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BREAKWATER MONITOR 2 OCTOBER

BREAKWATER MONITOR 2 OCTOBER. Department of Labour Employment Equity Registry Launch. Overview. The Breakwater Monitor Trends: 1991 - 2000 Millennium Report: The Context of Employment Equity Future Directions BMF 2000 Award: Criteria and Measures Developing a Human Capital Framework.

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BREAKWATER MONITOR 2 OCTOBER

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  1. BREAKWATER MONITOR2 OCTOBER Department of Labour Employment Equity Registry Launch UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  2. Overview • The Breakwater Monitor • Trends: 1991 - 2000 • Millennium Report: The Context of Employment Equity • Future Directions • BMF 2000 Award: Criteria and Measures • Developing a Human Capital Framework UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  3. Breakwater Monitor • Breakwater Monitor national database and information service was established in 1991 as a partnership between progressive South African employers and the University of Cape Town Graduate School of Business • Established in 1991: from 11 companies to more than 300 UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  4. Breakwater Monitor • The project has been unique in the following respects: • Voluntary and standardised. • Comparative analysis and the establishment of benchmarks. • The longitudinal capacity: observation of trends, and the rate of change in affirmative action implementation. • Customised reports (employment equity scorecards). • Benchmarking at a national, sector, occupational level: setting of employment equity targets and timetables. UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  5. Trends in Management UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  6. Trends in Skilled Employee Levels UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  7. Example: Sector DifferentialsBlack Management and Skilled Employees UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  8. Example: Sector DifferentialsAfrican Management and Skilled Employees UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  9. Example: Sector DifferentialsWomen in Management and Skilled Jobs UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  10. Example: Sector DifferentialsUpper Quartile: Black Management and Skilled Levels UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  11. Trends: Comments • Relatively slow progress in management over the past 10 years • Skilled level: change has been more significant. Appears that this capability is not maximised as a pool for management level development. • Uneven progress across economic sectors and within sectors UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  12. Trends: Comments • Investment in training and development: 1991: 1.5 %; 1999 2%; Nedlac Study 1996: 2.4% • On average only 30% of employers could report training data • Investment in Education: 1991 70% of all investment went to white students; 1999 70% black • Data vs process: Process more important, but standardised, reliable and comparative information essential for proper planning and evaluation UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  13. Millennium Report: The Context of Employment Equity • Published end of October • Trend analysis by occupational levels: profiles and flow data 1998-2000 • Contextual issues: • Role of leadership in transformation • Black economic empowerment • Valuing diversity • Pay discrimination • Tackling skills development UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  14. Millennium Report: The Context of Employment Equity • Black Economic Empowerment • What do we mean by this and why it is important • Expansion of equity participation and ownership • Democratisation of the corporate lansdscape • Employment creation • Black business skills development • A retrospective evaluation • Inappropriate risk allocation • Listed company bias • Lack of a coherent national strategic framework UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  15. BREAKWATER MONITOR FUTURE DIRECTIONS UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  16. Future Directions • Founding objective was to provide reliable, standardised employment equity data to track employment equity progress in South Africa • This role has now been fulfilled by the DOL • The plan for 2001 is to broaden our data service to include a comprehensive labour market information research and information service • Multiple data sources and customised analysis UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  17. Future Directions • Initial labour market research areas to be covered: • Employment equity • Skills and capacity building • Compensation equity • Human capital management • Breakwater Monitor On-line 2001 • Internet based capture and query system • Standardised and customised analyses • Knowledge resources UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  18. Progressive Company Award13 October 2000 UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  19. 4 Factors • Representation of Designated Groups in Management and Decision Making • Investment in Internal Training and Development • Representation of Designated Groups in Skilled and Technical Positions • Participation in Black Economic Empowerment Initiatives UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  20. Management Profile (20) • African managers • Black managers • Black managers in executive positions • Women in management • Managers with disabilities UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  21. Investment in Training and Development (35) • Total investment • Investment in black training • Investment in the training of women • Training and special measures for employees with disabilities • Investment in education • Corporate social investment UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  22. Skilled Employee Profile (10) • African • Black • Women • Employees with disabilities UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  23. Black Economic Empowerment (35) • Equity participation: designated groups • Procurement: designated groups • Sub contracting and Outsourcing: designated groups • Investment in joint ventures: designated groups UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  24. Human Capital Building Organisational Capability UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  25. Intellectual Capital Human Capital Structural Capital A constant interplay between these factors is needed for an organisation to leverage off its knowledge base Customer Capital UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  26. Human Capital Intellectual Assets Relationships drive profits which results in resources available todevelop systems, patents and codified knowledge Structural Capital Intellectual Property Relational Capital Human Capital is the Driving Forcefor Intellectual Capital UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  27. The Role of the HR function in a HPWS* • HR must focus on business level outputs rather than HR level outputs. • Systems thinking perspective amongst HR managers is vital. (powerful connections & deadly combinations) • HR must become a strategic core competency. • Strategic competencies are more important than functional competencies. *HR as a source of shareholder value: Research and recommendations by Becker, Huselid, Pickus, Spratt UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  28. Optimising Human Capital Implementation Levels Human Capital Normative Create Conditions Strategic Align with Strategy CAPABILITY Measure Assets Manage Process Accountability & Commitment Operational UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

  29. Contact Details Angus Bowmaker-Falconer: cell: 083 44 88 719 Breakwater@irg.co.za Office: 021 4409800 Fax: 021 425 0000 UCT GRADUATE SCHOOL OF BUSINESS: BREAKWATER MONITOR

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