INTERNATIONAL HEALTHCARE DISTRIBUTORS HUMAN RESOURCES STRATEGY

1
INTERNATIONAL HEALTHCARE DISTRIBUTORS HUMAN
RESOURCES STRATEGY
1
Our Vision is To be acknowledged as a value
adding business partner in achieving IHDs
Strategic and Operational Objectives. What does
this mean in practice? ACKNOWLEDGED Earned,
not a right VALUE ADDING Contribute directly
to the financial performance of IHD
(optimize labour costs best
practices). BUSINESS PARTNER Fulfill all four
HR roles in being co-responsible, accountable
and focus on business requirements, aligned
with HR practices and the business strategy.
2
INTERNATIONAL HEALTHCARE DISTRIBUTORS HUMAN
RESOURCES STRATEGY
2

• Our Mission is
• Co-Creator of the business strategy
• Enabling management and employees to satisfy the
  needs of customers.
• To provide a one-stop HR service within IHD.
• Cultivate a conducive environment whereby IHD is
  the sort after employer.

3
HR PROFESSIONALS WILL HAVE TO MODEL AND
DEMONSTRATE SPECIFIC VALUES IN ORDER TO REMAIN
COMPETITIVE IN THE EVER-CHANGING ENVIRONMENT
3

• IHD LEADERSHIP VALUES
• Advocate and model the IHD Leadership values.
• ADDITIONAL HR VALUES
• Develop and exhibit professional competencies.
  Being valued as a resource.
• Maintains confidentiality.
• Absolutely trusted by others.
• Be committed and meet deadlines.
• Be result driven.

4
HR PROFESSIONALS WILL HAVE TO MODEL AND
DEMONSTRATE SPECIFIC VALUES IN ORDER TO REMAIN
COMPETITIVE IN THE EVER-CHANGING ENVIRONMENT
4

• JUDGEMENT
• Prioritise tasks by assessing the level of risk
  and consequences.
• Make correct trade-offs between legitimately
  competing interests and agendas.
• Make quality decisions with information
  available.
• COURAGE
• Stand up for own beliefs and take responsibility
  for personal actions.
• Deliver news good and bad in an upfront manner.

5
HR PROFESSIONALS WILL HAVE TO MODEL AND
DEMONSTRATE SPECIFIC VALUES IN ORDER TO REMAIN
COMPETITIVE IN THE EVER-CHANGING ENVIRONMENT
(Cont.)
5

• TRANSPARENCY
• Communicate openly and honestly with all
  stakeholders utilizing accurate facts before
  taking action.
• Practice and promote openness and fairness with
  regards to HR processes and practices.
• HUMAN DIGNITY
• Practice and promote the fair treatment of all
  employees.
• Treat people with respect and dignity in order
  for them to feel important.

6
HR PROFESSIONALS WILL HAVE TO MODEL AND
DEMONSTRATE SPECIFIC VALUES IN ORDER TO REMAIN
COMPETITIVE IN THE EVER-CHANGING ENVIRONMENT
(Cont.)
6

• PERFORMANCE DRIVEN
• Set SMART targets for self and others and
  recognise and reward progress made towards
  results.
• Deliver on commitments made and hold others
  completely responsible for commitments.
• Use performance consideration in determining
  rewards or sanctions and actively promote this
  value in the organisation.

S
Specific
M
Measurable
A
Achievable
R
Realistic
T
Timebound
7
HR PROFESSIONALS WILL HAVE TO MODEL AND
DEMONSTRATE SPECIFIC VALUES IN ORDER TO REMAIN
COMPETITIVE IN THE EVER-CHANGING ENVIRONMENT
(Cont.)
7

• CONTINUOUS LEARNING ENVIRONMENT
• Constantly strive to find better ways to do
  things in own area of responsibility.
• Allow staff to participate and share in
  decision-making.
• Be an influential advocate for change and
  processes and use HR skills to facilitate
  organization transformation.
• Foster a creative and innovative environment.

8
LABOUR RELATIONS
8

• Implement participative forums at all levels.
• Positioning and developing IHDs Labour Relations
  system.
• Formulate and implement Labour Relations
  strategies.
• Ensure the implementation of Employment Equity.
• Align all collective agreements and IHDs
  policies, with relevant labour legislation.
• Strategic leadership, policies and advice on
  Labour Relations.
• Foster adherence to agreements with trade union.
• Provide training on disciplinary and grievance
  procedures.

9
THE ROLE OF THE HR CABINET IN DRIVING IHDS HR
STRATEGIC INTENT
9

• Align business strategy with HR strategy and
  policy.
• Jointly define HR policy.
• Persuade and influence EXCO as to critical HR
  decisions.
• Resolve what is common vs. unique.
• Custodians of HR expertise at IHD.
• Ensure accountability for HRM at all levels.
• Facilitate speedy execution.
• Establish linkages with internal and external
  stakeholders.
• Transform HRM practices at IHD.
• Understand the broader cross-functional areas of
  HR.
• Act with integrity.
• Foster and enhance teamwork.

10
10

HR BLUE PRINT Guiding Principles in People
Management

• ORG. DESIGN
• Lean Productive Organisation
• Governance Style enables
• Speed of decision making
• Execution of strategy
• Clear accountability for results leads to
  results driven behaviour
• Alignment focus
• Empower employees
• Built around core business processes.
• Effectively structured departments to manage
  staff turnover.

• JOB DESIGN
• Meaningful and exciting jobs built around core
  Business Process deliverables
• Clear accountabilities/ deliverables.
• Empowered individuals and teams.
• Enriched exciting jobs.
• Ensure alignment focus - Balanced Score Card
  (BSC).
• Senior levels
• - Tailored to fit skills and dev. needs of
  the individual without compromising the
  overall integrity on the job.
• - Facilitate development of future leaders.
• Job grades as broad as possible.
• Flexible utilization of workforce e.g. job
  rotation.

• STAFFING
• Having the best
• Effectively and efficiently.
• Link business strategy and people strength by
  including people reviews as an integral part of
  the business process.
• If required, buy in good people.
• Grow own by first intent.
• Attract retain high potential people.
• Adhere to applicable legislation.
• Hired labour as last resort.
• No dumping ground.
• Ethical code.
• Vacancies advertised.
• Rotation placement according to succession
  plan.
• Recruitment policy.

• SKILLS DEV.
• World Class through a Learning Culture and
  operational excellence.
• People most valued asset.
• Culture and values through training,
  development, mentoring coaching.
• Learning culture
• - Outcomes based.
• - Self-directed.
• - Life long Learning with the objective of
  achieving business competencies.
• - Recognition of Prior Learning and full
  accreditation NQF SAQA).
• - Employees understand their strengths
  weaknesses.
• - Ensure adequate dev. opportunities.
• - Invest in skills dev.
• - High potential, fast track programmes.

• PERFORMANCE MAN. REMUNERATION
• Performance Culture we are results driven.
• Geared to support business strategies
  objectives.
• Motivate and reinforce superior performance.
• Encourage the development of competencies.
• Share in the performance of the company.
• Aimed at securing commitment of our people.
• Salary according to performance.
• Rates of pay on the appropriate market for each
  job family.
• Results carry meaningful consequences
• - Weed out underperformers.
• - Retain high performers.

11
11

HR BLUE PRINT (cont.) Guiding Principles in
People Management
ORG. DESIGN Lean Productive Organisation

• JOB DESIGN
• Meaningful and exciting jobs built around core
  Business Process deliverables

STAFFING Having the best
SKILLS DEV. World Class through a Learning
Culture and operational excellence. -
Formal training is supportive to on the job
training - Competency based
advertisements. - Build own skills and
recruitment principally at entry level. - On
the job training conducted by highly
qualified specialists. - Assess staff against
creditable unit standards. - Meaningful
individual development plans be developed.
PERFORMANCE MAN. REMUNERATION Performance
Culture we are results driven. - Clear
competency based job descriptions. - Apply the
legal performance management
procedure. - Utilize the probation period
effectively.
12
THE FOUR ROLES OF HR
12
Change Agent
Employee Champion
Strategic Partner
Administrative Expert



Business Partner

13
HR Strategic FocusThe Four Roles of HR
13

• HR Processes and practices fit the strategy.

• Cultural guardians and catalysts.
• Capacity for change.

Change Agent
Strategic Partner
Admin Expert
Employee Champion

• Create and
• maintain infrastructure.
• Administrative Efficiency.

• Help employees to feel they are part of a
  Team.
• Employee commitment.

14
SPECIFIC HR COMPETENCIES ARE REQUIRED TO FULFIL
THE IDEAL HR ROLES
14

• Business strategy skills
• Transformation change management
• HR functional expertise
• Project management, assessment skills,
  influencing skills, leadership skills, innovation
• People development, coaching/mentorship
• Responsiveness and speed

15
THE ROLE OF THE HR DEPT.Human Resources Function
Roles
15
BUSINESS PARTNER


ADMINISTRATION EXPERT
CHANGE AGENT


EMPLOYEE CHAMPION
16
THE HR RESOURCES FUNCTION ROLES LEAD TO SPECIFIC
HR DELIVERABLES OR OUTCOMES
16
HR ROLES
OUTCOME

• Align HR with business strategy
• Manage transformation processes
• Develop and implement efficient and
  contemporary organisation structures and HR
  practices
• Understand, respond advocate employee issues
  within the context of business strategy

BUSINESS PARTNER
CHANGE AGENT
INFRASTRUCTURE EXPERT
EMPLOYEE CHAMPION
17
THE HUMAN RESOURCES ROLE HELPING THE BUSINESS
BECOME MORE COMPETITIVE
17
As HR professionals strive to fulfill all four
roles, we need to strike a balance between long
term strategic initiatives and day-to-day
operational activities. To accomplish this it is
important to develop and use both soft
transformation skills and hard tools and
processes.
FUTURE / STRATEGIC FOCUS
HR Strategy
Change Process
TOOLS/PROCESSES HARD
TRANSFORMATION SOFT
Infra-structure
Employee Champion
DAY-TO-DAY OPERATIONAL FOCUS
18
SKILLS DEVELOPMENT
18

• The objective is a drive to develop employees
  through obtaining competencies.

• ACCEPT ULTIMATE RESPONSIBILITY
• MANAGE OWN TRAINING BUDGET
• IDENTIFY ALL TRAINING NEEDS
• EXECUTE ON-THE-JOB TRAINING
• DECLARATION OF COMPETENCY
• COACHING AND MENTORING
• CENTRE OF EXCELLENCE GIVE SUPPORT

ROLES AND INITIATIVES

• MEET UNIT STANDARDS, NQF AND SAFETY REQUIREMENTS
• FOLLOW CAREER PATH DEVELOPMENT PROGRAMS
• EMPHASIS ON APPLICATION OF KNOWLEDGE AND SKILLS
• DECLARATION OF COMPETENCY IS ESSENTIAL

LINE MANAGEMENT RESPONSIBILITIES

• IHD LINBRO PARK TRAINING DEPT. OVERSEES ENTIRE
• TRAINING PROGRAMME
• ALL TRAINING COURSES APPROVED BY LINE MANAGEMENT

ON-THE-JOB TRAINING
FORMAL TRAINING

• DEVELOPMENT OF COMPETENCIES
• Focus on job requirements
• Career path development
• Multi-skilling
• Adhere to NQF unit standards, safety
• Testing and declaration of competency
• Recognition of Prior Learning

TRAINEE SCHEMES
JOB ROTATION

• MOST EFFECTIVE TRAINING METHOD FOR MANAGERS AND
  ALL EMPLOYEES.
• SUPPORTED BY FORMAL TRAINING, COACHING AND
  MENTORING.

• RECRUIT 90 AT ENTRY LEVELS WITH MINIMUM STD 10
  QUALIFICATION

• TOTAL WORKFORCE SHOULD BE ON GRADE 12 LEVEL
• AN ACCELERATED ABET PROGRAM IS REQUIRED
• CATER FOR INDUSTRIAL ORIENTATION, LIFE SKILLS AND
  CULTURE ALIGNMENT

SELF-DIRECTED LEARNING
EDUCATION
COACHING AND MENTORING

• EMPLOYEE TAKES OWN INITIATIVE FOR DEVELOPMENT
• SUPPORTED BY HUMAN RESOURCES AND ADEQUATE
  TRAINING FACILITIES

• MUST BE A FORMAL PART OF ANY TRAINING PROGRAM
• TRAINING IN COACHING SKILL IS ESSENTIAL

19
PERFORMANCE MANAGEMENT AND REMUNERATION
19

• Instill accountability for every individual and
  manage contract for success on a monthly basis.
• Performance (output) is what matters,
  continuously adding value.
• Linking the contract for success with the
  incentive scheme.
• Align KPAs with competencies.
• Zero-based incentives.

20
THE HUMAN RESOURCES TEAMS UNDERSTANDING OF IHDS
BUSINESS
20

• Major opportunities for improvement
• Drive fixed costs down
• Efficiency (new systems/processes/skills/quality)
• Customer focus/service (high level)
• More proactive approach

NEED FOR CHANGE
21
AN ANALYSIS OF THE HUMAN RESOURCES FUNCTION
REVEALED THE FOLLOWING (cont.)
21

• Line management believes HR issues are for the HR
  function lack of ownership
• HR does not practice what it preaches
• Business success will be impeded
• Opportunity to exert leadership and contribute to
  the business, to transformation leadership

CONSEQUENSES
SUMMARY
22
KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS
OF THE STRATEGIC INTENT
22
GOOD STRATEGY GOOD STRATEGY EXECUTION GOOD
MANAGEMENT
DEFINITION ACTION RESP-ONSIBLE TARGET DATE
1. Contribute to cost reduction Direct Payroll, HRM budget, overtime, training. Indirect Sick leave, absence, injuries, scheduling, legal costs. Manage staff turnover costs. Establish reporting and measurements. Life Skills and Finance Programme. Yvette Susan Rekha Immediate Ongoing March 2003
2. Performance Culture Performance Management, remuneration incentives, training, motivation and (KPIs). Train all Management Levels on Perf. Management Systems. Performance Contracts KPAs should include - Fundamental - Core - Electives JDs - Competency based linked to KPIs. HR Cabinet February 2003 Performance Appraisal.
23
KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS
OF THE STRATEGIC INTENT (Cont.)
23
DEFINITION ACTION RESP-ONSIBLE TARGET DATE
Communication of performance figures (faces). Departmental Objectives. Specific initiatives to promote and reinforce strategic behaviour. Revise Policy Zero-based incentives Revamp / redesign performance management and implement.
3. Transformation (Employment Equity). Diversity, comm., culture, org. profile, participative management, customer orientation, empowerment, change management. Principles finalised Employment Equity Constitution reports structures to be in place. Yvette Richard 31 January 2003
24
KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS
OF THE STRATEGIC INTENT (Cont.)
24
DEFINITION ACTION RESP-ONSIBLE TARGET DATE
Transformation (cont.) Transformation and Change Management Workshop Define/sell case for change. Skills / HR requirements (incl. practices and systems and self directed work teams). Conduct workshops on all levels. Yvette Susan Yvette January 2003 April/May 2003
4. Business /HR Alignment Succession Planning Define implement a business/HR alignment process. Maintain a follow-up. HR Cabinet 15 February 2003 Ongoing
25
KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS
OF THE STRATEGIC INTENT (Cont.)
25
DEFINITION ACTION RESP-ONSIBLE TARGET DATE
5. Employee Champion Structure and implement participative forums. Assess employee attitudes. Integrate issues/statistics. Yvette Tracy Frank February 2003
6. Induction Programme Communication session. Communication session with MANCO. Richard Susan January 2003
7. HIV/AIDS Training EXCO, Management, staff. Peer Education. Susan 13 February 2003/ On going
26
KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS
OF THE STRATEGIC INTENT (Cont.)
26
DEFINITION ACTION RESP-ONSIBLE TARGET DATE
8. Recruitment Selection viz, Targeted Selection course. Training of Management. Inform EXCO that we require their support to have management trained on TSS. Rekha Susan Richard March 2003 20 January 2003
9. Educate staff on Employee Benefits. Pension Group Life Disability Incapacity / Disability Policy. The course, design, approval Implementation. To revise align policy with the Insurer Labour Relations. Rekha Rekha Richard April to October 2003 February 2003
27
INTERNATIONAL HEALTHCARE DISTRIBUTORS (PTY) LTD
HUMAN RESOURCES STRATEGY
FOR 2003 - 2005 COMPILED BY RICHARD NKUNA AND
THE TEAM