INTERNATIONAL HEALTHCARE DISTRIBUTORS HUMAN RESOURCES STRATEGY

Our Vision is:

To be acknowledged as a value adding business partner in achieving IHD’s 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.

1

INTERNATIONAL HEALTHCARE DISTRIBUTORS HUMAN RESOURCES STRATEGY

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 afteremployer.

2

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

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.

3

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

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.

4

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

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.

5

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

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

6

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

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.

7

LABOUR RELATIONS

• Implement participative forums at all levels.

• Positioning and developing IHD’s Labour Relations system.

• Formulate and implement Labour Relations strategies.

• Ensure the implementation of Employment Equity.

• Align all collective agreements and IHD’s 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.

8

THE ROLE OF THE HR CABINET IN DRIVING IHD’S HR STRATEGIC INTENT

• 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.

9

HR BLUE PRINTGuiding 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 DESIGNMeaningful 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. &

REMUNERATIONPerformance 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.

10

HR BLUE PRINT (cont.)Guiding Principles in People Management

ORG. DESIGN“Lean & Productive

Organisation”

JOB DESIGNMeaningful 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. &

REMUNERATIONPerformance Culture – we

are results driven.

- Clear competency based job descriptions.

- Apply the “legal performance management procedure.

- Utilize the probation period effectively.

11

THE FOUR ROLES OF HR

Change Agent

Employee Champion

Strategic Partner

AdministrativeExpert + + +

= Business Partner

12

HR Strategic FocusThe Four Roles of HR

Admin Expert

Employee Champion

Create and maintain infrastructure.

Administrative Efficiency.

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

HR Processes andpractices fit the strategy.

Cultural guardians and catalysts.

Capacity for change.

Change Agent

Strategic Partner

13

SPECIFIC HR COMPETENCIES ARE REQUIRED TO FULFIL THE IDEAL HR

ROLES

• 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

14

THE ROLE OF THE HR DEPT.Human Resources Function Roles

ADMINISTRATION EXPERT

BUSINESS PARTNER

EMPLOYEE CHAMPION

CHANGE AGENT

15

THE HR RESOURCES FUNCTION ROLES LEAD TO SPECIFIC HR

DELIVERABLES OR OUTCOMES

• 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

EMPLOYEE CHAMPION

CHANGE AGENT

INFRASTRUCTURE EXPERT

HR ROLES OUTCOME

16

THE HUMAN RESOURCES ROLE …HELPING THE BUSINESS BECOME MORE

COMPETITIVE

TOOLS/PROCESSES“HARD”

FUTURE / STRATEGIC FOCUS

DAY-TO-DAY OPERATIONAL FOCUS

TRANSFORMATION “SOFT”

HR Strategy

Infra-structure

Employee Champion

Change Process

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.

17

SKILLS DEVELOPMENT

• 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

• MEET UNIT STANDARDS, NQF AND SAFETY REQUIREMENTS

• FOLLOW CAREER PATH DEVELOPMENT PROGRAMS

• EMPHASIS ON APPLICATION OF KNOWLEDGE AND SKILLS

• DECLARATION OF COMPETENCY IS ESSENTIAL

• 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

• MUST BE A FORMAL PART OF ANY TRAINING PROGRAM

• TRAINING IN COACHING SKILL IS ESSENTIAL

LINE MANAGEMENTRESPONSIBILITIES

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

ON-THE-JOBTRAINING

EDUCATION COACHING AND MENTORING

JOB ROTATION

FORMALTRAINING

SELF-DIRECTEDLEARNING

• IHD – LINBRO PARK TRAINING DEPT. OVERSEES ENTIRE TRAINING PROGRAMME

• ALL TRAINING COURSES APPROVED BY LINE MANAGEMENT

• MOST EFFECTIVE TRAINING METHOD FOR MANAGERS AND ALL EMPLOYEES.

• SUPPORTED BY FORMAL TRAINING, COACHING AND MENTORING.

• EMPLOYEE TAKES OWN INITIATIVE FOR DEVELOPMENT

• SUPPORTED BY HUMAN RESOURCES AND ADEQUATE TRAINING FACILITIES

ROLES AND INITIATIVES

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

18

PERFORMANCE MANAGEMENT AND REMUNERATION

• 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 KPA’s with competencies.

• Zero-based incentives.

19

THE HUMAN RESOURCES TEAM’S UNDERSTANDING OF IHD’S BUSINESS

• 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

20

AN ANALYSIS OF THE HUMAN RESOURCES FUNCTION REVEALED THE FOLLOWING (cont.)

• 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

21

KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT

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 (KPI’s).

• Train all Management Levels on Perf. Management Systems.• Performance Contracts• KPA’s should include:

- Fundamental

- Core

- Electives• JD’s

- Competency based & linked to KPI’s.

HR Cabinet February 2003

Performance Appraisal.

22GOOD STRATEGY + GOOD STRATEGY EXECUTION = GOOD MANAGEMENT

KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

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

23

KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

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

24

KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

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

25

KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

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

26