The policy should also cover the development of mutual; trust and cooperation prevention of problems and disputes

through agreed dispute

handling procedure, reduction of labour costs; strengthening of
managerial control; development of human resources skills and
management of productivity.
The policy statement should be universally acceptable to all departments
and should be in broad terms and in clear languages.
The policy should be approved be approved and authorized by the
highest authority so that the policy carries eth weight of a directive and
the terms must be inviolate.
A distinction must be drawn between policies equal pay for equal work
and procedures such as grievances procedure.
Organizations should be extremely careful when drafting the recruitment
policy to prevent unfair discriminatory practices being entered into as it
would transgress the Employment Equity Act and also lead to a
employees in terms of the Labour Relations Act. The following should eb
the guidelines for policy.
All jobs should be open to all applicants irrespective of race, sex or
other grounds of discrimination prohibited by law.
Recruitment of candidate for affirmative action positions should be done
according to the provisions of the interim constitution and relevant
labour legislation.
In the case of closed shop agreement a representative trade union is
to be informed timeously of al vacancies
Internal recruitment should take precedence over external recruitment.
Information regarding vacancies must be clearly stated to relevant
selection criteria to be applied.
Interpersonal relationship with colleagues of supervisors / subordinates.
Interpersonal relations an be defined as the whole range of human
conduct between individuals who interact, as they are involved in
relationships of community co-operating , changing , problem solving and
motivation in these relationships, each employee tries to influence and
adpt the behavior of the other employees in order to satisfy his or her
own needs.
An organization depends on groups for the achievement of its goals,
therefore it is organized accordingly. Contributions interactions is a
characteristic of group within the organization .
The ideal state of each group is of harmonious co-operation in order to
achieve the goals of the organizations. In practice, however, groups are
continuously in a state of conflict, mainly because they are often
competing with one another. If this competition does not conceded with,
or follow the direction of goals of the orgnisation, it will adversely affect
the organization. Competition should be in line with the goals of the
organization, and this means that group objectives need to be
associated with these goals , bearing in mind those groups , as

subsystems of the organization and have the organization and have

their own goals.
Informal group formation determines group functions, and sets informal
group goals that may either help or hinder their achievement of the
goals of the organization. Interpersonal and goals relations presents a
great challenge for them because of their effect on the functioning of
an organization. The employees immediate superior. This person ,
although he or she is not expected to be a professional counselor, can
and should take part in facilitating his or her immediate subordinates
career planning .
The superior should act as communicator , counselor, appraiser, coach
and mentor, ensuring that the subordinates employer gets the
information necessary for furthering his or her career . It is unfortunate
that many superiors do not see it as part of their duties assist in the
career development of their subordinates either they do not know how
to go about it or they see every subordinate as a potential threat to
their own position and so they give no assistance and may even exert
a negative influence.
Superiors control the activities of lower level employees and in the
charge they are responsible for carrying out the policy and achieving
the objectives of management .
Superiors not only act as a model and example to subordinates but also
form the link between higher- level management and lower level
employees. For this reason it is essential that supervisors fulfill their
role effectively.
Communication, the only way through which we can be established and
maintain relationships with other people , is through communication. The
more easily people in group the more cohesiveness refers to the extent to
which group members are attracted to each other and vote to stay in
the group . communication is clearly a social process. A variety of social
influences effect the accuracy with which we perceive information.
These include differences in status, languages, frame or reference, and
expectations as well as selective listening, premature judgments, and
source ( reliability) .
Most people assume that they are good communicators. Yet, most
interpersonal problems stem from misunderstanding. People do not
formulate their messages accurately. People do not listen attentively to
what others say. Should it become evident that communication is a
problem in a group, it should not be ignored but address through training.
Leadership , the success of out standing organization is almost always
associated with the efforts of one or more unique individuals who are
identified as leaders. These leaders did not achieve fame through their
own efforts, but through their ability to inspire others to work towards
the attainment of organizational goals. Leaders have a tremendous

influence on the behavior and attitudes of others. Leaders articulate the

vision of the organization and inspire other to their efforts and skills at
realizing eth vision. Since leaders influence their followers attitudes ,
beliefs and values , is imperative that they act ethically. Without quality
leadership, an organization can not become a significant role player in
the economy or in society. Leadership is not restricted to specific
positions or roles in the organization, and different people serve as leaders
in different situations. Quality in leadership is achieved only if potential
leaders on all organizational level are identified, developed and provided
with opportunities to exercise their skills. The HR manager has a vital
role to play in development of organization leaders .
Status, referes to relative social position a person has in comparison to
others in the group status is important bedcuase it is a motivational factor
and also influence the behaviou of those who experience disparity between
what they believe their status is and what they believe other perceive
their status to be status can be formal or informal and is awarded as
follows:
Scalar status refers to status obtained through an individuals formal
position in a group. A supervisor has status owing to the authority
associated with her or his position .
Functional status is earned trough the task a person has to fulfill in
the group. A coputer technician , who is on a lowet level in the
organization heirachy, might have more status than the manager
owing to his or her ability to solve evryones computer problems.
Achieved status is earned through hard work and effort, and based
on the individuals qualification and achievements. We are all
impressed when there is a professor in our midst.
A scribed status refers to innorn characteristic over which we have
limited or no control, such as attractiveness, gender, build and age, .
Status differences can either facilitate or hinder group interaction. They
facilitate interaction when members perceive status differences as equitable ,
that is they believe those with higher status rightfully deserve more status .
Lower status members in this case are more willing to follow the derectives
of high status members- consider the training of departments as a ( command)
group , where the training manager has more status owing to his or her
authority , exerptise , and still. Om the other hand, status deifferences might be
in appropriately supposed to work as equals. It happens for too often that
whne a group meets to brainstorm ideas, those with lowers status hesitate to
share ideas , and ultimately, critise the ideqs of others.
Work security

Life insuarance in south Africa this benefit is generally offered in form of

group insuarane with a life insuarance company, for all employees of the
organization in such a case to distinction is made on the basis of individual
employees physical conditions. The benefit payable upon the death pf an
employee while he is in the organizations employ is usually based on his
annual salary upon death . This may vary from twice his annual salary to as
much as five times his annual salary.
In most cases the employer pays the premium or a large part of it. Although
the so-called blue-collar worker has traditionally received a standard amount
for life insuarance as a frindge, benefit there is a tendency to bring this
benefits more line with that of the so called white-collar employees. Finally it
must be pointed out that in additional to take above mentioned benefit, there
is a tendency to offer employees life cover even after they have reached
retirement age . In such a case the amount for life cover will eb only a thid of
or at most half eth insures amount before retirement.
Medical aid schemes. Sloane ( 1983:322) state that the providing some kind
of health services insuarance, with an estimated 94 percent of least larger
organsaisations now offering both generally two types of medical aid schemes
are offered. The basic plan usually makesw provision for a restricted number
of hospital, surgical and medical services, while the general plan provides for
the cost of prolonged treatment for more seniors conditions. In practice an
organization will have its employees contribution. These contribution are
adjusted from time to time to keep pace with increasing medical cost
Pensions, there are two basic pension plans which an employer may ofer his
employes under tha first plan the employees retirement benefit is deriectly
linked to his number of years of service and his income. Such a formula
may specify that the employee shold multiply his number of years service by
1.5 percent multipled by his average salary of r the last five years of service
before retirement. Whereas white collar employees pensions is predominately
linked to their incomes, a pension of a fiexd amount per year of service is
still paid in the case of employees who receive hourly wages.
The second basic pension is a contribution plan. This entails a group annuity
plan whereby the employer, and in most cases the employee as well pays a
fixed percentage of the employees income into retirement fund when the
employee retires, the capital sum plus accumulated interest is used to pay
him monthly pension.
The normal retirement age at most organizations, as well as in the public
sector, is 65 years. Recently there has been a tendency towards earlier
retirement programmes to prepare employees for retirement programmes to
prepare employees for retirement are becoming important.

Money and wages ( compensation)

An organization is formed in order to fulfill a specific mission or purpose
without hiring persons who have the skills, knowledge, aptitudes and interest to
help the organization would thus design and implement a reward system to
attract workers with the requisite skills, knowledge, and abilities that are
considered necessary by the organization to achieve its desired goals and
objectives. But designing and managing a reward system so that it benefits the
organization is rather a complex task such a reward system is rather
includes anything that an employee may value and desire and that the
employer is able and willing to offer in exchamnge for employee
contributions. The reward system is composed of two components . The
compensation component and the non compensation component that is
reward system is classified t (i) monetary payment and 9II) in kind payment.
Organiastiona all hace different renumeration policies which is what the
organization or companies their competitive advantage. The compensation
system is a reward mechanisam that eminates from the allocation, conversion
and transfer for a portion of the revenue of an organization to its workers an d
staff for their monetary and in-kind claims on goals and sevices.
Monetary claims on goods and services are wages or salries paid to an
employee in the form of monetary or a form that is quickly and easily
transferrable to money at eth discretion of the employee
Compensation programmes must be internally equitable that is they must pay
persons in proportion to the market value of their job .
They must be proportionally motivating to employees.
Organizations spend a very large proportion of their gross income on paying
the people who work for them, and a large amount of this goes to the senior
people who direct the business.
It is a accepted fact that people must be rewarded for the services they
provide for the majority of these rewards are monetary. Employee pay
satisfaction can be grouped into four categories.
External equity, which is how to pay relates to their companies in the
industry.
Internal equity which is how fair the pay is compared to the size and
profitability of the organization
Individual equity which measures the fairness of the pay based on the
performance of individuals working the same job.

Procedural equity, which measures the fairness of the decision making

process of pay distribution pay system should attract good employees by
structuring salary packages that tempt people to apply for the job in the first
place. The system should be able to retain good workers, because if the
system is good , many other employers in the market place will be seeking
the9r services as well. Once in the job the compensation system must provide
all the support needed to keep the employee motivated to perform at his or
her best level .
The basic objective of salary and wage administration is to provide and
maintain a fait and reasonable salary and wage structure. During this process
conflict may arise regarding the price linked to each task or job. Suh conflict
may arise between employers, shareholders, consumers and other groups. A
successful wage and salary programme is one which succeds in balancing
these conflict and intrest , so that the satisfaction of each person involved is
assured and sastifaction kept to a minimum