INTERNATIONAL HEALTHCARE DISTRIBUTORS HUMAN RESOURCES STRATEGY

1. 1 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.

2. 2 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 after employer.

3. 3 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.

4. 4 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.

5. 5 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.

6. 6 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

7. 7 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.

8. 8 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.

9. 9 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.

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. 12 THE FOUR ROLES OF HR Change Agent Employee Champion Strategic Partner Administrative Expert + + + Business Partner =

13. 13 HR Strategic FocusThe Four Roles of HR • HR Processes and practices fit the strategy. • Cultural guardians and catalysts. • Capacity for change. Strategic Partner Change Agent Admin Expert Employee Champion • Create and maintain infrastructure. • Administrative Efficiency. • Help employees to feel they are part of a Team. • Employee commitment.

14. 14 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

15. 15 THE ROLE OF THE HR DEPT.Human Resources Function Roles BUSINESS PARTNER ADMINISTRATION EXPERT CHANGE AGENT EMPLOYEE CHAMPION

16. 16 THE HR RESOURCES FUNCTION ROLES LEAD TO SPECIFIC HR DELIVERABLES OR OUTCOMES 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. 17 THE HUMAN RESOURCES ROLE …HELPING THE BUSINESS BECOME MORE COMPETITIVE 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. 18 SKILLS DEVELOPMENT • The objective is a drive to develop employees through obtaining competencies. ROLES AND INITIATIVES • 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 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. 19 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.

20. 20 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

21. 21 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

22. GOOD STRATEGY + GOOD STRATEGY EXECUTION = GOOD MANAGEMENT 22 KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT

23. 23 KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

24. 24 KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

25. 25 KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

26. 26 KEY HR STRATEGIC INITIATIVES WILL BE THE DRIVERS OF THE STRATEGIC INTENT (Cont.)

27. INTERNATIONAL HEALTHCARE DISTRIBUTORS (PTY) LTD HUMAN RESOURCES STRATEGY FOR 2003 - 2005 COMPILED BY: RICHARD NKUNA AND THE TEAM