Organizations vary in size, aims, functions, complexity, construction, nature of product or service, appeal as employers, and the contribution

of the Human Resource (HR) department. However, the ultimate aim of Human Resource Management (HRM) is to ensure that the company is at all times correctly staffed with the right number of people with the necessary skills and competencies, relevant to business needs. The rate of change facing organizations is growing extensively; change must now be absorbed and handled efficiently considering a rapidly changing global environment. An organization needs to have the right people and skills to create an efficient organizational strategy (Accel, 2010). On one hand, a companys human resources are like any other factor of production, it needs to be managed. On the other hand the significant challenge in HRM is acknowledging its diverse nature and to treat human capital in such a way that they give their best to the organization by exploiting its intellectual intelligence. HRM within an organization should generate a sustained competitive advantage, through positive results and adding value for shareholders, employees, and most importantly its customers (Amos, Pearce, A. Ristow, and N. Ristow, 2008: 9). In constructing the HR department, an organization establishes the HR value chain, consisting of the HR function, HR system and employee behaviours, through which (Amos et al, 2008 9). There are four multi- faceted roles performed interrelated with that of the organizations overall business strategy (Amos et al, 2008, 10). The HRM department is a strategic partner, with a continuous role in strategy formulation and the implementation process, determining the feasibility of these strategies. This requires a SWOT analysis of the external and internal environment about the human resource capability of the organization. Furthermore, the department is required to establish an outline of the organizations current business practices, identifying changes needed to better facilitate strategy execution (Amos et al, 2008, 11). Business strategy is affected by different elements, processes, systems and practices of both the organization and those of the HR department, as they are interconnected and mutually supportive (Amos et al, 2008, 11). Perhaps the most vital function of HRM is recruitment, selection, and retention. The appointment of suitable staff, integration of staff within the organization, day- to- day personnel management and staff retention determines the success and continuation of any company (Amos et al, 2008, 115). Recruitment is the task of the HR department to ensure that the right person with the necessary skills and competencies are either internally or

externally sourced, and is a decision that would contribute to a sustained and optimal use of human resources (Amos et al, 2008, 120. The South African Constitution prevents unfair discrimination when selecting and recruiting employees, all organizations are subject to the law as set out in the Companies Act. For goals to be achieved, the needs of staff and the organization should be integrated by promoting and engaging employees rights into their respective jobs (Amos et al, 2008, 12). HR administration is a vital organ in a company, as it streamlines all functions within the organization, improving the manner in which strategies are organised and completed (Amos et al, 2008, 11). Organizational success is interlinked with the individual success of employees. Line managers are responsible to create personalised business objectives, key performance indicators, or output standards for employees within their department (Amos et al, 2008: 290). A challenge occurs in ensuring that the performance requirements of each individual are in line with both the departmental and overall strategic objectives of the organization. Several key objectives of personal goals should be specific, measurable, acceptable, realistic and time bound, and allowing the employee to be involved in and manage their own performance (Amos et al, 2008: 291). In establishing personal objectives, a manager and subordinate would follow a systematic process in which key tasks of the job are identified, and there relevance in achieving organizational goals. Goals are determined in conjunction with achieving both corporate and individual goals, and should also be recorded. The manger then establishes and records the criteria for which performance will be measured against, with intervals of progress review and appraisal (Amos et al, 2008: 291). A code of conduct governs the relationship between Old Mutual and its employees. Old Mutual states that it will recruit and select employees based on their suitability for the job and not on sex, race, gender, etc unrelated to the task. Relations shall be based on respect for dignity of the person and ensuring a safe and healthy work environment. The HR department will encourage and help all employees at various levels to develop necessary skills and competencies in order to progress their careers. In regards to administrative and pay issues, the company has designed appropriate dispute procedures to resolve procedures without resorting to strikes or lockouts (refer to Appendix A) (Old Mutual, 2010). Old Mutual has a set of commitments incorporated within its Responsible Business Policy. Regardless of the business location, Old Mutual branches must recruit and reward employees

based on merit, in line with current aims at promoting and advancing transformation in a South African context. Old Mutual aims to invest in employee development and in opportunities that assist the organisation in personal staff growth, along with safeguarding employee rights and encouraging diversity (refer to Appendix B) (Old Mutual, 2010).

BIBLIOGRAPHY

AMOS,T.L., PEARSE, N.J., RISTOW, A., and RISTOW, L., 2008. Human Resource Management (3e). Cape Town: JUTA Press. ACCEL, 2010. Human Resource Management. Accel. [Online].Available: http://www.accelteam.com/human_resources/hrm_00.html [Accessed 5 May 2010]. OLD MUTUAL, 2010. Employees. Old Mutual.[Online]. Available: http://www.oldmutual.com/vpage.jsp?vpage_id=2961 [Accessed 5 May 2010]. OLD MUTUAL, 2010. Our Code of Conduct. Old Mutual. [Online]. Available: http://www.oldmutual.com/vpage.jsp?vpage_id=2726 [Accessed 5 May 2010]. THE TIMES 100,2010. Human Resource Management. The Times London.[Online]. Available: http://www.thetimes100.co.uk/theory/theory--human-resource-management-263.php [Accessed 5 May 2010].