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People Dynamics Oct 2011 • Vol 29 No. 10 Journal of the South African Institute of People Management www.ipm.co.za

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Page 1: People Dynamics October 2011

IPM Directory cover 2011 nofonts.FH11 Mon Aug 15 15:43:57 2011 Page 1

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PeopleDynamics

Oct

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

Page 2: People Dynamics October 2011

THE ULTIMATE RESOURCE IN HUMAN RESOURCES

HR & PAYROLL MANAGEMENT THAT TURNS YOUR GREATEST COST INTO YOUR GREATEST ASSET – NO MATTER WHERE YOU ARE

We at Educos believe in transforming the way you manage your HumanResources and Payroll through the use of technology. The way we achieve thistransformation is by developing technology-driven products that are brilliantlydesigned, easy to use and cost effective. We offer in-sourced, outsourced, andSaaS tailored for you. We are a one-stop shop for all your Human Resource andPayroll needs.

Educos – HR and Payroll Management made simple

TALK TO US

TEL: 0860 EDUCOS / 011 475 5040

EMAIL: [email protected]

www.educos.co.za

Page 3: People Dynamics October 2011

CONTENTS

Editor’s lEttEr 2

rEmunEration 4

Play or spectate?

By Ian McGorian and Morag Phillips

CasE studY 6

Establishing a health and safety benchmark in richards Bay

By Franz Schmidt

traininG 7

Bringing back good old apprenticeships

By Graham McGregor

lEadErsHiP dEVEloPmEnt 8

organisation leadership development Programme

By Kenny Khoza

PaYroll soFtWarE 9

leadership development map

mEntor mattErs 10

talking about my generation

By Gary Taylor

CHanGE manaGEmEnt 11

Change management and agility

By Nene Molefi

soCial nEtWorKinG 12

linkedin – Job hunting the smart way

By Laura Hutchinson

GrouP BuYinG

13

Bigger is definitely better

By Daniel Guasco and Wayne Gosling

sustainaBilitEd Y 14

top 10 tips to reduce your organisation’s carbon footprint

lEadErsHiP dEVEloPmEnt 15

What’s doing nothing costing your business?

insuranCE 16

don’t have your insurance claim rejected

motiVation 17

the key to remaining competitive

By Bongani I. Dlamini

GaBriEl’s Horn 20

some braai

By Gabriel Mofekeng

FOrThCOmiNg iSSUES FEaTUrES

NOVember 2011 – employee benefits: Insurance,

medical Aid, Travel Incentives and the IPm Convention.

HR Future PRINT.indd 4 2011/03/28 08:00:53 AM

Page 4: People Dynamics October 2011

EditorialAlex bouche e-mail: [email protected] BookingsHelen bennettsTel: 011 326 0303 Fax: 011 501 2878e-mail: [email protected] eagle Publishing CompanyTel: 011 326 0303 Fax: 011 501 2878e-mail: [email protected] FurneyTel: 011 326 0303 Fax: 011 501 2878e-mail: [email protected] ProudlockTel: 011 326 0303 Fax: 011 501 2878e-mail: [email protected] Carter Tel: 011 326 0303e-mail: [email protected] Central Office287 Kent & Harley Street, randburg PO box 3436, randburg 2125Switchboard: 011 329 3760Keith PietersenTel: 011 329 3760 Fax: 011 329 3765e-mail:[email protected]

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.

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

INTerNATIONALFeDerATION OF TrAINING

AND DeVeLOPmeNTOrGANISATIONS

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

WOrLD FeDerATION OF PerSONNeLmANAGemeNTASSOCIATIONS

EDiTOr’S lETTEr

Health and wellness in the workplace is an issue close to my heart. Having just attended a series of conferences on HIV & AIDS, Tb and wellness in the workplace I know that it is an issue important to many businesses and one which many don’t necessarily understand.

Wellness is such a broad term and covers issues relating to employees physical and emotional wellbeing. Too many companies try to focus on the HIV & AIDS aspect, which inevitably means a failed HIV & AIDS policy and some counselling and testing campaigns done around World AIDS Day. Health and wellness is so much broader and should take care of all employees regardless of their status. There are so many other communicable diseases that affect our workforce on a daily basis – heart disease, diabetes, depression etc. and companies should be proactive in providing assistance in all facets. One of the more effective themes at the abovementioned conference was ‘Healthy People – Healthy economy, Healthy economy – Happy People.” It was a mantra chanted by the end of the two days and resonated with the crowd. It is imperative that business makes employee health as well as occupational health and safety a focus of their business plans and future growth. In the end it will affect the sustainability of your workforce, succession planning, productivity, absenteeism and ultimately your company’s reputation.

It starts with simple issues such as screening for the abovementioned diseases, healthier foods in the canteen, health days and onsite doctors and psychologists available a few days a month/week to staff in need. ‘Healthy People – Healthy economy’, what are you going to do today to make yours a healthy business?

The art of remuneration supported by the science of research

Page 5: People Dynamics October 2011

October 2011 People Dynamics 3

The art of remuneration supported by the science of research

Page 6: People Dynamics October 2011

4 People Dynamics October 2011

Faced with a myriad of complexities remuneration specialists have been required to up their game in the past couple of years. It is no

small coincidence that the occupation of remuneration specialist has become almost ubiquitous in larger organisations. In this article we will touch on some areas of remuneration that are deemed the most challenging.

Various initiatives, King III being seemingly omnipotent among them, have resulted in remuneration for executives becoming increasingly transparent. While this may be considered laudable there are certainly some downsides. Not the least of these being the ratchet effect whereby executives push for market competitiveness based on the remuneration paid in competing companies. It can clearly be demonstrated that an upward spiral in remuneration can easily result from disclosure. Take the following as examples, the FTSe 100 companies CeO pay versus the average worker’s pay has increased from a ratio of 47:1 in 1998 to 120:1 in 2010. Or the United States executive pay spiral, CeO pay in 2010 for the Fortune 500 companies was more than double that of the nineties, more than four times that of the eighties and more than eight times that for all the decades of the twentieth century!

There are several root causes for this, and let us not be side tracked by

the impassioned descriptions of “competitive advantage” and “retention of scarce skills”. First, few CeO’s would like to be paid less than their peers in similar organisations, but the event horizon starts at the market median and is generally pegged higher than this point. The inevitable plays out over time. As remcom’s accede to this cycle the median simply climbs at every review date leading to what economists michael Faulkender and Jun Yang, in a study of Canadian executive remuneration, called the “Lake Wobegon effect” (after Garrison Keillor’s mythical home town of Lake Wobegon, where all the children are above average). It is equally true that boards would not like to be seen to be paying their executives behind the curve as this may be seen to be a reflection of the state of the company itself.

Secondly the more information available on income and wealth, the more publicity income and wealth attracts. Hands up those who do not pore over the Sunday Times rich list? Could this, albeit speculatively, increase the relative importance of remuneration to executives and the relative acceptance by remcom’s of increased executive remuneration?

Another important aspect of King III is the requirement to tie executive remuneration to company and personal performance goals. Again this appears most laudable at first blush but does it play out in real time? Consider this rather remarkable statistic, of the S&P 500 companies in 2009 (scene of the

Play or spectate?ian mcGorian and morag Phillips

rEmUNEraTiON

Page 7: People Dynamics October 2011

October 2011 People Dynamics 5

global economy train smash), the companies that slashed their payrolls the deepest took home 42% more compensation than the CeO pay average for all S&P 500 companies.

but this does not suggest that all is doom and gloom. Perhaps we need a fresh approach to executive remuneration. While the “overhaul” list would be far too extensive for an article of this nature here are two considerations that may have some traction in the future.

The performance based approach that the majority of companies adopt when setting goals and targets remains prone to the vagaries of the economy. For every sector there is a “black swan” lurking around the corner that executives can do little, if not nothing, to avoid. Witness the roller coaster cost of petrol over the last couple of years. Or consider that your Long Term Incentive was tied to the share price of Platinum producers, millionaire today and six feet underwater tomorrow.

Instead of comparing performance (for example ebIT growth) to a pre-negotiated target an alternative approach would be to index the target against suitable peers (peer ebIT growth). This sort of approach would be non-inflationary as relative rankings remain the same no matter what the economy does. And if the peer group is appropriate the same windfalls and pitfalls should apply across the index. In this way outperforming executives can still be rewarded generously even in a recession. Indexed performance measures also have a greater alignment to the holy grail of shareholder alignment. After all, what better outcome for a company than the consistent outperformance of its closest competitors?

Secondly, the whole benchmarking process could be better understood. remuneration consultancies present figures that represent the market, a point not readily understood. In order for there to be a median or 50th percentile there is an inherent requirement that at least half the sample earns below this point. If there is a sustained practice by the majority of paying above this point the spiral can only continue. Setting a company’s remuneration strategy should not be seen as a justification for excess, rather it should embrace the vision and mission of the company as the start point.

Finally, are we completely comfortable with the numbers we consider? There can be little doubt that an element of “cherry picking” can creep into remuneration deliberations, whether on the down side or the up side. Peer group selection that is defensible can go some way to eliminating this. A further consideration is the veracity of the numbers supplied by remuneration Consultancies, as other sources of information are audited should this not become the norm for salary surveys?

In conclusion, the key point for any remuneration decision (executive or general staff) is the concept of defensibility, South African companies have by and large demonstrated their willingness to abide by this concept. Are we able to fully stand by sound, well researched, decisions that will stand the test of time? If we can answer this in the affirmative we are surely at least a player in the game rather than an unwilling spectator of the pay spiral.

Ian McGorian and Morag Phillips are Executive Directors at 21st Century Pay Solutions Group

Page 8: People Dynamics October 2011

6 People Dynamics October 2011

Since its establishment as a health and safety (H&S) advisory body in richards bay in 2002, the Centralised Induction Training Committee

(CITC) has managed to set industry benchmarks with regards to managing the process and standard of H&S training of contract workers.

A large number of multinationals operate in the richards bay area and these companies need to have contractors trained at the same standard as their own permanent employees.

In the past, many contractors that came onto site had little or no exposure to the industry, as well as the necessary Safety, Health and environment (SHe) training. A uniform base from which to do generic SHe training was identified by the CITC as being the means by which to alleviate the problems being faced with contractors.

Having identified a strong need from the various multinationals in the area for a uniform base from which to do generic SHe training, richards bay minerals (rbm) spearheaded a request through the CeO Forum of the Zululand Chamber of Commerce and Industry (ZCCI) for a dedicated training facility.

The CITC was founded to mandate this request by establishing this training facility and overseeing the ongoing activities thereafter.

The richards bay National Ports Authority, mondi Kraft, richards bay minerals, bHP bayside Aluminium, bHP Hillside Aluminium, bell equipment, richards bay Coal Terminals and Ticor SA (now exxaro KZN Sands) were all founding members of the CITC. each participating member is required to nominate representatives to speak on behalf of their company on the CITC steering committee.

It was decided that CITC members’ contractors should be inducted on a biannual basis at a centralised training centre,” explains richards bay minerals CITC representative Hendrik mcCarthy.

It was at this point that the CITC launched a tender process for a service provider that would be responsible for the management of the training facility. Specialised training company, KbC Health and Safety, was already involved with SHe consultation and training services to various CITC members within the richards bay/empangeni area.

KbC was identified as being the best suited candidate to start up a project of this nature and as a result were successful in obtaining the tender. Since then, the contract has come up for tender every three years – with KbC successfully retaining the contract at each occasion.

With the guidance of the CITC, KbC set up a centralised contractor induction training centre that addresses generic safety training to: effectively eliminate a full day of training for any contractor that has already received this generic training; reduce duplication of training; and to set minimum standards for all SHe training required by all CITC members.

With regards to training material, CITC members indicated the content and scope of the material to be covered, which KbC developed in line with these requirements.

The following courses are presented at the centralised training facility

as a minimum safety requirement for employment at CITC members sites: Industrial Surface Level 1 (for employees not in supervisory/management roles); Administrators Course Level 1 (for admin staff who will not access site); Supervisors Level 2; and Legal Liability (for employers, managers and people responsible for health and safety on site).

The CITC’s partnership with KbC is enabling fair and consistent access to affordable quality SHe training to ensure the Health and Safety of all contractors and other employees.

Through the centralised contractor induction training centre, CITC members have ensured: l Compliance in terms of Occupational Health and Safety (OHS) trainingl A minimum standard across industry in terms of OHS trainingl A capacity of up to 2 000 delegates per month, with monthly figures

varying between 800 and 1 200l Delegates are found competent by accredited facilitatorsl Contractor clients save time as their employees attend training once

every two years. If found competent, they can access the various sites for a period of two years, and annual general training at the various respective sites falls away

l Industry oversees what training material is presented, and can ensure their fatal risk protocols are addressedTraining modules are reviewed and updated at a regular basis to comply

with changes in legislation. In addition, KbC is audited six times a year by the CITC member companies, thus ensuring a high standard with regards services and products supplied by KbC.

The audits check a number of items in terms of service provision, but also comprise CITC member company specific issues. In this process continual improvement in safety training is managed. The CITC then provides KbC with feedback on training statistics, adequacy of training materials and trainers, and specific safety related issues.

Schmidt notes that the facilities that KbC has invested in, is an indication of their strong commitment to richards bay. With the added bonus of competitive pricing of courses, KbC is in a strong position to maintain the relationship with the CITC.

KbC has been training in richards bay for the past 8 years which has given them the opportunity to build a relationship with all of the key role players and shape their resources, training methodologies and data management to suit the process, the initiative and the requirements of the CITC, employers and learners.

The success of the CITC and its centralised training facility has attracted the attention of various other regions. Since the establishment of the richards bay branch, KbC has successfully opened 17 additional branches where the principles and standards of the CITC has been cemented and used as the foundation for training.

Franz Schmidt, Chairman of the CITC

Establishing a health and safety benchmark in richards Bay By Franz schmidt

CaSE STUDY

Page 9: People Dynamics October 2011

TraiNiNg

Working in a highly competitive environment where the industry is becoming more fragmented and margins remain under

significant pressure, the outsourced catering industry is just one of the many sectors feeling the impact of the definite skills shortage being experienced in South Africa.

The situation is further exacerbated by the fact that many experienced project managers and catering managers are leaving the country to pursue global opportunities. We are dealing with legacy issues where we have inherited staff when we obtained contracts and these employees are sitting way below the required competency level. The mines are a good example where it would take us at least four years to reach the required competency.

mcGregor feels that the only way to address the urgent need to upskill is by introducing a skills development strategy which starts with learnerships and then moves to apprenticeships and management development programmes. One of the greatest obstacles we face is that just because a person says they have a matric or a certain degree, this does not mean they can necessarily do the job. We are concerned that the concept of practical training is disappearing and there are not enough fixed competency benchmarks. We understand the SeTA’s are supposed to be looking at this but unfortunately we are not seeing the results through the system.

The solution moving forward lies in investigating the various opportunities which exist for the public and private sector to better work together to help lift skills. There is also a strong need for more companies to run their own in-house training courses. We are seriously reviewing our in-house training programmes to address the skills shortage and find ways of retaining talent.

For the past three years royalmnandi has up-skilled an average of 60 staff annually through its internal National Certificate in Professional Cookery Learnership, presented by the royalmnandi Learning Academy.

We want our staff to be skilled to the highest level and this means they must be given the opportunity to obtain a formal education. Our core business is that of making food which means adhering to the quality that the client demands and ensuring that the Food Service Assistants (FSA’s) and cooks have the formal skills and knowledge. It is also our way of showing that as a company we value our employees and they are important to us.

The qualification covers a wide range of key areas bringing together elements of food and drink preparation as well as supervision.

Providing employees with a formal qualification forms the foundation of building a career in the food industry within royalmnandi. Although it is a huge capital investment, it not only ensures that we retain the talent, but through putting into practice the “whole perceptive learning” approach we can up-skill and grow employees into management positions.

As part of the learnership programme, each learner is assigned a workplace coach to mentor and provide support allowing the learners to succeed at the very highest levels. The practical in-kitchen craft training also brings the learners together with fellow chefs that have been trained and worked their way up internally. These chefs come into the craft training as master Chefs to run the classes imparting both their skills and knowledge as well as inspiring the learners to work hard and achieve as they themselves have done.

We recently used executive Sous Chef for royalmnandi events, Sello mlambo, to run one of the classes and the learners were absolutely amazed at the skills he has mastered and all said they want to be just like him. It’s a lovely way to demonstrate to those that have the passion and desire to go further that it is truly achievable and within their reach.

Together with the master Chef Trainers, the facilitators running the learnerships are extremely hands on and various assessment and support systems are in place to ensure that the learners are given more than one opportunity to achieve success.

royalmnandi’s ongoing commitment to training is evidenced through the provision of a three-year apprenticeship programme available to those that successfully complete the National Certificate in Professional Cookery Learnership. These learners will go on to complete the apprenticeship which is recognised and accredited by the South African Chefs Association (SACA) providing them with the necessary qualification to pursue a career as a chef. Ten disabled employees will also be given the opportunity to complete a formal learnership this year.

We have also embarked on extensive Adult basic education Training (AbeT) courses, providing employees that do not have adequate numeracy and literacy skills with the opportunity to obtain a formal qualification. We are just about to launch a pilot project in Limpopo Province where these basic skills are particularly lacking. Following successful implementation there, it will be rolled out to other areas most in need of improving these skills.

Also soon to be launched is royalmnandi’s Unemployed Learnership Programme whereby 72 previously disadvantage youth enrolled in Further education Colleges will be selected to complete the National Certificate in Professional Cookery Learnership within royalmnandi.

This is a project we are very excited about and we see it not only as a way of giving back to the communities in which we operate but also a means for us to increase our talent pool and remain innovative and at the top of our game.

Graham McGregor, chief executive officer, RoyalMnandi

Bringing back good old apprenticeshipsBy Graham mcGregor

Page 10: People Dynamics October 2011

8 People Dynamics October 2011

lEaDErShiP DEVElOPmENT

The need to develop leadership capacity among organisational managers is a strategic imperative that is key to the success of

any organisation. many organisations have implemented different strategies and approaches that seek to address the issue of leadership development. many people would agree with me that today’s organisational managers need leadership skills to lead the organisation’s economic recovery strategy and increase effectiveness in general. For any Leadership Development Programme (LDP) to be effective and successful, you need to:l Align your Leadership Development Programme to the organisation’s

vision, strategy and culture. l Understand all the leadership components, before committing to a

particular programme and methods. l broaden your horizons to include team and organisational development

strategies in the leadership development programme.The main objectives for organisations to embark on Leadership

Development Programmes is to address the following objectives: managers maintain the status quo, leaders take their organisation to new

heights Organisations need more people with their eyes on the bigger picture,

taking initiatives and producing results. Leadership development programmes should help and empower employees to l Conquer critical business opportunities & challenges l enhance competitive advantage l Increase value delivered to customers l Translate strategy into action l Develop future leaders l Identify new opportunities l Grow the leadership pipeline of the organisation

One needs to keep in mind that the core purpose of a strategic LDP is not to build a small pool of successors to senior management, but to create a talent pool of strategic leaders at all levels of the organisation and to cultivate and refine the managerial talents needed to move the organisation toward its strategic objectives. It is a fact that at the end of the programme management expects the participants to understand and define the business of business, create a winning strategy, communicate persuasively, behave with integrity, respect others and act for the benefit of the organisation.

many organisations invest significantly in LDP, the investment is made with the understanding and belief that the programme will deliver on demanding shareholder’s and stakeholder’s expectations. The current/common approach that is followed on LDP’s is the institutional notion of leadership and leadership development that focuses on the participant as a receipt of didactic input. The process also incorporates the Action Learning Project (ALP) as it allows the participants to transfer what they have learned on the project in order to talk to the needs or objectives of the organisation.

These approaches expect participants to learn and transfer back to the organisation (through the ALP) that which has been learned. It is still fundamental that the development of the remains rooted in an overly techno-rational and functional perspective. This then leaves the decisions as to what ought to be learned, how and when, to the LDP space. The development of any LDP is supposed to be a homogenous approach as the LDP is desired to support organisational needs, enhance performance and deliver on strategic objectives.

lEarninG and dEVEloPmEnts rolE in ldP As a learning and development specialist we need to keep in mind what senior

management is looking for from the LDP and that is return on investment (rOI).We must also not forget that the purpose of LDP is to narrow the gap between identified operational and strategic needs. The extent of the needs will then define the scope of the LDP. The fundamental process includes conducting a training needs analysis, as desired outcomes need to be clarified and the organisational needs established by senior management and not the participants. What senior management will do is identify the preferred leadership models. THe LDP specialist needs to emphasise and advocate for blended learning i.e. on the job learning, coaching, structured, less structured learning events and action learning. The content is derived from a normative framework which identifies desired leadership qualities and identifies focused characteristics such as personal governance and management qualities e.g. self awareness, emotional competence, business relevant dimensions and strategic leadership capabilities.

many organisations embark or implement LDPs that in their view will take the organisation into a different level or increase their competitive edge. It is also important that before an organisation implements a LDP they understand the steps or process that is key to development.

The following are recommended steps to follow when developing a LDP:

Step 1: Develop a unique definition of ‘‘leader” and define corpo-rate strategic imperatives l What are the strategic imperatives of the organisation and do we have

the right/ competent people to action those organisation imperatives?l How do we define leadership as an organisation?l What are the key issues and fundamentals that we embrace as a

organisation with regard to the definition of Leadership? l What is the leadership style/culture that we ought to develop and

practice within the organisation? l What are the organisational imperatives?

The definition serves to identify and categorise the various skills, knowledge and abilities to be developed in step 2 of the process. When we identify the organisational strategic imperatives we will then link that to the types of leadership that do or do not have.

step 2: identify the objectives of the leadership development Programmel Why do we want to develop leadership talent in the organisation? l What would happen if we didn’t develop leadership talent in the

organisation?The response’s to these and other questions will inform the objectives of

the programme and enable us to drive the programme forward, as we have already identified the objectives of the programme.

step 3: identify the leadership competencies that the organisation will require in the next 2-5 years.

The leadership competencies will be in line with the strategic organisational imperatives, by doing this we will be contributing to the leadership pipeline of the organisation. The questions we need to ask are as follows:l What kind of (1) technical skills, (2) cultural attributes and (3) leadership

competencies do we need to achieve the corporate strategy?l What individual, team and organisational capabilities do we need to

achieve our vision & strategy?l What competencies and capabilities do we need to take the organisation

beyond our current strategy?l Who are our best leaders (all levels) and what makes them so successful?

Organisation leadership Development ProgrammeBy Kenny Khoza

Page 11: People Dynamics October 2011

l When is the organisation at its best?l What will the organisational leaders of the future look like? What will

they know and be able to do...?

step 4: Conduct interviews with organisation’s executive and star performers for ownership.

For the success of the programme it is imperative to have some organisational role players involved in the formation of the programme. For the relevance of the content and the support of the programme conduct interviews with executives and star performers as they will share their thinking and enhance buy-in. The purpose of the interviews is to make a correlation between what is noted by managers and the list of skills, knowledge and abilities identified in step 3. The second purpose of the interview is to see if managers within the organisation share the view on leadership as outlined in step 1.

step 5: align management systems and practice with leadership development Programme.

For the Leadership Development Programme to be effective, we need to ensure that the organisational culture supports the LDP. many organisations have implemented such programmes and the challenge has been the lack of synergy or cohesion between the LDP and other imperative elements of the organisation.

step 6: Choose your participants The selection of the programme participants must be fair and strategically

relevant and be informed by the LDP strategy. Different selection criteria can be implemented by the organisation based on the organisational environment.

step 7: discuss how success will be ensured Identify critical success factors of the programme, this should be done at

the beginning of the programme during the development of the objectives of the Leadership Development Programme

ConClusion The implementation of the Leadership Development Programme is very key and fundamental to the success of any organisation, be it public or private. both these organisations need to achieve their strategic objectives and enhance competitive advantage. This can be done with the right people and the right competencies leading or playing a key role in the organisation. The role of learning and development specialist is to make sure that you correctly advise your executive’s and correctly lead the process of leadership development, thereby ensuring that the organisation moves to the next level. Kenny Khoza, Training and Development Manager, Silverstar Casino

leadership Development map

Reference: Ulrich Dave

Page 12: People Dynamics October 2011

10 People Dynamics October 2011

mENTOr maTTErS

An entire industry has developed around the theory that the younger generation of employees has a fundamentally different outlook

towards work and the world-in-general than the older generation who are generally managing them. but… what if they are wrong?

I must admit that I was taken with the early articles and inevitable seminars from management consultants unveiling the latest truths about baby-boomers, Generation X, Generation Y and then (when the industry knew it would run out of letters), the millennials. The conference presentations by self-appointed generational “experts” were hilarious, and it is easy to recognise yourself as fitting into one of the boxes, because the definitions are carefully crafted to be non-judgmental.

The concept seems to make such common sense, and we have all known about the generation gap even in granny’s time, so it must be true. However, when Hr departments are building strategies based on this premise, we had better be sure that we are not “building on sand”, because now we are shaping remuneration, career development and all kinds of human capital structures on the assumption that this is “science”. Our marketing colleagues have learned to be very careful not to segment markets as glibly as they did in the amateur years, so are we in Hr quite sure about the validity of generation segmentation?

I have no problem with consultants making money out of new metaphors, but if all the “research” is anecdotal, rather than the result of validated scientific study, there should be a healthy dose of skepticism from the Hr fraternity before we start changing our management strategies on faulty premise. Strategic Hr with board representation, remember?

Specifically, my academic colleagues point out that the generation theory violates the central principle underpinning demographic studies like these – namely to distinguish “age effects” from true “cohort” or “generational” effects. If your research methodology is a bit rusty, this is what we mean:

Today’s 20 year olds seem pretty self-centered, right? Now, is this because they are part of a new “me” generation (which is the “cohort” effect) or is it simply because all young people at 20 are self-centered (the “age” effect)? Perhaps this is because the big responsibilities of adult life are not yet pressing on their shoulders. So, does this characteristic describe the millennial Generation, or would your parents and grandparents admit that this is also how they were as a naïve 20 year old?

And here is why this distinction should matter for Hr practitioners: if these differences which seem so obvious now are actually the result of age effects, they will pass. Today’s 20-year olds will grow up to be 30 and 40 and 50 year olds, as they acquire the characteristics of each life stage along the way, which will then change the way they behave, and possibly even their values.

However, if our smart Hr people are branding people born in a particular decade as Generation Y for life, and managing them in that way throughout their careers, they could be making terribly misinformed (and actually out-of-touch) decisions in a few years.

Think of how the global financial boom of the early 2000s affected young people, who could afford to take risks, opt out of retirement funding and flout job security. With the global financial crisis of 2008, a lot of this has changed, and that same “generation” has just learned painful lessons about debt, job-hopping and other realities. This might have caused the smart consultants to change a few of their generational powerpoint slides recently! The generation itself hasn’t changed, just the circumstances. but, managing them the same now as then would be naïve.

At the same time, I am not saying that the 30 year olds of 2011 behave exactly the same as 30 year olds did 50 years ago. The evolution of technology alone makes those comparisons impossible. but, there is just a huge caution against assuming that popular theories can put people into convenient boxes. We have seen numerous “quadrant” training programmes over the years, compartmentalizing people into 1 of 4 boxes, based on shady “science”, which is dangerous and sometimes even harmful.

Finally, these generation theories are almost exclusively western in their culture stereotyping, with no clue as to how young Chinese, Chilean or Chechnyan workers fit into these categories.

Nevertheless, there is fair reason to follow some of the serious researchers who have embarked on studies of workers now, compared to those from earlier periods, to see if there are really any cohort effects – now that is something I want to read before implementing generation-based programmes.

Just to confuse us all, one such study “Generational Difference in Work Values” by Twenge, Campbell, et al surveyed school leavers in 1976, 1991 and again in 2006. Interestingly, they found school leavers of 2006 to be less interested in meaningful work than in money, which confounds popular generational theory. Yet, they also found this group to be more interested in work/life balance than the previous 2 generations, which does fit in with the Generationalists.

moral of the story? “Human Sciences” is an oxymoron.

Talking about my generationBy Gary taylor

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.

Page 13: People Dynamics October 2011

ChaNgE maNagEmENT

The ability to manage continuous, rapid and sustainable change is a key determinant in ensuring effective agility and marketplace response

as well as helping to deliver profitable / cost-efficient growth, customer satisfaction and long-term organisational success.

Improving business performance in any area will deliver positive benefits if correctly managed, however the key to agility lies in achieving a lasting and sustainable approach to the whole business problem of managing continuous strategic and operational change in complex environments. How your business survives challenging economic times can be greatly influenced by how your employees experience their work environment. A strong positive culture creates internal cohesion and enhances the organisation’s capacity for collective action by building trust.

The alignment between what a company says and what a company does (values) should be inclusive and give employees a sense of ownership. Therefore a process of co-creation needs to be embraced so that the organisation’s values can become more than simply a set of statements on the walls of the organisation but where people actually live and become those values. Your organisation’s culture is determined by your organisation’s values. Do you see your organisation’s culture as a significant part of your business’ performance equation? Do you see it as a driver of your financial performance? If your answer is not a resounding “Yes,” then you may want to read on.

Organisational agility is a core differentiator in today’s rapidly changing business environment. Nearly 90% of the executives surveyed by the economist Intelligence Unit believe that organisational agility is critical for business success. research conducted at the massachusetts Institute of Technology (mIT) suggest that agile firms grow revenue 37% faster and generate 30% higher profits than non-agile companies.

In research published in march 2009, the ability to transform information into insight in response to market movement is core to sustainability.

However, the business readiness and internal barriers for change still exist and the necessity for mindset and behaviour change is apparent. Slow decision-making, conflicting departmental goals and priorities, risk-averse cultures and silo-based information were identified as the main obstacles to agility. With the plethora of information available, organisations are faced with the challenge to be quick to leverage that information. Agility is turning that information into action. This ability is key to satisfying customer expectations which are never static. It is the ability to embrace change even if it risks cannibalising an existing product but most companies neglect change because of the underlying fear of change itself.

Interesting studies have shown that agility is not about IT. In one study, IT factors were ranked as the three least important organisational elements in promoting agility.

Change management, outsourcing, automation and other process efficiency improvements is the response to improve organisational agility – and it is not just a systems change or the implementation of an IT system. The change in mindset, behaviour and decision-making are vital to ensuring that agility is achieved.

In building an agile environment, accountability and knowledge-sharing are key values that are required to support this mindset. by building a culture that is aligned with these values, the organisational goals and priorities will be met through high-performing teams.

The concept of “organisational alignment” relates to the process of continuous review, renewal, repositioning and improvement of what an organisation does to make sure everything is linked to a common direction and outcome.

Organisations are therefore always in some form of alignment, even if it is usually minimal or “unconscious” alignment. Successful organisations support an alignment focus on improving their ability to achieve their defined organisational outcomes – therefore the terms “organisational alignment” and “strategic alignment” are often used interchangeably.

Various disciplines and industries have developed tailored applications around alignment, but in each instance they identify a shared point of reference - the continuous process of review and positioning to ensure maximum achievement of outcomes.

Organisational alignment requires compatibility between the strategic and cultural “paths,” and consistency within them. Therefore, organisational values should be compatible with goals. However, organisations have traditionally emphasised the strategic path and invest considerable effort in defining strategic goals and objectives. Fewer organisations address the cultural path with clearly defined statements of values - fewer still, make a consistent effort to ensure that values and strategy are compatible, and that work behaviour represents their values. Yet “the way we do things” influences results as much as “what we do”.

In building an agile environment, accountability and knowledge-sharing are key values that are required to support this mindset. by building a culture that is aligned to these values, the organisational goals and priorities will be met through high-performing teams.

As we move into the 21st century, it is clear that some of the old paradigms of business are floundering. The theories of business that created the modern age are no longer serving companies and they are no longer serving society. Is your organisation agile enough to survive?

Mandate Molefi, (011) 728-9585 A Values Assessment provides the basis for an alignment strategy which can be measured by repeating the Values Assessment on a regular basis (annually) to assess the progress made towards the stated Desired Culture. With regular review, the current and desired culture can be aligned. Mandate Molefi is licensed to use Barrett’s Cultural Transformation Tool, an internationally recognised assessment tool developed specifically for the purpose of conducting organisational values assessments.

Change management and agilityBy Nene Molefi

Page 14: People Dynamics October 2011

12 People Dynamics October 2011

SOCial NETWOrKiNg

Are you in the job market? Are you LinkedIn? With more than 100 million users, LinkedIn is undoubtedly the most popular social

network for professionals, as well as one of the top social networks, currently in existence. Conceptualised in the living room of co-founder, reid Hoffman, in the fall of 2002; some nine years later - almost everyone in the professional community boasts a LinkedIn account. The game has certainly changed when it comes to securing a new job and these days, your arsenal of skills would do well to include a sound knowledge of how to navigate the digital highway. This is almost essential in ensuring that you are at least in the line, not necessarily next in line - for that successive bIG job opportunity.

The following tips on LinkedIn, aim to help job seekers the net over, make the most of this professional network.

1. Optimise your profile: “Optimise” is a buzz word, coined by social media geeks to impress the

less informed. by engaging in the optimising process you simply include keywords that are most relevant to your skills and experience within your profile. You can add these in your summary and job description section to aid visibility of your profile and ensure that it reflects more often in relevant searches.

2. Privacy settings: be cautious and aware of those within your network. If your current boss

is a member of your network and you don’t necessarily want him or her to know you are looking for a new job; you will need to be selective in arranging your privacy settings. However, if this is not an immediate concern, then it’s best to be openly and easily identifiable.

3. Viewing You can confirm who is screening your profile, by allowing others to do

likewise. This information can be viewed when you click under “Who’s Viewed my Profile” on your profile page.

4. make it personal: Although LinkedIn is a professional site; it is highly advisable to ensure

your profile is as personal as possible. It is vital to portray a glimpse of the real person behind the profile. Therefore, be sure to use first person when you pen your profile; this communicates confidence. Understand and appreciate that your profile is your life story; engage in the use of storytelling to strengthen your case. This will ensure a distinctive profile and extend to the reader, a better insight into you, as a person.

5. linkedin recommendations: recommendations from people you have worked alongside carry much

weight. To a potential employer, a LinkedIn recommendation is a reference in advance, and can greatly assist in securing that first, sometimes elusive interview.

As with most professional relationships, recommendations are often mutual. Therefore, it’s no surprise that many individuals will provide recommendations for each other. The fact that your reputation is tied to any recommendation you write, is indeed an incredibly significant incentive to keep words honest, as well as defensible.

6. the power of linkedin groups: There exist groups for every topic and industry, which enable you to

network specifically with applicable peers and specialists. but did you know you can directly message most group members? What’s more, you don’t have to be a first degree connection, in order to achieve this. An ideal way to bring you into contact with those in the know; it is also the perfect platform to ensure that you are noticed, when attempting to make a move in your career. Harness the power of LinkedIn groups.

Laura Hutchinson, Managing Director Western Cape, Communicate Personnel, www.communicate.co.za

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linkedin – Job hunting the smart wayBy laura Hutchinson

Page 15: People Dynamics October 2011

October 2011 People Dynamics 13

most good ideas are the ones that make you wonder why you hadn’t thought of them first - group buying is one of them. Last

year, there were about 63 000 deals in the U.S. through group buying sites. In the first quarter of 2011 alone, there have been an estimated 40 000.

It’s understandable; group buying is social marketing at its finest, and a model that generally benefits everyone. buyers have an incentive to spread the word - they want the deal to go through, therefore they want as many of their friends to commit as possible. It creates viral marketing by utilising the power of group buying along with other innovative marketing techniques such as social media and display marketing to drive huge brand awareness. retailers gain new customers, and the group-buying companies perform their mediating function (In order to ensure that vendors hold to the contracts as well as comply with the credit act, group buyers only pay the retailers once the customers redeem the vouchers, allowing the group buyer to facilitate between vendors and customers).

The success of the largest of these companies, Groupon, named by Forbes recently as the fastest growing internet company in history, as well as the simplicity of the business model, has meant that it is easily copied. In 2010 there were already over 500 group buying companies worldwide, a number which is growing at an exponential rate.

As a way to compete, many of these smaller companies springing up are offering a cheaper alternative to the established group buyers. Some take 10% from the deal as opposed to the larger percentage that the established group buyers generally require.

With regards to Groupon’s lower pricing what many seem to forget is the huge amount we invest in our vendors. Groupon is currently the 22nd biggest site in SA after only being in the country for 6 months. Of the 50% commission we take - the majority is put straight back into advertising the deals to ensure they reach the ears and eyes of more customers, as well as towards other considerations, such as increasing our staff capacity to assist the vendors.

The commission ultimately enables us to invest a huge amount back into marketing our vendors deals and giving our vendors and customers as much assistance as possible. For many copy cat companies, their 10% goes straight into their pockets with no consideration for their vendors.

The myriad of copy cat businesses also argue that having a smaller consumer base benefits the retailer because they will deliver smaller amounts of customers, which can be better serviced by the merchant. but, the benefit to retailers of participating in group buying is precisely because it has the potential to deliver significant numbers of new customers.

People often don’t consider that; even without the deals themselves – quite possibly the best thing that we do is in fact give retailers access to our extensive database. Groupon literally accelerates the growth of the businesses who partake in our offerings.

Sandwich baron is a case in point. “Groupon explained the impact the campaign would have far better than their competitors, who also approached us. Generating new traffic into our stores was very appealing to us, and this has been the result. There has also been a dramatic increase in hits on our website because of the deal,” said Sandwich baron franchisor Sally JÁrlette-Joy.

You have these smaller group buying companies telling retailers that it’s better to gain a few customers and not “flood the market”; which is really a bit mental when one thinks about it. Groupon is a marketing activity, and compared to traditional media it is the most cost effective and risk free form of marketing available. Groupon gets “feet in the door” – not the promise of customers as many other forms of marketing do. If, for example a vendor was to take a print ad you handover a large sum of money and can only hope that it pays off – I’m really proud that we are not like that, we offer total measurability.

In the end it’s up to you as the merchant whether or not you can handle the service; we put you in the limelight in front of a large amount of new customers - one of the most powerful things about Groupon is this database of ours is completely organic – all our customers are opt in’s – what this means is you get exposed to our entire database but only pay commission on the actual customers we acquire for you. Once they walk in the door it’s up to the vendor to provide awesome service and an experience that will knock their socks off and keep them coming back for more.

retailers certainly seem happy with the wider service. Groupon SA has had positive feedback from retailers such as WantItAll, Look & Listen and many more. Look & Listen were selling one music track every 15 seconds through an offering by Groupon.

Look & Listen CeO Darren Levy, when questioned on a recent Groupon/Look & Listen group deal stated that “There’s no question that the results were very beneficial for us immediately after the coupon broke and we’ve seen since the coupon, a growth in our business as a consequence.”

The Groupon experience has been nothing but positive, said Shahista Osmal, owner of Senses Day Spa, “It’s an excellent business; consumers gain awareness of retailers they didn’t know existed, and they think more about retailers that they’re already familiar with.”

Daniel Guasco and Wayne Gosling, joint chief executive officers, Groupon SA

Bigger is definitely betterBy daniel Guasco and Wayne Gosling

grOUP BUYiNg

Page 16: People Dynamics October 2011

14 People Dynamics October 2011

SUSTaiNaBiliTY

Operating efficiently and sustainably is good for the environment – and for business. There is a common goal among building owners,

facilities managers, executives and real estate developers: to have a building that works more efficiently, sustainably and profitably. reducing the company’s carbon footprint is a sure way to reach an important part of that target.

The benefits of operating efficiently and sustainably are increasing. Not only does it improve an organisation’s carbon footprint and its impact on the environment but it also improves the corporate image. And by recognising the importance of operating efficiently and implementing steps to become a ‘green’ organisation, the company immediately becomes a more desirable business partner. Additionally, there are financial benefits achieved by saving money through lower energy and operational costs.

The first step is to quantify the organisation’s carbon footprint. Online tools enable users to enter information about electricity, gas and diesel fuel usage, fleet size and vehicle fuel consumption, and renewable energy generation. The consolidated data then provides an accurate measurement of the organisation’s total carbon footprint.

The next step is to develop and implement a carbon management and sustainability strategy. Installing more efficient heating, cooling and lighting systems, building state-of-the-art central utility plants, and deploying renewable energy technologies such as photovoltaic (PV) solar panels can all contribute to reducing energy consumption, fossil fuel dependence and carbon emissions.

Another way to reduce an organisation’s carbon footprint is to reduce the real estate footprint. This can be done by consolidating where possible and eliminating unneeded facilities. by reducing the square footage, the energy usage and carbon emissions are reduced. Numerous other programmes can be implemented to conserve natural resources and reduce carbon emissions – such as recycling and using less paper.

Here are 10 ways to reduce an organisations carbon footprint to minimise its impact on the environment:l Consider investing in renewable energy technologies to become less

dependent on the grid. This is good for the economy, environment and energy security. Using renewable energy technologies can increase

owner revenue, revitalise rural communities and reduce dependence on the power grid – all without consuming natural resources or emitting pollution or greenhouse gases.

l Promote recycling – establish a recycling programme and distribute recycling containers around buildings and/or campuses to encourage separation of waste and recyclable items.

l make cleaning and maintenance greener – reduce the environmental impact of in-building operations such as cleaning, pest management, and maintenance by using more environmentally friendly cleaning products and organic, synthetic filters for equipment.

l Host meetings with minimal environmental impact – host environmentally friendly meetings that encourage telemeetings. In-person meetings should be held at green hotels that serve pitchers instead of bottled water, reuse name badges, and donate unused food to local food pantries.

l Offer telecommuting options to employees – establish a telecommuting programme allowing employees to work from home 1–5 days a week.

l Institute flexitime – encourage flexitime, which will stagger start/end times so that employees can avoid getting stuck in rush hour traffic, use less gas and reduce carbon emissions.

l Increase employee and student awareness – set up education sessions for employees/students to share home/work trips to reduce their individual and collective carbon footprints.

l Support green vendors – use vendors and suppliers who embrace green practices, i.e., buy local, purchase used office furniture, etc.

l modernise your fleet – update fleets with more environmentally friendly vehicles where applicable and consider switching to electric and hybrid vehicles.

l Promote environmentally friendly commuting – establish carpool initiatives for employees. Provide mass transit passes for employees. reward hybrid car owners with preferred parking.

Phil Gregory, senior regional executive, Johnson Controls Global Workplace Solutions Middle East & Africa, 011 438 1600, [email protected]

Top 10 tips to reduce your organisation’s carbon footprintby Phil Gregory

Page 17: People Dynamics October 2011

October 2011 People Dynamics 15

If we fail to invest in our people, then people won’t invest in our businesses. We know that, but how do we convince those who

handle the budgets? Or senior managers who say they can’t afford to give people the time off for training? Doing nothing will cost far more in the longer term.

“It will be too expensive.” “Far too disruptive.” “We don’t have the time.” These are probably the top three excuses training professionals come up against when trying to make the case for learning and development programmes. but the answer to all of them is: “How much time and money will you waste, and how much disruption will you experience by doing nothing?”

Failing to invest in leadership development costs companies millions each year. research suggests that for every year a company delays investment in leadership development, it costs that organisation a sum equal to 7% of its total annual sales.

Why? because not investing in your people affects three key areas - employee retention, customer satisfaction, and employee productivity. The negative effects it has on these areas simply cannot be underestimated.

Employee retentionWho doesn’t want to keep hold of their most skilled, motivated and experienced employees? Such people are an asset to their organisations, and losing them can be a real blow. but if we’re not developing, rewarding, and investing in our best people, then lose them we will. Then, as well as losing a trusted colleague and possibly a friend, we also incur the costs associated with covering the position while vacant, the cost of finding a replacement, and the cost of getting that replacement up to speed.

Depending on the position being lost, the cost of replacing skilled workers can run into hundreds of thousands of pounds.

Customer satisfactionI believe better leadership can generate greater customer satisfaction, which in turn can drive sales. In fact our research has shown that better leadership can generate a 3-4% improvement in customer satisfaction which brings a corresponding 1.5% increase in revenue growth. We’re not alone in reporting this connection and these figures– they were first quantified in the late 1990s by Anthony rucci, Steven Kirn and richard Quinn in an article published in the Harvard business review titled The employee-Customer Profit Chain at Sears. They found that every 1.3% increase or decrease in customer satisfaction scores led to a corresponding 0.5% increase or decrease in revenue, figures which tie in with our findings.

Employee productivityOur research has consistently shown that the majority of employees are working at only 70% of their potential. Yes, it’s unrealistic to expect anyone to work at 100%, but 86% is realistic. And leadership development can achieve a productivity increase of between 5 and 12%.

Of course, these are all ball park figures, which means they could be dismissed by cynics who can’t or won’t see the need for leadership investment. This is why The Ken blanchard Companies has developed a free online ‘Cost of Doing Nothing’ Calculator to quantify the cost of non-development for individual organisations, and identify the difference best-practice leadership can make. It could be just what you need to make that business case for development!

Our calculator takes into account all the costs I’ve talked about - covering vacant positions, finding replacement employees, and getting new hires up to speed. You can try it out at http://www.kenblanchard.com/management_Training_Programs/Cost_of_Doing_Nothing_Calculator/.

The Calculator uses data originally published by the Saratoga Institute, a leading authority on turnover and retention. We’ve tested it on over 200 companies who, after using the calculator, found they are losing an amount equivalent to 7% of total annual sales by not optimising leadership practice. They have also found they can avoid between 9% and 32% of voluntary staff turnover through leadership skills training.

Here’s the bottom line: in any economic cycle, the basics will always apply. You have to have a good business plan, you have to take care of your customers, and you have to take care of your people. Leaders are an important part of all these basic processes. It is leaders who help people achieve their goals, make sure those goals are aligned with overall organisational strategy, and who are responsible for ensuring employees get the direction and support they need to perform at a higher level on a daily basis.

So yes, leadership development initiatives can be disruptive and financially challenging, but taking no action is potentially even more so. Doing nothing really is the most expensive and disruptive option of all.

For more information on Blanchard’s Leadership Development expertise, email [email protected] or call 0800 980 814. Web www.kenblanchard.com, Social Media Links: Twitter @kenblanchard; Facebook: http://www.facebook.com/kenblanchardfanpage, Blog: www.HowWeLead.org, Business and Management forum: www.leaderchat.org.

© The Ken blanchard Companies, 2011

lEaDErShiP DEVElOPmENT

What’s doing nothing costing your business? by Ken blanchard

Page 18: People Dynamics October 2011

16 People Dynamics October 2011

Avoid possible rejection of insurance claims by maintaining your home in good order says Group Insurance scheme provider, Aon

South Africa.A report by FNb Home Loans states that households are increasingly

neglecting or deferring maintenance to their homes as their financial situations weaken.

The numbers emerge in the bank’s second quarter estate agency survey showing there has been a drop in home maintenance and in some cases homes are even being allowed to simply ‘run down’ which is not a good idea from an insurance point of view.

While it’s understandable that household budgets are taking strain, lack of maintenance could be a problem if there’s an insurance claim.

The onus is on policyholders to maintain their homes in good order to keep them insurable. Things like gutters, roofs and drains come to mind, but also the electrics like geysers, stoves, walling and so on, all of which need to be in good working order.

Other common mistakes and omissions that can lead to rejection of insurance claims include:

Late notification of a claim - you must notify insurers within a reasonable time – check your policy wording for details – of an accident or incident that could give rise to a claim

House Content Claims - if you don’t comply with your policy conditions on minimum security (for example, a burglar alarm, burglar bars and security gates), or should your alarm fail to activate during a burglary, your claim could be repudiated.

Insurable interest in the insured property - you must have what’s known as an ‘insurable interest’, i.e. a financial interest in the insured asset.The assets of family members or independent children who no longer live with you or property owned by a CC or company won’t be covered under your policy.

material change in the risk - insurers must be informed of any ‘material increase’ in the risk they are covering. For instance, with home building costs continuing to escalate, the replacement value of homes has increased. Another example would be the erection of a thatch lapa attached to a standard roof, which increases risk. even if you simply make alterations to your home you will almost certainly add to its value and, for that matter, there could be risk of damage during construction.

If you are uncertain about the terms and conditions of your policy, contact your broker. And always notify your broker of a change in your risk address.

Mandy Barrett, AON South Africa

Don’t have your insurance claim rejected by mandy barrett

iNSUraNCE

Page 19: People Dynamics October 2011

October 2011 People Dynamics 17

mOTiVaTiON

“Genuine recognition of performance is something people really appreciate. People really do not work for money. they go to work for it, but once the salary has been established, their concern is appreciation. recognise their contribution publicly and noisily but do not demean them by applying a

price tag to everything.” Phillip B. Crosby

The most dominant expression in the study of Human resources management (Hrm) is “employees are the organisation’s most

important asset”. This important asset typically counts for a larger portion of the organisation’s budget. Therefore there is a need for the organisation to strategically invest in its personnel as stated in the e-manager: Strengthening Human resource management to improve Health Outcomes.

managing a humanbeing is a complicated activity; that is why in isiZulu there is a saying that says, “kungcono ukuthemba itshe kunokuthemba umuntu” (It is better to trust a stone than a humanbeing). This is because a stone does not change nor move from where you put it. Of all the functions a manager performs, employee motivation is one of the most difficult. Yes, you can take a horse to the water but you cannot make it drink; it will drink only if it is thirsty, as is the case with humanbeings.

Kathy Schofield argues that “you do not motivate an individual but you provide them with an environment in which to be self-motivated. It is a personal decision but it’s management responsibility to provide the right environment.” The question that troubles most researchers in motivation is this: are human beings born with the drive to be self-motivated?

It is not enough for Hr to ensure that the organisation is provided with competent and qualified employees, but it is essential that the people they bring to the organisation are motivated to work, and more importantly, that they plan long tenures with the organisation.

From the psychological point of view, work can be important sources of identity, self-esteem and self-actualisation; it can provide a sense of fulfilment by giving an employee a sense of purpose and clarification of his or her position in an organisation and in society. It can, however, be a source of frustration and give rise to feelings of meaninglessness, depending on the nature of the task. It is true nothing gets done without motivation.

motivation is elusive and one of the most researched subjects in Hrm, but its significance can never be underestimated if an organisation wishes to maintain its competitive advantage and retain talented and willing employees. Social scientists and psychologists are not clear about what exactly motivates an individual in the workplace to perform at his or her best or what draws that person to his or her work.

Literature on the study of motivation reveals that some organisations battle to retain highly motivated and willing employees. This is because some employees regard their work as

a means to earn money not because they derive pleasure from doing their job. It is therefore significant for those in management and leadership to understand the dynamics of motivation in the workplace because organisational success depends on the high levels of motivation or the willingness of the employees themselves to ensure that all their energy is directed at assisting the organisation to succeed so that performance can be enhanced, and to ensure that employees do not work for the sake of working.

Wilson (1999) states that a comprehensive understanding of the way in which organisations function requires that at least some attention be directed towards the question of why people behave the way they do on the job. Therefore an understanding of the topic motivation is essential in order to comprehend more fully the effects of other factors such as leadership style, job redesign and compensation systems – all of which relate to satisfaction. This is essential for any business to grow, remain healthy and to succeed.

Schultz, bagraim, Potgieter, Viedge and Werner (2003) maintain that highly-motivated employees strive to produce at the highest possible levels and exert greater effort than employees who are not motivated. motivated employees want to come to work. They want to be part of teams at work without being coerced to participate. Unfortunately, according to Schultz et al. (2003), there is no magic formula for motivating others and there is no one best way of motivating employees in an organisation. There is not even a universal set of principles that applies to every individual in every organisation.

Dr Bongani I. Dlamini, Senior Lecturer: HRM, Durban University of Technology

The key to remaining competitiveBy Bongani i. dlamini

Page 20: People Dynamics October 2011

18 People Dynamics October 2011

IPM 55th ANNUAL CONVENTION & EXHIBITION – SUN CITY,NORTH WEST PROVINCE, SOUTH AFRICA, 30 OCTOBER – 02 NOVEMBER 2011

This premier HR and Business Leadership event in Africa will take place from 30 October – 02 November 2011 in Sun City, North West Province, South Africa.

The theme of the 2011 IPM Convention is

“Resourcing the Future – Positioning Africa for Success”.

This is an event that no HR and Business Executive can afford to miss, taking into account the issues that will be addressed and the calibre of speakers that will address them.

Confirmed speakers - include local and international speakers of repute:

DR WeNDy yOLiSA NgOmA - Acting Head of School, Graduate School of Business Administration, Wits University

PROfeSSOR NiCk BiNeDeLL - Director, Gordon Institute of Business Science

PROfeSSOR STeLLA m. NkOmO - Department of Human Resource Management at the University of Pretoria

SHARmLA CHeTTy - Regional Managing Director for Duke Corporate Education/Vishal Patel – Director Duke Corporate Education

MAMPAI MotSAU - Consultant Hay group South Africa

DR MARk BUSSIn - Executive Chairman 21st Century Pay Solutions Group Pty Ltd.

iTALiA BONiNeLLi - Senior Vice President for HR Strategy and Change Management at AngloGold Ashanti

MARtIn BULUnGA-BAnDA - Core-Faculty Member of the Presencing Institute, the University of Cambridge Programme for

Sustainability Leadership and the national University of Singapore’s Lee kuan Yew School of Public Policy Executive Programme

PRoFESSoR RoY MARCUS - Chairperson of the Da Vinci Institute for technology Management

SAMUEL ISAACS - Chief Executive officer SAQA

mATTHiAS mALAN - Associate Director, Deloitte Consulting

CLiNTON ROgeRS - Group Head: Reward and Benefits for the Absa Group

yeNDOR feLgATe - CEo of Emergence Growth

LizA ASHTON - Managing Director: Bioss Southern Africa and many other reputable speakers

CHRIStoFFER ELLEHUUS - Managing Director EMEA: Corporate Leadership Council

RESOURCING THE FUTUREPositioning Africa for Success

Page 21: People Dynamics October 2011

October 2011 People Dynamics 19

IPM 55th ANNUAL CONVENTION & EXHIBITION – SUN CITY,NORTH WEST PROVINCE, SOUTH AFRICA, 30 OCTOBER – 02 NOVEMBER 2011

This premier HR and Business Leadership event in Africa will take place from 30 October – 02 November 2011 in Sun City, North West Province, South Africa.

The theme of the 2011 IPM Convention is

“Resourcing the Future – Positioning Africa for Success”.

This is an event that no HR and Business Executive can afford to miss, taking into account the issues that will be addressed and the calibre of speakers that will address them.

Confirmed speakers - include local and international speakers of repute:

DR WeNDy yOLiSA NgOmA - Acting Head of School, Graduate School of Business Administration, Wits University

PROfeSSOR NiCk BiNeDeLL - Director, Gordon Institute of Business Science

PROfeSSOR STeLLA m. NkOmO - Department of Human Resource Management at the University of Pretoria

SHARmLA CHeTTy - Regional Managing Director for Duke Corporate Education/Vishal Patel – Director Duke Corporate Education

MAMPAI MotSAU - Consultant Hay group South Africa

DR MARk BUSSIn - Executive Chairman 21st Century Pay Solutions Group Pty Ltd.

iTALiA BONiNeLLi - Senior Vice President for HR Strategy and Change Management at AngloGold Ashanti

MARtIn BULUnGA-BAnDA - Core-Faculty Member of the Presencing Institute, the University of Cambridge Programme for

Sustainability Leadership and the national University of Singapore’s Lee kuan Yew School of Public Policy Executive Programme

PRoFESSoR RoY MARCUS - Chairperson of the Da Vinci Institute for technology Management

SAMUEL ISAACS - Chief Executive officer SAQA

mATTHiAS mALAN - Associate Director, Deloitte Consulting

CLiNTON ROgeRS - Group Head: Reward and Benefits for the Absa Group

yeNDOR feLgATe - CEo of Emergence Growth

LizA ASHTON - Managing Director: Bioss Southern Africa and many other reputable speakers

CHRIStoFFER ELLEHUUS - Managing Director EMEA: Corporate Leadership Council

RESOURCING THE FUTUREPositioning Africa for Success

IPM 55th ANNUAL CONVENTION & EXHIBITION – SUN CITY,NORTH WEST PROVINCE, SOUTH AFRICA, 30 OCTOBER – 02 NOVEMBER 2011

This premier HR and Business Leadership event in Africa will take place from 30 October – 02 November 2011 in Sun City, North West Province, South Africa.

The theme of the 2011 IPM Convention is

“Resourcing the Future – Positioning Africa for Success”.

This is an event that no HR and Business Executive can afford to miss, taking into account the issues that will be addressed and the calibre of speakers that will address them.

Topics and debates will address the challenges and opportunities of the post recession business environment, i.e.• Characteristics of the World’s Most Admired Companies

• Cutting Edge HR Trends & Strategic Options/Implications for HR

• Leadership that Propels Innovation

• Overcoming Organisational Pain through Systems and Design Thinking

• Advancing the Impact and Status of HR

• HR Leadership in a Complex Business Environment

• Developing Talent for the 21st Century

• Developing and Designing Learning Solutions for Organisational Effectiveness

• Improving Company and Individual Performance through Effective Working Relationships

• The Changing Reward Management Landscape

• Strategies to Empower HR Business Partners

• Measuring the Success of Resourcing

• How Competency Models Enables an Integrated Talent Management Process

• Effective Reward Strategies

• HR Skills Deficit & Strategies to Address Them

• Strategies to Build Capacity and Address Issues of Supply and Demand

• Where is the Country Going & How can HR Influence its Direction?

RESOURCING THE FUTUREPositioning Africa for Success

Page 22: People Dynamics October 2011

20 People Dynamics October 2011

gaBriEl’S hOrN

It’s official. A South African now holds the record for the world’s longest ever braai. And the feat has been verified by an official

adjudicator from Guinness World records.Heritage Day (which has assumed the secondary role of National

braai Day) saw Vito Polera taming hot coals for a straight 32 hours at Food Lovers’ market, Willowbridge in Cape Town. The previous record of 28 hours and 30 minutes was held by another South African who calls himself Jan braai.

The new record setting attempt was the idea of brian Coppin, ceo and co-founder of Fruit and Veg City.

Polera is modest about his achievement and says: “It wasn’t as hard as I thought it would be mainly because the weather was good and many locals popped in to spur me on”.

Polera adds that the victory was “more special” as it was achieved on Heritage Day. A day designed to demonstrate how much in common South Africans have.

Coppin comments: “my idea was for Fruit and Veg City to show support for the one day in the year when we celebrate our common heritage as South Africans. Whether you call it chisa, nyama or braai, one thing’s for certain - all South Africans regardless of race or culture, really like a piece of meat on the coals”.

During his mammoth stint Polera managed to cook 74kg of meat. The cooked meat was later handed out to needy individuals.

During the record attempt Polera only took two rest periods which totalled just 17 minutes.

The record attempt had strict conditions and Guinness World record adjudicator, Tarika Vara, flew in from the UK to ensure that the strict criteria were met. Polera needed to have five types of meat cooking at all times and was not allowed any assistance, other than support, from the many onlookers. Two cameras captured every single minute of the braai, while timekeepers and auditors from Deloitte were on hand to audit every moment of the braai.

After enduring the world’s longest braai, Polera could be forgiven for wanting to keep away from hot coals for a very long time.

but he still maintains his enthusiasm attesting to the fact that “there is nothing better than a braai with friends”. His favourite meat for the braai is “good old Karoo lamb chops”.

Kill or CureI couldn’t help including the sketch below in this month’s column. It really is hilarious.

being a sufferer from the dreaded sinusitis which assails many Highveld residents early in Spring I was forced to visit my doctor to seek relief from the irksome symptoms. She was quick to point out that 2011 had been a particularly bad year for the complaint.

One of the remedies she gave me was a very sophisticated nasal spray which was extremely effective. but you can only wonder how on earth one is expected to adopt the impossible posture illustrated here to administer it. I can assure you that there is a very strong possibility of breaking your neck before even getting near squirting the stuff into your nostrils!!

Fortunately I discovered an effective method without the need for being a contortionist.

See you next month,Gabriel

Some braai

Page 23: People Dynamics October 2011

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