PD 5 2011 May by IPM

May 2011 â&#x20AC;˘ Vol 29 No. 5

People

Dynamics

Sustainability â&#x20AC;&#x201C; the green initiatives Journal of the South African Institute of People Management www.ipm.co.za

CONTENTS EDITOR’S LETTER

ORGANISATIONAL CULTURE – GOING GREEN

Sustainability in the workplace By Karl van Eck

SKILLS DEVELOPMENT

Skill development alone will not solve the unemployment problem By Ricky Robinson

ORGANISATIONAL CULTURE

To create a functional company culture - start with the executive team By Professor Antoinette Gmeiner and Professor Sandra Perkins

TRAINING

Missing the mark - company employee training programmes are becoming a wasteful exercise By Ashleigh Theophanides

MANAGEMENT TOOLS

Intelligent businesses need intelligent HR solutions By Kay Vittee

RECRUITMENT

How your social media profile affects your job prospects By Lindi Dickinson

BUSINESS DEVELOPMENT

Our top ten leadership mistakes By Ken Blanchard

MENTOR MATTERS

How to sell your HR & salary budget By Gary Taylor

LEGISLATION

Is alcohol abuse misconduct or incapacity if the employee is not an alcoholic? By Professor Alan Rycroft

NEWS AND REVIEWS

HR in brief

ADVERTORIAL

LexisNexis provides customised solutions for HR practitioners

LABOUR LAW

A prospective employee’s duty to disclose information By Jan Truter

RECRUITMENT

It takes all sorts to make your SME tick By Pavlo Phitidis

GABRIEL’S HORN

Makes you feel good By Gabriel Mofekeng

FORTHCOMING ISSUES FEATURES JUNE 2011 – Leadership, Individual Development Planning and HR sustainability JULY 2011 – Special Feature-Pensions Update

EDITOR’S LETTER

have been giving a lot of thought to ‘going green’ in my own home, especially following the disastrous Pikitup strike of a few weeks ago. Driving down the road and seeing overflowing bins on our pavements made me realise that our waste removal and resulting sanitation problems are at the mercy of a group of people that do not necessarily think of the repercussions of their actions. Sure, there is an underlying human resource management problem here and I fundamentally understand their issue, we all want to be paid more. But when you are responsible for removing people’s refuse I think you need to think a little broader. So I recognise that in order to minimise this mess outside my house the next time they decide to go on strike I need to take control of my own waste management. Many countries worldwide do it; if I subscribed to a recycling company or just bought a few black dustbins and dumped my own recycling every two weeks or so, and if I just took the time to sort my rubbish and to use organic waste in my lovely veggie garden there would be very little to throw away in our municipal bins.The result would be better for our environment, better for us and better for the rubbish problems during a strike. A win-win situation for more than one party. I know it may take a little effort but I’m pretty sure it will be worth it.

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.

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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.

ORGANISATIONAL CULTURE – GOING GREEN

Sustainability in the workplace By Karl van Eck

ncorporating sustainability or green initiatives in the workplace can be a challenge for some organisations. These may include a lack of support, resistance to change or lack of knowledge on how to implement these changes. Management need to create a culture of sustainability within the organisation. They need to demonstrate the organisation’s commitment to sustainability. This would include a longterm sustainability plan, and their dedication to improving the company’s environmental impact. In turn, employees need to understand how they play an intricate and integral role. They need to realise the impact of what they do and how it translates back to this commitment. In order to successfully execute green initiatives within the workplace, organisations should start with small, relatively easy things employees can incorporate into their work day. These initiatives should be easy to implement and measure. Some tips on implementation: Tip 1: Post a bulletin board or suggestion box for sharing green practices Communication is essential for sharing best environmental practices and recognising personal or team successes. Make sure there’s an easy way to coordinate these at your workplace. Encourage employees to get involve and make a difference. The more they are involved, the more likely they are to participate. Tip 2: Reusable mugs Ask employees to bring a mug or reusable cup to work instead of using paper cups for hot and cold beverages. It’s simple for employees to bring their own mug to work - it’s a personal statement about their commitment to sustainability. Their actions can encourage others to do the same. Tip 3: Reduce printing Reduce the number of emails or documents employees print and encourage that they reuse paper whenever possible. Some offices use

an average of 1.5 lbs/0.68 kg of paper per person per day, so encourage employees to get in the habit of reading documents on their computer screen and saving for future reference. Tip 4: Share trade publications Share trade publications between coworkers or departments. There is little benefit to having multiple employees receiving the same publication. You’ll save money on subscriptions and reduce the impact of printing on the environment. Be sure to recycle all the publications you receive. Tip 5: Print double-sided Set up printers so it defaults to printing double-sided. Simply asking employees to print double-sided requires additional steps and/or knowledge on how to do this.You’ll buy half as much paper. Tip 6: Buy energy efficient equipment Reduce power usage by buying energy efficient equipment. Almost every piece of equipment comes in an energy-efficient form, from office equipment (computers, copiers, fax machines, mailing machines, printers, and scanners) to factory lunchrooms (refrigerators, coffee pots, microwave ovens and vending machines). Include energy-efficient equipment as part of your purchasing policies. Tip 7:Turn the power off at the end of the day Plug office equipment into a power strip and turn off at the end of the day. Even in standby mode, office equipment uses energy.You’ll be on the road to having a more involved “green team” if you develop a rotating schedule for turning off power strips at the end of the day. Start small. Celebrate and reward the small successes and use the momentum to implement larger initiatives throughout the workplace. A green workplace is a sustainable workplace. By Karl van Eck, Regional General Manager for Africa: Johnson Controls Global Energy Solutions division, 011 438 1600, Karl.vanEck@jci.com May 2011 People Dynamics

SKILLS DEVELOPMENT

Skill development alone will not solve the unemployment problem By Ricky Robinson

here’s no denying that South Africa needs to urgently address its skill shortage but focusing on skill development alone and overlooking performance readiness will not create more jobs. Rather by dealing with the issue of performance shortage, government and the private sector will start to make real and sustainable changes.

People Dynamics May 2011

What the country really needs, both in the private and public sectors, is skilled people who perform effectively. In the knowledge economy of today, people are the major expense on many organisations’ income statements and if effective, will be an employer’s most important asset. If ineffective, they can be a deadweight and terminal cost.

SKILLS DEVELOPMENT While skill is an important component of performing effectively, on its own it is not enough. The shortage to which the national discourse refers is actually one of ‘education’ or ‘knowledge’. Skill is typically developed by the application of knowledge through deliberate practice. Save for the very practical education in the so-called trades where to some extent skill is developed, in most educational institutions what is acquired is knowledge, not skill. It is important to realise that government and private enterprise are in fact parties in a symbiotic relationship. The country needs effective performers in the private sector so that business can compete on an increasingly international stage and make returns to shareholders and investors, and similarly in the public sector so that an excellent service can be provided. Business is by far the largest provider to the fiscus. It is government’s responsibility to create an environment that encourages entrepreneurship and business success, while at the same time being referee in ensuring fair business practice. Getting this balance right is vital. It is also largely government’s job, through the allocation of resources and the application of effective national education strategy, to provide entrants to the workforce who have adequate education or knowledge. It is largely the responsibility of business and also public sector employers to transform people with knowledge into people who perform effectively. The key to success is getting people ready to perform effectively. ‘Performance Readiness’ consists of four aspects. The first is having a base of knowledge relevant to a particular job. Someone in either the private or public sector who deals with people as a part of their job would, for instance, need to have good literacy. The second aspect is skill. Skill is developed by applying their knowledge through appropriate deliberate practice. Someone who has been to law school, for instance, will have a good knowledge base of the law but very little skill as a lawyer (and even less as a manager). Skill is developed on the job. The third aspect is capacity meaning a person must have the capacity for a particular job. For instance someone with poor eyesight will not make a very good bus driver or airline pilot. Lastly, motivation is key and often a point that is overlooked. People need to be motivated to perform. An organisation can take some accountability for this, but so too should the individual. Trends show that increasingly ,organisations employ for attitude more than for knowledge or experience, notwithstanding the importance of both of these. The extent to which all of these factors are in play will determine an individual’s readiness to perform. Performance Readiness on its own, however, is not enough. Without an environment conducive to effective performance, the individual is unlikely to perform effectively. Culture, processes, information and resources are all factors that make an environment conducive to effective performance. Robinsons says that a performance culture would, for instance, reward good performance and have consequences for poor performance. Work processes need to be connected and streamlined; people must know why, what and how to do things and must get feedback accordingly; and people need resources that work in order to do their jobs effectively. In essence, the sooner government and private enterprise can engage in a common discourse to gain a better understanding of the performance shortage in this country, the sooner both parties will be able to agree on who is accountable for what and how each can better work together to get to the ‘how’ of effective public and private sector performance. And we’ll create more jobs in the process. Ricky Robinson, CEO, LRMG

ORGANISATIONAL CULTURE

To create a functional company culture - start with the executive team By Professor Antoinette Gmeiner and Professor Sandra Perkins

t is often found that companies have laudable stated values but very few specific behaviours that affirm or reinforce those stated values. An organisation’s leadership team is ultimately responsible for shaping and enhancing the company’s values - the cornerstone of its culture, which is comprised of the beliefs, attitudes and behaviours that collectively define its values. The shared values of an organisation provide a common sense of direction for all of its employees and basic guidelines for their day-to-day behaviour. The leadership must assure that there is consistency between the company’s stated values and all other aspects of its vision including its strategies and operational plans.

The superior performance of a business is a direct product of the alignment of its culture with its strategic intent. Thus, the executive team is the primary custodian of the company’s culture and as such needs to be reflective of the culture in its words and actions. An assessment of the current values in a company compared to the organisation’s values, goals and objectives will reveal if the culture is in alignment or in conflict with the goals of the company. While consultation on every level is necessary to determine and consolidate a company’s values, it is the executive team that has the largest role to play as it drives the organisation, sets the precedents and ultimately determines the values and the company’s culture. Once the values and the requisite related supportive behaviours have been established the concept of integrity and trust within the executive team must be examined. There is often too much focus on the power and status of individuals which can affect the optimal functioning of a team. Trust is built by focusing on the character and competence of the individual members of the group. It is important to understand motives and intentions to develop trust and the subsequent alignment of these motives to enable the group to function effectively as leaders of the organisation The commitment and intention of individuals within the team should be explored, as it is leadership’s persistent and repetitive consistency that ultimately creates a fully aligned culture. Commitment through words alone is not enough. Along with passion and enthusiasm the leader must show commitment by his or her actions. It is important to define how decisions are made and how they fit in with the overall company strategy to assist the organisation in moving forward. Decisions should be aligned to the strategy and the strategic intent because you often find that executive teams tend to maintain a focus on operations rather than strategy. Conflict and conflict resolution skills within the executive team are also important. Many executives find it difficult to actually confront one another and have a proper constructive ‘fight’ in the boardroom. It is therefore necessary to set rules, procedures and limits for boardroom behaviour so that team members are able to openly confront one another in a manner that enables them to deal with conflict constructively in order to facilitate effective decision-making. Creating accountability is also essential. While leadership is about defining values, delegation, commitment, intention and decisionmaking, a leader also has to develop a high degree of accountability to his/her fellow executive team members. It is necessary to create a context where members need to be fully accountable to one another - it serves no purpose to have responsibility without awareness and accountability. An effective executive team is adaptable, innovative and committed to a shared vision of growth and success for a company. Professor Antoinette Gmeiner and Professor Sandra Perkins Executive coaching Tel: 011 718 6484 or Cell: 082 786 2995/083 377 3692, eMail: sperkins@oriongroup.co.za, Website: www.oriongroup.co.za

People Dynamics May 2011

TRAINING

Missing the mark company employee training programmes are becoming a wasteful exercise By Ashleigh Theophanides

outh African companies are collectively wasting hundreds of millions of Rands per year on employee training and development programmes that are not strategically aligned to their business goals. One in 2 South African companies do not have a clear understanding of the return on investment that employee training programmes will provide to their companies, this is despite the fact that companies are spending very significant amounts of money up-skilling their staff. Todayâ&#x20AC;&#x2122;s challenging economic and business environment makes it more important than ever to ensure that every investment made yields a tangible return. Business often comments that their employees are their most important asset however very few companies are embarking on an analytical process that assesses where and how to invest. Companies that embark on an analytical process, which includes some form of financial modelling, will use the information and data to establish trends and set assumptions that greatly help in the decision making process. Through applying an analytical process when setting up training programmes and measuring its success, companies can ensure that they derive shareholder value from their investments. All too often

the misalignment between company strategy and employee training results amounts to a huge wastage. In too many cases companies are missing the critical point of employee training and development. It is about ensuring your business remains relevant and that each individual is equipped to tackle both current and future challenges in an effective manner. Often companies establish relationships with third party providers who deliver pre-packaged development programmes to the executive team and middle management. While these programmes may be sound in themselves, they are rarely aligned with the current or future strategic imperatives of the company. Additionally these pre-packaged development solutions are often generic in nature, lacking in future focus, and poorly aligned with individual needs. This is where the wastage occurs. The amounts that companies spend on training and development could be much better targeted and deliver greater value if a company were to follow a number of sequential steps. For example, those accountable for the development of an organisationâ&#x20AC;&#x2122;s leadership talent have to start with the end in mind by recognising their current and future business goals, and designing their development strategy accordingly. Once identified, these goals must be translated into those key imperatives that leaders have to focus on in order to successfully execute the strategic and cultural priorities of the organisation.The next step is to define what success looks like for each level of leadership. In this regard it is crucial to define leader performance holistically, clearly articulating what a high-performing leader looks like according to criteria such as organisational knowledge, experience, competencies, and personal attributes. Individual leaders should then undergo an in-depth assessment process in order to identify their respective development needs. Multiple approaches are available, including business simulations, online competency assessments, personality and leadership inventories, multirater tools, and objective behaviour-based interviewing. The outcome of the assessment process then serves as the basis of a strategically aligned and individualised development plan highlighting strengths to leverage as well as specific development needs. These plans should form the basis of future individual development programmes. On an annual basis companies should critically assess their training and development initiatives to ensure that they remain closely aligned with the current and future needs of the organisation. For example if a company has embarked on a lean manufacturing strategy, the leadership developmental priorities are likely to be different from those that would be relevant if it were on an aggressive global expansion drive. Establishing a reputation as an employer organisation that invests in the targeted development and growth of its employees and leaders plays a critical role in helping to attract and retain high calibre skills in a country where we have a critical shortage of talent. Ashleigh Theophanides, Director, Deloitte Analytics, + 27 11 806 5000

MANAGEMENT TOOLS

Intelligent businesses need intelligent HR solutions By Kay Vittee

n the fast-paced, high-tech business world information, and the speed at which it can be accessed, is power. Companies that aren’t leveraging, developing and maximising their information assets are being left behind. Consequently, there is a growing trend towards employing Business Intelligence (BI) and related technologies that empower businesses to make more informed, more intelligent business decisions faster, based on up-to-the-minute, accurate information. Furthermore, this technology is becoming increasingly linked to other functions that are essential to the performance of the business, particularly human resources. Through using BI technology, companies have become more astute in measuring the true performance of their assets, including human capital, and are imposing greater scrutiny on the return on investment of their resources. We have applied BI technology to our Field Services division, which essentially deals with the management of diverse, logistically intense and geographically spread projects as well as the staffing requirements thereof. We understand that our clients need accurate data for their vital business decisions and analyses, and to support this we have found a way of ensuring that the right information gets into the right hands in real time. Under the expert guidance of our field services general manager, Troy Petzer, we have designed a full set of processes, work flows and systems to create a complete, field-based operational solution for our clients that is focused on managing and achieving the required contractual results. In order for us to accomplish this, we first recruit field-based or geographically spread staff in line with the parameters set by the client as well as those of the Quest Field Service Matrix. We then set about training them in terms of client and Quest specific requirements. We have also developed an advanced IT infrastructure to remotely manage the complete operations of our clients’ accounts. This includes communications, reporting, record keeping, costs, the staff involved, nationwide contract deliverables, service level agreements and client relationships. This infrastructure also handles an immense amount of data, which allows for remote online collection and storage. What this means for

People Dynamics May 2011

our clients and staff is having constant access to real-time information. This solution focuses on all stakeholders - customers, shareholders and staff. Through setting up physical as well as online support we are able to execute the needs of our clients, report back in real time on specific areas of delivery and ensure that our staff has constant access to communication and information. In addition, the system allows our managers to manage the outputs of their staff as well as their development in as near to real-time as possible. Due to the fact we can manage remotely and have a tight rotation policy that is fairly monitored and managed, we can deliver effectively and timeously as well as respond before major trends or complications can arise. As a result of constant access to information and the experienced management insight of our field services personnel, we are able to change our execution within a short turnaround time, disseminate this back to our staff and change delivery as and when needed. A representative from one of Quest’s client companies currently utilising the field services solution has said, “Quest has created a robust control mechanism which makes it easier to communicate with both management and sales leaders in each of the regions nationally. The value of the system was emphasised during a recent internal audit where the process was greatly enhanced by having the ability to go onto the Quest Online System and extract needed documents”. He added, “In managing the relationship between us and Quest, this system has added tremendous power to address not only daily challenges, but also to notify and escalate challenges to regional management to address and resolve at the point of impact, without delays being experienced by forwarding e-mails to head office. This system has aided and enhanced the service that Quest provides to us and has greatly improved the efficiencies required to make this a successful business model”. It’s through the combination of our people, processes and technology that we are able to achieve true partnership and transparency with our clients - giving both them and us a strategic advantage over competitors. Kay Vittee, CEO, Quest Staffing Solutions

RECRUITMENT

How your social media profile affects your job prospects By Lindi Dickinson

he explosion in the use of social media such as Facebook and Twitter and even more business aligned Internet sites such as LinkedIn can have serious impacts on job-seekers and recruitment agencies. Many individuals seeking employment today are likely to have a Facebook profile.This can be an asset or a major liability, depending on how the individual controls the content within the profile. Jobseekers need to be aware of the fact that their Facebook site and their postings on Twitter are very firmly in the public domain and can be accessed by anyone with an internet connection. Recruitment agencies and the HR staff at companies where an individual may have undergone an interview are becoming more inclined to use the internet as a source for additional information on the candidate before making the final employment decision. In this environment it is important that jobseekers manage their internet profiles, are careful about the photographs they post and the friends they accept into their Facebook site. Wild, party animal photographs will not convey the most positive message to a potential employer. Facebook, in particular, is becoming more and more accessible, especially with more people owning smartphones that enable them to post comments via a mobile device and upload photos. In addition, jobseekers can be ‘tagged’ in a photo uploaded by their friends, and this will be visible on their profile. The point is that jobseekers would do well to closely monitor their internet profiles and ensure that their profile content is always positive and impressive. There is no control over what is posted on Twitter. Freedom of speech is the democratic right of all but job candidates should take care to ensure that their Tweets will not lead to repercussions in terms of their employment endeavours.

Many recruitment agents and potential employers will Google a candidate’s name and see what the internet reveals about the person they are trying to place or are about to interview. Often the potential employer will conduct such a search on a person they have interviewed just to obtain a different perspective. What is revealed could impact positively or negatively and it’s up to the candidate to ensure the impact is positive. With that in mind, potential employees could use this to their advantage by posting video CVs on the Web to bring them into contact with specific career opportunities. These videos should display youth, spontaneity, sincerity, work ethic and career orientation and deliver a good vibe Smart jobseekers can also use the internet and social media sites to thoroughly research a company to get a feel for the ethos of the company, the working environment, the social stance, its values and traditions and get a good idea of what it would be like to be an employee. There is no doubt that jobseekers will use the internet and the social media arena to obtain a good idea of a target company’s pedigree, character, achievements and future direction. Job seekers in general are becoming more discerning about who they wish to work for so it is a two-way street with potential employers and employees using online reputation management as a tool to get the best from the process. But the final word for jobseekers still has to be: think before you place information about yourself into the public domain. Lindi Dickinson, head of Pastel People Placements, Softline Pastel, +27 11 304 4190, www.pastelpayroll.co.za

May 2011 People Dynamics

BUSINESS DEVELOPMENT

Our top ten leadership mistakes By Ken Blanchard

ast month, Ken Blanchard said that few, if any of us get up in the morning and ask: “how can I go to work and screw up?” But we do all make mistakes, and some of them are likely to be of the charttopping variety he exposes in this month’s column. Strong leadership is the backbone of any organisation; without strong leaders to create goals and visions for companies, and support strategies to meet goals, it’s hard to see how any business can move forward, grow and develop.Yet leadership is an elusive quality, and developing leaders to their full potential is one of the greatest challenges facing organisations today. Leadership is what we, at The Ken Blanchard Companies do best. We live, eat, breathe and sleep leadership – and are constantly researching and innovating around the subject, and developing, adapting, honing our leadership programmes to make sure we offer the best leadership development there is. One of the issues we research regularly is what people want and don’t want from their leaders. I usually like to focus on the positive – I think that’s how you get the best from your people – but sometimes asking people what doesn’t work for them is important. Over the past few years, we’ve asked thousands of people to name the leadership mistakes that bug them, and whittled it down to a ‘Top Ten’ list: choose one if you do decide you want to screw up at work today. l FEEDBACK: Ever heard someone say: “I know I’m doing a good job, but s/he never tells me!” Everyone deserves positive feedback when it’s due; how can people know whether they’re working well if they don’t get this? They need to know how they’re doing, to get praise if they’re doing it right; and re-direction if they’re wandering off the path. It’s also a lot easier to give re-directing when needed if you’ve got a store of positive feedback in the bank. l LISTENING: 81% of people in our workplaces have fallen foul of leaders who did not listen to them.Active listening is a critical leadership skill; fail on this point, ignore alternative viewpoints, and you store up problems further down the line. l GOALS: People like to know where they are headed.Yet 76% of us feel our leaders often fail to set clear goals or objectives, and this undermines leadership effectiveness and trust. l STYLE: A huge amount of us have experienced what I talked about last month, a ‘mis-match’ between how they are led and how they need to be lead; leaders who use leadership styles inappropriate to the person, task or situation.

People Dynamics May 2011

l TRAINING: Failing to train and develop their people was the fifth most common complaint, with 59% of respondents highlighting this issue. Training doesn’t just make sense from a practical, business development perspective, it shows people you value them and are investing in them. l COMMUNICATION: Inappropriate use of communication is a real bug-bear, be it lack of communication, over-communication, or crazy communication such as anger, blaming, outbursts, or even too much humour. And failing to communicate the vision in a meaningful way, assuming everyone should intuitively understand the direction of a company, is a big mistake. l SUPERVISION: Under or over-supervision isn’t just painful for the recipient, it is lazy leadership. People need either to be trusted to get on with the job themselves if they can get on with it, or supported practically, and with coaching, if they need help. l SKILLS: Lack of key management skills such as problem solving, decision making and consensus building tells direct reports you are an ‘ineffective leader.’ l SUPPORT: Not supporting or believing in people is a sure way to indirectly show them the door, as is micromanaging peak performers. Support must be appropriate to people’s needs. l ACCOUNTABILITY: Not holding employees accountable for achieving agreed-upon goals and behaviour is a critical mistake. And leaders who don’t hold themselves accountable send mixed messages to direct reports, which can foster animosity, and damage trust. Seeing leaders get these critical aspects of leadership wrong is both demoralising and unnecessary.They are not mistakes any leader should ever make; they are ten basic skills that should form the bedrock of every leader’s toolkit. Leaders who don’t have these critical leadership skills can’t do their jobs properly and are bad news for business, because bad leadership heads up low organisational vitality, high staff turnover and poor customer loyalty. So that’s the bad news – here’s the good news: shaping up your leadership skills isn’t rocket science; good leadership can be taught, learnt, and then practised. Make becoming a better leader your priority today. The Ken Blanchard Companies next open-enrolment Situational Leadership® II workshop will be held in Sandton 27/28 June. Special rates apply for IPM members. For more information contact southafrica@kenblanchard.com , call 0800 980 814 or visit our website www.kenblanchard.co.za © The Ken Blanchard Companies, 2011

How to sell your HR & salary budget

MENTOR MATTERS

By Gary Taylor

he passage of your HR budget through the annual budget review process is often a better indicator of the company’s real endorsement of strategic HR than any document you could persuade the CEO to sign. For most of us, we dread that time of year – when all business units face the Finance Department’s inquisition of justifications, and pruning with a panga. The ideal (and it is possible) is not for HR to sit on the other side of the table. HR should be sitting side-by-side with finance on the enquiring side of the table, working jointly on assessing the resourcing needs of the organisation for the year ahead. If you are like most organisations, more than 60% of costs go into the personnel expenses line, with the rest falling into operating expenses, many of which are fixed. So, why should finance sit alone as the guardian of the organisational purse strings, when the biggest variable is the HR slice of the pie? Firstly, the heads of HR and finance need to be good enough partners for HR to get invited to sit through all of those presentations, and HR needs to commit (at the highest level) to sitting through the days of tedium, asking tough questions too. I found this one of the most enlightening exercises ever to undergo but, by the end of it, I knew a whole lot more about the fundamentals of our business than I did before.That’s the platform to strategic relevance. Finance spends days listening to everyone trying to pad their budgets enough to survive the cuts and still have enough to run their departments. When it comes to making the cuts (after the song-and-dance show) finance talks in very honest terms to the CEO as a partner about what is needed to run the business next year, and that’s where you want to be. The strong HR Director will be courageous enough to identify and even champion where trimmings should be made, and not chicken out into the “equal pain” philosophy of pruning, whereby all cost centres are told to shave off X% from their submissions. So, how does this help you “sell” your own HR budget and the salary increase percentage which is put into the budget? You get to understand what the bottom line issues are that the CFO is grappling with. Unprofitable areas, marginal units, poor productivity, excessive overheads. By understanding where finance is coming from, you will be in a much better place to get them to understand where you are coming from. Support your budget with facts, not fluff. Accountants are trained differently to us, and don’t like “love & harmony” justifications, especially at budget time.This means salary survey data being shared, and other appropriate market benchmarking evidence. Optimize your use of their budget template. Remember that one of the people you are facing is very proud of that template (he wrote it) and

your detailed motivations, well thought out and justified, should be submitted well in advance, to minimize your reliance on the whims of the presentation ordeal. If you have to give high level rationales for financially painful cost increases, refer to your company’s own compensation philosophy. Almost certainly, you have bought into a 50th (or more) percentile of the market pay objective, so show the numbers on graphs, etc with appropriate costings. Immediately indicate that you realise that “we can’t afford to do it all in one jump, but need an incremental approach”. But, keep up your sleeve the example of the good young accountant who they regret having lost to the opposition for more money, just to drive your point home! Refer to organisational goals when justifying other aboveinflation increments. Plans to capture new markets, etc can be used to motivate additional investments in key areas you want supported. The so-called softer HR aspects, like training and development, are difficult to inspire a die-hard accountant. So, instead of talking about people growth or career development, use language like productivity increases, error/rework reduction and risk mitigation.The terms are less sexy than HR professionals would like, but ring an accord with finance. Never be naive by talking about built-in “fat”. The finance department also budgets for fat, but they call it “contingencies” and it sounds palatable. Likewise, you don’t want to build in “flexibility” as it will seem like you don’t really know what you want. But planning to “offset” savings in one area with overruns in another sounds prudent. Saying you would like to shave off more, but feel that the budgeted amount is “conservative” is more likely to get the reluctant nod than blindly defending your number. Finally, kicking for touch is a useful tactic when you are about to lose a decision while in the budget presentation, when you feel a “no” is coming. Count on the fact that these presentations all run overtime, and that the accountants are pressed to finish. So, by saying, “let me meet with X in finance to see if we can achieve more savings” is likely to buy you another bite at the cherry, when you can do some more homework and convince the Number 2 of your case. Number 2 is often the key person to influence, not the chief pitbull, as he puts the numbers together. Getting time with him to “ask for advice” is often critical to your budget surviving the make or break back room discussions, when finance decides what they will really support to the CFO and CEO. And you thought it was just about money?!

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.

LEGISLATION

Is alcohol abuse misconduct or incapacity if the employee is not an alcoholic? By: Professor Alan Rycroft

t the Annual Labour Law Conference (29 June – 1 July) there will be a varied programme including a workshop giving delegates an update on dismissal law. One of the issues that will be raised involves alcohol abuse in the workplace. Many employers today have an alcohol policy which provides for counselling and medical intervention instead of disciplinary action. Behind this kind of policy is acceptance that alcoholism is a disease and therefore workplace intoxication falls into the incapacity category rather than the misconduct category. Alcoholism is a notoriously difficult disease to define – it is described as a disabling addictive disorder. It is characterized by compulsive and uncontrolled consumption of alcohol despite its negative effects on the drinker’s health, relationships, and social standing. Like other drug addictions, alcoholism is medically defined as a treatable disease. Even where there is no history of alcoholism, employers have been required, in some cases, to treat workplace alcohol abuse as a form of incapacity. This trend has now been challenged in the recent decision of Transnet Freight Rail v Transnet Bargaining Council and others (LC Case no C644/2009; Date of judgment: 4 March 2011). The opening words of the judgment are: ‘This matter concerns the question whether alcohol abuse should be treated as misconduct rather than incapacity in circumstances where the employee is not an alcoholic.’

People Dynamics May 2011

The employee was employed from 27 May 2002 until her dismissal on 29 May 2009. At the date of her dismissal, she was employed as a yard official which involves marshalling and coupling of trains, and is a ‘safety critical’ position. Due to the nature of the work performed the offence of being under the influence of alcohol at work constitutes serious misconduct in terms of Transnet’s disciplinary code. On the date upon which she committed the misconduct, the employee had a valid serious written warning for being under the influence of alcohol at work which had been issued on 28 May 2008 and was valid for twelve months. At the arbitration hearing both the procedural and substantive fairness of her dismissal were challenged on several grounds including that she had been not afforded rehabilitation in terms of its Employee Assistance Program (“EAP”). There was no evidence to suggest that the employee could not be trusted or that her work had been affected and thereby caused an irretrievable breakdown in the relationship. For these and other reasons the arbitrator reinstated the employee and ordered her to submit to rehabilitation in terms of the employer’s substance abuse policy and to comply with such policy. When the matter came before the Labour Court, the court confirmed this principle: When an employee, who is not an alcoholic and does not claim to be one, reports for duty under the influence of alcohol, she will be guilty of misconduct and not incapacity. Once

LEGISLATION an arbitrator finds that an employee is not an alcoholic he/she is required to consider whether a finding of guilt is fair and whether the sanction applied by the employer is reasonable and justified in the circumstances. In order to do this the commissioner is required to continue to apply the law relating to misconduct and not that relating to incapacity. The court said that in cases involving misconduct for reporting for duty under the influence of alcohol a commissioner / arbitrator should, in determining the fairness of dismissal, consider and weigh against each other a variety of factors. An interesting aspect of this judgment is the balance it achieves between the employment relationship and the seriousness of the misconduct. In the Edcon judgment in the SCA it was decisive that the CCMA commissioner based her award on the fact that the employer adduced no evidence that the relationship had irretrievably broken down or had become intolerable. This decision was controversial because it prioritised the relationship over the serious misconduct; although there had been a series of serious lies following a breach of company policies, the lack

of evidence about intolerability or breakdown meant that dismissal was not fair despite the misconduct. This decision now appears to challenge that and gives as much weight to the seriousness of the misconduct as to the employment relationship. Judge Steenkamp said: A further consideration ought to be the implications of being lenient in the application of an important rule and the message such lenience sends to other employees regarding the infringement of such a rule. The need to deter other employees from committing the same misconduct is a response to risk management and is as legitimate a reason for dismissal as a breakdown in trust. This judgment – which is worth reading in full – usefully distinguishes between alcoholism as incapacity and alcohol use as misconduct. Secure your seat at the 24th Annual Labour Law Conference, held at Sandton Convention Centre from 29 June to 1 July 2011. Tel: 031 268 3255/3052, Email: seminars@lexisnexis.co.za, www.lexisnexis.co.za

NEWS AND REVIEWS

HR in brief

Craig MacDonald appointed to reinforce IDeaS’ presence in South Africa IDeaS Revenue Solutions, the leading provider of revenue management software, services and consulting, a SAS company, has announced the appointment of Craig MacDonald as Sales and Account Manager in South Africa. Prior to joining IDeaS, Craig worked in the hospitality technology industry for many years - including time at Micros South Africa, in the capacity of major account manager, where he was instrumental in achieving new growth and successfully facilitating the technology upgrades of his corporate clients. Most recently he was the hospitality business unit manager at Kathea, a South African distributor of IT products and specialist service solutions, where he was responsible for major growth in this division. He will bring this extensive experience of delivering hospitality solutions and service expertise to the South African market to his role at IDeaS. In addition to his knowledge and experience in hotel technology, Craig also has first-hand hospitality experience - managing both city hotel and safari lodge properties. He began his career at the City Lodge Hotels Group, then moved on to manage the Phinda Resource Reserve and Ngala Private Game Reserve – operated by & Beyond Africa, one of the world’s pioneering responsible luxury adventure tourism companies. Announcing Craig’s appointment, Fabian Specht, IDeaS’ Europe, Middle East and Africa Regional Managing Director, said: “We are very pleased to welcome Craig to our team in the region. We had planned to expand our local presence following the successes we have had in the South African market, such as the deployment of the IDeaS Revenue Management System (RMS) across the Sun International and Protea hotels portfolios. “It was a question of finding the right candidate for this position, and of good timing. In addition to the wealth of experience Craig will bring to the role, we believe the timing is now ideal as there are many signs that indicate South African hoteliers will need the expert support to move on to the next level of more sophisticated revenue management and pricing”. In response, Craig commented on what attracted him to IDeaS: “No other company provides such a comprehensive array of revenue management products, services and skills on such a global scale”. Craig continued, “I am excited to help lead the next phase of IDeaS’ presence in the market, and with its various software and service products focused on automating revenue management and pricing, but also around revenue management consulting, we are well equipped to support hoteliers in this region to drive better revenue”.

Q-Distribution road show raises video conferencing awareness Q-Distribution recently put its money where its mouth is by hosting its first South African road show in Cape Town and Johannesburg simultaneously. The two venues were linked by Vidyo’s patented video conferencing solution from 08:30 until 13:00, without a single interruption during the service. Q-Distribution has the exclusive rights to distribute the Vidyo range of video conferencing solutions in Africa. The road show was arranged to inform resellers and customers of new technologies and solutions that the company will be releasing in the coming year.Vidyo’s sales director for Europe and Africa was also present to represent the global company in the fast-growing African market. What makes Vidyo different from conventional video conferencing solutions is that it is designed to deliver clear, high-definition images over standard Internet connectivity, whether it is ADSL lines or wireless 3G connections.To show that we can deliver, the road show was broadcast over both venues’ ADLS connections, while they were being used by both hotels for normal business purposes. The presentations The first presentation of the day was aimed at the company’s reseller base and focused on the technology roadmap going forward, especially the new firmware, version 2.1, which was recently released.The second presentation explained to end users whyVidyo is the better choice in the corporate video conferencing market. These presentations were followed by a look at the types of networks that can provide a suitable medium for video conferencing, both internally and between corporations. With Vidyo, the options are far broader than traditional video conferencing solutions, which tend to demand exclusive access to bandwidth. The event then focused on the importance of audio in a video conferencing environment. It does not help having a crystal-clear picture if you cannot hear the conversation. Q-Distribution closed the proceedings with a summary of what it has accomplished over the past 12 months, from the appointment of resellers to the assistance it has provided in implementing infrastructure solutions at clients’ premises. The audience comprised of a wide selection of users, from corporations to churches, as well as a large contingent from the defence force and even local universities. All were impressed by the bandwidth-efficiency of Vidyo and the ease with which they could run video conferencing over existing networks without hampering existing business processes. This is due to the extreme efficiency of H.264 Scalable Video Coding technology which makes video conferencing over ADSL and 3G a reality for South African organisations.

ADVERTORIAL

LexisNexis provides customised solutions for HR practitioners H

uman Resources (HR) is continually juggling an organisation’s needs. From keeping abreast with trends and case studies in labour relations, to managing health and safety and other compliance issues, access to up to date knowledge is critical for HR managers. LexisNexis’s unique portfolio of offerings is designed to help organisations succeed in transforming environments. Across the globe, LexisNexis provides customers with access to 5-billion searchable documents from more than 40 000 legal, news and business sources, which makes the company one of the world’s most forward-thinking organisations in the information provision industry. Publications For easy-to-understand labour law regulations and the impact of the Constitution, every line manager will find the pocket-sized “Labour Law Library Easy Reference Guide” an essential. These six reference guides will provide labour law information in a clear and accessible format. Specialising in the areas of law, tax, accounting and financial services, LexisNexis publications are highly regarded as sources of accurate, current and reliable information. LexisNexis’s list of publications includes corporate, practitioner and student titles, law reports, statues and legislative material available in both print and online formats. Seminars and conferences HR directors and managers need to be in touch with the latest development in labour industries, which is why LexisNexis brings experts in the legal and labour industries to events and conferences. One such respected expert in labour law is Mike Beaumont, who can help solve everyday labour problems with the 4-part Beaumont’s Service.This includes: l Beaumont’s Express: a monthly commentary on topical issues and key court decisions l Beaumont’s Solutions: a step-by-step guide to fair decisions and practical solutions l Beaumont’s Workshops: a FREE annual HR workshop l Beaumont’s Helpdesk: a phone-in helpline for quick answers to urgent questions and a sounding-board for decisions LexisNexis Professional Events is a facilitation service, qualified to manage and facilitate every facet of even the most complex events, including: critical path and committee management; complete financial management, including budget and pricing, invoicing and debt collection; scientific programme direction and speaker management; sales and marketing; venue, travel and accommodation management; registration and onsite event management; as well as the publishing of papers in printed and electronic format. LexisNexis works with experts and authors on various topics in these fields.Through this network LexisNexis can offer presenters who are leaders in the law, tax, accounting and financial services sectors. The seminars and conferences presented by LexisNexis are topical, practical and give delegates the opportunity to interact with one another and with speakers. Some of the well recognised LexisNexis professional seminars and conferences include the Payroll Manager’s Refresher Seminar, FPI Annual Convention, Annual Labour Law Conference and VAT Update Seminar. Online Portals LexisNexis is rapidly transforming itself to stay abreast of the changes in technology and to fulfil their customers’ needs by way of its customisable online solutions. HR practitioners can now also benefit from these adaptable solutions. Human resource managers can now benefit from access to online labour

People Dynamics May 2011

law information, step-by-step procedural advice and templates for HR legal documents with LexisNexis’s online website, LexisNexis Labour Relations Management. The content is compiled by specialist labour consultants to ensure that users are 100% compliant with labour law. LexisNexis Labour Relations Management also provides templates of all the legal and other relevant documents that are commonly needed for managing staff, including a variety of service contracts and information records required by law. For a solution that finds you rather than you having to search for it, the IR Network delivers updated case-law and legislation to your inbox daily. The IR Network gives you practical information and solutions to labour related queries and provides downloadable forms that you can print and use in everyday labour situations. Posters As an employer, one is required to make key legislation available to employees, and the quickest, easiest and most cost-effective way to ensure all are familiar with labour laws, is to make them visible. One effective product that can easily be used to communicate key messages to management and employees is the LexisNexis labour law display posters.These posters can be used at conferences, exhibitions, and most importantly, the workplace. Some examples of these posters: Occupational Health & Safety Act 85 of 1993 with Regulations Skills Development Act 97 of 1988 Labour Relations Act 66 of 1995 Employment Equity Act 55 of 1998 For more information on LexisNexis’s product offerings, please call the LexisNexis head office on +27 (0)31 268 3111, or visit www.lexisnexis.co.za.

24th ANNUAL LABOUR LAW CONFERENCE 29 June â&#x20AC;&#x201C; 1 July 2011 Sandton Convention Centre

Reconciling Workplace Interests The 24th Annual Labour Law Conference promises

to be challenging, highly relevant and not to be missed! Justifiably the highlight of the labour law calendar, the Annual Labour Law Conference always attempts to capture the hard and hot issues facing trade union, employers and employees. This year the conference will look at how we can reconcile workplace interests. 29 June 2011 to 1 July 2011 Johannesburg, Sandton Convention Centre Costs (Vat Included) One delegate .......................................................................................................... R5445.00 Two or more delegates ...................................................................... R4950.00 per delegate Ten or more delegates ....................................................................... R4620.00 per delegate Trade Unions and Bargaining Councils ............................................. R3245.00 per delegate Academics ......................................................................................... R3245.00 per delegate View the programme at www.lexisnexis.co.za or contact us for more information.

Book your seat today! Tel: 031 268 3255/3052 Email: seminars@lexisnexis.co.za www.lexisnexis.co.za

Jointly organised by: The Institute of Development and Labour Law, University of Cape Town

Facilitated by: Centre for Applied Legal Studies, University of Witwatersrand

The Faculty of Law, University of KwaZulu-Natal

LABOUR LAW

A prospective employee’s duty to disclose information By Jan Truter

here is a fair chance that a job seeker has left the employment of the former employer on bad terms. Whatever the circumstances, the applicant is faced with the difficulty that volunteering such information could harm the prospects of getting a new job. The job seeker may get away with it by being scant on detail in the CV. Being evasive during the job interview is likely to be more problematic. But how far does the duty to disclose go? In some cases the outcome of a given situation is fairly straightforward. In the CCMA case of Poonen vs JHI, the prospective employee (applying for the position of accountant) had been dismissed by the previous employer and was facing criminal charges for fraud. In this case the prospective employee had not only failed to disclose the reason why he had left his previous employment, but had also stated in his CV that he had left his previous employer for the purposes of “growth and improved prospects”. He was appointed to the new job, but dismissed when the true facts emerged. The commissioner had no hesitation finding that the dismissal had been justified. In the Labour Court matter of MEC for Education, Gauteng v Mgijima & others, the employer did not have it that easy. Ms. Mgijima was employed by the Department of Arts and Culture (DAC). She then applied for a post with the Gauteng Department of Education (GDE). At the time of her preemployment interview by the GDE she had been suspended by the DAC in relation to disciplinary charges that they intended to bring against her. When asked during the interview whether she had “skeletons in the cupboard”, she denied that she had any. Soon after the interview with GDE, the DAC gave Mgijima notice of the disciplinary charges against her. In the meantime she was informed that she had been successful in her application for the GDE post. Before the commencement of her employment with the GDE, she entered into a settlement agreement with the DAC in terms of which she resigned and the DAC withdrew the charges against her. When the GDE came to learn about the circumstances of Mgijima’s termination of employment with the DAC, they brought charges against her for her failure to make disclosure of what the GDE considered to be material information.

People Dynamics May 2011

The matter was dealt with by way of a ‘pre-dismissal arbitration’. The arbitrator held the view that Mgijima did not have duty to disclose the information about her suspension to the interview panel on the basis of the principle in South African law that “a person remains innocent until proven guilty”. In the arbitrator’s view a further consideration favouring Mgijima was the agreement between her and the DAC that she would resign in exchange for a withdrawal of the charges. That, the arbitrator said, meant that Mgijima had a clean record and consequently had no duty to disclose anything to the interview panel.The GDE took the matter on review to the Labour Court. Fortunately for the GDE, the Labour Court held that the arbitrator had been manifestly wrong in his reasoning when he relied on the presumption that “a person remains innocent until proven guilty”. According to the Court, Mgijima was required, at the time of the interview, to disclose that she was on suspension pending a substantial number of charges of serious misconduct. This fact was of material significance to the GDE as her prospective employer.The Labour Court also found that withdrawal of the charges against her in exchange for her resignation did not mean that the existence of the charges were of no material significance to her prospective employer. The post for which Mgijima applied was a senior post, one that clearly required unimpeachable honesty and integrity on the part of the incumbent. Mgijima’s failure to disclose material information in response to an express invitation to do so deprived the GDE of the opportunity to make an informed decision as to the effect, if any, of the suspension and pending charges on the contemplated employment relationship. The arbitrators’ award was set aside. The case underlines the importance of the relationship of trust that should exist in the employment context, particularly in positions of seniority. From an employer’s perspective the case demonstrates how important it is to do proper screening, interviews and reference checking before making an appointment. Jan Truter, www.labourwise.co.za

RECRUITMENT

It takes all sorts to make your SME tick By Pavlo Phitidis

ll of us are no doubt familiar with the saying that it takes all sorts to make this world. So too, does it take all sorts to make your business function the way you dream it would. In the same way that you are more interested in being an entrepreneur rather than being an employee, other people are more interested in other vocations. This is fortunate because it means entrepreneurs can employ people to do the things you do not enjoy and are consequently not very good at. Because it is up to you to choose the right person for the right job at the right time, you’ll need to get to know the personality types that make your business work.These are the Visionary,Technician, Manager,Worker and Bean Counter. They are the personality types around which the founding entrepreneur needs to grow the expanding early-stage business because no one individual possesses all the attributes required to single-handedly build a successful enterprise. As an entrepreneur, your aptitude might be sales and marketing. This could be due to your sociable nature, ability to network and a knack for satisfying people’s needs. By understanding these core strengths you will also understand by extension that you might fall down when it comes to other functions. Perhaps you are a brilliant pie salesperson but know very little about what actually goes into the production of pies and how to maintain the consistent quality of what you are selling. Once the entrepreneurial pie salesman has recognised the weakness illustrated above, he can begin hiring the right technicians to build the quality control systems that will minimise the chaos resulting from inconsistent pie quality. Now that we have used an appropriate example to illustrate the necessity of hiring the kind of people who will make systems work, let’s take a closer look at these personality types. THE VISIONARY The starting point of this article is that the entrepreneur is the Visionary.You are the person whose original commercial vision has created the need to employ all the other personality types, and in fact, given them their raison d’etre. While the founding entrepreneur is Visionary Number One, it is important to understand that there is indeed room within the organisation for other visionaries. While there can only be one founding entrepreneur, the organisation will always need visionaries to lead it into the future. And they may as well be hired during your tenure. So don’t be afraid of that bright young spark who waltzes into your office one day.That brash attitude could be masking significant potential that could make you a lot of money! THE TECHNICIAN The Technician is the person who is unusually adept at cranking out whatever product or service it is that the SME offers to the market.They will usually live, sleep and breathe whatever line of work they are in, and in fact, tinkering with gizmos is not work at all, it’s pleasure in its purest form. It is worth highlighting that in early-stage businesses the founding entrepreneur is usually both the Visionary and the Technician.This stems from the fact that great start-ups are often the result of technicians who discover new and improved ways of doing things while in the employ of other people. As the business takes off, it is vital the original Technician surrounds himself with similarly-skilled technical types who can improve on the original concept. THE MANAGER The Manager is the person who you want to enter an early-stage business and start setting up the systems, policies and procedures that begin to create a semblance of order so different from the heady, chaotic and intriguingly-

fulfilling early days of flying by the seat of one’s pants.The manager is especially valuable because the systems he starts putting in place are the ones that will give the original founding entrepreneur room to start manoeuvring himself out of the business so that it can eventually be sold as an independent asset of value. THE WORKER As bright as the Visionary may be, or as efficient as the Manager may be, no business can function without the elbow grease of the Worker. The entrepreneur would be well served to surround himself with workers who add value to the business by displaying the traits of loyalty to the firm, dedication to the task at hand and respect for the colleagues they are required to interact with in pursuit of the company’s objectives. With reference to these three traits, past behaviour is the best indicator of future performance making thorough background checks especially worthwhile. THE BEAN COUNTER The Bean Counter’s responsibilities go far beyond his nickname because he is of course not counting beans but wholly responsible for the lifeblood of the entire organisation.This is why, in any large organisation worth its salt, you will find the Chief Financial Officer situated as close to the CEO as possible without actually sitting on his lap. Even though his passion sometimes dictates otherwise, the founding entrepreneur needs to understand that good service and great products amount to nothing if the money is not coming in. Cash flow is a challenge for most early stage businesses which makes a switched on money person one of the best investments an entrepreneur can make. In conclusion, hiring the right employees and securing the right consultants is vital because the entrepreneur cannot possibly possess all the skills required to make the dream a reality. Good luck with your dream and happy hunting for the right people! Pavlo Phitidis, Managing Director, Aurik Business Incubator May 2011 People Dynamics

2011 IPM ANNUAL CONVENTION

o acknowledge the support of our members and delegates for making an effort to register early for the 2011 IPM Annual Convention, IPM would like to make a substantial concession by allowing them to register on the 2011 early bird registration rates on condition that they register and pay on or before the 30th April 2011. The convention committee has already started planning for the hosting of yet another intellectually stimulating convention. Some of the issues that the convention committee has started deliberating on because of their impact on business and the economy in general are the following: • The impact of the global economic environment on business operations locally. • People management issues emanating from both the presidential address and the budget speech. • Complexities of the South African labour market, including the shortage of critical skills and talent. In the same manner that global leaders both from public and private sectors converge under the umbrella of the World Economic Forum to find solutions to major global economic, political, and social problems, so is the tradition of HR professionals and business executives in South Africa and neighbouring countries to converge annually under the umbrella of IPM Annual Convention to find growth oriented solutions confronting organisations locally. In a study conducted by the Boston Consulting Group (BCG) in 2008, IPM Convention has been identified as the conference that attracts most delegates compared to similar conferences globally.This is due to the fact that the IPM Convention Committee takes the job of organising and hosting the convention seriously and high quality speakers both locally and globally are always keen to participate in this premier HR and business leadership event. Take advantage of the ‘early bird’ registration discount and act now. Rre. Elijah Litheko Chief Executive Officer elitheko@ipm.co.za

People

65th Anniversary feature June 2011

Dynamics

People Dynamics is the official journal of the South African Institute of People Management (IPM)

65 YEARS OF THE IPM - A STORY OF FAITH, FORTITUDE AND FULFILLMENT

The IPM recently celebrated its 65th anniversary. This milestone will be commemorated in the June 2011 issue of “People Dynamics”. IPM members are recognised as a highly qualified group of people who have taken their rightful place as part of the decision making team in 21st century organisations. There is little doubt that the IPM has played a vast role in empowering HR professionals. The June issue of “People Dynamics” will be a celebration of the success story that is the IPM. From the tough early years of the “founders” to today’s position of pre-eminence, the growth of the Institute has been a fascinating odyssey. The 65th Anniversary issue of “People Dynamics” will be a fitting tribute to all those who have been part of the exciting history of the IPM. We trust that all those involved with the profession will support this very special issue. It’s the perfect time to market your products and services.

People Dynamics May 2011

Anniverary Advertising Rates (excluding VAT) Special Anniversary Issue Rates Front Cover

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IPM 55 ANNUAL CONVENTION & EXHIBITION - SUN CITY, TH ND NORTH WEST PROVINCE, SOUTH AFRICA, 30 OCTOBER TO 2 NOVEMBER 2011 TERMS AND CONDITIONS:

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2011 IPM AWARDS

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HR Director of the Year: Credit card (Master/VISA/Diner):

IPM BANK ACCOUNT DETAILS: Account name: Bank: Acc. Number: Branch code:

Institute of People Management Standard Bank 200 472 526 000 355

For R

Credit card number:

Nominations are invited from organizations and individuals who qualify to receive the following awards on the basis of the contribution that they have made in their respective fields:

IPM CEO of the Year:

Nominations to be submitted to executivepa@ipm.co.za. The other awards that will be presented are the Branch of the Year awards and special recognition Awards.

Card holderâ&#x20AC;&#x2122;s name: ID number:

Please FAX completed form to Patricia Ramokgadi on +27(0)86 568 3831 or Lavern Meyers on +27(0)86 545 9718 OR email: patricia@ipm.co.za or lavern@ipm.co.za May 2011 People Dynamics

GABRIEL’S HORN

Makes you feel good O

n a Sunday night the off ramp to London Road on Johannesburg’s N3 motorway is a dark and dangerous place. Just a stone’s throw from the sprawling Alexandra Township, it’s just about the worst location to suffer a breakdown. But that’s just what happened to Ms S, a single, middle-aged, attractive white lady returning home to Sandton on her own after visiting friends on the East Rand. Her car, also somewhat middle-aged, began overheating – a condition that proved terminal to her journey home. Managing to pull over she quickly realised the serious nature of her predicament. Following a cellphone call to her roadside assistance service she was told that due to a high volume of call outs at that time there was every likelihood of a long wait before help would arrive. Feeling extremely vulnerable, Ms S locked herself in her immobile car and nervously awaited developments. In a very short time a car pulled up in front of her and two large black guys got out and knocked on her window. No doubt fearing the worst, she edged down her window a few inches only to discover that all the two guys wanted was to offer to tow her to a safer place. As her car had an automatic transmission she most reluctantly decided to turn down this kind offer. The two good samaritans made their way back to their car and disappeared into the darkness. Resigned to her fate she settled down to nervously wait for the arrival of the roadside assistance service. A few minutes later she watched as two more black guys emerged from the blackness and approached her car. All sorts of thoughts of dire consequences flashed through her mind as they started knocking on her window.

People Dynamics May 2011

The guys turned out to be off-duty security guards from the Gautrain on their way home from the nearby Marlboro Station. They steadfastly refused to leave her until a tow truck arrived some three hours later. This is a completely true story and one that refreshingly underlines the fact that despite our country’s appalling crime rate, there are some truly good people out there. But Ms S’s problems didn’t end there. Her car required extensive and expensive repairs and she was left with the problem of how to get to work while her car was being fixed. She decided that her funds would certainly not allow her to hire a car and that another option had to be sought. She came to the conclusion that if a huge proportion of our population regularly and safely use our vast taxi network why shouldn’t she. To her delight it turned out to be a breeze and cost a whole R10 per journey. Even better, she quickly established a rapport with taxi driver, Alpheus, who arranged to pick her up in the mornings closer to her house and to drop her off almost at her offices. It does make a change to bring you a “feelgood” story. See you next month. Cheers, Gabriel Gabriel@eaglepub.co.za

A harmony of skills performing as one. One can never achieve alone what a team can accomplish together. Nowhere is this message more resonant than in the performance of an accomplished orchestra. A message that comes across loud and clear in your own organisation, when you enjoy the collective power of protection from Glenrand M.I.B’s Employee Group Scheme. The benchmark in forward-thinking employee beneﬁts, our Employee Group Scheme provides your team with proactive Household and Motor Insurance cover. Our solution combines customised cover for the employee with the kind of savings that can only be enjoyed when you ‘buy in bulk’... At Glenrand M.I.B, we are market leaders in tailor-made solutions for employees which include: • Insurance advice and education • Personal service • Discounted premiums You receive: • Buying and negotiating power as a group and • Productivity gains while we take care of your employees. For more information on how you and your employees can beneﬁt, please call Lydia Ritchie on 083 642 7671 or lritchie@glenrandmib.co.za Terms & Conditions apply.

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The Great Management Hoax: You Cannot Dismiss Your Employees!

Practical Guide to

Human Resources Management Tips, tools and strategies to develop and manage your employees

HRMAD2011

Make your life easier by ordering your copy of Practical Guide to Human Resources Management for just R629.28 (incl Vat, delivery and packaging). If you aren’t entirely satisfied with the Handbook, you may return it to us within 14 days and owe us nothing. Simply send an email to sarahjane@fsp.co.za or call 011 699 6537 to order your Handbook. If you order within the next seven days, you’ll also receive the HR Organiser CD absolutely free. The HR Organiser CD is packed with forms and policies for managers who want to get organised but can’t get started! www.fspbusiness.co.za