STUDY UNIT 8: HUMAN RESOURCE MANAGEMENT: ACQUIRING AND RETAINING
HUMAN CAPITAL
Learning outcomes:
Study unit 7 recap
Within a democratic developmental state, government must take the lead
in responding to the social and economic needs of society.
Social development is often hampered by corrupt officials and contractors.
Government’s vision of providing a better life for all will only be realised
once society, in partnership with government curbs public procurement
corruption.
The drivers of government process and systems public servants.
Introduction
Public Servants have an enormous task and play an important role to make service
delivery work for the people.
Everything that has to be done to develop our country and to deliver services to the
people, depends on the work of public servants.
Pubic sector organisations have to wage the war on the acquisition and retention of
talent= effective and efficient service delivery.
Human resource management: The management of an organisation’s workforce
through effective and efficient acquisition of employees, the maximisation of their
potential and the management of their relations.
Human resource management in a
developmental state
South Africa requires of public officials to respond effectively and efficiently
to the demands and needs of the developmental state.
There is an emphasis on enabling effective human capital management
which translates into competent public officials.
Human capital management: The approach to staffing which perceives
people as assets whose current value can be measured in terms of
productivity and whose future value could be enhanced through investment.
The development of the staffing function into human
capital management
Modern human capital management is very different from the staffing function of decades ago. Various
approaches to the study of human relations:
- Scientific management: emphasised the ‘economic man’ principle where employees are part of the
production process and should be productive because they have incentive of being paid well.
- Human Relations Approach: Highlights employee productivity as a consequence of job design, rewards
(economically, socially and psychologically), impact on employee’s emotions/feelings, treatment of
employees.
- Human Resources Approach: managing people as resources
- Talent management approach: Denotes the reciprocal relationship between employer and employees.
- Human Capital Management: employees as intellectual capital
Note:
Although an emphasis is placed on human capital management in this study unit, in the
Public Sector the concepts of human resource management, talent management,
capital management are used synonymously with no real difference in the manner they
are implemented.
What is of importance is an emphasis on Strategic Human Resource Management
(SHRM) which is the integration of human resource functions within the overall
organisational strategy.
- See page 329 (Human resource development strategy 2010-2030 by the Dept. of Labour.
Developed in conjunction with the NDP).
Traditional HRM vs Strategic HRM
The legislative framework supporting human
capital management
The Public Service Act, Proclamation 103 of 1994
The Labour Relations Act, 66 of 1995
The Basic Conditions of Employment Act, 75 of 1997
The Public Service Laws Amendment Act, 47 of 1997
The White Paper on Human Resource Management in the Public Service, 1997.
The Employment Equity Act, 55 of 1998
The Skills Development Act, 97 of 1998.
The Public Service Regulations, 2001 (Notice R1 of 2001)
Functions in strategies to acquire human capital
1. Human resource planning: Process of systematically reviewing organisational needs for human capital against supply
to ensure that the right employees are available.
2. Job analysis: Process of determining the jobs and proficiencies inherent in a position. Ensures that a proper
hierarchical structure of management levels and competencies are created in which posts are placed. Products of
job analysis= job descriptions and job specifications.
3. Recruitment, selection and placement: Process through which the right candidate for a position is attracted to a post,
selected for an interview and any additional selection instruments, and offered a position once successfully selected.
4. Retention: function of ensuring that employees view their current position and placement as a starting point for their
career in the organisation. Retention includes the emphasis of ensuring that the incumbent of a position is both
challenged and motivated to perform and excel. Key attributes: Human capital development, compensation
management, employee wellness.
5. Termination of services: Function undertaken for 3 reasons- retirement age, dismissal as a result of disciplinary
action, death or ill health.
End
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