THE CHALLENGE OF HUMAN |, RESOURCE MANAGEMENT: AN INTRODUCTION Learning outcomes Ater studying this chapter, you should be able to © describe the foundation of human resource management (HRM) a define HRM explain what is meant by the ‘societal embeddedness’ of organisations, management and HRM, and how it relates to sustainability demonstrate why and how HRM is central to value creation by analysing the process of organisational value creation from an open-system, supply-chain perspective show how HRM adds or creates value by outlining the process and scope of HRM work briefly demonstrate the complex nature of HRM by showing how HRM interplays with numerous variables explain why HRM involves various role players provide a brief overview of how HRM has developed over time 1.1. Human resource management: Foundations, definitions and significance Human resource management (or HRM, the acronym used in this book) is rooted in work as a socieconomic human activity and as performed mainly in the context of organisations. Organisations and work, as socio-economic phenomena, are central to modern-day life. Most adults have to engage in some form of work to be able to earn and make a living. Today millions of people do so by working in and for organisations — but millions are also in need of such work. One of the most pressing global challenges, and particularly in Africa, is to create decent work through which people can earn decent pay to enhance their standard of living and quality of life. The title of a 2012 publication says it all: ‘The ultimate 21st century challenge: Good jobs’. And, as the publication states, ‘everywhere on the face of the planet, mankind's biggest perceived need is a good job’. In the formal sense, that means steady, ongoing work in organizations that reward people with a ‘decent wage’ (Trends E-Magazine, 2012: 1). Scanned with CamScanner4 South African Human Resource Managoment: Theory and Practice With decent work comes personal growth, better skills and education, better chances of developing enhanced living standards, and a sense of self-worth and meaning(ulness in life, One of the best ways to adress problems related to poverty (which is a common challenge globally) is to create opportunities for paid work, HRM centres on pay-earning work and the people engaging in such work in, for and with different kinds of organisations. NEED FOR SKILLED * WORKERS ONTHE INCREASE GLOBALLY . ‘A global study conducted by the McKinsey Global Institute analysed statistics, trends and developments in 70 countries which, collectively, generate 96% of global gross domestic product (GDP) and which are home to 87% of the world's population. The study made some interesting findings, some of which we share here, From 1980 to 2010, the number of workers in the world rose by 1.2 billion to approximately 2. billion. Most of this growth was in developing economies, where a massive ‘farm-to-factory’ shift took place that raised non-farm jobs from 54% of global employment in 1980 to nearly 70% in 2010 ... This shift not only drove the growth of national economies in China, India, and other developing countries, but also contributed to the exit from poverty of an estimated 620 million people worldwide in the past 20 years. ... China added 121 million non-farm jobs in its expanding manufacturing and service sectors in the past decade; more than 80 million of these were filled by workers shifting out of low-productivity agriculture ... About 33 million jobs were created in manufacturing. ... India followed a similar path ... In the 2000-2010 decade, for example, India created ... 67 million non-farm jobs, . The ‘young developing’ countries of South Asia and sub-Saharan Africa continue to benefit from a demographic dividend ... Countries like Bangladesh and Nigeria could be well positioned to take on more of the world's labour- intensive work as costs rise in China and India. Over the next two decades, China will be replaced by India and the “young developing’ economies of South Asia and Africa as the leading source of new workers in the global market. These nations will supply 60 per cent of the more than 600 million net new workers that we project will be added to the global labour supply, bringing the total global labour force to 3.5 billion in 2030. ... India, South Asia, and sub-Saharan Africa will add the most workers through 2030; China and India will lead in [terms of numbers of] workers with tertiary education Rapid growth in services sectors and knowledge-intensive manufacturing will increase demand for high-skill workers. To create better outcomes for workers and economies, policy makers and business leaders across the globe will need to find ways to vastly improve the capacity to provide job-relevant education and training. And, in both developing and advanced economies, new approaches to job creation for low. and middle-skil workers will be required. Life is work-driven, and modern-day society is very much organisation-driven. Various kinds of organisations influence our lives in some way almost on a daily basis, and often from birth (e g hospitals) to death (e g funeral undertakers). All Scanned with CamScannerChapter 1-The challenge of human resource management: An introduction § organisations have work to be done, which is why they generally need the talents and energy of motivated people to do it. By the same token, millions of people rely on organisations to use, apply and develop their talents through work, and to thereby earn a living and enhance their standard of living and the quality of their lives. It is working people who make organisations, and therefore society, work. This is the foundation of HRM and why it is such an important field of theory and practice. It is increasingly acknowledged that the ways in which organisations engage people and optimally utilise, develop and retain their talent for organisational and societal purposes are crucial for a sustainable world. Boxall (2013: 4) says that ‘human capabilities are critical to conceiving, growing and renewing organisations. Only people have the talents that can make organisations viable, and they offer ways of doing so that create unique sources of value ... [Human resources create the possibility of competitive advantage.’ The following is also stated in a recent report by Strack et al (2012a: 6) based on a survey of thousands of company executives spanning numerous industries in over 100 countries: ‘The shaky global economy and chronic business uncertainties appear to have motivated many companies to sharpen their people-management skills - a trend that recognizes and affirms the competitive advantage that people increasingly represent.’ The ways in which we manage the work and the people doing the work of, in and for organisations are not only crucial for the sustainable competitiveness of organisations but also in particular for enhancing the quality of the lives of the working people themselves, and of all those who need and use the products and/ or services of organisations. HRM is therefore crucial for sustainable societies and a sustainable world. But what precisely is HRM? The concept has been defined in various ways throughout history (see also section 1.7). It is therefore important that we clarify from the outset of this book what we mean by HRM, and how the authors’ approach may differ from that of other scholars. We regard HRM as being focused on all aspects pertaining to the management of the work — and the people doing that work - of, in and for organisations. Most people working in and for organisations do so as employees. An employee isa person who engages in an employment relationship with an organisation (also referred to as an employer in such contexts). In the past, a number of publications on HRM limited the focus and scope of HRM to those people who work as employees of organisations. This approach to HRM is often regarded as ‘a modern term for what Was traditionally referred to as personnel administration or personnel management’ (Byars & Rue, 2011: 4). Kramar et al (2011: 4), for instance, seem to take such an approach when they describe HRM as referring to ‘the policies, practices and systems that influence employees’ behaviour, attitudes and performance’. Similarly, Armstrong (2016) defines HRM as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organisations. The current authors believe these views are too narrow because HRM is not limited to only managing aspects related to employment or to the ‘personnel’, or employees, of organisations. Scanned with CamScanner6 South African Human Resource Management: Thoory and Practica Although we do acknowledge that in most organisations mest cl te people who do the work are the employees, we also know re ns oon; other ways to arrange things to get the work done, as highlighted He al ). For example, non-employees such as consultants frequently help, a 7 of the work of organisations may be subcontracted (outsourced) to outsice suppliers and vendors. Deciding whether to outsource certain work also falls within the HRM domain. We therefore believe that managing such issues forms part of HRM and hence ‘the human resource function’ of organisations. Scholars are increa ingly adopting such a broader, more comprehensive, approach to HRM. The definition of HRM given by Byars and Rue (2011: 3) reflects this broader approach: ‘Human resource management ... encompasses those activities designed to provide for and coordinate the human resources of an organization.’ Byars and Rue (2011: 5) add, however, that ‘talent management’ is the ‘new and all-encompassing term used in the human resources field’, They explain that talent management refers to ‘the broad spectrum of HR activities involved in obtaining and managing the organization's human resources’. In Grobler et al (2012: 18), it is also stated that talent management is a relatively new concept ‘only emerging in the 2000s’, and that it is ‘closely related’ to the more innovative approaches to HRM. Drawing mainly on the work of Schweyer (2004) and Armstrong (2006), it argued that what is new in this is not ‘the HRM activities to manage talent’, but that it reflects ‘a more coherent whole’ (Grobler et al, 2012: 19), Although it may be true that talent management as a concept has come to be used relatively recently, as authors we have adopted a similar holistic approach to HRM since the inception Of this book. Before the 21st century, the present authors wrote that HRM refers to ‘the management of people in relation to their work and the organisations where they work’ (Swanepoel et al, 1998: 5). We still adhere to this broad and holistic approach in this book. Such an approach to HRM is also rellectedl in the Oxford Handbook of Human Resource Management (Boxall et al, 2007), We therefore define HRM as that part of management thar is concerned with all aspects related to the people who do the work of, in and for all the organisations in society, n management, organisations and society, ave said, v in al role in how the world works and in our lives. if Properly attended to, HRM adds great value to People, organisations and societies — and therefore it is crucial to get it right, In line with our holistic approach, : is primarily because even organisations that do not have an HR department, or any specific positions that are dedicated to HRM work, will in some way or other Practise aspects of HRM. And it can be argued that aspects of HRM are found even in small economic entities such as households ~ for instance, when one employs people such as domestic werk Scanned with CamScannerChapter 1 -The challenge of human resource management: An introduction 7 tika (2011) offers a broad view that highlights HRM as a practice that happens wherever there is more than one person. HRM starts at family level, where the family members take different roles and responsibilities for the accomplishment of family objectives. The head of the household would harness all available resources, including people, to find the best in them in order to achieve whatever may be needed or desired. Indeed, division of labour depends on the philosophies, values and expectations of family members, which are rooted in the wider society, be it a clan, tribe or religion. In Grobler et al (2012) the more limited view of HRM seems still to be followed. Grobler et al (2012: 2) argue that ‘organisations now require HRM to play an active role’ in helping organisations to be successful, that ‘the HR function’ must help to find ‘creative ways to add value’ and that this seems ‘to require a repositioning of the HR department’. As mentioned, we regard the ‘HR function’ (and HRM) as broader than the work and role of an HR department or HR practitioners (or HR specialists or professionals, as some refer to them). We adhere to the concept of an HR function as conceived more than half a century ago by E Wight Bakke (1958: 5-6), and as quoted by Kaufman (2007: 34): The general type of activity in any function of management ... is to use the resources effectively for an organizational objective ... The function which is related to the understanding, maintenance, development, effective employment, and integration of the potential in the resource ‘people’ | shall call simply the human resource function. Once there is a need for a person to get the work of an organisation done, some form of HRM is required. In terms of producing work, what the organisation needs is what the human can offer ~ and that is the essence of the term ‘resource’ in HRM, The resource is locked up in the human. People possess attributes such as knowledge, skills, capabilities, talents, energy, and so forth, which can be used by organisations to get their work done. Organisations that need and use people to get their work done therefore engage in some form of HRM, irrespective of who is managing those aspects related to the work and the people who do the work. In organisations, managers therefore manage human resources. As Bakke stated in a seminal lecture (cited in Kaufman, 2007: 34): ‘The first thing we ought to be clear on is that there is nothing new about the managerial function of dealing with people ... Like other sub-functions of management ... it has been carved out of the general managerial function, not put into it’ We believe that even though some people do specialise in HRM work, HRM is an integral part of managerial work in general. As elaborated on in the next section, organisations, management and HRM make up an integral part of modern- day society. It is therefore essential for anyone interested in how organisations, economies and societies function to learn more about HRM. All over the world, and South Africa is no-exception, HRM is recognised as a challenging, dynamic and evolving field of theory and practice. Scanned with CamScannerTheory and Practice 8 South African Human Resource Management: Theory gement as embedded so ability challenge of HRM d managers are assigned the anagem is therefore important to outline this conte 1.2 Organisations and mana phenomena: The sustain Organisations exist within societies an‘ responsibilities within organisations. Iti in the sections below. etal 1.2.1 Organisations and management _ The immediate context in which HRM is practised is ire organisation, i, important to clarify this contextual setting. We concur wit *iatson (2007: 108), saying that “HRM processes are organizational processes. They occur within sf work organizations and they cannot be understood separately from the Way in which we understand organizations themselves. The same can be argued about management more broadly.’ We all come into contact with organisations regularly. Most of us were bom in, or with the aid of, organisations (such as a hospital), and we are educated with the aid of organisations (such as schools and universities). This book was developed with the aid of organisations - in this case, most notably the publishing house Juta, and certain universities. Most of the food we consume would not be available were it not for organisations that make and distribute it — from the commercial farming enterprises that produce it to the retail outlets where we buy it. We can See organisations and their outputs (their products and services) and outcomes (he effects they have on society) all around us, and yet we hardly ever think about what organisations are or how they operate. To understand HRM, we must enhance our understanding of organisations as societal entities. We now therefore briefly takea closer look at what organisations essentially are, ‘An organisation can be described as people and other resources that are put together in co-ordinated ways for specific Fundamentally, society and its people. d ‘ons, resources are specifically mobilise so that the vast range of needs and interests of society can be served. There © organisations exist by Through organisati outcomes (private hospitals also seek Profits fro, 7 lic hospitals do not), even though they wy ™m their services, whereas P' St t0 serve the same purpose, namely: Scanned with CamScannerChaptor 1 -Tho challongo of human rosource management: An introduction 9 provide healthcare services. These are just two examples of organisations with different purposes and goals and serving different interests. Some organisations are businesses striving to make profits from the services/ products they offer and deliver (such as well-known South African businesses Absa, Anglo Platinum, MediClinic, MTN, Nedbank, Pick n Pay, SABMiller, Shoprite and Vodacom). Some are public-sector organisations, such as national government departments (e g the Department of Health); provincial government departments (e g the Gauteng Department of Community Safety); local authorities or municipalities (e g the City of Tshwane); state-owned enterprises (e g Eskom and South African Airways); or statutory agencies, such as the South African Human Rights Commission. Some are non-governmental organisations and other types of non-profit organisations, such as trade unions, churches and welfare institutions. Irrespective of their type, all organisations generally continue to exist only if they meet and serve particular societal needs, and in many instances only if they can do this better than other organisations. At the centre of all these different organisations are human resources (people) tasked to carry out different roles and activities in order to ensure that the purposes and outcomes of these organisations are achieved. The continued existence of organisations is basically a function of the extent to which they can be successful. This is broad and generally stated. They must at least be successful at delivering the ‘goods’ and meeting the relevant societal needs they serve. To understand what we mean by ‘successful’, see Figure 1.1. Efficiency qual ; ori Z ie Dothe right things | $°° xc Dothings ight | oa Performance Be successful Sustainability quer Figure 1.1: Organisational success Organisations can be said to be successful if they deliver the right goods in the right ways. The former is known as the effectiveness of organisations and the latter as their efficiency. The ‘right goods’ refer to the products and/or services that a particular organisation provides (for instance education, healthcare, radio and television programmes, electricity, minerals, beer, cellphones or groceries). Effectiveness is not sufficient, though. All organisations also have to ‘do things right”. This means that, in providing these right goods, they must also function in such ways that all the stakeholders of the organisation — in particular the customers or users of these goods — are optimally satisfied with the products and/or services, Scanned with CamScanner10 South African Human Resource Managemont: Theory and Practice and with the other organisational outcomes. For example, pean eee of the goods must be right and they must be provided at the rig er i right time and at the right place. Customer satisfaction is therefore essential — but that is still not sufficient. 7 Stakeholders of an organisation are those who have a stake, or an interest, in it. Organisations generally ave many types of stakeholders (see Figure 1.2) These may include government, banks, suppliers, other similar and pethaps competing organisations, and the workers and their trade unions. From a stakeholder perspective of organisations and management, all these stakeholders must be satisfied with the organisational outcomes, as far as this is possible. The diverse interests of the wide range of stakeholders often differ, however, which may lead to tensions and paradoxes. If the customers and other stakeholders are optimally satisfied, the chances of organisational survival and continued existence are generally greater. We can take this a step further and say that at the minimum, an organisation must be able to survive but the aim would be to make it thrive. The better an organisation performs. (ie the more effective and efficient it is), the more it will be able to thrive rather than merely survive. The effectiveness, efficiency and performance of organisations are therefore central to organisational success. Organisational success is beneficial to society because it implies that the needs of society are met and useful purposes are served. Hence, by means of successful organisations, valuable contributions are made and value is added to society’s quality of life But success does not just happen on its own. A lot of work needs to be done to Co-ordinate the people and other resources effectively and efficiently. People must do the work that makes this happen. The single most important resource of any organisation therefore resides in its People. Without the work talents, capabilities and energy of people, no organisation can survive, let alone thrive or succeed. Some people are specifically given the role, task and responsibility to make sure that all that is required to bring about organisational success ie attended to. These People are generally referred to as the mana in the right ways, people and other resources are therefore brought together in organisations that aim to thrive by fulfilling ic Useful purposes as best as they possibly can. This is the work domain of managers (see Figure 1.2), do the work of organisations. Schools rt staff to help children learn and ssionals, such as doctors, nurses and 7 form the work required in the care of Patients. Manufacturing companies require people to do the work related to their manufacturing processes. Retail organisations require, among other things, people to keep shelves stocked, to work as cashiers and to serve the customers in many other ways. It is common to refer to the people who work for such organisations as personnel, employees, staff or human resi *Ources. Such people play a fundamental role in the performance and success of organisations generally ~ and inde of Scanned with CamScannerChapter 1-The challenge of human resource management: An introduction 11 national economies and entire societies. In general, we can therefore say that the ‘people factor’ is at the very core of organisations, of management and of economic activity of all societies worldwide. HRM revolves around this so-called ‘people factor’ and how working people can bring about organisational success and a better quality of life for all the stakeholders of organisations, including the people who do the work, = Trade unions Employer groupings Figure 1.2: Organisations, managers, resources and stakeholders This book therefore fits into the field of organisation and management studies. Waddell et al (2011: 5) explain that management is the ‘planning, organising, leading and controlling of human and other resources to achieve organisational goals effectively and efficiently’. The prime importance of the human factor is Clear from this definition of management. Bartol et al (2011: 6) also illustrate the Scanned with CamScanner12. South African Human Resource Management: Theory and Practice centrality of the human factor in management by drawing on veces description of management as a ‘social discipline dealing with the behaviour o people and human institutions’. To manage in an organisational Context is to get work done and to make organisations successful by means of working people and other resources. ; Some of these resources are tangible (e g land, buildings, machinery, water, money and equipment); some are less tangible (e g human energy, and the knowledge, skills and atitudes of working people). All ofthese resources have to be sourced, brought together in co-ordinated ways, utilised and transformed into needs-satisfying goods (products and services) while balancing the interests of all organisational stakeholders and doing what is good for society generally. These are the roles and tasks of management. 1.2.2 Societal embeddedness, the sustainability challenge and the human resource factor Organisations and managerial work are important, but also relatively complex and hence challenging societal phenomena. This is even more so because organisations are an intrinsic part of broader society and hence closely intertwined with other aspects of our world and lives. We live in an era in which acknowledged that organisations have a tremendous impact on s well beyond the products or services they provide. Organisati Provide work and hence opportunities for millions of people to grow through that work, and make a living. As mentioned earl challenges facing nations across the globe today is to create mi People to have decent pay-earning work. This world of worl at the very foundation of HRM but also of organisations, societi large. All kinds of organisations, and all the managers of those organisations, ought {0 Play a central part in creating opportunities for decent work that ens hen ome basis of enhanced quality of life. The International Labour Organization (201 1a: i) says the following on the issue of decent work. it is increasingly ‘ociety, which goes ions, for instance, be able to work and ier, one of the main }ore opportunities for therefore not only ies and the world at Decent work is central to efforts to reduce poverty and is a means for achieving equitable, inclusive and sustainable development. It involves opportunities for work that i their families, and gives peop! le the freedom to exp) organize and to participate i in decisions that affect t Unfortunately, the stark reality today is that, wor Id) it of such work (see Exhibit 1.2). Thi ser a hen 8 hese seatcly s situation poses a thi i A er reat for in numerous countries, including Soi social stability uth Africa. organisations, including our political parties, trade Unions, business or; i non-profit organisations and all organisations in i ene one be crucial for the sustainability society so dearh ress their concerns, to their lives. ly needs, Scanned with CamScannerChapter 1 — NEED FOR GOOD WORK RATES. ABOVE PEACE AND SECURITY ‘Recently, the Gallup Organization assembled world-wide polling data that clearly showed that everywhere on the face of the planet, mankind's biggest perceived need is a good job ... formal, | steady work from an employer, of at | least 30 hours per week, which pays a “decent wage" ... [Having this good job was more important than having a family, | their religion, or various ideals such as | democracy, freedom, and peace. | ‘Over the past 30 years, this shift / in mankind's number one desire from peace or security to wanting a job tracks globalization and the increased share of the world’s population that’s moving up from subsistence living. A growing awareness of better lifestyles is driving people to take the necessary steps to get there — and the path to attaining that | lifestyle is a decent job. Consequently, | the demand for decent jobs is increasing. “Unfortunately for all these job seekers, there is a global jobs shortage. | Of the 7 billion people on Earth in 2012, 5 ) billion are over the age of 15. Of those 5 The challenge of human resource management: An introduction 13 billion, 3 billion say they want a full-time, formal job. The problem is there are only about 1.2 billion of those jobs in the world today. That means there is a potentially devastating shortfall of nearly 1.8 billion jobs. Even if we assume 10% of these People want only part-time work, the real global unemployment rate is a whopping 50%! ‘Consequently, stimulating job growth has become the new priority for all leaders, because failure to do so will lead to instability. In his book The Coming Jobs War, Gallup Chairman Jim Clifton underscores this point when he states, “If countries fail to create jobs, their societies will fall apart. Countries, and more specifically cities, will experience suffering, instability, chaos, and eventually revolution. This is the world that leaders will confront.” “Viewing world events through this prism, it's easy to understand the current state of widespread unrest Clifton reminds us that nearly @ quarter of the world’s population is currently experiencing or has the potential to experience job-related societal stress and instability.” Source: Trends E-magazine (2012) Unfortunately, however, organisations can also have negative impacts on society. Apart from managing organisations in ways that do not support the creation of decent work opportunities, there are many other negative outcomes as a result of not properly managing our organisations. These include the pollution of the planet; not providing customers with products or services that are good value for Money; impacts that are detrimental to societies generally; and negative impacts on the quality of life of the people working in and for organisations, and that of their families and friends. This brings the sustainability challenge to the very core of organisations and management in our modern world. The role played by organisations in our global sustainability challenge has become a prime focus worldwide. Dunphy et al (2003: 3) make a clear, generic case that we are, to use their words, ‘faced with an extraordinary situation’: Never before in the history of the world has the viability of much of the life on this planet been under threat from humanity; never before have Scanned with CamScanner14 South African Human Resource Management: Theory and Practice 50 many of the world’s people experienced such material wealth and so many others lived in abject poverty; never before have so many had such interesting and fullillng work and so many others such degrading work or no work at all. Ifwe are to live healthy, fuliling lives on this planet in the future, we must find new life-affirming values and forge new patterns of living and working together. Organisations and managerial work of the 21st century are key to the sustainability of the earth and the future of humankind. Organisations and managers must therefore have a broader mandate than merely delivering products and/or services, Their mandate is also very much about working people and society at large - and hence the world that we live in. It is about how we build places that provide decent work and where we as people can work together and add value now, and also value that will last so future generations will share what our planet has to offer. Therefore, managers become stewards of that which this world offers us — the natural resources and our place of habitat. Dunphy et al (2003: 67) refer to the organisation’s ‘connection with its key stakeholders and the notion of a social and ecological contract negotiated by management with these stakeholders’. In a sense, this is almost becoming the ‘license to operate’ for modern-day organisations and managers. The same authors propagate the centrality of the human dimension in efforts towards sustainability. They refer to ‘human sustainability’ and say that any organisation should accept ‘responsibility for the process of contributing to and upgrading human knowledge and skill formation within the organization itself because it makes good business sense to develop the intellectual and soctal capital of the workforce «+: This upgrading is also valuable for its own sake and reflects the organization's commitment to treatis also contributes to a society where human capabilities, are enhanced ... and this . improves the quality of life in society as a whole’ (Dunphy et al, 2003: 70). fiemly ine oe we want to locate this book and HRM olen fast-changing ian — a ge challenges and, amid the flux and turmoil See ie the 21st century must deal with issues that ae > in scope, and that directly interface with life '¢ sustainability of our planet. And the human factor is central fe the people of this planet, are the ! world. We work in and for organis, eo ee ions, y of resources, including People offer, in an uncertain and ering needs-satisfying products and managers are challenged to bring together a vast sn the work talents, capabilities and energy that challenging environment, with the aim of deliv Scanned with CamScannerChapter 1 - The challenge of human resource management: An introduction 15 services as effectively and efficiently as possible, to the best possible satisfaction of all stakeholders and with the distinct challenge to do all of this in ways that enhance sustainability. Our view is that itis through HRM that such a holistic approach to organisations and management can and should help bring about improved quality of life and sustainability. We hold this view for two reasons primarily: u Only people can really make the difference between a sustainable or unsustainable world, and HRM is that part of management and organisations that revolves around the people. All managers, by definition, manage human resources, making HRM the generic managerial task and challenge. We do not wish to downplay other aspects of management. Although we regard HRM as the key challenge of managerial work and organisations, we acknowledge that management entails much more. It includes such things as research and development, marketing, public relations and the management of the financial affairs, logistics and operations of organisations. However, irrespective of whether someone is an operations manager or a logistics, marketing, financial or public- relations manager in an organisation, as a manager he or she generally works through and with other people to get the work done. All managers manage human resources, which is why HRM is central to all managerial work. Section 1.3 looks at HRM from an open-system perspective. 1.3 Open-system perspectives to human resource I management A system can basically be regarded as a set of interconnecting and interdependent things or parts, arranged in a united way to work together as a whole. It should be clear that organisations can be regarded as systems. Clegg et al (2005: 504), in Managing and Organizations, say a system involves ‘a stable set of relationships between inputs, transformation processes, and outputs’. A distinction is made between open and closed systems. A closed system is one that is insulated from the environment outside of it, and thus is not influenced by it. By contrast, an open system is in constant dynamic interaction with the environment outside of it, and as such it is influenced by the environment and, in turn, it also influences its external environment. We regard organisations as open systems, which is clear from what we have said thus far. Organisations can also be viewed as operating like a ‘chain of interconnected nodes’ that create value by developing products and/or services that are valued by others. Depending on the size of the organisation, there are several nodes that are interconnected for the creation of value. Examples of these are finance, marketing | and sales, production and operations, etc. We regard these nodes as a way of | __Categorising the work that organisations are required to do in order to convert __ inputs into outputs. This way it is clear that the work done in organisations is at the core of the value chain, and hence the people who do the work must also be at Scanned with CamScanner16 South African Human Resource Management: Theory and Practice its core. We therefore do not go along with Porter's original conceptualisation that i 4 activity’. Our view is that HRM is an integral, central a ort function or activit part of the process of creating value and not a mere pes eee ity because itis people who are involved to ensure that each node is func ae tokeep the system (organisation) in existence. We believe that Porter’s conceptual isation is too narrow a conception of HRM. HRM is at the core of management because it is the working people in organisations who add value. ; Without the human resource, no other activity can happen in organisations, People think about and consider what the market needs or wants. People make choices about what products and services to develop and deliver, and how to do these things (people devise the strategies, operational technologies and so forth) People in organisations determine which resources or inputs to acquire and how best to go about doing so. People do the work to convert or transform these inputs into the actual services and/or products as they go down in the mines, work on the production lines and service the customers. People sell and distribute products and services so they are acquired and used by customers. And only people can choose tomake the difference beyond creating mere customer value — for example, people in organisations make decisions about such things as corporate social responsibility, ethical business conduct and contributions to society and sustainability generally @ A CASE AT HAND 1.1: INVESTING IN PEOPLE AT SASOL Sasol is a global integrated chemicals and energy company proudly rooted in South Afric losophy is to build @ sustainably profitable igh-performing people, who shape the future. the company has a well-defined employee at ‘esentative trade unions and works councils respecte, {gons. namely South Aftica, Mozambique, North Ametice ad terns respectively hese stakeholders Tetain consultative or negotiating powers on issues al interest. More than 60% of employees gl ons ewer re ployees globally are members of trade unit alth and Environment, All safety training. a Through its leadership programmes, $; ir 0 . Sasol builds leadership capability, enhances the abit to spreeeaat4 develop employee talent, leverages diversity and deepens i i nae hth ection of eur global Context. Globally, all leadership programmes are tne with the company's vision, Purpose, values, aspirational culture and leadership Source: Sasol Limited (2018; 2021) Scanned with CamScannerChapter 1~-The challenge of human resource management: An introduction 17 1.4 Scope of HRM work There are many environmental variables and forces outside the organisation that impact on and interact with it, These we categorise, for conceptual purposes, as PESTEC (political, economic, social, technological, ecological and competitive variables). The required resources are brought into the organisation in order to develop and deliver the needs-satisfying products and/or services and other outcomes. People are at the centre of transforming these resources inside the organisations. From a process viewpoint, the scope of HRM work is broad and includes people resourcing, people utilisation and empowerment, people care and reward, and talent retention and diffusion. People resourcing refers to all that needs to be done in order to secure for the organisation the right work talent and capabilities, at the right place and at the right time, to help ensure organisational success. This entails thinking strategically about the overall needs of the organisation and its required work over the long term, and in particular the required work talent and capabilities to get all the work executed in optimal ways. The total ‘work and people system’ of the organisation — also referred to as the HR architecture of an organisation — must be considered and designed. This involves several elements: What work will need to get done when and where? How will the work be organised, including the work pertaining to managing the people? Which work might be outsourced, and which will constitute the core work of the organisation? What will be the general approach towards managing employees and others who might help to get the work done? And what will be our employer brand? The organisation has to design the work and its structure in ways that facilitate efficient and effective work execution. In addition, it will have to develop strategic as well as more operational plans regarding the work and the people to do it. This will include workforce planning, where the focus is more on what types of jobs we have and what numbers of what kinds of working people will be needed if the organisation is to achieve its goals and mission. These things form part of Preparatory HRM work — which is about preparing for, planning and organising the work and people systems of the organisation. People resourcing goes much further than this Preparatory HRM work, however. It also includes the work activities associated with finding and engaging the appropriate people, such as the recruitment, selection and appointment of employees. The organisation has to search for and find talented, capable people who willbe keen t join it and work with it and then it will have to decide which ese people to employ or engage otherwise, These activities entail recruitin; work roles. The organisation then ha Scanned with CamScanner18 South African Human Resource Management: Theory and Practice may also recruit and select from inside — from the people who oe within it. In addition, and importantly, it may use alternative avenues oP pl urcing This may entail entering into relationships and contracts ie rf ler ne that provide specialised work-related services operations of the organisal en may also make use of labour provided by employment agencies to get some of its work done. As the organisation considers these options and searches for and finds such service providers - and negotiates with and engages them — it is performing what we term ‘people resourcing’. : People who have been made part of the organisation and its work system should then be afforded the opportunity to contribute to making the organisation more successful and have a meaningful work experience, which enhances their own lives as well. This we refer to as people utilisation and empowerment. Such people should be empowered to add value in terms of what the organisation has to achieve, as well as to the quality of their own lives. The capabilities of the people should be matched by an organisational and work environment that do justice to the Potential, talent and energy that they bring with them and into the relationship. The work and organisational environment should be such that working people want to and can perform well in their work. Organisations have to strive towards providing decent work, decent workplaces, decent working conditions, decent rewards and recognition and decent opportunities for growth so people can enhance the quality of their lives. They must ensure that the people working for and with them are motivated to channel their talents and energies towards being productive and to derive meaning and joy from what they do and from their work relationships. This will require leadership that empowers the working people appropriately. Helping people improve their work performance and develop their careers are just as crucial, and in this regard the key is training and developing employees and other working people. Org anisations have to unlock the potential and talents of people, develop and enhance their capabilities and help them achieve their Own Boals. These activities should be aimed at aligning organisational needs with personal aspirations and potential and with creating a place of work that is meaningful. is taken of this issue, However, aligned with the in this book, we believe that more than ke. It is part of HRM to ensure we do 8 Of our working people. In fact, from ‘an this. We believe that organisations ng of those people and parts of society his we mean the families, households ple come from. At the most basic level People are paid decently and fairly. As millions of people must find work to be ortance that organisations reward people safety is at sta things to help improve the general well-bein a sustainability perspective, we go further thy should also help to take care of the well-bei where we do our people resourcing, By t and communities where our working peo of care, we must make sure that working explained earlier, in modern-day society able to make a living. Its of critical imp Scanned with CamScannerChapter 1—The challenge of human resource management: An introduction 19 appropriately in return for the value they add to them. Part of this category of HRM activities is to ensure we develop healthy relations with our working people as well as those people and organisations acting as their representatives in work- related matters. This includes trade unions in particular. Even when relationships with working people cease, we have to do everything we can to make sure that issues are handled in a decent, fair and dignified way. We must never forget that the people who formerly worked in and for our organisations can be very powerful in terms of building or destroying such organisations’ reputations as employers and in places of work. The way in which we terminate the services of employees hence also plays a very important role in this matter, and forms part of this area of HRM. This leads us to another facet of HRM, which we refer to as talent retention and diffusion. This is not so much a category of specific activities similar to those introduced thus far, but can be regarded as a culmination of whatever we ultimately do when we manage our human resources appropriately. You will recall that in the first category of people resourcing we referred to securing the right working potential and services that working people might have to offer our organisation. If we do this and we get these people to work in and for the organisation, it is then essential that we do whatever we can to retain their services. The people who do good work, perform well, are productive and add good value should, ideally, be kept or retained. Generally speaking, if organisations do well in terms of people empowerment and utilisation and employee reward and care, the chances are greater that we will retain our highly regarded talent and high-performing working people. There are, however, numerous factors beyond the organisation's control that may lead to situations where the working people and the organisation part company. It may even be specifically decided to bring this about. When this happens, we would like to think of it as a process whereby the organisation diffuses back into society people who are better equipped to add value elsewhere, compared to before the time they worked with the organisation. We therefore send people back into society who have been empowered to add value, either as working people in and for other organisations in the web of value and supply chains, or perhaps in other capacities (such as owners of their own organisations). When HRM is practised properly and the working people and an organisation part company, value is added if people have been empowered to add better value. From this discussion, you should have a good grasp of the scope of work covered by the HRM subsystem/node of organisations. It is comprehensive in scope and entails more than we have covered thus far in this section. The world in which we live and work is fast changing, and a lot of variables and forces are at play. Not only do we have to manage human resources within national boundaries but there are also variables beyond national issues and challenges that have to be factored in. Many factors interplay with organisations and the people who work in and for them, which makes change in organisations inevitable. Moving an organisation from a present to a future, more desirable state requires change dynamics. The mere fact that organisations are in motion towards future accomplishment means change is taking place all the time. This is similar to what happens to humans. We are constantly changing ~ from conception to the completion of the cycle of life. Scanned with CamScanner20 South African Human Resource Managoment: Thoory and Practica Own unique background in respect of education, expotiences, culture and horeditary factors, ate UeMicneec nner ena - Objectives —Physical ~ Strategies needs ~ Structures — Motivation —Financial ~Personality conditions — Intell . — Marketing Expectations poston andiine Culture and ~Values, beliefs head climate — Perceptions or aed ~etc = Knowl make a _ oa living _____| ~Responsiites ~ Attitudes lt a ~ete eS | Work that has to be done ‘Scope of HRM work resourcing ~ People empowerment and utilisation ~People care and reward ~Championing change ~ Managing HRM-related information ~ Add lasting value (sustainability) Figure 1.3: The interface: people, organisations and work Scanned with CamScannerChaptor 1-The challenge of human resource management: An introduction 21 As we experience and learn more (and this happens all the time, even though some may not realise it), we undergo change. HRM without the change management ingredient would be incomplete and inadequate. We believe that the championing of organisational change is part and parcel of HRM because people who bring about change in organisations. In South Africa we are in a particular phase where change and transformation are crucial for our future. That is also why the approach of this book is to gear HRM towards infusing holistic thinking and practice into management and organisations, making sustainability and quality of life central to the dynamics and objectives of organisations. Not only should HRM be geared towards adding value to the organisation's efforts to deliver needs-satisfying products and services through high-performing working people (as individuals or as groups) but the aim should also be to add value to the people themselves and to their quality of life — and, more broadly, to society and our planet from an ecological perspective. By taking this holistic perspective, it is not surprising that HRM is complex. It is therefore important that we become more aware of all the variables that play a role in the management of human resources. Section 1.5 briefly explores some of these variables. 7022- 0245 1.5 Variables that interplay with HRM: A glimpse of the HRM complexity challenge When people and organisations come together for work to be done, there are numerous variables that can play a role. These include the work itself, variables related to the people who do the work, variables related to the organisation, as well as factors/variables coming from the environments external to the organisation. Because of these interplaying variables, HRM can be a complex and challenging aspect of management. Figure 1.3 is a visual representation of this complex interaction and some of the variables at play. We will now briefly look at some of these variables, all of which may contribute to the dynamics of managing human resources in organisations, We start off by looking at two crucial aspects, namely the actual nature of the work and the kind of work relationship that may be involved 1.5.1 The work relationship and work When people engage in work as a socio-economic activity, various types of relationships come into play. In the first instance, a person who takes on a work role is in a particular relationship or interaction with the actual work they do. The mere fact of being ‘in work’ can be very meaningful, and not being able to work can be devastating. In the words of Morin (2004: 3): Working is vital for human beings; itis a critical activity for the preservation Of personal health ... [Work can serve as a tonic for personal identity in that it helps boost self-esteem. When an individual does a meaningful work, he actually develops a sense of identity, worth, and dignity. By achieving DUT LIBRARY Scanned with CamScanner22. South African Human Resource Management: Theory and Practice meaningiul results, he actually achieves himself, grows, a even actuaizes his full potential. Somehow, he has an opportunity to become who he is and to contribute to the improvement of his life conditions and of his community ... Although work certainly provides for basic subsistence needs and decent living conditions, this is not its only function. Work is, above all, an activity through which an individual fits into the world, creates new relations, uses his talents, learns and grows and develops his identity and a sense of belonging. To work is to exert effort in order to make something, to achieve something, to produce a desired effect. For human beings, ‘to be able to do something’ means to make it visible that ‘I; ... the subject, is active in the world, that ‘I’ exist ... As Erich Fromm pointed out, work is an effective means to deal with the angst of death and void ... [Wlorking is a meaningful way to prove one’s existence, and hopefully, that it is worth to be lived. All people who perform work in or for an organisation also have some kind of a relationship with that organisation. Many, perhaps even most, form an employment relationship — in other words, an employer-employee relationship. Certain unique rights and duties go along with these types of relationships (see Table 3.2). Employment relationships also have various dimensions. These include formal (legal) and informal (human and psychological) dimensions, individual and collective dimensions, and economic, social and time-related dimensions. We will 89 into more detail about these later in the book. It is very important at this point to be aware, though, that the type of relationship will have an important bearing ‘on the HRM dynamics. There are different types of employment relationships. Some variables are reflected in the work, and workers are typified, for instance, temporary or fixed-term versus permanent staff; full- as casual workers; oF part-time; probationary rt of their studies, such as : . There are other schemes aswell, such as learnerships, apprenticeships and skille may even work in and for anoth literature often tends to distinguis! h between ‘standard’, work or employment. ‘non-standard’ or ‘atypical’ ‘on the periphery’ or ‘precarious work’ 's {0 permanent or ongoing, full-time work oF employment and has become increasingly less ‘standard’ sl mei world. These ps hold important HRM implicati fh n iplications, even thoug! HRM is mainly, but not exclusively, concerned with People working in employment relationships. As mentioned before, the people who werk sc employees are often referred to as the personnel of the organisation. HRM therefore used to be known as ‘personnel management’. The issue at hand is broader than that today, though Scanned with CamScannerChaptor 1~Tho challongo of human rosourco managamant: An introduction 23 = itis about how the organisation can best make use of various ‘kinds’ or ‘forms’ of ‘human resources’ to get the work done as successfully as possible, Work has, however, not always been part of an organisational or employment context. Work became a kind ofa specialised economic activity only relatively recently. tis only since the advent of industrial society just over 200 years ago that work has evolved into a predominantly paid-for activity in an employment and formal organisation context. Work in pre-industrial societies (e g hunting/gathering and agrarian societies) had a different meaning and role primarily related to human- needs satisfaction for survival purposes, and mostly within a mere subsistence mindset. As we explain in section 1.7, in the era following the Industrial Revolution, and with the advent of capitalist-industrialist societies in particular, work became a full-blown economic activity as part of the processes of manufacturing systems and mass production. Today we have a society where people work for a variety of reasons, including to make a living and find meaning in life. Work, and what derives from it, plays a significant role in defining who we are in modern-day society. It is, for instance, very common for people who meet for the first time to ask each other what they do for a living. Likewise, people tend to ask children from a young age what they would like to do or become when they grow up. Although people work to make a living, they also tend to do so in order to define and determine what they want out of life. People who are very unhappy in their working tives will usually find it hard to be happy in life in general. In some sense, work has become the medium through which people tend to define who they are. The type of work we do and its monetary rewards tend to have a big impact on what we can buy, where we live, with whom we interact, how we spend our leisure time, and so forth. Even though the extrinsic rewards of work tend to be dominant in our modern-day, perhaps overly materialistic, society, to varying degrees people also tend to derive intrinsic rewards from their work. The mere fact of having pay-earning work or a job has become important — also from a sociopsychological perspective. Being out of work is generally regarded and experienced as something negative, not only from the rational economic perspective but also from the point of view of the psychological and moral or ethical dimensions that have come to be associated with work. To work is generally tegarded as good - or at least as better than being idle all the time. In South Africa and Africa, as in many parts of the world today, unemployment is a major problem threatening the sustainability of society. Globally, the issues of unemployment and the need for decent work are at a critical juncture (see Exhibit 1.2). We also elaborate on this challenge facing South Africa in Chapter 2. On the other hand, there have been cases where people would rather not work than perform certain types of work, or work for or ina specific organisation. To summarise, work is central to humankind and work as socio-economic activity is central to modern-day society. The work people do impacts tremendously on the lives of people — and not being able to work and earn a living is a major factor contributing to poverty and social instability. Therefore, quality of life, decent work and quality of work life go hand in hand. Scanned with CamScanner24 South African Human Resource Managomont: Theory and Practice Whenever people work for organisations, all these aspects of work might be at play, When people decide to educate themselves for a certain type of career or train for a specific type of work, these factors are somehow at “al ce, ha we design a particular job or work role, and when people look for wor 7 7 apply for a job, or when they are interviewed or employed, or perhaps dismissed for whatever reason, it should be understood that much more than just the job may be at stake, Because work is so central to humankind, the implications and dynamics of work are crucial to people's quality of life. Viewing HRM in this way makes it a very meaningful part of management. Itis basically a set of strategies, policies, systems, practices and processes that intervene with people as working. beings in and for organisations and society - aimed at adding value to the people, organisations and society. HRM therefore has a direct impact on quality of life and on sustainability. HRM work is meaningful because it is aimed at adding value to people, to the work they do, to organisations and to society at large. It is safe to say that anyone who has a choice in the matter would prefer to have a better rather than a worse quality of life. Defining what makes a better quality of life is, however, a relative thing because individuals differ in terms of what they want out of life. This brings us to the human nature of working people. 1.5.2 Working people — ‘human beings’ Working people are human beings who bring with them into the organisation all the qualities of Homo sapiens. These include demographic variables such as age, gender, race and ethnic roots, cultural background and language. The variables 80 beyond that, though, to include personal attributes related to personality and Personality traits, personal values, perceptions, attitudes, needs, interests and Preferences, and even something like emotions. Most importantly, all working People have certain aptitudes, abilities and competencies. They bring into the organisation certain skills, knowledge, knowhow and intelligence, as well as various physical attributes, such as height and weight, muscle power, and so forth. Because the human being is complex and people differ so much, HRM can be very challenging. We therefore have to develop a better understanding of people as human beings if we want to be good at pr 1.5.2.1 2 Aptitudes, abilities and attitudes An aptitude is a person’s natural or to develop a certain level of . Abies, e e other hand, refer to innate or learnt traits that enable people to = Anattitude can be defined as the d has towards a particular object, su inborn capacity oF capability to learn something Performance or skill, ich as a place, thing, These variables are at the very core of the and working people. For instance, aptitude people who work in areas for which they situation or other person. dynamics we encounter with work also plays an important role because have a natural aptitude will generally Scanned with CamScannerChapter 1 The challenge of human resource management: An introduction 25 become high performing faster. Furthermore, we want to employ people who have the ability to do good work and perform in a superior manner. That is not enough, though, as superior work performance is not guaranteed by having the right knowledge, skills and general knowhow. The other key ingredient is attitude. People must have a positive attitude towards the work, the organisation and its people because if they do not, there will be a lack of motivation to perform well. 15.2.2 Perceptions and values @ Perception refers to those (mainly cognitive and mental) processes that enable us to interpret, give meaning to and understand our internal and external environments. a Values can be described as an individual's explicit or implicit conceptions of what is desirable. Values are concerned with what ‘should be’ and form the normative standards by which human beings are influenced when choosing between alternatives. Perceptions determine how we interpret things; our values guide us in judging whether something is appropriate or not. These variables are mostly not espoused, even though they are fundamental to the way people behave. As we will stress again in the next section, communication is vital when it comes to people working together in organisations. Perceptions play a central role in how we interpret information in our work environment. Similarly, personal values guide people in judging what they believe is appropriate and what is not. This is also true in the workplace. A prime example may be one’s inclination to behave or act ethically. Another is the value placed on fairness. As you will learn as you read further, these variables interplay strongly with HRM dynamics. 15.2.3. Intelligence, emotions and personality & Intelligence generally refers to the individual’s mental ability or cognitive capacity to use the intellect, to think, to solve problems, to reason, to learn and to understand. = Emotion is the complex area of feelings, accompanied by characteristic physiological states, and finds expression in certain behavioural patterns with a particular function. Emotions are characterised by feeling, an affective experience that gives ‘colour’ to emotions — for example joy, anger, fear, etc These feelings can be experienced as pleasant, unpleasant or mixed @ Ina broad sense, personality refers to the way in which the biological, physical, social, psychological and moral traits of an individual are organised into a whole. It also refers to the relatively stable set of behavioural patterns that flow from the dynamic interaction between individuals and their environment. Aspects or variables related to the working person as a human being who contributes to the complex challenge of HRM include the fact that people differ in terms of abilities (including skills, knowledge and intelligence), aptitudes, attitudes, perceptions, values, emotions and personalities. Scanned with CamScanner26 South African Human Resource Management: Theory and Practice It is clear that variables like these make people complex ae whe bring complexities into the workplace. It is no wonder that the iesipline 3 He logy has subdisciplinary fields relating to the psychology of the wo Pl ee variables are complex in themselves and not always easy to understand, let alone define or interpret in terms of how they may impact on work and HRM dynamics, ake personality as an example. : . ees of ‘personality is difficult to define and the term is often used loosely. Various experts have approached it from different theoretical Perspectives and one therefore cannotprovidea single, definitive description of what ‘personality’ entails. The term is, in fact, often misused. You may well have overheard somebody describing someone else as having ‘absolutely no personality’ or as having a ‘good’ or ‘nice’ personality. These are vague generalisations used to sum people up, often wrongly so. Many view the term ‘personality’ as an aggregate of almost all the characteristics or traits peculiar to an individual, which constitute the person’s identity and unique nature. Although a better understanding of personality traits can be helpful in HRM, this book does not go into this in any depth. It is sufficient to emphasise that being aware of individual differences and becoming more knowledgeable about them will help to improve HRM. 'n a similar vein, it can be said that being aware of and becoming more knowledgeable about variables and issues pertaining to organisations as societal entities are also important. We now turn to this category of variables, 1.5.3 The organisation You will be aware by now that already explained that from an larger systems and, in turn, numerous variables at play i challenges related to the ma a brief look at some of them. Variables related to the organisation that contribute to the HRM complexity challenge include things such as the strategies and management styles or Q : phzaeches) followed] by ‘the organization’ | organticticral structures; group 'ynamics; communication processes and dynamics decision-making styles; power and politics; and organisational culture. organisations are complex systems. We have open-system point of view, organisations are part of have different interacting subsystems/nodes. There are 7 organisations that add to the dynamics and complex nagement of human resources. In this section we take two chapters, and also in the strategy- Ow, a few examy related areas covered in Chapter 4. For n ples should suffice. Scanned with CamScannerChapter 1 - The challenge of human resource management: An introduction 27 A turnaround strategy (implemented when profits are declining and something, needs to be done to rescue the organisation) may mean cost reduction in certain functions of the business, including those associated with human resources, which may lead to retrenchments. On the other hand, a decision to grow aggressively by diversifying and entering new markets may mean that different competencies are required, hence different kinds of human resources and perhaps new ways of managing the people. The market dynamics and financial state of firms naturally also interplay directly with HRM, such as when new competitors take away market share, which may lead to lower turnover, and this may force the scaling down of operations (and perhaps the reduction of staff). 1.5.3.2 Organisational structures Part of management's task is to organise the work of the organisation. This usually includes some form of division of labour, usually achieved by structuring work into different positions or work roles as well as different organisational units (e g departments, sections or divisions). This may involve some form of hierarchy, ranging from the most senior management to the lowest-level non-managerial employees. There may also be a decision to outsource some work (e g security operations, cleaning or food provision). Such decisions directly interplay with the work, the working people and their management. One common example is the restructuring of organisations. This generally refers to rationalising or changing the structural configurations of organisations, and often includes downsizing. This may lead to doing away with some parts or aspects of the organisation, which may also result in redundancy. 1.5.3.3 Group dynamics Most people spend the greater part of their work time within a group rather than as individuals. A key managerial challenge is to co-ordinate the work of all, and to ensure that all the people and groups work together well One of management's major organisational functions is to group tasks and people together. The dynamics underlying the formation, development and functioning of groups form a vast and complex field of study. A group in an organisation refers to a collection of relatively regularly interacting people who perceive themselves as belonging together in some or other sense because of the common objectives they share and because their behaviour can influence each other as well as the achievement of their objectives. Group members are, by definition, interdependent in some way and their interaction has a clear purpose. They are engaged in specific relationships that require some goal-directed behaviour. Although they have shared objectives, the group members all differ from one another (in accordance with variables such as those mentioned in section 1.5.2), bringing about the potential for interpersonal dynamics in intragroup as well as intergroup contexts. There may, for example, be conflict within and between groups. All of these issues form an integral part of the management of people at work. Scanned with CamScannerrf d Practice 28 South African Human Resource Management: Theory ant 15.3.4 Communication eee eee isationat context, communi n cat : In Cas people transmit and receive information, exchange message ws i ih ication is. eae make sense of the information they receive. a iF ote an Vv 7 i ations. How ofter as the lifeblood of human rel 0 i Se This has more to do with the quality, as opposed to guantty of comi 2 > of information. In other words, it is often not so much about ne mc we communicate, but more about how well we do so. When people Eee og et = uanti lly quality, of communication is expecte appropriate quantity, but more especial ° ifnot relationships can break down, which may result in counterproductive work Various obstacles or barriers may harm the quality of communication, and consequently HRM. Apart from semantic problems, other factors, such as physical distractions (e g noise or heat) and organisational structures that are too bureaucratic, may be detrimental to good communication. , Good communication in processes and practices like recruitment, selection and managing the working people of and in organisations is essential. 15.3.5 Decision-making dynamics Decision-makingis one of the mostundamental management tasks. In organisations, decision-making typically refers to the identification and choice of alternatives, usually regarding objectives, priorities and/or courses of action, and so forth, in order to address issues that relate to achieving organisational objectives. For example, managers have to decide which business/industry to be in or which business strategies to follow. Some decisions are more complicated than others and require more inf formation, experience and knowledge, whereas Others are relatively simple and routine, requiring little information or specialised knowledge. Irrespective, all decisions are made by people, and usually in groups. Decision-making is therefore exposed to all of the diversity dynamics pertaining to individuals in organisations, as discussed in section 1.5.2, The risk propensity of individual managers can, for making powers are delegated or the sense of empowerment that ‘hings like job satisfaction and pr. er levels, This may impact on others experience, which in turn may influence roductivity levels, 15.3.6 Power and politics pus) and politics are present in all organisations. Power generally refers to the ability to control things or the way they happen. ‘Formal authority is one form of 'e right to seek or obtain compliance. This is often called power and refers to t legitimate power. 'n organisations, therefore, the el it seg eternal over anne he bn ate ote by People use their power to influence others or processes i rdert achieve wha they prefer (often purely for themselves and See ene Boals of the organisation), this is ; Sometimes even in conflict with the referred to as organisational polities, Scanned with CamScanner