in addition to their academic education.These include technicians, engineers, artisans, accountants, lawyers, and so on.Although we do not have accurate statistics, we know that there are a significant number of learners who have completed the academic programme from universities of technology and/or FET colleges, and due to lack of the work place component of the training, they are unable to qualify.This represents a waste of resources for the individual but also for society as a whole, as the years invested in an academic programme is not turned into value.” “This work place component is meant to be provided for by the employers in industry. By so doing, the employers are not only contributing towards the production of these professionals, but they also have an opportunity to grow their own timber and can pick and nurture the best trainees to absorb as employees. The employees, apart from getting their qualifications, are also prepared for the workplace and their entry into the labour market is facilitated.” “Those who study but do not actually need the practical experience to get qualifications, also benefit similarly from learnerships and internships which introduce them into the workplace. objectivesas possible If we do not take advantage of this initiative and take seriously the negative impact of not ensuring that workplace learning component is integrated in industry priorities in relation to production of skilled labour, we will not address the skills shortages, but also not achieve economic growth and development,” he said. The SETAs had an important role to play in building bridges between educational institutions and students on the one hand and employers in both the private and public sectors – including the state owned enterprises – on the other. One of the important lessons learned was that while short courses and training programmes have an important role to play in upgrading of skills, what the country needed the most was people with appropriate high and middle level skills and qualifications. The over reliance on small private providers and short term programmes which do not lead to a qualification had not yielded much benefit over the past 11 years. “To give greater effect to this principle and ensure greater employer participation,” he went on,“is what we call a ‘PIVOTAL grant’ which has also been incorporated into NSDS III.Ten percent of the mandatory grant will be dedicated towards this initiative. Employees who provide workplace based opportunities for people who are pursuing a full occupational qualification can supplement the cost of the programme with the grant from the SETAs. The SETAs in turn are expected to ensure that 10% of the mandatory grants are ring fenced to fund such training opportunities.” “As a complementary goal to the increase in production of skilled personnel, is a goal to support and strengthen the public institutions, especially the FET colleges, but also the universities of technology. A crucial component of skills development is resourcing and promoting vocational education and training. We need a radical break with the notion that post school education only means university education. Not everyone needs to or wants to go to university after school.Vocational Education and Training (VET) is not seen as a viable option by many young people.Worldwide,VET comprises the largest component of post secondary education and training, with universities making up a smaller component.The question is why this is not the case in South Africa and how do we reverse the situation, and give the public confidence that VET is valuable but also enhances employability and self sustaining economic activity? It is therefore important that we think

about how we strengthen the Colleges and improve partnerships between them and other institutions, critically so the SETAs and industry.” “I would like to emphasise and appeal to industry to play a role in achieving all these objectives. Whereas there are obvious activities such as ensuring that the curriculum in FET colleges is in line with industry needs, and that the learners who require work placement are supported and absorbed, industry has an important role to play in ensuring that teaching is improved in the FET colleges.We would like to see partnerships created between industry and FET colleges, whereby teachers in the colleges are provided with industry exposure and where experts from industry could occasionally assist colleges with teaching or helping staff to keep abreast of the latest developments in the workplace.We also expect employers to play an increasingly important role in college governance.” “SETAs are critical in the achievement of the NSDS III goals. I have made a number of structural reforms to improve governance and management of the SETAs and to make them more accountable for the way that they operate. I have also appointed a task team to advise me on how to tackle various areas of concern and to improve the functionality of the SETAs.” “It is important that we build strong institutions to ensure effective delivery of skills.This is a challenging task, and relates not only to SETAs but to all the institutions of education and training.We have seen and know the challenges related to governance and management in our institutions and we have to address these if we are to achieve improved delivery levels. But we also have to ensure that they work together, including working with industry to ensure that we have a demand driven skills development system.” “The SETAs are in a unique position, having contact with virtually all employers in the country and also, via the Department of Higher Education and Training, with the post school education and training institutions. They must contribute to the improvement of sector skills through achieving a more favourable balance between demand and supply in partnership and agreement with the businesses that operate in their sectors.This means that they must develop their research capacities and become experts on the supply and demand for labour in their sectors.” “The changes we have made so far with respect to governance are partly meant to ensure that the social partners, who are representatives of the Board of SETAs, also play their role in strengthening these institutions and ensuring that their delivery is of value to society.” “We must address the serious challenges of high unemployment and a shortage of critical skills needed to drive economic growth and social development. The skills shortage underpins many of the challenges government faces with regard to service delivery, the expansion of decent work and social justice.” “Government cannot address the skills shortage and improvement of our education system on its own. It obviously has an important role to play, and it must lead, but it needs to build strong partnerships with stakeholders and social partners to address these challenges.” “Whilst the challenge of spearheading our skills revolution in South Africa is enormous, never before in the history of our democracy have we been better positioned to advance the vision of a truly comprehensive and differentiated post-school system, which is capable of contributing to the lives of individuals, to the economy and to broader society.” “The country is on an economic growth path that requires skilled and globally competitive people. This government has made an undertaking of ensuring that education is one of its top priority. With your commitment, we will continue to strengthen our education system as well as reinforce the skills revolution and deepen the confidence of the masses of our people on the economic growth and development with the intent to eradicate the barriers of poverty. Our partnership will to a great extent assist in the reduction of the high level of unemployment, poverty and inequality.” “Finally, I invite you to engage and establish a relationship with our department to share views, information and strategies on this important area of human resources development. Through this the IPM can also be a champion of the many initiatives we have embarked upon in skills development,” he concluded. January 2012 People Dynamics

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Ipm’s newly elected national President and two board directors are from Kzn R

ajroshan (Raj) Seeparsad, HR Manager of GUD Holdings in Pietermaritzburg, is the newly elected National President of the Institute of People Management (IPM). He was inaugurated at the IPM National Convention held at Sun City last week. Associate Director with PriceWaterhouseCoopers, Dayalan Govender and Elaine Boulton, HR Manager: Retail Banking at Nedbank in KZN were elected to IPM’s National Board of Directors. Raj has been a member of IPM for 27 years and was a student member of the Durban Coastal Branch until 1988. He joined the Natal Midlands Branch in 1989, where he is currently based. He was made a “Fellow” of IPM at the IPM National Convention in 2001. His elevation to National President was preceded by his election as Vice President (Branches) and then as Adviser to the IPM National Board of Directors before becoming IPM’s Vice President: Stakeholder Relations last year. He has represented IPM at the World HR Congresses in Brazil, Australia and Thailand. More recently, he represented IPM and chaired a session at the World HR Congress in Mumbai, India where he was presented with a Global HR Leadership Award. Raj is also a Director of the Pietermaritzburg Chamber of Business where he chairs a number of committees and participates in Local, Provincial and National Government activities. Dayalan Govender has been re-elected to IPM’s National Board of Directors and is serving his second term. He was Chairperson of IPM Durban Coastal Branch from February 2008 to 2010. Prior to joining PWC, he was Regional Academic Manager at the University of South Africa (UNISA) – Durban Regional Office. He is finalising his Doctorate studies (PHD) in Management Leadership within the Higher Educational fraternity. The combination of his strengths, expertise and passion lie deeply embedded in education, training and development within a management context. Registered as a Personnel Practitioner with the South African Board for Personnel Practitioners (SABPP)

Rajroshan (Raj) Seeparsad,

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Dayalan Govender

since 1998, Dayalan has previously been employed by a number of organisations in the HRD arena. He is, in his private capacity, actively involved in facilitation, tutoring and presentations in management/leadership development. Dayalan is active (merit award) member of the South African Society of Co-operative Education (SASCE) with whom IPM has a strategic alliance. Elaine Boulton has been a member of the IPM for 15 years, 11 years of which she has been as a member of the Durban Coastal Branch Committee. She is serving her second year as Chairperson of the Branch and has contributed significantly to its success over the years. She has a hands-on approach and this has proven to the benefit of the Regional branch as she has the necessary organisational and leadership competence and skills. Elaine holds a BA Honours Degree (UNISA) majoring in Industrial Psychology, Education and English and is currently studying towards a LLB degree at UKZN. She is Human Resources Manager for Nedbank Retail Banking in KZN where she provides specialist HR support to line management to enable the achievement of strategic objectives on a sustainable basis on both transactional and transformational initiatives, in a transforming business. Previously Elaine was employed at Edcon as HR Manager, providing a generalist function to many stores. Her experience encompassed project management, career management, succession management and strategic business partnerships Elaine is well connected with the retail banking sector and HR community as well as the tertiary institutions through her studies. Her influence stretches beyond the financial sector as she has done work within the Retail and Clothing sector here in South Africa, Swaziland and Namibia. Enquiries: Nadia Thomson (031) 564 4927 or 083 513 9292 Email: ntonline@telkomsa.net

Elaine Boulton


Institute News

IPM committee member is National Woman of the Year (Motor Industry) By Jannie Rossouw

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he Institute of People Management is proud to announce that IPM Durban Committee Member, Iris Francis, has been voted National Woman of the Year in the Motor Industry SA Awards for 2011. Iris is a young, confident and dynamic personality. A CSI Specialist, heading up one of the most successful CSI programs in SA, the Rally to Read (www. rallytoread.co.za). Her previous positions have also exposed her to working and growing market shares of great South African brands, which include SAA, MTN, Coca Cola, and SABC, amongst others. Iris is currently the Head of CSI (Corporate Social Investment) and also manages the Internal Communications portfolio within the McCarthy Group (Bidvest). Her role requires her to be a very strong communicator as she manages the stakeholder engagement and PPP, which often requires negotiation at senior government level, particularly the health and education sectors. Prior to this, she was GM: Marketing & Communications for KZN Tourism. Her primary role was to grow the tourism industry in KZN and to change tourist perceptions of the province as a holiday destination. During her tenure in marketing, KwaZulu-Natal became the leading domestic tourism destination and second internationally, with Cape Town being the first. She was chosen by Tokyo Sexwale to be one of 16 candidates to appear on the reality TV series, The Apprentice SA. She was chosen from a total of over 200 000 applicants for the show, which intended to showcase South African style leadership principles. Sexwale recognised her potential immediately and whilst she did not win the series, he was very vocal in acknowledging her exceptional leadership qualities and that he felt she had a great future in the SA economy. Iris is a strategic thinker and is very results-driven. She is creative with strong analytical and problems solving abilities and has excellent written and verbal communication skills which she has developed naturally throughout her career. She is very deadline driven and is accustomed to working under pressure. She has a hands-on approach to leadership and believes in leading by example. She is also a team player and has excellent interpersonal skills which contribute to the effective and efficient completion of tasks under her responsibility. Iris serves on the Board of SEDA (Small Enterprise Development Agency) and is Chairperson of the HR Committee within SEDA. She is also a Board Member of the IPEB (Institute for Partnerships between Education and Business) and a Committee Member of the IPM (Institute of People Management). She understands the political landscape, being the daughter of one of South

Africa’s struggle veterans, who spent time incarcerated on Robben Island. During her tenure in tourism she was chosen to travel with three MEC’s within the KZN legislature to eight different countries, one of these being the current Premier of KZN, Dr Zweli Mkhize, who was MEC for Economic Development at the time. Iris has harnessed the power of these relationships and therefore has very strong political connections, which have supported her growth and development. It’s not often that one can call on references from Mayors, MEC’s, Ministers and Premiers alike and be mentored and groomed by Ms Hixonia Nyasulu, current Chairperson of SASOL – and yet on meeting Iris, she remains humble and grounded. Being born one of forty children in a small rural village on the southern coast of KZN and having achieved much success in her chosen field, she has the uncanny ability to be as comfortable with Heads of State as she is with people from the impoverished communities she serves. ‘I was born to be of service to others’, she says when questioned about her move to CSI.A true South African example of how someone from grass roots level can achieve enormous success and recognition by sheer hard work and incredible passion! Iris was recently invited to address the United Nations in New York on women and gender equality in Africa and has been invited to address women across Africa. Enquiries: Nadia Thomson (031) 564 4927 or 083 513 9292


Competencies

Competencies for HR ProfessionalsWorking Outside/In By Dave Ulrichm, Jon Younger, Wayne Brockbank, Mike Ulrich

N

o one can deny the incredible uncertainty faced by global businesses during the last 5 years: Prolonged recession, national and organisation debt crises, government bailouts, the Arab Spring and other political uncertainty, rise of the internet cloud and social media, and increased employee skills, uncertainty, and cynicism.These business contextual changes have required a new set of competencies for HR professionals. Since 1987,our research has identified the skills that determine effective HR professionals. The research has a strong empirical foundation with rigorous statistical analyses, a global sample, a measurement approached focused on personal and business performance and perspectives from both HR professionals and their HR and non-HR associates. With this current 2012 data set, we have completed 6 waves of data collection on what makes an effective HR professional. Over these 25 years, the fundamental skills required for HR professionals have remained much the same (know the business, deliver value added HR practices, manage change, and have personal credibility), but the specific competencies have evolved based on changing business conditions and expectations for the HR profession. Our 2012 competency data set for HR professionals, as with our previous work, is a unique partnership with many leading HR professional associations.This round includes the active participation of HR colleagues in Australia (AHRI), Latin America (IAE), China (jobs51), India (NHRD), Middle East (ASHRM), Northern Europe (HR Norge), and South Africa (IPM). With their support, and the active involvement of RBL Institute members and the University of Michigan, we have collected global data from over 20,000 respondents and 650 organisations. These data come from line managers HR and non-HR associates who rated HR professionals on 139 behavioral and knowledge-based competencies. They tie HR competencies to both personal effectiveness (compared to other HR professionals you have known, how does this participant compare) and seven dimensions of business performance. In this round of research we have identified six domains of competencies that HR professionals must demonstrate to be personally effective and to impact business performance. These competencies are driven by three themes facing businesses today: Outside/in: which means that HR must turn outside business trends and stakeholder expectations into internal actions Individual/collective: which means that HR targets both individual ability and organisation capabilities Event/sustainability: which implies that HR is not about an isolated activity (a training, communication, staffing, or compensation programme) but sustainable and integrated solutions With these three trends, Figure 1 below points out three spheres of influence of HR work: l Individual: what high performing HR professionals do as individuals to build effective relationships and reputations within their organisation l Organisation: how effective HR professionals design, develop and deliver HR systems and practices that enable the organisation to create capabilities, manage change, innovate and integrate HR practices, and deploy HR technology. l Context: what respected HR professionals do to ensure understanding of the external trends and realities facing the organisation, and responsiveness to external stakeholders. With this as background, each of the six domains of HR competence

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People Dynamics January 2012

captures the role and responsibility of HR professionals in creating value (see Figure 1). l Strategic Positioner. High performing HR professionals think and act from the outside/in.They are deeply knowledgeable of and able to translate external business trends into internal organisation decisions and actions. They understand the general business conditions (e.g., social, technological, economic, political, environmental, and demographic trends) that affect their industry and geography. They target and serve key customers of their organisation by segmenting customers, knowing customer expectations, and aligning organisation actions to meet customer needs. They also co-create their organisation’s strategic response to business conditions and customer expectations by helping frame and make strategic and organisation choices. A consequence of outside/in thinking is the increased tendency for organisations to choose line executives to lead their HR organisation. For example, Shira Goodman, head of HR for Staples was previously head of marketing. Christian Finckh, CHRO for Allianz, the global insurance company, was chief operating officer of the asset management business and began his career as an M&A attorney. These line leaders coming into HR may indicate the need to infuse the function with a stronger business focus so that HR can play a more strategic role. l Credible Activist. Effective HR professionals are credible activists. Credibility comes when HR professionals do what they promise, build personal relationships of trust, and can be relied on. Being a trusted advisor helps HR professionals have positive personal relationships. As an activist, HR professionals have a point of view, not only about HR activities, but about business demands. As activists, HR professionals learn how to influence others in a positive way through clear, consistent, and high impact communications. Some have called this HR with an attitude. HR professionals who are credible but not activists are admired, but do not have much impact. Those who are activists but not credible may have good ideas, but will be ignored. To be credible activists, HR professionals need to be self-aware and committed to building their profession. A good example of this competency is Mars, the global consumer products company. At Mars, there is an expectation that HR consultants (or, as they describe it, People and Organisation or P&O) will operate as “co-pilots” working closely and collaboratively with the CFO and other executives in activities that drive the business forward. It is expected and required that HR professionals will build the quality and consistency of relationships that allow them to do so. l Capability Builder. An effective HR professional creates an effective and strong organisation by helping to define and build its organisation capabilities. Organisation is not structure or process; it is a distinct set of capabilities. Capability represents what the organisation is good at and known for. HR professionals should be able to audit and invest in the creation of organisational capabilities. These capabilities outlast the behavior or performance of any individual manager or system. Capabilities have been referred to as a company’s culture, process, or identity. HR professionals should facilitate capability audits to determine the identity of the organisation. One of the emerging capabilities of successful organisations is to create an organisation where employees find meaning and purpose at work. HR professionals


Competencies can help line managers create meaning so that the capability of the organisation reflects the deeper values of the employees. The International Labor Organisation of the United Nations has been a non-profit HR leader in this area.Working closely with the senior management team, the HR leadership has made a significant investment in building accountability as an organisational capability for the future. HR has been in the forefront of enabling the organisation to enact a more results focused, performance discipline. This has been particularly critical at a time when government sponsors of the UN and ILO expect more impact, sooner and sustainably, for their investment in the organisation. l Change Champion. HR Professionals make an organisation’s internal capacity for change match the external pace of change. As Change Champions, HR Professionals help make change happen at institutional (changing patterns), initiative (making things happen), and individual (enabling personal change) levels. To make change happen at these three levels, HR Professionals play two critical roles in the change process. First, they initiate change, which means they build a case for why change matters, overcome resistance to change, engage key stakeholders in the process of change, and articulate the decisions to start change. Second, they sustain change by institutionalizing change through organisational resources, organisation structure, communication, and continual learning. As change champions, HR Professionals partner to create organisations that are agile, flexible, responsive, and able to make transformation happen. Under HR head Kathleen Wilson-Thompson, Walgreen’s is a good example of an HR change champion. As a new CHRO, Kathleen and her team worked hard to understand the key business challenges facing the increasingly competitive market, and built the business case for increased emphasis on leadership development. Their work has resulted in a significant long term organisational investment of time and expense, but also a strong agreement among the senior management team that the effectiveness of current leaders and development of the next generation of leadership is fundamental to the organisation’s performance. l Human Resource Innovator and Integrator. Effective HR professionals integrate innovative HR practices into unified solutions to business problems. To do so, they must know the latest insights on key HR practice areas related to human capital (talent sourcing, talent development), performance accountability, organisation design, and communication. They must also be able to turn these unique HR practice areas into integrated solutions, generally around leadership brand, that match business requirements on a global scale. Effective HR professionals help the collective HR practices to reach the tipping point of high impact on business results by ensuring that HR practices are focused with discipline and consistency on a few but centrally important business issues. A few years ago two of the authors were invited to work with the top 75 HR leaders of a leading airline. One of us met with the heads of functional areas – compensation and benefits, industrial relations, learning and development – and learned that these individuals and their teams had never met in memory to look at the integration – or lack of same – in how their systems and practices operated. Not surprisingly, the airline suffered a traumatic strike less than two years after we met, attributed to demonstrably poor employee relations. l Technology Proponent. In recent years, technology has changed the way in which HR people think and do their work. At a basic level, HR professionals need to use technology to more efficiently deliver HR administrative systems like benefits, payroll processing, healthcare costs, and other administrative services. In addition, HR professionals need to use technology to help people stay connected with each other. This means that technology can be used to improve communications, to do administrative work more efficiently, and to connect inside employees to outside customers. An emerging technology trend is using technology as a relationship building tool through social media.

Leveraging social media enables the business to position itself for future growth. HR Professionals who understand technology will create improved organisational identity outside the company and improve social relationships inside the company. As technology exponents HR Professionals have to access, advocate, analyze and align technology for information, efficiency, and relationships. AP Moller Maersk provides a useful perspective on the broader domain of technology. Bill Allen, head of group HR, commissioned a group of young high potential professionals to comment on needs for improvement in how the organisation communicates internally. Their guidance: apply the new technologies of social networking. As the team pointed out, the new generation of employees will text before phoning, and twitter rather than email. These six domains of HR competence have an impact on both the perception of the effectiveness of the HR professional and the business performance where the HR professional works (see Table 1). Table 1: Impact of HR competences on perception of HR effectiveness and business performance Mean score on this competence domain (1 to 5)

Impact on Perception of HR effectiveness (Beta weights scaled to 100%)

Impact on Business performance (Beta weights scaled to 100%)

Credible Activist

4.23

22%

14%

Strategic Positioner

3.89

17%

15%

Capability Builder

3.97

16%

18%

Change Champion

3.93

16%

16%

Human Resource Innovator and Integrator

3.90

17%

19%

Technology Proponent

3.74

12%

18%

Multiple R2 42.5%

8.4%

This data shows that to be seen as personally effective, HR professionals need to be credible activists who build relationships of trust and have a strong business and HR point of view.They also have to have a mix of competencies in positioning the firm to its external environment (strategic positioner), doing organisation capability and culture audits (capability builder), making change happen (change champion), aligning and innovating HR practices (HR integrator), and understanding and using technology (technology proponent). These competencies explain 42.5% of the effectiveness of an HR professional. We found that this same pattern of HR competencies holds across regions in the world, across levels of HR careers, in different HR roles, and in small to large organisations. These HR competencies also explain 8.4% of a businesses’ success. But it is interesting that the competencies that predict personal effectiveness are slightly different that those that predict business success, with insights on technology, HR integration, and capability building having more impact on business results. These findings begin to capture what HR professionals need to know and do to be effective. Some takeaways (based on the reported data in Table 1 and additional insights from this survey that are available on www.rbl.net) include: l Build a relationship of trust with your business leaders by knowing enough about business contexts and key stakeholders to fully engage in business discussions, by offering innovative and integrated HR solutions to business problems, and by being able to audit and improve talent, culture, and leadership. l Learn to do HR from the outside/in which means understanding the social, technological, economic, political, environmental, and demographic trends facing you industry and knowing specific expectations of customers, investors, regulators, and communities, and then building HR responses that align with these external requirements. January 2012 People Dynamics

13


Competencies l Be able to do an organisation audit that focuses on defining and assessing the key capabilities your company requires for success and then integrating the HR practices in the areas of staffing, training, compensation, communication, organisation design, and leadership to build and sustain the key capabilities. l Make change happen at individual, initiative, and institutional level. Help individuals learn and sustain new behaviors. Enable organisation change by applying a disciplined change process to each organisational initiative. Encourage institutional change by monitoring and adapting the culture to fit external conditions. l Innovate and integrate your HR practices. Innovation means looking for new and creative ways to design and deliver HR practices. Integrate these practices around talent, leadership, and culture within your organisation so that offer sustainable solutions to business problems. l Master technology to both deliver the administrative work of HR and to connect people inside and outside to each other. Make social media a reality by using technology to share information and connect people both inside and outside your organisation. We also found that an effective HR department has more impact on a business’ performance (32%) than the skills of individual HR professionals (8%). So, HR professionals need to work together as a unified team to fully create business value. We are optimistic about the present and the future of the HR function.We now have wonderful insights on what HR professionals will need to know and do to respond to the uncertain, global, and complex business world in which they live. We believe that with this guidance, HR professionals can

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People Dynamics January 2012

HR, to foremployees, HR Executive, p. 7 and should invest in themselves to Competencies fully deliver theforvalue organisations, customers, investors, and communities. Figure 1: HR competencies for the future Figure 1: HR competencies for the future


COURSE IN

LEARNING OPPORTUNITIES IN HUMAN RESOURCE MANAGEMENT

LABOUR RELATIONS MANAGEMENT

TWO MOdULES: 1. Labour Relations Management - A Macro perspective - Role players - Labour legislation - Collective bargaining - Trade unions and employers’ organisations 2. Labour Relations Management - A Micro perspective - Conflict - Grievances - Discipline - Communication - Worker participation - Negotiation Registration requirements: A National Senior Certificate or relevant experience duration: 6 Months Registration for second semester: Starts 28 November 2011 and ends 23 January 2012 Registration for second semester: Starts 18 June 2012 and ends 13 July 2012 PROGRAMME IN

HUMAN RESOURCE MANAGEMENT

FOUR MOdULES: 1. The Human Resource Function - Recruitment - Selection- Career management - Health & Safety 2. Labour Relations Management - Role players - Labour legislation - Collective bargaining - Worker participation - Discipline - Grievances - Communication 3. Managing Training and Development - Management of training and development - Training needs assessment - Development of programmes - Presentation - Learner assessment and training evaluation 4. Human Relations - Communication - Motivation - Values - Conflict - Interpersonal relations Registration requirements: A National Senior Certificate or relevant experience duration: 12 Months Registration: 28 November 2011 and should be completed by 29 February 2012 AdVANCEd PROGRAMME IN

HUMAN RESOURCE MANAGEMENT

CENTRE FOR BUSINESS MANAGEMENT College of Economic and Management Sciences Tel: (012) 352 4324 / 4283 / 4309 · Fax: 086 682 9235 Email: hrm@unisa.ac.za · Website: www.unisa.ac.za/cbm Postal: PO Box 392, Unisa, South Africa, 0003

Learn without limits.

centre for business management

January 2012 People Dynamics

15

WR9892E PHRM

FOUR MOdULES: 1. Strategic and International Human Resource Management 2. Organisational Behaviour and Renewal 3. Research Methodology 4. Advanced Human Resource Development Registration requirements: A National Senior Certificate plus a Certificate in Human Resource Management from UNISA or an equivalent qualification in the human resource management field at NQF level 6. duration: 12 Months Registration: 28 November 2011 and should be completed by 29 February 2012


TRAiNING

In-house training programmes are most effective in skills development By Pauline Mahlangu

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orking in a highly-competitive environment where the industry is becoming more fragmented and margins remain under significant pressure, the outsourced catering industry is just one of the many sectors feeling the impact of the definite skills shortage being experienced in South Africa. The only way to address the urgent need to upskill is by introducing a skills development strategy which starts with learnerships and then moves to apprenticeships and management development programmes. The solution moving forward lies in investigating the various opportunities which exist for the public and private sector to work better together to help lift skills. There is a strong need for

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People Dynamics January 2012

more companies to run their own in-house training programmes which have a number of distinct advantages. The advantage of developing tailor-made, in-house training programmes is that they are based on the company’s own values and principles, ensuring consistency and continuity. As there is considerable investment made in training it is in our interests to do it right the first time. We can make sure our programmes are not only of the highest standards but also effective in allowing employees to put into practice the skills and methodologies they have learned. By ensuring a workforce has access to further training and development and that there is adequate opportunity for career


TRAiNING

Pauline Mahlangu, Head of Human Capital, RoyalMnandi

Centre For

INDUSTRIAL AND ORGANISATIONAL PSYCHOLOGY

UNIS142715

growth, decreases the chances of losing talent. The accelerated training programmes focus on developing people’s growth within specific disciplines, while unit training is in-line with the internal SETA skills plan audit and is determined internally during the skills audit or by specific client and legislated requirements. The aim of the accelerated training programme is to fast-track the growth of staff within certain disciplines by allowing them access to knowledge and skills development specific to their area of expertise. The programme is ongoing and affords employees the opportunity to excel in their particular interest and grow their career within the company. The in-house management programme on the other hand focuses on developing leaders through mentorship. Here employees are assigned a mentor who will advise and guide them as they develop and hone the high-level skills needed to manage staff and processes. The next internal management programme is due to launch in January 2012, with 10 staff, predominantly female, having been identified as participants enrolled. We are addressing the need for basic training and skills by enrolling staff on our internal National Certificate in Professional Cookery learnership. This has been developed by the RoyalMnandi Learning Academy accredited by THETA SETA and covers a wide range of key areas bringing together elements of food and drink preparation as well as supervision. For the past three years RoyalMnandi has up-skilled an average of 60 staff annually through this learnership. Its ongoing commitment to training is evident through the provision of a three-year apprenticeship programme available to those that successfully complete the National Certificate in Professional Cookery Learnership. These learners will go on to complete the apprenticeship which is recognised and accredited by the South African Chefs Association (SACA) providing them with the necessary qualification to pursue a career as a chef. Ten disabled employees are being given the opportunity to complete a formal Learnership this year. We have also embarked on extensive Adult Basic Education Training (ABET) courses, providing employees that do not have adequate numeracy and literacy skills with the opportunity to obtain a formal qualification. We have just launched a pilot project in Limpopo Province where these basic skills are particularly lacking. Following successful implementation there, it will be rolled out to other areas most in need of improving these skills. Because of widespread skills shortages and the large number of ABET programmes required, RoyalMnandi will be approaching the National Skills Fund in an attempt to get assistance with funding. Its continued assessment of training requirements has also indicated a demand for training in Afrikaans in certain areas, which is currently being investigated. Also soon to be launched is RoyalMnandi’s Unemployed Learnership Programme where 72 previously disadvantage youth enrolled in Further Education Colleges will be selected to complete the National Certificate in Professional Cookery Learnership within RoyalMnandi. We are cognisant of legislative compliance and the additional training requirements that this brings. This falls outside the area of the workplace skills plan and relates to critical areas such as health and safety compliance. Also in process is the up-skilling of our catering managers providing them with comprehensive project management skills which are required to successfully run a unit.

GAIN THE COMPETITIVE EDGE BY REGISTERING FOR ONE OF OUR PROGRAMMES, COURSES OR WORKSHOPS! • Introductory and advanced certificate programmes in the field of industrial and organisational psychology in support of various human resource functions • Short courses, workshops and seminars on specialised themes to meet the needs of human resources and business communities PROGRAMMES, COURSES AND WORKSHOPS AVAILABLE: • 1-year Programmes - Programme in Applied Organisational Development - Programme in Client Service Excellence - Programme in Industrial & Organisational Psychology - Programme in Skills Development Facilitation • 6-month Courses - Course in Business Psychology & Human Behaviour - Course in Compensation for Occupational Injuries and Diseases in the Workplace - Course in Employee Wellness - Course on the Occupational Health & Safety Act of 1993 - Course in Organisational Development: The Appreciative Inquiry - Course in Workforce Diversity • Short Workshops - Workshop in Career & Executive Coaching - Workshop in Consultation Skills Training - Workshop in Group Process Consultation - Workshop in Self-management & Work-related Skills - Workshop in Skills Development Facilitation (in-house workshops only) REGISTRATION Registration for 1st Semester for Programmes and Courses is now open. Course fees include registration fees, study material, examination fees and certificates. ENQUIRIES: For further details and application forms contact the Centre for Industrial and Organisational Psychology: Tel: +27 12 429 8005/8548/8942 Fax: +27 12 429 8578/086 537 6168 E-mail: op@unisa.ac.za http://www.unisa.ac.za

college of economic and management sciences

January 2012 People Dynamics

17


Training and development

Computer based simulation technology By Jan H vd Westhuizen he initial benefits from cost-cutting measures are short lived; pressure from investors and shareholders is intensifying to find ways to increase the likelihood of seeing measurable, long-term results. What is the bottom-line goal of most training and or development initiatives? To get people to behave differently, and to help them break through operational complexity, in a way that will either save money or increase revenue. It’s as simple as that. It’s getting people to act differently within complex organisational systems, to behave in ways that are needed for success.Therefore the value proposition can be described in two words: people empowerment. Research on behaviour (Lewin, Kolb, Piaget, Knowles, etc.) is clear: people need context and practice to understand the business imperative and what role they play in affecting results. Simulations give users the opportunity to understand the business and grapple (wrestle or struggle ) with the complexities and shifts in the system. In other words, users get the opportunity to experience the future. They see: l How behaviour and action fit into a larger picture, and how different elements of the system and the behaviour of others relate directly or indirectly l What situations will require new behaviours l What the new behaviours actually look like l When new behaviours should, and should not, be used l What the impacts, both positive and negative, will be on the new behaviours l What constraints, supports, and distractions will discourage the new behaviours l What is important, to whom, in what circumstances, and how to alter behaviour as things change l How behaviours affect different aspects of the initiative, including financial results, getting things done, etc. Computer based simulations technology put all of these elements together in a storyline that incorporates sophisticated financial information, business processes, functions and roles, to create an authentic replication of the individual’s future life on the job. From a single experience (potentially over the course of weeks or months, or “just-in-time”), users can: l Be exposed to best practices around an issue or an initiative l Explore new methods, processes and technologies without risk l Understand how they will work with others to be effective l Immerse themselves in new behaviours required for initiative success l Understand the integration of the initiative with other complex operational system. Business also called this computer based simulation technology “workplace simulations” or “enterprise simulations” More and more they are using these as an assessment method of choice for several key types of initiatives: Managerial and leadership assessment – the current economical downfall and downsizing of middle managers as during the late 1980s and early 1990s left many organisations with limited pipelines of potential leaders. It is too costly (due to risk) and too slow (due to the lengthy progression of career paths) to learn on the job about leading the organisation. Business simulations are used increasingly more in assessment centres to identify

T

leadership gaps and target development towards specific learner needs.This relates to a particular industry or the unique dynamics of the learner’s role in an organisation. Understanding the business – the central mission of all employees in an organisation is to create value through managing growth, profitability, and risk. Further, as more industries move to consultative sales forces, understanding the customer’s business is equally critical.Therefore, business simulations are an excellent mechanism for getting new employees on board and developing true consultative skills in the sales organisations. Business simulations allow employees in all areas of the business to understand how core decisions within each department interact and influence the business at large structurally, financially, and competitively. Through business simulations, employees experience how seemingly independent decisions add or erode the value of the company, and how these decisions satisfy customers and shareholders alike. Change readiness – two of the most significant barriers to change are lack of cross-functional awareness and an unclear model of what the future state may look like. Business simulations allow managers to see the future of organisations by playing through hypotheses related to changing markets, organisational make-up, and functional interactions.As they analyse the results and learn how their decisions link to outcomes, managers uncover their own mental models about the organisation’s processes and behaviours. The outcomes are the experiences from which they learn and provide insight into an organisation.This insight demands that managers work in cross-functional teams to reach the future they have glimpsed through the simulation. Therefore, computer based simulation technologies as an assessment tool add value in the following manner: l Improve a learner’s understanding of the company and how to maximise relational synergies to cut costs, improve sales, mitigate risk, and add value to customers and shareholders l Facilitate communication between diverse departments and improve strategy execution by those departments l Allow managers to prioritise tasks in the context of a desired future state l Improve understanding of an industry’s dynamics, whether that of the learner’s or of the learner’s customer l Create an understanding of cause-and-effect relationships within a department, company, or industry l Teach managers to make more effective decisions and how to react to, or drive a market according to a prescribed strategy l Allow managers to complete a what-if analysis on strategic alternatives for the purpose of strategy refinement l Allow managers to demonstrate leadership strengths and weaknesses in an risk- free environment with access to coaching l Create risk profiles for incumbents l Feed the talent pipeline for future successors Computer based simulations technology challenges administrators and observers to truly understand business needs and key success drivers for business.Assessment and Development centres developed through computer based simulation technology, in combination with behavioural competence and organisational competence directly enhance business results. Jan H vd Westhuizen, managing director, Experiential Technologies


PERFORMANCE REVIEWS

Keep employee performance reviews short and frequent By Phil Meyer

S

taff performance reviews are critical in most businesses yet unpopular with the majority of managers who would probably admit they find conducting reviews a tedious task. However, with proper planning and the use of payroll and HR software, performance reviews can be a simple, quick, valuable and motivational experience for managers and employees. The key is to ensure that the performance review process is simple and quick. Avoid making the review process too complex or it could become both intimidating for employees and tedious from an execution point of view. The answer is to measure less, more frequently. Keep the process simple and develop a habit of conducting reviews more often as employees generally are more comfortable with this approach. If simplified, quick reviews that are regularly conducted enable managers to deliver more value to employees, identifying areas where improvement is necessary and providing the employee with an opportunity to improve in those areas by the next review. A combination of regular short reviews with one in more detail at longer intervals probably offers the greatest value to both employers and employees. Despite the fact that performance reviews are not intended to be a tool by which to determine salary increases, they often end up playing that role. The real objective, however, is to regularly identify areas of concern and areas of excellence to the benefit of both employee and employer. For employers, well-developed personal skills lead to positive performance review outcomes and he points out that where regular reviews are implemented, employees who have received a negative review

at least have a chance to turn that into a positive outcome at the next one. Human Resources Management (HRM) is a vital component of good business practice but doing it properly and effectively is not always that easy. This is where technology in terms of payroll and HR software solutions can ensure that the correct systems and processes are firmly in place. Aligning employees to the company vision, mission and objectives is achieved through measurement and regular reviews. It is important for employees to receive recognition for achievement and be made aware of under-achievement and what they need to do to rectify it. Reviews should take five to 10 minutes. Regular appraisals and feedback is the way to keep on track. Employees have opportunities to improve and that improvement is easily traceable over shorter periods of time. Automated payroll and HRM software solutions assist managers by offering pre-defined Key Performance Area (KPA) and Key Performance Indicator (KPI) categories and review templates that are automatically kept on record. Management is therefore able to store all review records and accurately monitor staff performance improvements. Employees like to receive written feedback from reviews, even if only by email. Such brief reports provide a base for comparison and both parties know where they stand.The next review will enable both parties to identify the levels of improvement and progress achieved. Phil Meyer, technology director, Softline Pastel Payroll, part of the Softline and Sage Group plc, +27 11 304 4190, Â www.pastelpayroll.co.za January 2012 People Dynamics

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WORKSPACE

Colour your workspace with productivity, quality and optimism By Kim Meszaros

T

he power of colour in all its shades and hues cannot be denied, which is why it has a surprisingly important role to play in the workplace. Whether its clients you wish to keep calm and serene with a sea shade of blue, or employees you hope to energise with the vibrant red found on a stop sign, the simple act of dipping a paintbrush into a tin of carefully selected paint can change the dynamics of your office space with amazing effect. Moody blues Prior to pulling out the colour wheel to select the shades you like best for your office walls, it’s always a good idea to consider the kind of mood you wish to create for both your customers and employees. Indeed, it has been scientifically proven that colour has a psychological effect on one’s mood which in turn affects productivity levels, as well as the quality of work produced.The question really is, why not harness the power of colour in the workplace? With this in mind, the paint colour found on walls should reflect the type of mood that is ideal for a certain type of work environment. The colour of proactive optimism Dulux South Africa’s colour expert, Sonica Bucksteg was invited to participate in a global forum which predicts colour trends for the following year and she says, “A blushing, lively and juicy red has been unanimously selected as the colour of the year.This radiant shade will be making its mark in 2012 because it is a colour that can be many things to many people, reminding us to not look for simple solutions, but to open our mind to the “possibilities” waiting

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People Dynamics January 2012

to be discovered.With the economic downturn a feeling of optimism would be welcomed in most office spaces, and right now red is the colour that can inject a feeling of proactivity and “take-charge” positivity into your working environment. Perfect for both accent and feature walls, the colour red has emerged from the paler tints and colours seen over the last few years, into something more robust to warm our hearts in 2012. Colour matters In the matter of colour, certain associations apply. By way of example, doctors’ consulting rooms need to convey an air of serenity to keep nervous patients calm and in this case blue is considered to be the best choice as it’s perceived to be tranquil and soothing. An ad agency, on the other hand, should operate from a vibrant space to inspire creativity and new ideas from its staff and therefore brighter, and even multiple colours, are considered more suitable. Green is usually associated with youth and vigour and useful for boardrooms, or ‘pause’ rooms, as it energises the mind and stimulates creative thinking, cited most often as a favourite colour by people around the world. A pallet of productivity So choose a pallet of productivity, quality and energised optimism to lift the morale of your employees and clients. With paint brush in hand and just a few simple brush strokes of a carefully chosen colour, you could change for the better the mood of your working space and those around you too. Kim Meszaros, marketing executive, Kelly.


The communication dilemma for HR

Mentor matters

By Gary Taylor

I

n all my years in HR, I have never heard of anyone resigning from an employer because they communicated too much. One of the most frustrating complaints that HR hears from staff is that “they” don’t communicate enough, but there is seldom just one thing we on which we can put our finger. Such complaints are an indictment on HR itself, as we are normally quite proud of our HR communication, aren’t we? Perhaps our starting point is wrong. We think that communication (in business) is to inform people about facts they need to know. This is a typical left brain and male approach to communication. I am learning that communication is more about culture than information. But, let’s start with the evidence. In June, consulting firm European Leaders surveyed a wide range of workers, and found that 64% claimed their overall performance would improve if senior management communicated more effectively. Many other surveys reflect similar attitudes, although it is hard to quantify the opportunity cost. Even if improved communication just contributes meaningfully to enhanced employee engagement, most progressive executives would then look to HR and say “OK, tell me what to say and how to communicate it?” What is your reply? A few years ago, the answer would be to place the entire burden on the shoulders of the CEO. Board members say he should be communicating all day to shareholders, marketing says he should be communicating all day to customers, and staff think he should be wandering the workplace all day, “motivating” them. Sure, a good CEO will be the principal communicator (or at least appear to be) while HR and communications experts are crafting every word. Some consultants are advising against the high-risk strategy of CEO-worship, to avoid inevitable problems, especially if he gets it right! The legacy becomes impossible to perpetuate. Perhaps the smartest strategy for improved communication is to do several things just a bit better, rather than going for the single turnaround campaign. Let’s start with the annual report or yearly review, the biggest investment in writing energies and print costs, with the least return. OK, do it if you have to, but let’s not pretend that it is read or makes a difference.They are known in the publishing industry as “vanity publications” and have little to do with genuine communication. Of course, anything in print dates quickly, so e-communication is rampant. Nevertheless, there is some space for written documents, which do have take-home value. Understanding the value of the family reading something (like daddy winning the sales challenge) is a useful key. Human beings like something they can touch, so consider what form of communication (the message) would suit the printed brochure (the medium). Online publications are enormously cost-effective and instant. They can

be easily back-referenced, and can be made available to prospective staff and clients. Photographs (not those US stock shots of smiling Americans) always add aesthetic value and make it real. Social activities fit well into this medium. Be cautious to get a good balance between push-communication, where you force something into someone’s inbox (at the danger of spam backlash) and pull-communication, where people can go and look up details on benefit plans, policies, and so on. Smart intranets allow for people to “subscribe” to certain departmental newsletters, which is a great way to empower staff to customise their reading. Verbal communication is much more effective but takes much more effort. It is hugely time-consuming, but with high return. Management briefings at the right intervals are vital for sharing both information and culture, but cascading that information down the ranks after the “bush-retreat” is trickier. Do you forward the PowerPoint slides, and does that help? Going even further to encourage 2-way communication presents greater challenges. Some companies have been burned, when naïve attempts at internal blogs turned out badly, and recovering is difficult. It need not be stage-managed - I encountered a branch manager who would have regular “Tea with Charles” sessions to which all levels of staff were invited.A simple strategy, with little preparation, implemented locally and highly valued. In the era of Facebook and Twitter, people are increasingly interested in bite-sized snippets of news, not long corporate articles. Consider how you can keep people informed, especially during those really difficult times, without contrived platitudes and spin.Telling people during a take-over that “synergies will benefit all stakeholders” only exacerbates staff disengagement. The one point we should all be mindful of is that communication will take place in your organisation, whether or not management participates in it. Confidential topics are the most talked about. Acknowledging that fact will force our propaganda professionals to consider a blended approach to communication which constantly looks for regular, honest and wide-ranging dialogue with internal audiences.

Gary Taylor has written several articles for People Dynamics over the years. His Mentor Matters is a regular column in which he addresses topical HR issues from the perspective of a career HR practitioner (and mentor) and offers some new perspectives on regular issues that HR practitioners face daily. Gary has been in HR for 25 years, in National Mutual and Unilever, HR director at Medscheme for 14 years, and three years as Executive Director: HR at Wits University.Two years ago, he was appointed to start up HR for a new university in Saudi Arabia, where he is now Director of the Policy Office. He is registered as a Master HR Practitioner and Mentor with the SABPP, served as vice president for the IPM for two years, and received the IPM President’s Award in 2008. He has written a chapter for an HR book, been published in People Dynamics and HR Future, and was the SA correspondent for the UK magazine, People Management, for a year. January 2012 People Dynamics

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INSURANCE

Students’ insurance needs can be addressed By Mandy Barrett

A

s the new academic year gets under way, it’s important to be aware that insurance cover for valuable items in students’ residences is obtainable. And with the likes of expensive ipods, sound systems, laptops etc very much part of a student’s ‘inventory’ today it’s advisable to check that covers in this respect are in place. There is a misconception that such covers are not available. There is apparently a view in the market place that items such as laptops as well as the contents of students’ rooms are uninsurable – seemingly because this is regarded by insurers as a ‘communal area’ and therefore those items are high risk. While this may be true in some cases, Santam with whom we have a strong relationship, can arrange cover for these risks where, for example, they are linked or ‘supported’ in insurance jargon, to household contents cover or vehicle cover, subject to the fact that cover in a commune will always be subject to certain insurer restrictions like forcible and violent entry/exit. The message here is that expensive items such as laptops, sound systems, ipods, sporting goods and so on, all of which are commonly found in latterday students’ residences, can be insured, provided they are specified under the All Risks section of the policy. Also, under all circumstances the insured must have an insurable interest in the items or items. If there is any doubt in this respect, contact your insurance broker and never assume cover is automatically in place.

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People Dynamics January 2012

Motor cover for students also deserves attention and in this respect, parents should be aware that, according to statistics and as may be expected, younger drivers are more likely to be involved in car accidents than older ones. Also, contrary to popular belief, females have more accidents than males but males have larger motor claims - the average cost of repairing a vehicle involved in an accident is R17 000. Johannesburg has the largest frequency and severity of insurance claims and the highest number of cars written off in accidents while, again, according to statistics, students have a 2.5% chance of having an accident within three months of receiving their car. Further food for thought is that an expensive vehicle (sum insured greater than R250 000) has a higher probability of being involved in an accident than a less expensive vehicle (sum insured less than R250 000). As a broad guideline therefore, it’s fair to suggest that students’ vehicles, particularly in the case of first time drivers, should be chosen for their modest power and should be thoroughly roadworthy. They should be insured for at least balance of third party, fire and theft, with, perhaps additional Personal Liability top up cover, given the risk of major claims in the event of an accident or incident where the young driver is proven to be negligent. Mandy Barrett, Aon South Africa, www.aon.com


MANPOWER PLANNING

Money can’t buy you love…or employee loyalty By Ken Blanchard

T

he way you reward and recognise your people may be promoting some unwanted behaviours. There is absolutely no doubt that money is important. A fair days’ pay for a fair days work is the immovable cornerstone when it comes to looking after your people – if you want to keep them in their jobs and loyal to your organisation anyway. However, paying people more money won’t necessarily make them happier, and neither will it encourage them to perform better. Money is probably the main reason people work. We all have to pay our bills, finance our leisure time, prepare for our future and retirement, and perhaps support a family. But the salary slip is not the only reason people show up to the workplace day after day. There are other less tangible motivators that come into play and, by understanding these, organisations can build an engaged, loyal, motivated workforce without breaking the balance sheet. Legendary leadership consultant and author Warren Bennis suggests that after money, there are two more key reasons why people work: because they want to contribute to society – it feels better to be working than not – and because they want to be a part of something bigger than themselves and accomplish something bigger than one person alone can manage. We understand this at The Ken Blanchard Companies very well. We employ about 300 people and have a highly competitive pay and benefits system. We make sure that we’re paying people appropriately by differentiating exceptional from average performance. However we also recognise that each and every one of our employees has a different relationship with money, and that this is a relationship we cannot control, change or manage. So, we also understand that addressing money issues in isolation is very short-sighted. Some people have a strong drive to make money and are very materialistic.They might choose to work as bankers, or some other highearning occupation. Others are more interested in contributing to the greater good, and choose instead to work in the voluntary sector. These two extremes illustrate how everyone has a unique relationship with money. Our job as leaders is not to try to “fix” this relationship, but to make sure we pay people fairly given their role and industry standards. We also know that the use of extrinsic motivators (like money, perks, bonuses, and promotions) may change an employee’s focus at work and lead to a never-ending cycle of unfulfilled needs, unrealistic expectations, or an overdeveloped sense of entitlement. Once you set people on a path of extrinsic rewards, you will need to prepare to keep increasing the pay, bonus, or promotions every year, or be prepared to disappoint people when you are not able to do so – a situation many companies find themselves in today. So, before you panic and give someone who you feel might otherwise leave a pay rise, or offer traditional monetary performance rewards, ask yourself these three questions: Are you keeping things in perspective? You want to reward and encourage people who attain the goal—but you don’t want it to become the goal. You don’t want to hear people saying, “I’m just here for the money.” Are goals completely self-attainable? If you are going to use extrinsic motivators, make sure that attainment is completely in the control of the employee. Having a manager or supervisor dangling the

reward in front of an employee like a carrot on a stick only leads to a ‘yes boss, yes boss’ attitude when people spend half their time making sure the boss notices what they are doing. How else could we deepen the employee/employer experience? The tough economic times of the last two years have shown how shallow this relationship has become. As Warren Buffet reminds us, “It’s only when the tide goes out that you learn who’s been swimming naked.” There are many ways to reward people appropriately, often without recourse to large amounts of cash. Here are a few tips from Bob Nelson, a leading international authority on motivation and rewards, and author of 1001 Ways to Reward Employees: l Choose gifts or activities according to an individual’s personal preference l Match rewards to achievement – those who worked hard for two years deserve more than those who performed what was really just a simple favour l Don’t hang about – reward as soon as possible after the desired behaviour or achievement. l Link rewards to a formal programme of rewards – a thank you letter can be significant, but loses its effectiveness if it is the only reward ever on offer l For every four informal rewards (i.e. a thank-you), you should give one formal acknowledgement, and for every four of these, there should be a still more formal reward, leading to promotions, raises, special assignments etc. The important thing to remember is to make your reward occasion special, no matter how big or small the reward. And by all means do use money as a reward, just make sure it is deserved, valued, and that you’re not setting yourself up for problems further down the line. For more information on Blanchard’s Leadership Development expertise, email southafrica@kenblanchard.com or call 0800 980 814.Web www. kenblanchard.com, Social Media Links:Twitter @kenblanchard, Facebook: www.facebook.com/kenblanchardfanpage, Blog: www.HowWeLead.org, Business and Management forum: www.leaderchat.org, © The Ken Blanchard Companies, 2011 January 2012 People Dynamics

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Management

From Employee Satisfaction to Employee Values Alignment

Management orValuesDriven? By Nene Molefi

M

Are you wondering why you have been conducting surveys & very little changes or its difficult to track progress? You have happy employees , so what? How aligned are your employees to the Vision, Mission & Values of your organisation? How aligned are your employees to the Vision, Mission & Values of your organisation? What is the amount of toxicity or entropy ( the measure of wasted energy) in your environment? Are you seriously focusing on your leadership level , or you believe the answers will come from your masses? Organisational transformation begins with personal transformation of its leaders. Do you suffer from survey fatique? Endless surveys without next steps? Measurement matters, but measurement without Line Management ownership of results & a clear strategy of dissemination is as good as NOT measuring any culture. In fact " You loose more credibility" than if you had done nothing in the first place . Partner with MM for a journey that will transform your organisation. A unique approach that will give you good results to track & company with local & International case studies . Contact us on: (011) 728-9585 (021) 434-9593 info@mandatemolefi.co.za www.mandatemolefi.co.za

anagement is likely the most expensive activity in your organisation. The amount of time and energy devoted to supervising others means that managers, especially in a top-heavy hierarchy, are highly inefficient in their contribution to the company. Obviously, it is argued that management is necessary and ensures that people perform as expected, that the organisation maintains direction, discipline and momentum. However, the larger the hierarchy, the more likely it is to cause inefficiencies – slow decision-making that is largely divorced from the actual problems and day-to-day activities. The higher up the hierarchy, the greater the power but the less in-touch the management team is. However, not all managers are good leaders – they abuse their power, resulting in key talent being undermined or lost. Is it possible to run an organisation without a management layer? Or with limited layers? Morning Star, an American tomato processor, has no management structures – staff are empowered to make their own decisions, negotiate their own performance contracts with each other, all performance is peer reviewed and salaries determined by your contribution to the team and the company (once again, decided by your peers). Not only is it possible to allow true self management, Morning Star has proved it works, outperforming their competitors and growing steadily over its 20 year life span. The concept of employees needing to be managed is outdated, yet, most organisations battle to allow their employees the freedom to do their job. Checks and balances have to be in place, sign-off is required for purchases and accountability is only a word, not a truly lived value of the organisation. The Morning Star model works for two reasons: Employees bring their values to work.Their personal mission drives their behaviour and they have both personal accountability as well as the freedom to make decisions. Employees are challenged. The truth about what motivates us is not money or rewards – it is the challenge to do something well, to expand our abilities and knowledge “Well”, you say, “our staff are happy. Our scores on Employee Surveys have gone up every year and we believe that everything is fine.” The problem is, employee satisfaction relies on the definition of “satisfaction”. If we see this as “comfortable” and “content” in the work environment, the questions we ask will reflect this. However, these do not necessarily translate into high performance. Fulfillment is more important than contentment - being able to fulfil your dreams and bring most of yourself to work is more important than whether your working environment is comfortable. Comfortable is not challenging. Comfortable does not make us happy. But living our values – that creates fulfilment. Building a values-aligned organisation is not easy. It takes time and commitment but the rewards for both the organisation, its customers and its employees, are worth it. Mandate Molefi is a Human Resource Consultancy experienced in assisting organisations in creating a value-aligned culture. Contact: 011 728 9585 or info@mandatemolefi.co.za Source: Hamel, G. 2011. First, Let’s Fire All the Managers. Harvard Business Review

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People Dynamics January 2012


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