OPEN SYSTEM,DECISION THEORETIC VIEW OF THE EMPLOYMENT
PROCESS OPEN-SYSTEM, DECISION THEORETIC VIEW OF THE EMPLOYMENT PROCESS
→ The systems approach is a perspective that emphasises relationships and interactions.
→ In the systems approach, the organisation is viewed as operating in continual interaction with multiple environments
in an open system.
→ From an open systems perspective, the organisation is viewed as an input-throughput- output system.
→ Within the organisation is a number of interacting sub-systems that transform inputs, such as energy and information
from the environment into outputs.
→ The outputs are then exported back into the environment in the form of products and services for consumption
→ Outputs reactivate the input-throughput- output cycle. Figure 1 below represents this perspective.
→ The employment process can be viewed as a system of sequential, interdependent decisions
→ In order to analyse a system, it is necessary to establish the relationship between the system and its environment.
A system can be defined as “a regularly interacting or interdependent group of items forming a unified whole”, or “a set of
things working together as parts of a mechanism or an interconnecting network”, and its purpose is to “attain one or more
objectives”. Systems’ thinking is “the ability to see the big picture and to distinguish patterns instead of conceptualizing
change as isolated events”. The organisation is such an open system which is constantly and reciprocally affected by its
environment, as depicted in figure 1, and its decisions should be made in the context of this relationship.
The external environment is comprised of the broad environment (political and legal forces, economic forces, sociocultural
forces, technological forces, the natural environment and the global environment) which is outside of its control, and the task
environment (existing and potential new competitors, suppliers, customers, regulating authorities and complementary
products and services) which it can influence. Developmental trends in the external environment will directly affect an
organisation. Furthermore, organisations are made up of members, groups, teams, units and departments (the internal
environment), which are constantly interacting with one another and are also being affected in part and as a whole by the
external environment.
The employment process can be described as “a network or system of sequential, interdependent decisions” pertaining to
the optimisation of the organisation’s human resources through job analysis, workforce planning, recruitment, selection,
training and development, and performance management.
The employment decisions and processes are linked and highly interdependent; a change in one part of the process will be
felt in all other parts of the process. It is a sequential system, where information gathered from one decision is necessary to
make the next decision. Foundational to the process is job analysis – virtually all employment decisions rests on this
cornerstone. It involves a job description and job specification to ascertain which skills and personal characteristics are
necessary for performance, with the principal aim of achieving organisational objectives. Without a job analysis, one cannot
start with workforce planning, and recruitment and selection cannot follow, and as such all the other employment processes
are hinged on the information derived from a job analysis.
Illustrate the link between the various phases in the employment process by means of a fictional case study (Company XYZ)
Job analysis and job evaluation
→ The first step of the employment process would be to conduct a proper job analysis for Company XYZ.
→ A job analysis is a systematic process of collecting and analysing information about jobs
→ Job analysis leads to well defined job descriptions, which entails a brief summary of the tasks to be performed, job
specifications which includes the characteristics and skills required of the individual to perform the job, and job
evaluations, which is a formal assessment of the value of a particular job to the organisation.
→ Job analysis and job evaluation are also key elements used to set up compensation packages and determine pay
differentials in organisations.
→ It is important to note that South African legislation has made job analysis a mandatory organisational requirement
Workforce planning
→ After all the necessary information has been obtained, Company XYZ can proceed to workforce planning.
→ Workforce planning is concerned with identifying both current and future skill gaps and possible solutions to fill them
→ An inventory of all the available knowledge, skills, abilities, and experiences of current employees from company XYZ
must be compiled.
→ Knowledge of an organisation's current and future talent is important to decide what types of skills need to be acquired
externally, and what types of skills can be found within the organisation.
→ A forecast of the supply of and demand for labour should then be undertaken.
→ Based on this information, various plans and procedures can be formulated to meet predicted staffing needs at
Company XYZ. This may include training, transfers, promotions, or recruitment.
Recruitment
→ Recruitment is concerned with identifying and attracting a large pool of suitable candidates with the required knowledge,
skills, abilities, qualifications, and characteristics as determined by the job analysis
→ Once a staffing need is identified in one or more departments at Company XYZ, the recruitment planning process can
begin.
, 2
Initial screening and selection
→ The next step in the recruitment process is the initial screening, which entails reviewing information about job applicants
in order to reduce the number of applicants to those who are most suitably qualified for the vacant position at Company
XYZ.
→ Company XYZ may use the skills inventory created during the workforce planning phase to identify current employees
for the available positions.
→ As previously mentioned, job analysis is a crucial element in the employment process, and as far as selection is
concerned, the selection process relies heavily on competent job analysis information.
→ Selection involves matching the individual with the job. Hence, to identify the best person for the job, it is crucial to
understand the nature of the job and its inherent requirements.
→ Judgements based on collected information through various methods such as interviews, background and reference
checks will provide the basis for hiring or rejecting applicants.
Training & development
→ Company XYZ must consider the calibre of employees they are going to select because this will impact on training
strategies such that, individuals who are less skilled will require further training to develop their competencies
→ Furthermore, internal talent may be identified and provided training and development opportunities to increase the
internal supply of key talent.
Performance management
→ All previous phases in the employment process affects and is affected by the performance-management process
→ If for example, it is found that individuals at Company XYZ lack certain skills and competencies, then job analysis may
need to be revised, along with recruitment and selection strategies.
→ Furthermore, performance management systems at Company XYZ may help identify developmental needs of
employees and provide information on who should be trained and in what areas.
→ Performance management systems also assist in compensation decisions such as pay increases. Implementing a
successful performance management system is a requirement for the successful implementation of other employment
functions including training, workforce planning, recruitment and selection, and compensation.
Organisational exit
→ Organisational exit is when an employee leaves an organisation. Organisational exit influences and is influenced by
prior phases in the employment process
→ If Company XYZ foresees the exit, then the company must plan for it. However, if it is unforeseen, Company XYZ's
strategic plan must change to take into account the new situation.
WORKFORCE PLANNING
Discuss the need for and importance of strategic workforce planning in identifying current and future employment needs
→ Workforce planning is an effort to anticipate future business and environmental demands on an organisation, and to
meet the HR requirements dictated by these conditions
→ Organisations undertake WP for the following reasons:
o Ensure that a strategic plan is achieved
o Cope with future staff needs
o Ensure an adequate supply and mix of highly qualified staff
o Provide HR information to other organisational functions
o Ensure a fair representation of the population mix
o Determine HR policies and planning practices that will attract and retain the appropriate people
→ Sound workforce planning is linked to the larger business planning
→ WP is meant to support and enable the company to attain its business goals
→ A key goal of WP is therefore to get the right number of people with the right skills (qualifications, competencies,
knowledge, experience) in the right jobs at the right time at the right cost
Explain how strategic workforce planning influences all other employment processes, such as recruitment, selection, training
and development
→ Workforce planning provides a strategic basis for making human resource decisions and is defined as the systematic
identification and analysis of an organisation's workforce so that the organisation can meet its objectives
→ Workforce planning ensures that the right number of people with the right skills are in the right place at the right time to
deliver short- and long- term organisational objectives
→ The recruitment, selection and employment of personnel are informed by the organisation's approach to workforce
planning
→ An organisation not only needs to know that it has people with the right skills to achieve its existing goals, but also that it
has human capital resources for future growth
, 3
→ An initial workforce analysis is needed to establish whether or not a particular post needs to be filled internally on a
permanent or temporary basis, or externally through an agency
→ To do workforce planning adequately, 4 conditions to be met:
o Talent inventory
o Workforce forecast
o Action plans
o Control and evaluation
Talent Inventory
→ The organisation must devise an inventory of available talent (knowledge, skills, abilities, experiences and qualifications)
→ A talent inventory helps the organisation make decisions relating to promotion, training, succession planning,
compensation planning and career planning
→ Talent management, which refers to the design and implementation of an integrated talent-driven organisational
strategy, is directed to attracting, developing, retaining and optimising appropriate talent requirements.
→ The strategy should build a talent culture which defines the organisations philosophy and principles, identifies critical
positions and leadership roles and capabilities in the organisation, attract a sustainable pool of talent for current
objective and future organisational needs, manage retention and reward, plan for succession to key roles, and achieve
employment equity in light of the legislation to achieve transformation.
Forecast workforce supply and demand
→ A forecast of the internal and external HR supply and demand must be undertaken
→ Knowledge of the internal state of the organisation, in terms of the state of its human resources (e.g. staff turnover,
number of employees, skills and talents available, and retirements) allow organisations to predict future needs
→ This will allow them to adjust recruitment, training and development, and succession plans to meet these needs
→ It is also important to assess employment equity distribution and ensure that the organisation is meeting affirmative
action targets. This will provide a base from which to project the future supply of workers
→ By having an understanding of the company's workforce, practitioners can plan for projected shortages and surpluses in
specific occupations and skills sets
Workforce demand
→ Demand forecasting is the process of estimating the number and quality of candidates required to meet future needs of
the organisation.
→ Demand forecasts provide useful information. For example, to quantify the jobs necessary for producing a given number
of goods or services, determine what staff-mix is desirable in the future, assess appropriate staffing levels in various
areas of the organisation, prevent skill shortages, and monitor compliance with legal requirements
→ Thus if the demand for labour exceeds supply at an organisation, the organisation may become involved in recruitment
and selection activities for acquiring the necessary skills and competencies.
Control and evaluation
→ Control and evaluation procedures are necessary in order to provide feedback on the adequacy of the WP effort
→ Monitoring, evaluating and reporting performance results enhances the organisation's capacity to measure performance,
set targets and integrate results information into decision-making processes and determine future priorities
Case Study - Monomotapa (2013/6)
What would you regard as central HR management problems or challenges in this organisation? Explain your answer.
Propose a more systematic approach that will enable Monomotapa Mining to face the HR challenges that confront it
→ Workforce planning provides a strategic basis for making human resource decisions and is defined as the systematic
identification and analysis of an organisation's workforce so that the organisation can meet its objectives
→ Workforce planning ensures that the right number of people with the right skills are in the right place at the right time to
deliver short- and long- term organisational objectives
→ There are several issues that have been identified at Monomotapa Mining that may be hindering their endeavour to
reach their vision
→ The workforce is not representative of the South African population and therefore does not adhere to the requirements
set out by the Employment Equity Act (1998).
→ The productivity and morale of employees in the organisation is extremely low as a result of incompetent and unfair HR
practices and procedures.
→ Various transformation issues in the HR department require attention and career-development opportunities need to be
considered so that talented people at the organisation can be motivated, and retained.
Systematic approach
→ Monomotapa needs to assess the current position of the organisation in order to develop a strategy to address the
problems.
PROCESS OPEN-SYSTEM, DECISION THEORETIC VIEW OF THE EMPLOYMENT PROCESS
→ The systems approach is a perspective that emphasises relationships and interactions.
→ In the systems approach, the organisation is viewed as operating in continual interaction with multiple environments
in an open system.
→ From an open systems perspective, the organisation is viewed as an input-throughput- output system.
→ Within the organisation is a number of interacting sub-systems that transform inputs, such as energy and information
from the environment into outputs.
→ The outputs are then exported back into the environment in the form of products and services for consumption
→ Outputs reactivate the input-throughput- output cycle. Figure 1 below represents this perspective.
→ The employment process can be viewed as a system of sequential, interdependent decisions
→ In order to analyse a system, it is necessary to establish the relationship between the system and its environment.
A system can be defined as “a regularly interacting or interdependent group of items forming a unified whole”, or “a set of
things working together as parts of a mechanism or an interconnecting network”, and its purpose is to “attain one or more
objectives”. Systems’ thinking is “the ability to see the big picture and to distinguish patterns instead of conceptualizing
change as isolated events”. The organisation is such an open system which is constantly and reciprocally affected by its
environment, as depicted in figure 1, and its decisions should be made in the context of this relationship.
The external environment is comprised of the broad environment (political and legal forces, economic forces, sociocultural
forces, technological forces, the natural environment and the global environment) which is outside of its control, and the task
environment (existing and potential new competitors, suppliers, customers, regulating authorities and complementary
products and services) which it can influence. Developmental trends in the external environment will directly affect an
organisation. Furthermore, organisations are made up of members, groups, teams, units and departments (the internal
environment), which are constantly interacting with one another and are also being affected in part and as a whole by the
external environment.
The employment process can be described as “a network or system of sequential, interdependent decisions” pertaining to
the optimisation of the organisation’s human resources through job analysis, workforce planning, recruitment, selection,
training and development, and performance management.
The employment decisions and processes are linked and highly interdependent; a change in one part of the process will be
felt in all other parts of the process. It is a sequential system, where information gathered from one decision is necessary to
make the next decision. Foundational to the process is job analysis – virtually all employment decisions rests on this
cornerstone. It involves a job description and job specification to ascertain which skills and personal characteristics are
necessary for performance, with the principal aim of achieving organisational objectives. Without a job analysis, one cannot
start with workforce planning, and recruitment and selection cannot follow, and as such all the other employment processes
are hinged on the information derived from a job analysis.
Illustrate the link between the various phases in the employment process by means of a fictional case study (Company XYZ)
Job analysis and job evaluation
→ The first step of the employment process would be to conduct a proper job analysis for Company XYZ.
→ A job analysis is a systematic process of collecting and analysing information about jobs
→ Job analysis leads to well defined job descriptions, which entails a brief summary of the tasks to be performed, job
specifications which includes the characteristics and skills required of the individual to perform the job, and job
evaluations, which is a formal assessment of the value of a particular job to the organisation.
→ Job analysis and job evaluation are also key elements used to set up compensation packages and determine pay
differentials in organisations.
→ It is important to note that South African legislation has made job analysis a mandatory organisational requirement
Workforce planning
→ After all the necessary information has been obtained, Company XYZ can proceed to workforce planning.
→ Workforce planning is concerned with identifying both current and future skill gaps and possible solutions to fill them
→ An inventory of all the available knowledge, skills, abilities, and experiences of current employees from company XYZ
must be compiled.
→ Knowledge of an organisation's current and future talent is important to decide what types of skills need to be acquired
externally, and what types of skills can be found within the organisation.
→ A forecast of the supply of and demand for labour should then be undertaken.
→ Based on this information, various plans and procedures can be formulated to meet predicted staffing needs at
Company XYZ. This may include training, transfers, promotions, or recruitment.
Recruitment
→ Recruitment is concerned with identifying and attracting a large pool of suitable candidates with the required knowledge,
skills, abilities, qualifications, and characteristics as determined by the job analysis
→ Once a staffing need is identified in one or more departments at Company XYZ, the recruitment planning process can
begin.
, 2
Initial screening and selection
→ The next step in the recruitment process is the initial screening, which entails reviewing information about job applicants
in order to reduce the number of applicants to those who are most suitably qualified for the vacant position at Company
XYZ.
→ Company XYZ may use the skills inventory created during the workforce planning phase to identify current employees
for the available positions.
→ As previously mentioned, job analysis is a crucial element in the employment process, and as far as selection is
concerned, the selection process relies heavily on competent job analysis information.
→ Selection involves matching the individual with the job. Hence, to identify the best person for the job, it is crucial to
understand the nature of the job and its inherent requirements.
→ Judgements based on collected information through various methods such as interviews, background and reference
checks will provide the basis for hiring or rejecting applicants.
Training & development
→ Company XYZ must consider the calibre of employees they are going to select because this will impact on training
strategies such that, individuals who are less skilled will require further training to develop their competencies
→ Furthermore, internal talent may be identified and provided training and development opportunities to increase the
internal supply of key talent.
Performance management
→ All previous phases in the employment process affects and is affected by the performance-management process
→ If for example, it is found that individuals at Company XYZ lack certain skills and competencies, then job analysis may
need to be revised, along with recruitment and selection strategies.
→ Furthermore, performance management systems at Company XYZ may help identify developmental needs of
employees and provide information on who should be trained and in what areas.
→ Performance management systems also assist in compensation decisions such as pay increases. Implementing a
successful performance management system is a requirement for the successful implementation of other employment
functions including training, workforce planning, recruitment and selection, and compensation.
Organisational exit
→ Organisational exit is when an employee leaves an organisation. Organisational exit influences and is influenced by
prior phases in the employment process
→ If Company XYZ foresees the exit, then the company must plan for it. However, if it is unforeseen, Company XYZ's
strategic plan must change to take into account the new situation.
WORKFORCE PLANNING
Discuss the need for and importance of strategic workforce planning in identifying current and future employment needs
→ Workforce planning is an effort to anticipate future business and environmental demands on an organisation, and to
meet the HR requirements dictated by these conditions
→ Organisations undertake WP for the following reasons:
o Ensure that a strategic plan is achieved
o Cope with future staff needs
o Ensure an adequate supply and mix of highly qualified staff
o Provide HR information to other organisational functions
o Ensure a fair representation of the population mix
o Determine HR policies and planning practices that will attract and retain the appropriate people
→ Sound workforce planning is linked to the larger business planning
→ WP is meant to support and enable the company to attain its business goals
→ A key goal of WP is therefore to get the right number of people with the right skills (qualifications, competencies,
knowledge, experience) in the right jobs at the right time at the right cost
Explain how strategic workforce planning influences all other employment processes, such as recruitment, selection, training
and development
→ Workforce planning provides a strategic basis for making human resource decisions and is defined as the systematic
identification and analysis of an organisation's workforce so that the organisation can meet its objectives
→ Workforce planning ensures that the right number of people with the right skills are in the right place at the right time to
deliver short- and long- term organisational objectives
→ The recruitment, selection and employment of personnel are informed by the organisation's approach to workforce
planning
→ An organisation not only needs to know that it has people with the right skills to achieve its existing goals, but also that it
has human capital resources for future growth
, 3
→ An initial workforce analysis is needed to establish whether or not a particular post needs to be filled internally on a
permanent or temporary basis, or externally through an agency
→ To do workforce planning adequately, 4 conditions to be met:
o Talent inventory
o Workforce forecast
o Action plans
o Control and evaluation
Talent Inventory
→ The organisation must devise an inventory of available talent (knowledge, skills, abilities, experiences and qualifications)
→ A talent inventory helps the organisation make decisions relating to promotion, training, succession planning,
compensation planning and career planning
→ Talent management, which refers to the design and implementation of an integrated talent-driven organisational
strategy, is directed to attracting, developing, retaining and optimising appropriate talent requirements.
→ The strategy should build a talent culture which defines the organisations philosophy and principles, identifies critical
positions and leadership roles and capabilities in the organisation, attract a sustainable pool of talent for current
objective and future organisational needs, manage retention and reward, plan for succession to key roles, and achieve
employment equity in light of the legislation to achieve transformation.
Forecast workforce supply and demand
→ A forecast of the internal and external HR supply and demand must be undertaken
→ Knowledge of the internal state of the organisation, in terms of the state of its human resources (e.g. staff turnover,
number of employees, skills and talents available, and retirements) allow organisations to predict future needs
→ This will allow them to adjust recruitment, training and development, and succession plans to meet these needs
→ It is also important to assess employment equity distribution and ensure that the organisation is meeting affirmative
action targets. This will provide a base from which to project the future supply of workers
→ By having an understanding of the company's workforce, practitioners can plan for projected shortages and surpluses in
specific occupations and skills sets
Workforce demand
→ Demand forecasting is the process of estimating the number and quality of candidates required to meet future needs of
the organisation.
→ Demand forecasts provide useful information. For example, to quantify the jobs necessary for producing a given number
of goods or services, determine what staff-mix is desirable in the future, assess appropriate staffing levels in various
areas of the organisation, prevent skill shortages, and monitor compliance with legal requirements
→ Thus if the demand for labour exceeds supply at an organisation, the organisation may become involved in recruitment
and selection activities for acquiring the necessary skills and competencies.
Control and evaluation
→ Control and evaluation procedures are necessary in order to provide feedback on the adequacy of the WP effort
→ Monitoring, evaluating and reporting performance results enhances the organisation's capacity to measure performance,
set targets and integrate results information into decision-making processes and determine future priorities
Case Study - Monomotapa (2013/6)
What would you regard as central HR management problems or challenges in this organisation? Explain your answer.
Propose a more systematic approach that will enable Monomotapa Mining to face the HR challenges that confront it
→ Workforce planning provides a strategic basis for making human resource decisions and is defined as the systematic
identification and analysis of an organisation's workforce so that the organisation can meet its objectives
→ Workforce planning ensures that the right number of people with the right skills are in the right place at the right time to
deliver short- and long- term organisational objectives
→ There are several issues that have been identified at Monomotapa Mining that may be hindering their endeavour to
reach their vision
→ The workforce is not representative of the South African population and therefore does not adhere to the requirements
set out by the Employment Equity Act (1998).
→ The productivity and morale of employees in the organisation is extremely low as a result of incompetent and unfair HR
practices and procedures.
→ Various transformation issues in the HR department require attention and career-development opportunities need to be
considered so that talented people at the organisation can be motivated, and retained.
Systematic approach
→ Monomotapa needs to assess the current position of the organisation in order to develop a strategy to address the
problems.
