NCV 4 Management Practice Hands-On Support Slide Show - Module1

Management Practice 4

What we cover

• Module 1: Application of legislation on business operations– Demonstrate an understanding of the aspects of

the Basic Conditions of Employment Act– Demonstrate an understanding of the

Employment Equity Act– Demonstrate an understanding of the Skills

Development Act– Analyse the features of the Employment Equity

Act

What we cover

• Module 2: Strategic planning– Analyse the business strategy of an organisation

– Align a business unit with the business strategy

– Identify the factors affecting the performance of the business

What we cover

• Module 3: Human resource development– Identify the training needs of a business unit to

support the proposed business strategy

What we cover

• Module 4: Management functions– Apply the decision-making process to make a

management decision

– Apply the general management functions to a selected organisation

What we cover

• Module 5: Change management– Explain why change management is an

important process for organisations to achieve trading results

– Identify the risks inherent in any change management programme and indicate ways to manage them

– Identify and apply the competencies of an effective change agent

What we cover

• Module 6: Team motivation– Explain why it is important to motivate a team and

identify ways of assessing motivation within a team– Apply theories of motivation– Describe techniques leaders can use to motivate a

team– Provide feedback to a team– Recognise achievement– Indicate how leaders can empower members of a

team

Module 1: Application of legislation on business operations

Module 1: Application of legislation on business operations

• After completing this outcome, you will be able to:– explain the regulations relating to working hours– discuss how the requirements of the Basic

Conditions of Employment Act are applied within an organisation

– explain the conditions for termination of employment prescribed by the Act

– apply the conditions for termination of employment prescribed by the Act to a specific employment contract

1. DEMONSTRATE UNDERSTANDING OF ASPECTS OF THE BASIC CONDITIONS OF EMPLOYMENT ACT• Explain the regulations relating to working

hours• Discuss how the requirements of the Basic

Conditions of Employment Act are applied within an organisation

• Explain the conditions for termination of employment prescribed by the Act

• Apply the conditions for termination of employment prescribed by the Act to a specific employment contract

Purpose of the Act

• The purpose of the Act is to ensure that all employees enjoy certain minimum conditions of employment

• No contract of employment may contain conditions which are less favourable than those contained in the Act

• People who work for less than 24 hours a month (regarded as casual employees) are excluded from nearly all the provisions of the Act

• Senior management, sales representatives and those earning more than R89 455 p.a. are excluded from certain provisions relating to hours of work

1.1 Explain the regulations relating to working hours

• Working hours– Applicable to employees earning less than

R89455 per year

–Maximum amount of working time allowed is 45 hours per week

– This amounts to 9 hours a day of normal working time for a 5 day week

– 8 hours per day if the employee works more than 5 days per week


• Working hours– Lunch break is unpaid time and is the employee's own

time– The lunch break is to be provided after five hours

continuous working time– Tea breaks do not qualify as a break in working time– Employees who earn above the determined threshold

amount (R89 455 per year) must negotiate the normal amount of working hours per day or per week with the employer. The employee is, however, under no obligation to work more than 45 hours per week.

Activity 1

• If you work from Monday to Friday each week and you have to start work at 08h00 every morning, until what time will your employer require you to work each day and still comply with the Act?


• What is overtime?– All hours worked in excess of the employee's

normal hours of work will be regarded as overtime

– Therefore, if your employee is contracted to work 45 hours per week normal time, then any hours in excess of that is overtime worked

– All overtime is voluntary and may only be worked by agreement between employer and employee.

– Section 10 of the Act sets the overtime limit at ten hours per week and three hours per day.


• Alternatively they may chose to be paid their normal wage and be given thirty minutes off for every hour worked, or not be paid at all and be given ninety minutes off for every hour worked

• Where the number of employees does not exceed ten, overtime is paid at a rate of one and one-third normal time.

• Employees who earn more than the present threshold amount as stated above are not covered by this section of the Act

• Employees who work overtime must be paid a minimum of one-and-a-half times their normal wage


• Meal intervals– The Act makes provision that employees may

not work for longer than five hours without being given a meal interval of one hour

–Meal intervals are unpaid except where an employee is expected to remain at his or her work station or to be available for work

Activity 2

• If you work a nine hour day with a mandatory one hour lunch break, what time will you finish work if you start at 08h00 each morning? What is the latest time you can take your lunch break?


• Rest periods– Employees must be given rest periods of at least

twelve hours between each workday– At the end of a work week their rest period is

thirty-six hours and must include a Sunday, unless otherwise agreed

–Where an employee lives on the premises and has a meal interval of at least three hours, the daily rest period between work shifts may, by agreement, be reduced to ten hours


• Work on Sundays– Persons, who normally work on Sundays,

should be paid at one-and-a-half times their normal wage for the hours worked

– An employee who does not usually work on a Sunday has to be paid double his or her ordinary wage for every hour worked, but again with the proviso that he or she must receive at least a full day’s wage

Activity 3

• Mihle works part-time as a cashier at McDonalds on Fridays and Sundays between 09:00 and 6:00 with a mandatory hour lunch break. He is paid R12.50 per hour. On Fridays he makes R100.00 but on Sundays he makes R150

• Last Sunday McDonald’s closed early due to minor renovations. Mihle only had to work between 09.00 am and 12.00 pm. How much was he paid?

Activity 4• Siya works as a storeman for Skosana Construction. He

is paid R14.50 per hour. His normal work hours are Monday to Friday 08h00 until 16h30. He has a half-hour lunch break per day. On the last Sunday of each month Siya has to do a stock-take. His start time is always 08h00 and he is allowed to go whenever he has finished counting the stock. This month it took Siya six hours to count the stock. He did not take a lunch break. How much did he get paid?

• The previous month it took Siya three hours to count the stock. How much did he get paid?


• Night work– Night work means work performed after 18:00 and

before 6:00 the next day– An employee is only obliged to work at night, if he or

she agrees to do so– If an employee does engage in night work, he or she

should, in terms of Section 17, be compensated by way of a shift allowance or shortened working hours

– The employer should also ensure that transport is available between the employee’s place of residence and the workplace, both at the beginning and end of a shift

1.3 Contract of employment

• It is not compulsory to provide an employee with a written contract of employment

• The Act requires that the employer must provide certain particulars of employment in writing to the employee

1.4 Leave• Annual leave– May not be less than 21 consecutive days for full

time workers

– By agreement, one day fro every 17 days worked

– Leave must be granted no later than 6 months after the completion of the period of 12 months

– Leave may not be granted concurrent with sick leave

– May not be granted with a period of notice of termination of the contract

1.4 Leave• Sick leave– During every sick leave cycle of 36 months an employee

is entitled to an amount of paid sick leave equal to the number of days the employee would normally work during a period of six weeks

– During the first six months of employment, an employee is entitled to one day’s paid sick leave for every 26 days worked

– The employer is not required to pay an employee if the employee has been absent from work for more than two consecutive days or more on more than two occasions during an eight week period without producing a medical certificate stating that the employee was unable to work for the duration of the employee’s absence on account of sickness or injury

1.4 Leave

• Maternity leave– The employee is entitled to at least four

consecutive month’s maternity leave

– The employer is not obliged to pay the worker for the period for which she is off work due to her pregnancy

– However the parties may agree that the worker will receive part of or her entire salary or wage for the time that she is off due to pregnancy

1.4 Leave

• Family responsibility leave– Employees who are employed for longer than

four months and for at least four days a week are entitled to take three days paid family responsibility leave during each leave cycle when the employee's child is born, or when the employee's child is sick or in the event of the death of the employee's immediate family

1.5 Conditions for termination of employment

• An employment contract is an agreement between the employer and the employee. This contract can only be terminated when any one of the parties to the contract gives notice of not less than:– One week, if the employee has been employed for

six months or less– Two weeks, if the employee has been employed for

more than six months but not more than one year– Four weeks, if the employee has been employed for

one year or more


• These notice periods are the minimum and may not be shortened by any agreement. However, the Act does provide that a collective agreement may permit the notice period of four weeks to be reduced to not less than two weeks.

• The employer may not impose a notice period on the employee that does not also equally apply to the employer.

• The Act also stipulates that notice of termination of a contract of employment must be given in writing except when it is given to or by any illiterate employee.

• Notice of termination may not be given by the employer while an employee is on leave, sick leave or maternity leave, and notice periods may not run concurrently with any leave periods other than sick leave


• Termination without notice may occur when the employer or employee is in serious breach of contract

• In cases of poor performance, the employer needs to show that the employee fully understood their job function/s and that they had received adequate training in order to perform their job appropriately

Case Study – Example of wrongful dismissal

• In a case of life imitating art, a judge ruled in favour of an employee who was fired after posting a Dilbert cartoon likening managers to “drunken lemurs.”

• The Catfish Bend Casino in Burlington, Iowa fired David Steward for posting the cartoon on an office bulletin board shortly after management announced that the casino would be closing and laying off 170 employees. “Basically,” HR Director Steve Morley testified, “he was accusing the decision-makers of being drunken lemurs.” “We consider that misconduct when you insult your employer.”

• The cartoon depicted the following conversation between Dilbert and a friend: Dilbert: Why does it seem as if most of the decisions in my workplace are made by

drunken lemurs? Friend: Decisions are made by people who have time, not people who have talent. Dilbert: Why are talented people so busy? Friend: They’re fixing the problems made by people who have time.• Steward testified that he posted the cartoon because he “thought maybe it would cheer some

people up.” However, it elicited the opposite reaction from management and he was fired three days later for “not being a team player.”

• Administrative Law Judge Lynette Donner ruled in favour of Steward, calling his actions a “good-faith error in judgement” rather than intentional misconduct

Case study – Example of a wrongful dismissal

• Do you think the judge was correct in concluding that David Steward’s actions did not amount to intentional misconduct?

• Research other examples of termination of employment and discuss which ones you think are fair and which ones are not. Give your reasons for your conclusions


• Misconduct– The misconduct must be serious and wilful

– The employer must also be clear on the facts and have sufficient supporting evidence before terminating employment


• Dismissal for misconduct must be:– Substantively fair - there must be a valid reason

for the termination of the contract of employment. The facts of each case will determine whether the dismissal is for a fair reason and whether dismissal is the appropriate penalty

– Procedurally fair - the dismissal must be effected in a procedurally fair manner


• Procedurally fair dismissal– Proper dismissal procedures must be followed– There are 3 kinds of fair dismissal: misconduct,

incapacity (poor performance or ill health) and retrenchment

– All employers should adopt disciplinary rules and establish standards of conduct, and corrective or progressive disciplinary procedures must be followed

– The procedure is drafted on the assumption that an employer will apply progressive discipline on the understanding that discipline should be corrective rather than punitive


• Procedurally fair dismissal– The employee should attempt to first correct an

employee's behaviour by issuing:• Verbal warnings for minor transgressions

• Written warnings for consistent misconduct

• Final warnings for persistent misconduct

• Dismissal should be considered as a last resort

Case study – Example of misconduct

A hotel employee was fired for keeping a journal that described her truly impressive efforts to avoid work.

Emmalee Bauer, sales coordinator for the Des Moines Sheraton, made the following entries in a 300-page journal she kept on her work computer:•I am going to be typing all my thoughts instead of writing all day. That way, there isn’t any way to tell for sure if I am working really hard or just goofing off.•This typing thing seems to be doing the trick. It looks like I’m hard at work on something very important.•I am going to sit right here and play Elf Bowling or some other nonsense. Once lunch is over, I will come right back to writing to piddle away the rest of the afternoon.•I don’t feel like doing a single worthwhile thing today. It’s 11.00 and so far I have stuck to that.•I have managed to waste half of the day doing nothing constructive. That isn’t exactly an easy task either.•I haven’t really accomplished anything in a long while…………and I am still getting paid more than I have ever had before. It’s actually quite nice when I think of it that way. I can shop online, play games and read message boards and still get paid for it. Not too shockingly, the judge concluded that Bauer’s writings evidenced a refusal to work and “amusement at getting away with it.”

Case study – Example of misconduct

• Questions:– Do you think the judge was correct in

concluding that the Des Moines Sheraton had every right to dismiss Emmalee Bauer for misconduct?

– Research other examples of misconduct and discuss which ones you think are fair grounds for dismissal and which ones are not. Give your reasons for and against

1.6 Termination of a specific employment contract

• Payment– An employer may decide to pay out the employee

for the notice period, and if the employee receives housing from the employer he or she is allowed to occupy the premises for the full notice period

– Payment in lieu of notice must be based on the employee’s total remuneration

– Where an employer terminates employment for operational reasons (retrenchment) the employees are entitled to compensation of one week’s pay per year of service in additional to the normal notice pay


• Certificate of service– Employees, whose services are terminated for any

reason whatsoever, must be issued with a certificate of service stating the following:• The employee’s full name• The name and address of the employer• The council or sectoral determination, if any• The date of commencement and termination• The job title or brief job description• Remuneration at termination• The reasons for termination, but only if the employee

requests this


• Severance pay– Sometimes a company faces financial difficulty and needs to

scale down its operations– In cases like that the company may need to retrench some of

its employees– The employer must then pay an employee who is dismissed

severance pay equal to at least one week’s remuneration for each completed year of continuous service with that employer

– In some cases the employer may offer the employee a job in another section or with another employer

– If the employee unreasonably refuses to accept the employer’s offer of alternative employment, he or she is not entitled to severance pay


• Disputes regarding severance pay– If there is a dispute only about the entitlement to severance

pay by the employee, the employee may refer the dispute in writing to the CCMA

– The following steps must be taken in event of a dispute:• The employee who refers the dispute to the council or the CCMA

must satisfy it that a copy of the referral has been served on all the other parties to the dispute

• The council or the CCMA must attempt to resolve the dispute through conciliation

• If the dispute remains unresolved, the employee may refer it to arbitration

• If the Labour Court is adjudicating a dispute about a dismissal based on the employer’s operational requirements, the Court may inquire information and determine the amount of any severance pay to which the dismissed employee may be entitled and the Court may make an order directing the employer to pay that amount

Activity 5

• Do a search on the internet and find out what the procedure is to dismiss an employee for poor performance

2. DEMONSTRATE UNDERSTANDING OF THE EMPLOYMENT EQUITY ACT

•After completing this outcome you will be able to:• Discuss an organisation’s Employment Equity (EE) plan• Explain the requirements placed on employers by the Employment Equity Act

with reference to an organisation’s equity plan• Explain the process to be followed in implementing employment equity with

reference to the policy of an organisation and the role of managers in a business unit

• Explain the role of the employment equity committee• Identify who should be represented on that committee• Identify the members of the employment equity committee within an

organisation• Analyse the employment policy and practices in a business unit• Discuss how the business unit complies with the Act and the specific

organisation’s EE plan, in terms of its employment policy and practices• Identify barriers that adversely affect disadvantaged people in a specific

organisation and a business unit within that organisation• Provide an overview of the Employment Equity Act• Provide an outline of the Employment Equity Act as a business imperative for

any company or organisation operating in South Africa• Provide a written report detailing an organisation’s application of the

Employment Equity

2.1 Employment equity plan

• Designated employers– Employers who employee 50 or more employees

– Employers who employ less than 50 employees but whose annual turnover exceeds or equals the amounts in schedule 4 of the EEA

– An employer who has been declared a designated employer in terms of a collective agreement


• Purpose of the employment equity plan– To enable the employer “to achieve reasonable

progress towards employment equity”

– To assist in eliminating unfair discrimination in the workplace

– To achieve equitable representation of employees from designated groups by means of affirmative action measures


• An employment equity plan must clearly set out the steps that the employer plans to follow. The plan must set out:– Objectives for every year– Affirmative action measures that will be implemented– Where black people, women and people with disabilities are

not represented • Numerical goals to reach this • Timetables; and strategies• Timetables for annual objectives

– The duration of the plan (not shorter than a year or longer than 5 years)– Procedures that will be used to monitor and evaluate the implementation

of the plan– Ways to solve disputes about the plan– People responsible for implementing the plan

2.2 Requirements of the Employment Equity Plan

• The employment equity plan must include the following:– Affirmative action targets

– Eliminate employment barriers

– Promote diversity

– Accommodate designated groups

– Retain people from designated groups

2.3 Process to implement the employment equity plan

• Employers must consult with the unions and employees in order to make sure that the plan is accepted by everybody and to allow all parties to have fair input

• Employers must analyse all their current employment policies, practices and procedures, and prepare a profile of their workforce in order to identify any problems relating to employment Equity

• Employers must prepare and implement an employment Equity plan, setting out the affirmative action measures they intend taking to achieve the employment Equity goals

• Employers must report to the Department of Labour on the implementation of the plan in order for the department to monitor their compliance

• Employers must display a summary of the provisions of the act in all languages relevant to their workplace. The summaries are available from the government printer and certain offices of the Department of Labour

Activity 6

• Find out if your college has an Employment Equity Plan. Obtain a copy and check if all the requirements as listed above is included

Activity 7Read the following case studies and discuss which ones you think are cases of unfair discrimination and which ones are not

Activity 7Lutho works as a receptionist for McDowell Accounts and Bookkeeping Firm in Johannesburg. She has worked there for just over a year. During the year her manager John McDowell has been impressed with her initiative and willingness to learn new things. At her annual appraisal Mr McDowell commends Lutho for all her efforts and informs her that she will receive a good pay increaseA week later Lutho finds out that she is pregnant. She informs Mr McDowell and requests three months maternity leave for after the baby is born. Thereafter she intends to place her baby at a crèche. Mr McDowell is concerned how this will impact the company. Lutho is a single parent and all of her family live in the Eastern Cape. He is worried about all the time Lutho will need off for scans, doctor appointments and maternity leave. He is concerned about Lutho’s lack of a support network, such as grandmothers and aunts etc. This means that Lutho will need time off for clinic appointments and if her baby is ever unwell. He comes to the conclusion that it will be too costly and inefficient to hire temporary staff during Lutho’s anticipated absencesA week later Lutho receives a letter of notice terminating her employment.

Activity 7

• Thandi and Daniel see an advert for a delivery driver for Pizza Express. The advert says that the successful applicant would need to start straight away. They both apply for the job. Daniel does not have a driver’s licence but has a test coming up that he is hoping to pass. Thandi has been driving for two years and has a clean licence. She gets the job. Daniel is upset and feels like he wasn’t given a fair chance.

Activity 7Paul Chapman works for Living Hope as a Health Carer for old people. When he was a small child he was prone to bouts of epilepsy. He has been on medication for many years which has stabilised his condition. During a recent shift, whilst bathing Mr Carter, a 79 year old retiree with severe arthritis, Paul Chapman has an epileptic attack. During his fit he bangs his head and knocks himself out.

Mr Carter is unable to get out of the bath without assistance to raise the alarm.

An hour later Nanzi Sibeko, Paul’s colleague arrives to relieve him off his shift. Living Hope decide that Paul can no longer work as a carer due to the risks involved with his epilepsy and offer Paul an administrative role within the company. Paul is upset. He has worked for Living Hope for more than ten years and never had an attack before. He feels that he is being discriminated against.

2.4 The employment equity committee

• The role of the employment equity committee– The primary role of this important committee is to ensure that the

organisation’s employment equity policies are effectively implemented, monitored and reviewed

– Reviewing the initial equity plan and then making any changes needed to ensure it conforms with the stated employment equity policies of the organisation

– Monitoring key human resource activities such as recruitment, selection, promotion and career development

– Creating a forum for discussion and reflection on progress and the impact of employment equity policies on the organisation

– Ensuring that there is effective and transparent communication in regard to the organisation’s progress with employment equity

– Advising historically disadvantaged individuals (HDI’s) how they can take advantage of opportunities offered

– Challenging the practices that sustain the exclusion of HDI’s from certain job opportunities

2.4 The employment equity committee

• Identifying who should be represented on the committee– Should be made up of employees right

throughout the organisation

– Key executives who have the authority to implement committee decisions should be included

Activity 8

• On your own, interview administrative employees at your college to establish their understanding of employment equity their level of knowledge about employment equity structures at the college how strongly they feel about implementing employment equity at the college

2.5 Management and communication of the Employment Equity Plan

• Appointment of senior managers– The planning phase should start with the assignment of

one or more senior managers– They should report directly to the CEO– The organisation should provide the assigned managers

with the necessary authority and means, such as an appropriate budget, to perform their allocated functions

– The organisation is not relieved of any duty imposed by this Act or any other law

– The organisation should take reasonable steps to ensure that these managers perform their allocated functions

2.5 Management and communication of the employment equity plan

• Consultation process– The success of employment equity depends on an effective

consultation process– Employers, employees and trade unions must be willing to play a

constructive role in the consultation process– Consultation will ensure that realistic employment equity plans are

prepared which address the training and development of designated groups

– All employees must be informed of:• The content and application of the Act as preparation for their

participation and consultation• Employment equity and anti-discrimination issues• The proposed process to be followed by the employer • The advantages to employees of participation in the process • The need for the involvement of all stakeholders in order to promote

positive outcomes.

Activity 9• Visit the Nedbank website at

http://www.nedbankgroup.co.za/about_transformation.asp and analyse the bank’s employment equity plan. Discuss the following issues:– How they deal with people with disabilities– Their plans for 2008– The composition of their staff profile and the

changes from 2006 to 2007

3. DEMONSTRATE AN UNDERSTANDING OF THE SKILLS DEVELOPMENT ACT AND THE SKILLS DEVELOPMENT LEVIES ACT AS THEY APPLY TO A BUSINESS UNIT•After completing this outcome you should be able to:• Explain the requirements placed on employers by the Skills Development Act

• Discuss the Skills Development Act with reference to an organisation’s workplace skills plan and annual training report

• Compile a document for circulation that outlines what the Levy can achieve within the company in terms if skills development

• Analyse an organisation’s workplace skills plan in order to identify skills gap in the organisation and the plan to address that skills gap

• Explain the requirements placed on employers by the Skills Development Levies Act with reference to an organisation’s workplace skills plan and the claiming back of levies for training purposes

• Explain the process to be followed in contributing to an organisation’s workplace skills plan with reference to the policy of a specific organisation

• Explain the role of the training committee with reference to the role of the committee in the skills development process

• Compare an organisation’s annual training report to its workplace skills plan, to identify the extent of application of the plan

• Compile a written report on the findings of the comparison of an organisation’s annual training report and workplace skills plan

• Explain the role of the SETAs in terms of the legislated relationship between the SETAs and employers

• Compile the reports that are required by a SETA in terms of the Skills Development legislation for incorporation into the organisation’s report

• Explain the levies/grant system of a selected SETA

• Calculate the levy that a business unit would be entitles based on the Skills Development Levy Act.

3.2 Objectives of the Skills Development Act

• To develop the skills of the South African workforce• To increase the return on such investment• To encourage employers to use the workplace as an active

learning environment, so that employees can acquire new skills • Allow new entrants to gain work experience• To encourage workers to participate in learnerships and other

training programmes• To ensure quality of education and training at the workplace• To improve the employment prospects of those who were

previously disadvantaged• To assist work seekers and retrenched persons to find

employment• To assist employers to find qualified workers

3.3 Main elements or structures of the Skills Development Act

• Skills Development Levies Act– Employers pay 1% of their payroll every year to

the South African Revenue Services as a skills levy– The Department of Labour divides this money so

that each SETA receives 80% of the money paid by the employers in its sector

– The remaining 20% goes to the National Skills Fund

– The SETAs use a small amount of this money to cover their administrative costs

– The rest is used as grants


• Skills Development Levies Act– There are two types of grants

• Mandatory grants– Are for the submission of a WSP– The subsequent implementation report on the training

provided– Must be paid by the SETA provided the employer submits the

application correctly and on time– Will receive 15% of levies paid

• Discretionary cash grants– Not dependent on the amount the employer has paid as skills

levies– For learnerships, skills programmes and sector priorities


• National Skills Authority– Advises the Minister of Labour on

• The preparation and implementation of a National Skills Development Strategy

• Priorities for spending from the National Skills Fund• The work and progress of SETAs• Regulations and policy

– Has the power to investigate and report to the Minister about anything relating to the way in which the National Skills Development Strategy is operating

– Two sets of agencies responsible for for implementing skills development and identifying priorities for skills development• Department of Labour• Nedlac

3.3 Sectoral Education and Training Authorities

• Each SETA serves a specific sector of the economy• Each SETA must:

– Prepare a sector skills plan and implement this through learnerships, encouraging employers to draw-up workplace skills plans, and pay grants to employers to encourage training

– Approve, register and promote learnerships– Quality assure training and accredit training providers– Administer the levy/grant system by paying grants to employers– Inform the National Skills Authority about their progress– Report to the Director-General and provide information on job

opportunities to the employment services of the Department of Labour and to education and training providers

3.3 Sectoral Education and Training Authorities

• Sector Skills Plan (SSP) are required from each SETA which describe the trends in each sector as well as the skills that are in demand and identify priorities for skills development

• SETAs assist in the implementation of skills plans by:– Encouraging and helping employers to prepare workplace skills plans. – Paying a grant to an employer who prepares a plan– Monitoring these plans and their implementation– Every employer (or for small firms a group of employers) should designate

at least one person to act as a skills development facilitator. – SETAs liaise with the skills development facilitator so that each employer

knows about skills development. – The facilitator is the point of contact between an employer and the SETA. – The SETAs also give guidance about training and preparing skills

development facilitators for their role.

SETAs• AGRISETA – Agricultural SETA• BANKSETA – Banking SETA• CETA – Construction SETA• CHIETA – Chemical Industries SETA• CTFL – Clothing, Textiles, Footwear and Leather SETA• ESETA – Energy SETA• FASSET – Financial and Accounting Services SETA• FIETA – Forest industries SETA• FOODBEV – Food and beverages SETA• HWSETA – Health and welfare SETA• INSETA – Insurance SETA• ISETT – Information systems, electronics and telecommunication technologies SETA• LGSETA – Local government SETA• MAPPP SETA – Media, advertising, publishing, printing and packaging SETA• MERSETA – Manufacturing, Engineering and related services SETA• PSETA – Public Service SETA• SASSETA – Safety and Security SETA• SERVICES SETA – Services SETA• TETA – Transport SETA• THIETA – Tourism, hospitality and sport SETA• W&R SETA – Wholesale and Retail SETA

Skills development facilitators

• Any employer who appointed a skills development facilitator (SDF) and developed a workplace skills plan (WSP) can claim back a 20% and 15% refund from levies paid

• In order to qualify for the 20% refund the employer has to submit a detailed training plan

Skills development facilitators

• Functions of the facilitator are:– To assist with the development of the Workplace

Skills Plan– To submit the plan– To advise on its implementation– To assist with the drafting of the Annual Training

Report– To advise on quality assurance requirements– To serve as liaison between the organisation and

the SETA

Activity 10

• Go to the Services Seta website at www.serviceseta.org.za and find the following information:

• Who is the CEO of the Services Seta?• Name 5 different industries that form part of this

Seta (see chambers)• What are the main functions of a skills development

facilitator in a company (see levies and grants)• What learnerships does the Seta offer? (see

learnerships)

Learnerships

• Learnerships consist of a structured learning component and practical work experience, leading to a qualification tied to an occupation and recognised by SAQA

• Once they have completed their learnerships, learners will receive a certificate from a SETA to show that they have a qualification that is part of the National Qualifications Framework

Learnerships• It is the work of SETAs to:

– Encourage employers, workers and training providers to design new learnership programmes

– Recommend new learnerships to the Department of Labour and SAQA so that they can be satisfied the learnership will train people in skills that are needed and that the learnership programme has the right mix of practical training and theory

– Administer the Learnership Agreement between an employer, a learner and an education and training provider

– Assist in the identification of on-the-job and off-the-job education and training and to promote core skills such as literacy and numeracy, team working and problem-solving

– Promote learnerships to employers, workers, young people and their parents to build support for these new programmes

– Monitor the implementation of learnerships and spread examples of good practice

– Issue certificates to people who complete learnerships successfully

Skills programmes

• A learnership leads to a full qualification, such as a national certificate

• Full qualification is made up of compulsory core and fundamental unit standards, as well as some electives

• Companies and students don’t always have the time or capacity to do full qualifications

• A full qualification can then be broken up into smaller sections called skills programmes

• These skills programmes must be occupationally based and when completed, should constitute a credit towards a qualification registered on the National Qualifications Framework (NQF).

Skills programmes

• An employer or any other person who has developed a skills programme may apply to the relevant SETA for a grant or to the Director-General for a subsidy. Funds may be granted if the following conditions are met:– The programme complies with the conditions

mentioned– The programme meets with the requirements of the

SETA – The programme is in accordance with the sector skills

development plan and the National Skills Development Strategy

– There are funds available

Activity 11

• Most colleges offer learnerships or skills programmes. Do some research at your college and determine the following:– Find out whether the college offers or did offer

any learnerships or skills programmes– If yes, what did they offer?– Under what Seta do these learnerships resort?–Who are the employers for these learnerships?

3.4 The Skills Development Act with reference to an organisation’s workplace

skills plan and annual training report• The Workplace Skills Plan– The intention of the Act is that each organisation

develops an annual Workplace Skills Plan (WSP) that describes the organisation’s training and development strategy. This training and development strategy should, in turn, achieve the following two key objectives:• It should assist the organisation to achieve its overall

business objectives• It should contribute to the upgrading of the skills profile

of the South African workforce in general and to job opportunities for historically disadvantaged individuals (HDI’s) in particular

Preparing a WSP

Preparing a WSP

• Phase 1: Skills Planning1. Confirm the WSP objectives e.g. to support a business

strategy based on superior customer service2. Ensure local realities are taken into account e.g. low

levels of education within the existing workforce 3. Reach agreement with all relevant stakeholders (e.g.

trade unions) on these objectives 4. Develop the skills planning process, including

methods of identifying and analysing skills gaps 5. Decide on roles and responsibilities of the skills

planning team

Preparing a WSP

• Phase 2: The Skills Audit1. Communicate the purpose and process of the

skills audit to all employees2. Establish a system for capturing, processing and

analysing the skills audit data3. Identify skills gaps and broad trends; then

develop priorities based on these trends4. Identify possible solutions to the skills gaps

identified including both training and non-training interventions

5. Develop and submit a skills audit report to management and other stakeholders

Preparing a WSP

• Phase 3: Developing the WSP1. Decide on skills development interventions to

address skills gaps2. Check which types of interventions are allowed

within the SETA framework e.g. internal/external training, on-the-job development, projects

3. Prepare a training and development budget and submit to management for approval

4. Present a draft WSP to relevant stakeholders for approval

5. Submit the WSP to the SETA on the required template

Preparing a WSP

• Phase 4: Implementing the WSP1. Select and appoint training providers (internal and

external)2. Establish a pool of registered assessors and moderators to

ensure that assessment of trainee skills levels after training and development receives SETA recognition

3. Communicate dates of training and development interventions and ensure managers make arrangements for trainees to attend training

4. Record trainee achievements within the organisation and on the SETA’s database

5. Monitor actual implementation compared to agreed WSP and take corrective action where required. Also monitor trainee progress and support where required

3.4.2 The annual training report

• Report goes to management as well as the SETA

• The report has two major intentions– To enable the government to monitor (through the

Department of Labour) progress towards improvement in the country’s skills levels (particularly for designated groups)

– To enable the organisation to claim back some of the skills levies paid (by way of grants from the SETA) for implementing the WSP. This is intended to motivate them to continue investing in the skills development of their workforce.

3.4.2 The Annual training report

• The report should include:– The name of the organisation– The organisation’s skills development levy number– Contact and location details (e.g. address, telephone, e-mail,

province etc.)– Organisation size and industrial sector– Training priorities and training and development interventions

used to address these– Training and development planned vs. actual– Budgeted vs. actual expenditure– Profile of employees trained (levels, HDI status etc.)– Details of the training committee, training management and

training facilitators– Authorisation

3.6 The requirements placed on employers by the Skills Development Levies Act with reference to an

organisation’s workplace skills plan and the claiming back of levies for training purposes

• An employer wishing to claim against the levy payment by way of grants from the SETA must not only submit the WSP within the prescribed period (by 30 June each year), but must also satisfy the following conditions:– They must have registered with the South African Revenue Service

(SARS)– They must have calculated the levy on their payroll system automatically

each month and also have produced the necessary report to enable them to analyse their monthly payment to SARS

– They must have paid their Skills Development Levies (SDL) directly to SARS each month (submitted on form EMP201) who act as the “collector” for both the Departments of Education and Labour, and who pass the levy paid on to the relevant SETA each month on the employer’s behalf

– They must be up to date with these levy payments (normally SARS require payment before the 7th of each month) and

– MOST IMPORTANTLY, they must submit their Annual Training Report showing what has been achieved within the framework of the WSP

Activity 12

• Log onto the website of your local municipality and select their training and development policy

• List the key elements of this policy

• Highlight how the policy guides their WSP, using the elements listed below to help you

3.7 The process to be followed in contributing to an organisation’s workplace skills plan with reference to

the policy of a specific organisation

• Key Training and Development policy elements• There should be:

– Clear alignment with the organisation’s vision, mission and values– Clear alignment with the principles and structures of the NQF– Clear skills development objectives– An expectation of ‘life long’ learning i.e. a continuous upgrading of

skills– The promotion of equity for all employees– A focus on skills that are required to support business strategy

(e.g. technical skills)– A proper training needs analysis prior to any intervention – Participation of employees in identifying their own training needs– Partnerships with external training providers where the

organisation lack expertise– Clear budget guidelines

3.8 The role of the training committee in the skills development

process• Main task of the training committee in the

skills development process is to represent all employees

• Regulate the relationship between employees and management

• Consult with senior management on various training issues as their representatives

3.9 Comparing the Annual Training Report to the WSP

NQF Band

NQF Level

Training Data Type of qualification

Designated groups Other employees Totals

P A V % P A V % P A V %

GET 1 22 34 +12 155 0 0 0 0 22 34 +12 155 ABET Level 4

40 34 -6 85 0 0 0 0 40 34 -6 85 ABET Level 3

FET 4 16 8 -8 50 10 10 0 100 26 18 -8 69 Financial Skills

120 102 -18 85 30 30 0 100 150 132 -18 88 Customer care

Totals 198 178 -20 85 40 40 0 100 238 218 -20 92

3.9 Comparing the annual training report to the WSP

• From the previous slide, what observations can you make?– Overall throughput achieved is excellent – standing at 92% of

planned numbers– Poor attendance by employees from designated groups at the very

important financial skills course• It is important for the organisation to also report on those

factors that have inhibited skills development in critical areas.– Operational constraints (e.g. employees having to cancel due to

work crises)– Insufficient commitment from middle mangers to facilitate

employee availability– Insufficient suitable training venues – Lack of quality assessors to assess both training needs and

competence levels

Activity 13

• Log onto Google or the website of the LGSETA, and review the WSP and Annual Training Report of your local municipality

• Draw up a report analysing the success of the training conducted compared to the training planned

• Draw conclusions and make recommendations

3.10 The levies/grant system of a selected SETA

• In the Wholesales & Retail SETA the 1% of the payroll that members pay for their SDLs are submitted monthly to the South African Revenue Service (SARS) who, in turn, pay these amounts over to the Department of Labour, who disburses them for use in the following ways:– 20% for the National Skills Authority – to be used for identified

Skills Fund projects– 10% for the WRSETA – to be used for operational expenses– 50% for the WRSETA – to be paid back to employers as

mandatory levy-grants, where WSP’s and Annual Training Reports have been submitted on time and in the approved WRSETA format

– 20% for the WRSETA – to be used for discretionary grants for projects aligned to the National Skills Development Strategy


• The discretionary grants paid by the SETA in terms of sub regulation (3) of the Grant Regulations are funded from the Discretionary Fund which is built up from:– The 20% of total levies paid by employer members,

plus– Any surplus funds not used for administration in past

years, plus– Any unclaimed mandatory grants, plus– Any interest and penalties received, plus– Any interest earned on investments, plus– Any other funds received by the SETA


• There are certain prerequisites to qualify for a discretionary grant. Sub-paragraph 2 Page 16 of the Grant Regulations indicates-Prior to disbursing any grants to an employer, the employer who is liable to pay SDL needs to:– Be registered with SARS and be up to date with levy

payments– Have submitted a Workplace Skills Plan (WSP) by the due

date (if submitted late, the funds that would have been available are instead allocated to the discretionary grant)

– Use the grant for the purpose for which it is intended– Have taken active steps towards meeting agreed equity

targets


• The focus of the WRSETA grants to be awarded is on:– Adult Basic Education and Training (ABET)

– Employment creation grants

– Priority Learning Programmes

– Scarce skills according to the prescribed WRSETA Scarce Skills list


• The scarce skills list in the Wholesale and Retail sector relates to occupations where there is a scarcity of qualified and experienced people (both current and anticipated) who are identified in respect of:– Geographic location– Employment equity requirements– Emerging occupations for which there are no

qualifications as yet– Demand and supply indicators

Scare skills in the wholesale and retail sectors

4. ANALYSE THE FEATURES OF THE EMPLOYMENT EQUITY ACT

• After completing this outcome, you will be able to:• Provide an overview of the Employment Equity

Act

• Explain the reasoning behind the Act

• Provide an outline of the Act as a business imperative

• Provide a written report outlining the Act as business imperative

4.1 Overview of the Act

• It involves eliminating unfair discrimination in human resource policies and practices in the workplace

• Involves signing and implementing affirmative action measures to achieve equitable representation of designated groups in all occupational categories and levels in the workplace.

4.2 Reasoning behind the Act

4.2 Reasoning behind the Act

• The Act prohibits both direct and indirect unfair discrimination

• Direct unfair discrimination is easy to identify in the workplace because it makes a direct distinction on the basis of one or more of the prohibited grounds

• Indirect unfair discrimination on the other hand, is more difficult to recognize

• Indirect unfair discrimination occurs when a policy and practice appears to be neutral but has a discriminatory effect or outcome for a particular group of employees and cannot be justified.

4.3 Employment equity as a business imperative

• The Code of Good Practice on the Integration of Employment Equity into HR Policy and Practice that was published in Government Gazette No 27866, August 4 2005, however, clearly spells out all the different requirements of the Act

• It covers– Job Analysis & Job Description– Recruitment & Selection– Induction– Terms and Conditions of Employment– Remuneration– Performance Management– Skills Development– Promotion and Transfer– Retention– Harassment– Discipline, Grievance and Dispute Resolution– Terminating Employment

Activity 14

• Identify a company that you know (where you did part-time work, or where a family member works) – Does this company have an Employment Equity

policy?

– Are staff members aware of the contents of the policy?

– Does the company apply the policy?

4.4 Practical implications of applying the legislation in the business

• Developing a workforce profile and setting numerical targets to achieve equity

• Job analysis and job descriptions• Recruitment and selection• Short-listing of job applicants• Interviews• Induction of new employees• Record keeping

Activity 15

• Obtain a copy of the Code of Good Practice on the Integration of Employment Equity into Human Resource Policies and Practices. (Do an Internet search on the Department of Labour website). Summarise the guidelines relating to the following issues:– Remuneration– Retention of staff– Harassment– Promotion

NCV 4 Management Practice Hands-On Support Slide Show - Module1

Education

Transcript of NCV 4 Management Practice Hands-On Support Slide Show - Module1