Download as pdf or txt
Download as pdf or txt
You are on page 1of 87

Human Resource Planning and Administration III: Employee Well-being (Module 2)

NQF LEVEL 6 – 12 CREDITS*

Published by Business Management Training College (Pty) Ltd

147 Second Road, Chartwell, Fourways, 2191

Private Bag X100, Bryanston, 2021

Tel: 011-708-0159, Fax: 086-639-4687 | E-mail: info@bmtcollege.ac.za

www.bmtcollege.ac.za

© Copyright 2020 - All rights reserved

No part of this publication may be reproduced, stored in a retrieval system, or


transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the copyright owner,
Business Management Training College (Pty) Ltd.

2020 Sixth Edition

First Print February 2020

Second Print February 2022

*SAQA equates one credit with ten notional hours of study. Credits include all studies related to this
module, including prescribed and recommended research, assignments and work-related projects if
required. Credits will only be granted upon successful completion of the full programme.
TABLE OF CONTENTS

CHAPTER 1: HEALTH AND SAFETY AT WORK.................................................... 1

1.1 HEALTH AND SAFETY AT WORK ................................................................. 2

1.2 THE OCCUPATIONAL HEALTH AND SAFETY ACT (OHSA) NO. 85 OF 1993
......................................................................................................................... 2

1.2.2 The roles, functions and legal duties of the employer ...................................... 5

1.2.3 Duties of the employee .................................................................................... 6

1.2.4 Duties of Health and Safety Representatives are specified under section 18 of
the OHSA. ....................................................................................................... 6

1.2.5 Workmen’s compensation ............................................................................... 6

1.2.6 The Compensation for Occupational Injuries and Diseases Act applies to: ..... 6

1.2.7 The OHS Act excludes: ................................................................................... 7

1.3 THE MINE HEALTH AND SAFETY ACT ......................................................... 8

1.4 PROMOTING AND MAINTAINING EMPLOYEE WELLNESS ........................ 9

1.4.1 Employee wellness programmes ................................................................... 10

CHAPTER 2: THE HIV/AIDS CHALLENGE ........................................................... 17

2.1 HIV AND AIDS IN THE WORKPLACE .......................................................... 18

2.2 MANAGING HIV/AIDS IN THE WORKPLACE .............................................. 19

2.2.1 HIV/AIDS in the workplace affects the organisation in the following way: ...... 20

2.2.2 Mid-year population statistics on HIV/AIDS (2017) ........................................ 21

2.2.3 Antiretroviral therapy (ART) for adults and children ....................................... 22

2.2.4 HIV prevalence .............................................................................................. 23

2.3 LEGISLATION IN TERMS OF HIV/AIDS ....................................................... 30

2.4 THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND


EMPLOYMENT.............................................................................................. 34

2.4.1 The Code makes the following recommendations ......................................... 35

Module 2: Employee Wellbeing i


2.4.2 Supporting People with HIV/AIDS.................................................................. 43

CHAPTER 3: THE NATURE OF ORGANISATIONAL CHANGE ........................... 52

3.1 CHAMPIONING CHANGE ............................................................................. 52

3.1.1 External triggers for change ........................................................................... 54

3.1.2 Internal triggers for change ............................................................................ 55

3.1.3 Organisational development .......................................................................... 55

3.1.4 Types of change ............................................................................................ 57

3.2 LEWIN’S THREE PHASE MODEL OF CHANGE .......................................... 58

3.2.1 This force field system consists of three stages to describe the process of
organisational change: ................................................................................... 58

3.3 MAKING RECOMMENDATIONS FOR CHANGE.......................................... 60

3.4 PROMOTING CHANGE ................................................................................ 60

3.5 DEALING WITH RESISTANCE TO CHANGE ............................................... 61

3.5.1 Resistance to change on an individual level .................................................. 61

3.5.2 Resistance to change at group (division or department) level: ...................... 64

3.6 OVERCOMING RESISTANCE TO CHANGE ................................................ 64

3.7 STARTEGIES TO ENSURE SUCCESSFUL ORGANISATIONAL CHANGE 65

3.8 IMPLEMENTING CHANGE ........................................................................... 67

3.8.1 Recommendations for the implementation of change process ...................... 67

3.8.2 The content of a progress report.................................................................... 69

3.9 WHAT IS A CORPORATE CULTURE? ......................................................... 70

3.9.1 Types of corporate culture ............................................................................. 70

3.9.2 Reasons for changing a corporate culture ..................................................... 71

3.9.3 The challenges associated with changing the CORPORATE/organisational


culture ............................................................................................................ 72

ii © Business Management Training College (Pty) Ltd


LIST OF FIGURES

Figure 3.1: Steps to overcome resistance to change ............................................... 66

LIST OF TABLES

Table 1.1: Example of an appointment letter for a health and safety representative .. 4
Table 1.2: Example of Acceptance of Appointment .................................................... 4
Table 1.3: Extract from the National Institute for Health Care Reform’s website:
Employer wellness initiatives grow, but effectiveness varies widely (cassil, 2010) .. 11
Table 2.1: Estimated number of people receiving ARTs (2005-2010) ...................... 23
Table 2.2: HIV prevalence (2002-2017) ................................................................... 24
Table 2.3: Extract EEA (1998) Code of Good Practice on Hiv and Aids and the world
of work...................................................................................................................... 36
Table 2.4: Example of an organisation’s hiv/aids policy ........................................... 44
Table 3.1: Other recommended reading................................................................... 72

Module 2: Employee Wellbeing iii


PRESCRIBED TEXTBOOK REFERENCES

Please note that you do not need to purchase any of the new editions of the textbooks
if you already purchased a previous edition. The content of the textbooks remains the
same unless otherwise specified.

Erasmus, B.J., Schenk, H.W., Tshilongamulenzhe, M.C. & Swanepoel, B.J. (ed).
(2014). South African Human Resource Management Theory and Practice (5th ed.).
Cape Town: Juta.

ISBN 978-1-48510-207-6

OR

Erasmus, B., Schenk, H., Mulaudzi, M. & Grobler, A. (2019). South African Human
Resource Management: Theory and Practice (6th ed.). Cape Town: Juta.

ISBN 978-1-48513-009-3

❖ Study Chapter 17: Well-being at work-and beyond.


• The legislative framework governing health and safety at work
• Promoting and maintaining employee wellness: A proactive and holistic
approach to the management of health and safety
• The HIV/AIDS challenge
• Role players in occupational health and safety
• Promoting well-being beyond organisational boundaries

❖ Study Chapter 21: Championing change.


• The nature of organisational change
• Driving forces for change
• Effective change: dealing with resistance
• Organisational change interventions: Different types and FOCI

iv © Business Management Training College (Pty) Ltd


Wärnich, S., Carrell, M.R., Elbert, N.F. & Hatfield, R.D. (2018). Human Resource
Management in South Africa (6th ed.). Hampshire: Cengage Learning EMEA.

ISBN 978-1-4737-5112-5

OR

Warnich, S., Carrell, M.R., Elbert, N.F. & Hatfield, R.D. (2022). Human Resource
Management in South Africa (7th ed.). Hampshire: Cengae Learning EMEA.

ISBN 978-4737-7941-9

❖ Study Chapter 12: Health and Safety.


• Occupational injuries and illnesses/ diseases
• Occupational health and safety administration
• NOSA international
• Stress
• Burnout
• Employer healthcare programmes
• Safety management
• Occupational injuries and illnesses/diseases
• Occupational health and safety administration
• AIDS in the workplace

Robbins, S.P., Judge, T.A., Odendaal, A. & Roodt, G. (2013). Global and South
African Perspectives: Organisational Behaviour (2nded.). Cape Town: Pearson
Education.

ISBN 978 1 86891 853 9

OR

Module 2: Employee Wellbeing v


Robbins, S.P., Judge, T.A., Odendaal, A. & Roodt, G. (2016). Global and South
African Perspectives: Organisational Behaviour (3rd ed.). Cape Town: Pearson
Education.

ISBN 978 1 77 5956372

❖ Study Chapter 19: Organisational Change.

vi © Business Management Training College (Pty) Ltd


ASSIGNMENT STRUCTURE

Formative - Module 1
(HR Planning and Administration III)

Formative - Module 2 -You are here


(HR Planning and Administration III)

Formative - Module 3
(HR Planning and Administration III)

Summative - HR planning and Administration III

Formative - Module 4
(Organisational Behaviour III)

Formative - Module 5
(Organisational Behaviour III)

Formative - Module 6
(Organisational Behaviour III)

Formative - Module 7
(Labour and Industrial Relations III)

Formative - Module 8
(Labour and Industrial Relations III)

Summative - Organisational Behaviour III

Summative - Labour and Industrial Relations III

Final Integrated Summative Assignment (FISA) -


Third Year

Module 2: Employee Wellbeing vii


CHAPTER ONE

Health and Safety at


Work
IN THIS CHAPTER

1.1 HEALTH AND SAFETY AT WORK ................................................................. 2

1.2 THE OCCUPATIONAL HEALTH AND SAFETY ACT (OHSA) NO. 85 OF 1993
......................................................................................................................... 2

1.3 THE MINE HEALTH AND SAFETY ACT ......................................................... 8

1.4 PROMOTING AND MAINTAINING EMPLOYEE WELLNESS ........................ 9


HEALTH AND SAFETY AT WORK

CHAPTER 1: HEALTH AND SAFETY AT WORK

AT THE END THIS CHAPTER YOU SHOULD BE ABLE TO:

• Argue a case for moving from narrow health and safety compliance focus to a
holistic approach of ‘well-being at work and beyond’, and describe the role of
different role players and stakeholders in this regards;

• Give a brief overview of the statutory regulations governing occupational health


and safety in South Africa;

• Explain and debate a range of specific issues pertaining to the well-being of


people in the work context;

• Differentiate between stress and burnout;

• Discuss the essentials for an effective employee assistance programme;

• Name several work-related consequences of alcohol and drug abuse;

• Explain corporate citizenship and socially responsible management.

Module 2: Employee Wellbeing 1


HEALTH AND SAFETY AT WORK

1.1 HEALTH AND SAFETY AT WORK

In this chapter we discuss the Occupational Health and Safety Act (OHSA) No. 85 of
1993 and the Mine Health and Safety Act No. 29 of 1996. The Occupational Injuries
and Diseases Act, No. 130 of 1993 regulates the payment of compensation to persons
who are injured or who contract a disease while working. The Occupational Health
and Safety Act lays down certain rules aimed at preventing accidents at work.

Legal compliance with health and safety legislation does not depend on the size of the
organisation. Every organisation must comply. The legislation that you must comply
with, depends on the type of industry that you are operating in.

Note that all mines and quarries must comply with the Mine Health and Safety Act and
all other businesses must comply with the OHSA.

1.2 THE OCCUPATIONAL HEALTH AND SAFETY ACT (OHSA) NO.


85 OF 1993

The Occupational Health and Safety Act (1993) of South Africa, requires the employer
to bring about and maintain, as far as reasonably practicable, a work environment that
is safe and without risk to the Health and Safety of the workers. This means that the
employer must ensure that the workplace is free of hazardous substances, such as
benzene, chlorine and micro-organisms, articles, equipment, and processes that may
cause occupational injury, damage, disease or ill health.

Where this is not possible, the employer must inform workers of the hazards and risks
present in the workplace. The employer must also educate employees on how to
prevent certain hazards, and how to ensure a safe work environment. Protective
measures should be in place to ensure a safer workplace.

Note that the Occupational Health Safety Act does not expect of the employer to take
sole responsibility for Health and Safety in the workplace. The Act is based on the

2 © Business Management Training College (Pty) Ltd


THE OCCUPATIONAL HEALTH AND SAFETY ACT (OHSA) NO. 85 OF 1993

principle that hazards and risks in the workplace must be addressed by communication
and cooperation between the employer and the employees. The employer and
employees must share the responsibility for Health and Safety in the workplace and
work together to address and eliminate all hazards and risks. Both parties must pro-
actively participate to identify dangers and develop control measures to make the
workplace safe.

The employer and the workers are required by the Occupational Health and Safety act
to be involved in a system where Health and Safety representatives may inspect the
workplace regularly and then report to a Health and Safety committee. The Health and
Safety committee must in turn make recommendations to the employer about the
improvement of Health and Safety in the workplace.

To ensure that this system works, every worker must know his or her rights and duties
as contained in the Act.

1.2.1.1 The purpose of the Occupational Health and Safety Act (OHSA)

The purpose of the OHSA is to provide for:

• The health and safety of persons at work and those in connection with the use of
plant and machinery;

• The protection of other persons from hazards to health and safety caused by the
activities of the persons at work; and

• The establishment of an Advisory Council.

Module 2: Employee Wellbeing 3


HEALTH AND SAFETY AT WORK

1.2.1.2 Employer obligations in terms of Health and Safety

• The CEO must appoint health and safety representatives in terms of section
16(2) of the OHSA. This appointment must be formalised in the form of a letter.

• Health and safety representatives must be appointed in every workplace where


there are more than 20 employees, in the ratio of one for every 100 employees
in the case of shops and offices, and one for every 50 employees in the case of
all other workplaces. Employees who are acquainted with the activities of the
workplace and appointed on a full-time basis may be appointed.

TABLE 1.1: EXAMPLE OF AN APPOINTMENT LETTER FOR A HEALTH AND


SAFETY REPRESENTATIVE

I, _______________________________ Chief Executive Officer for


_____________ (name of organisation) hereby appoint __________ (insert full
name of appointee), according to the legal duty vested in me by the Occupational
Health and Safety Act No.85 of 1993, section 16(1). The duties of the appointee with
include assisting me in carrying out my duty to ensure that the organisation complies
with the provisions of the above mentioned Act.

Signed : ____________ Date:_________

TABLE 1.2: EXAMPLE OF ACCEPTANCE OF APPOINTMENT

Confirmation and Acceptance

I, XXX confirm that I have read and understood the appointment as set out above.

I, XXX confirm that I have read and understood the appendices and confirm my
intention to comply with all the legal requirements.

I, XXX confirm my acceptance and understanding of the assigned responsibilities


and duties involved.

I, XXX confirm that I have received training in the assigned responsibilities and
duties required of me.

4 © Business Management Training College (Pty) Ltd


THE OCCUPATIONAL HEALTH AND SAFETY ACT (OHSA) NO. 85 OF 1993

I, XXX, ID number _______________ accept the appointment according to Section


16(2). I confirm that I am familiar with the requirements of the Occupational Health
and Safety Act No 85 of 1993 and agree to carry out my duties.

Signed: Date:

Designation:

1.2.2 THE ROLES, FUNCTIONS AND LEGAL DUTIES OF THE EMPLOYER

• The employer must comply with the intent of the legislation by creating and
maintaining a safe and healthy workplace as far as is “reasonably practicable”.
Refer to the OHSA for definitions and explanations.

• Eliminating hazards;

• Providing safe systems of work, plant and machinery;

• Providing information, training and supervision required to ensure the necessary


safety;

• Ensuring that the requirement of the Act are complied with by all employees;

• Informing all employees of their duties under the Act;

• Draw up a Health and Safety Agreement. The purpose of this agreement is to


provide opportunities to bargain in good faith on how to set up and manage a
health and safety communication structure using health and safety
representatives and committees. If the organisation is unionised there needs to
be a scheduled meeting held to consult and negotiate with union representatives
on the content of the health and safety agreement.

Module 2: Employee Wellbeing 5


HEALTH AND SAFETY AT WORK

1.2.3 DUTIES OF THE EMPLOYEE

• To take care of their own health and safety, as well as that of other persons who
may be affected by their actions or negligence to act.

• Give information to an inspector for the Department of Labour if they should


require it;

• Comply with the rules and procedures of the employer;

• Wear the prescribed safety clothing or use the prescribed safety equipment
where required;

• Report unsafe or unhealthy conditions to the employer or health and safety


representative as soon as possible;

• Report an incident as soon as possible to the safety representative.

1.2.4 DUTIES OF HEALTH AND SAFETY REPRESENTATIVES ARE SPECIFIED


UNDER SECTION 18 OF THE OHSA.

You may now wish to refer to your textbook to read up on these duties.

1.2.5 WORKMEN’S COMPENSATION

The aim of the Compensation for Occupational Injuries and Diseases Act is to provide
for compensation for disablement caused by occupational injuries or diseases
sustained or contracted by employees in the course of their employment, or for
death resulting from such injuries or diseases; and to provide for matters connected
therewith (such as medical expenses etc.)

1.2.6 THE COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES


ACT APPLIES TO:

• All employers; and

6 © Business Management Training College (Pty) Ltd


THE OCCUPATIONAL HEALTH AND SAFETY ACT (OHSA) NO. 85 OF 1993

• Casual and full-time workers who, as a result of a workplace accident or work-


related disease:

• Are injured, disabled, or deceased employees; or

• Those who become ill.

1.2.7 THE OHS ACT EXCLUDES:

• Workers who are totally or partially disabled for less than 3 days;

• Domestic workers;

• Anyone receiving military training;

• Members of –

 the South African National Defence Force, or

 the South African Police Service;

• Any worker guilty of willful misconduct, unless they are seriously disabled or
killed;

• Anyone employed outside the RSA for 12 or more continuous months; and

• Workers working mainly outside the RSA and only temporarily employed in the
RSA.

If you believe that your injury or illness was sustained while you were on duty, you are
unlikely to have a claim against your employer, but will be able to claim from the
Compensation Commissioner (for COIDA.) The Department of Labour of the South
African Government is responsible for administering the Compensation of injured
workers in terms of COIDA.

Module 2: Employee Wellbeing 7


HEALTH AND SAFETY AT WORK

1.3 THE MINE HEALTH AND SAFETY ACT

The purpose of the Mine Health and Safety Act is to provide for protection of the health
and safety of employees and other persons at mines and, for that purpose to:

• Promote a culture of health and safety;

• Provide for the enforcement of health and safety measures;

• Provide for appropriate systems of employee, employer and State participation


in health and safety matters;

• Establish representative tripartite institutions to review legislation, promote health


and enhance properly targeted research;

• Provide for effective monitoring systems and inspections, investigations and


inquiries to improve health and safety;

• Promote training and human resources development;

• Regulate employers' and employees' duties to identify hazards and eliminate,


control and minimise the risk to health and safety;

• Entrench the right to refuse to work in dangerous conditions; and

• Give effect to the public international law obligations of the Republic relating to
mining health and safety and to provide for matters connected therewith.

Employees in the mining industry who are injured in the performance of their duties or
who suffer from occupational diseases are compensated in terms of the Occupational
Diseases in Mines and Works Act (ODMWA) in a similar manner to which workers in
other industries are compensated in terms of COIDA.

8 © Business Management Training College (Pty) Ltd


PROMOTING AND MAINTAINING EMPLOYEE WELLNESS

CONCEPTS AND VOCABULARY

• Health Risk assessment (HRA): A questionnaire that is used to assess an


individual’s current health status and health risks.

1.4 PROMOTING AND MAINTAINING EMPLOYEE WELLNESS

According to Nel et al. (2012) employee care embraces attention to the personal,
social and financial problems of individual workers. It is a function of human resource
management to concern itself with the general welfare of the people who are employed
in the organisation.

Most people generally agree that the primary objectives of an effective wellness
programme are to prevent disease, decrease health risks, and contain rising health
care costs.

Michael O’Donnell, publisher of the American Journal of Health Promotion, has


defined health promotion as “art and science of helping people discover the synergies
between their core passions and optimal health, enhancing their motivation to strive
for optimal health, and supporting them in changing their lifestyle to move toward a
state of optimal health” (O’Donnell, 2008:23).

While this definition has stood the test of time, it doesn’t capture the many emerging
developments within the wellness field today. Health and wellness programmes are
becoming more sophisticated, more specialised, and more targeted to specific
populations.

Michael Mulvihill, the president of Leade Health, Inc., a vendor of wellness services in
proposes a more current definition of wellness, health promotion, and disease
prevention, as follows:

Module 2: Employee Wellbeing 9


HEALTH AND SAFETY AT WORK

“A set of organised activities and systematic interventions, offered through


corporations/worksites, managed care organisations, and governmental /community
agencies, whose primary purposes are to provide health education, identify modifiable
health risks, and influence health behaviour changes” (Mulvihill, 2003)

1.4.1 EMPLOYEE WELLNESS PROGRAMMES

Nel et al. (2012) point out that problems at home or in the community as well as
financial troubles are transferred to the work environment and impact generally
negatively upon it. Employee Assistance Programmes (EAPs) should therefore be set
up to assist employees with personal problems such as stress, alcoholism,
depression, money management etc.

Many organisations that provide EAPs for their employees are motivated by the
knowledge that a supportive workplace is a vital component in returning problematic
employees to a healthy and productive life.

As the popularity of wellness initiatives rises, so does the number of programmes


available. Initiatives should provide clear problem-solving techniques and ideas.
Specific solutions to problems like workplace stress are key to a successful initiative.
They should also engage employees with interactive workshops or coaching sessions.
Research has shown that individuals are more apt to learn if they are engaged in an
activity, compared to listening to a lecture or reading materials.

A good employee wellness programme will provide measurable results. Showing a


person their progress is an effective way to keep them using an initiative. Educational
interventions should be simple and not time-consuming. After all, a stressed-out
worker typically already has enough on their plate.

10 © Business Management Training College (Pty) Ltd


PROMOTING AND MAINTAINING EMPLOYEE WELLNESS

TABLE 1.3: EXTRACT FROM THE NATIONAL INSTITUTE FOR HEALTH


CARE REFORM’S WEBSITE: EMPLOYER WELLNESS INITIATIVES GROW,
BUT EFFECTIVENESS VARIES WIDELY (CASSIL, 2010)

While employer wellness programs have spread rapidly in recent years, few
employers implement programs likely to make a meaningful difference in
employees’ health—customised, integrated, comprehensive, diversified
programmes strongly linked to a firm’s business strategy and strongly championed
by senior leadership and managers throughout the company. Employers that lack
the ability and commitment to support a comprehensive wellness programme may
be wiser to stay on the sidelines, according to experts interviewed for a new
qualitative research study from the Centre for Studying Health System Change
(HSC). Most experts believe substantial financial incentives are essential to
achieving strong employee participation. However, there are compelling
exceptions—companies that opt not to pay for wellness participation yet achieve
strong buyin and improved outcomes. Return on investment for wellness initiatives
is uncertain, particularly for one-size-fits-all programmes purchased from vendors
with little direct employer involvement. Measuring impact has many challenges—
one key challenge is that wellness programmes are seldom implemented without
concurrent benefit design changes, so isolating the impact of wellness interventions
alone may not be possible.

Types of Wellness Activities

The definition of what constitutes a wellness programme varies greatly from


employer to employer, but the following categories of activities are typically
considered to be part of wellness programmes:

• risk identification tools: health risk assessments and biometric screenings,


such as blood-pressure and cholesterol levels;

• behaviour modification programmes: health coaching, tobacco cessation (quit-


smoking campaigns) , weight management, nutrition and diet, exercise, and
workplace competitions/contests;

Module 2: Employee Wellbeing 11


HEALTH AND SAFETY AT WORK

• educational programmes: health fairs and seminars, and online health


resources; and changes to the work environment: altering buildings and
grounds to encourage walking, and healthier foods in workplace cafeterias and
vending machines.

Experts emphasised the importance of offering a wide variety of these activities to


suit a diverse range of needs and preferences among employees.

Health Risk Assessments

Nearly every employer with a wellness programme includes a health risk


assessment (HRA). According to one survey, two out of three large employers with
wellness programmes currently offer employees financial incentives to complete an
HRA.

Financial Incentives Key

There was widespread agreement among wellness companies, benefits consultants


and employers that financial incentives dramatically increase wellness
participation—for example, boosting HRA completion from 20% to between 50%
and 90%. Cash incentives and insurance premium contribution reductions are the
most common form of financial incentive; gift cards and contributions to health
savings accounts or health reimbursement arrangements also are used by some
employers.

Key Employer Challenges

In addition to the challenges already discussed, employers face other key


challenges. The major challenge being the need to develop effective strategies for
improving wellness for dependents as well as employees. As one expert noted,
“Almost every employer starts out on a wellness programme with only eligible
employees that can to participate.

12 © Business Management Training College (Pty) Ltd


PROMOTING AND MAINTAINING EMPLOYEE WELLNESS

But soon they realise that employees are only about 40% of the health care cost, so
if they want to improve health care costs, they have to get to dependents.” Several
companies with highly regarded wellness programmes for employees have
struggled with how to expand the programmes successfully to employees’ families.
As one wellness executive said, “I haven’t figured out how to reach families without
spending just a ton of money and energy. I don’t know how to reach spouses and
dependents efficiently and well.”

Impact of Wellness Programmes

Accurately measuring the impact of a wellness programme is one of the most difficult
challenges facing employers. Respondents observed that there is no single industry
standard for measuring return on investment (ROI) on wellness programmes. Two
types of ROI are typically estimated: “hard ROI,” which measures savings in direct
medical costs only, and “soft ROI,” which also includes productivity gains from such
factors as reduced absenteeism. Several years ago, it was not uncommon for
wellness vendors to “make extravagant ROI claims (in the region of 5:1) to market
their wellness programmes—claims they weren’t able to deliver on,” according to an
expert. The result was disillusionment by some early adopters in the employer
community.

Key Takeaways

Among the common themes that emerged from interviews with industry experts and
especially with employers sponsoring wellness programmes, the following stand
out:

• Programmes need to be customized to suit the culture and situation of a


particular employer: One-size-fits-all programmes purchased off-the-shelf from
health plans and wellness vendors are unlikely to make a significant impact
either in participation or outcomes. Least likely to make an impact are

Module 2: Employee Wellbeing 13


HEALTH AND SAFETY AT WORK

programmes consisting only of online HRAs and Web-based educational tools,


with no individualised follow-up activities to engage employees.

• Clarity from senior leadership in linking wellness to the organisation’s business


strategy is important: Organisations with successful programmes tend to have
senior leaders whose championing of wellness is tempered by reasonable
expectations and accompanied by an ability to communicate clearly and
honestly with employees about shared goals and responsibilities of health and
wellness. In contrast, selling wellness to employees as initiatives for their sole
benefit, or selling wellness in an environment of discord or financial turmoil, are
likely to be futile. Mutual trust is key to effective wellness programmes.

• Effective, on-going communication is essential at several levels: In addition to


strong messaging from senior leadership, successful programmes tend to
have both dedicated wellness staff and informal champions within the
company who are able to raise awareness, boost enthusiasm and provide peer
support. Communication must be both on-going and updated to keep the
message fresh and keep employees engaged. Effective communication
typically cannot be outsourced to a vendor.

• Programmes that are comprehensive, integrated and diversified stand the best
chance of success: Behaviour modification programmes offered in isolation
don’t have a strong track record. Participants who quit smoking or lose weight
often revert to former behaviours. Without broader interventions to change the
work environment and promote a culture of health, wellness programmes are
unlikely to make a lasting impact. Because most employers have diverse
workforces and because individual needs and preferences differ, wellness
programmes work best when they span a wide range of activities.

• Most believe financial incentives are essential, but compelling exceptions exist:
The consensus in the wellness industry was that substantial cash incentives
are needed to achieve strong participation, and these incentives should be
designed to incrementally reward discrete activities that improve or maintain
health. However, some employers operate successful programmes with
minimal or no cash rewards attached and believe such rewards to be
counterproductive in causing employees to focus on the incentive rather than

14 © Business Management Training College (Pty) Ltd


PROMOTING AND MAINTAINING EMPLOYEE WELLNESS

on health. Employers with successful programmes emphasised the importance


of non-financial incentives, such as corporate and peer recognition for wellness
achievements.

• Return on investment is uncertain and measurement poses many challenges:


Employers should expect to invest in wellness for several years before
achieving a positive ROI, if at all. Employers looking to wellness as a quick fix
for high health costs are those least likely to see positive returns, as they are
also the least likely to have undertaken the measures to gain true employee
engagement in health. There are many challenges in accurately capturing ROI
or alternative measures of impact, and because wellness programmes are
often implemented simultaneously with other benefit changes, isolating the
impact of wellness programmes on an employer’s cost trends may not be
possible.

Please visit the website for the full article: www.nihcr.org

Module 2: Employee Wellbeing 15


CHAPTER TWO

The HIV/AIDS
Challenge
IN THIS CHAPTER

2.1 HIV AND AIDS IN THE WORKPLACE .......................................................... 18

2.2 MANAGING HIV/AIDS IN THE WORKPLACE .............................................. 19

2.3 LEGISLATION IN TERMS OF HIV/AIDS ....................................................... 30

2.4 THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND


EMPLOYMENT.............................................................................................. 34
PROMOTING AND MAINTAINING EMPLOYEE WELLNESS

CHAPTER 2: THE HIV/AIDS CHALLENGE

CONCEPTS AND VOCABULARY

• Affected employee: an employee who is affected in any way by HIV/AIDS. For


example, if they have a partner or a family member who is HIV positive.

• AIDS: is the acronym for "acquired immune deficiency syndrome". AIDS is the
clinical definition given to the onset of certain life-threatening infections in
persons whose immune systems have ceased to function properly as a result of
infection with HIV.

• Epidemiological: The study of disease patterns, causes, distribution and


mechanisms of control in society.

• HIV positive: having tested positive for HIV infection.

• HIV testing: taking a medical test to determine a person’s HIV status. This may
include written or verbal questions inquiring about previous HIV tests; questions
related to the assessment of ‘risk behaviour’ (for example questions regarding
sexual practices, the number of sexual partners or sexual orientation); and any
other indirect methods designed to ascertain an employee’s or job applicant’s
HIV status.

• HIV: is the acronym for "human immuno deficiency virus". HIV is a virus which
attacks and may ultimately destroy the body’s natural immune system.

• Infected employee: an employee who has tested positive for HIV or who has
been diagnosed as having HIV/AIDS.

• Informed consent: a process of obtaining consent from a patient which ensures


that the person fully understands the nature and implications of the test before
giving his or her agreement to it.

• Policy: a document setting out an organisation’s position on a particular issue.

• Pre and post-test counselling: a process of counselling which facilitates an


understanding of the nature and purpose of the HIV test. It examines what

Module 2: Employee Wellbeing 17


THE HIV/AIDS CHALLENGE

advantages and disadvantages the test holds for the person and the influence
the result, positive or negative, will have on them.

• Reasonable accommodation: means any modification or adjustment to a job


or to the workplace that is reasonably practicable and will enable a person living
with HIV or AIDS to have access to or participate or advance in employment.

• STDs: acronym for "sexually transmitted diseases". These are infections passed
from one person to another during sexual intercourse, including syphilis,
gonorrhoea and HIV.

• Surveillance testing: this is anonymous, unlinked testing which is done in order


to determine the incidence and prevalence of disease within a particular
community or group to provide information to control, prevent and manage the
disease.

2.1 HIV AND AIDS IN THE WORKPLACE

Nel et al. (2012) point out that the HIV/Aids pandemic is acknowledged as being the
single most important strategic issue facing South African business and is the greatest
challenge of the new millennium so far. All levels of management of organisations
have to be fully aware of the situation, because it has become a national crisis. South
Africa has one of the highest per capita HIV/AIDS prevalence and infection rates in
the world. According to Statistics SA, 12.6% of South Africa’s total is living with HIV,
thus an estimated 7,06 million people (Statistics South Africa, 2017).

The good news is that the rate at which the population in South Africa is being infected
is estimated to be declining from 1,9% in 2002 to 0,9% in 2017 (Statistics South Africa,
2017).

AIDS leads to lost opportunities for business, lower productivity and lower
competitiveness. It is very important to start HIV/AIDS campaigns to avoid loss of
productive staff. Every South African business, no matter what the size, has a
significant role to play in combating HIV/AIDS.

18 © Business Management Training College (Pty) Ltd


MANAGING HIV/AIDS IN THE WORKPLACE

The Code of Good Practice on key aspects of HIV/AIDS and employment was
published on 1 December 2000. It contains useful guidelines and legal requirements
for employers, trade unions and employees who needs to deal with the HIV/AIDS
pandemic.

Visit the following websites for HIV/AIDS facts and figures:

WHO. Facts about health in the African Region of WHO. Available at:
http://www.who.int/hiv/en/

UNAIDS. Global facts and figures: The global AIDS epidemic. Available at:
http://www.unaids.org/en

Statistics South Africa’s website:

http://www.statssa.gov.za/publications/P0302/P03022017.pdf

2.2 MANAGING HIV/AIDS IN THE WORKPLACE

The general population's perception of HIV/Aids is informed by prejudice,


stigmatisation and ignorance rather than scientific fact and sober reflection. A person
can get infected by the virus only through an exchange of body fluids, since the virus
does not survive for long in the atmosphere and does not easily transmit from an
infected individual to a healthy person. The most common ways of transmission are
by sexual intercourse, the indiscriminate use of used needles, using infected blood for
blood transfusions, or infection of the unborn foetus by the blood of an infected mother.

The HIV/AIDS pandemic demands that every employer should get involved in the
efforts to contain it. Because HIV/AIDS has a "bottom-line" influence on business,
workplace programmes geared towards countering its strategic and operational
effects are no longer a luxury. In the same way that bad debt, workplace accidents,

Module 2: Employee Wellbeing 19


THE HIV/AIDS CHALLENGE

theft, robbery, lack of quality and poor cash management may threaten the existence
of companies; HIV could be a similar forerunner of disaster.

To manage HIV/AIDS in the workplace, companies will need to realise that the
pandemic will affect every workplace, manager and employee in some way.

2.2.1 HIV/AIDS IN THE WORKPLACE AFFECTS THE ORGANISATION IN THE


FOLLOWING WAY:

• Absenteeism and attrition are likely to increase as employees become ill and
need to take long-term sick leave.

• Employees need to take time off work to take care of their sick family members.

• Many employees need to take compassionate leave.

• Employees may need to take time off work to attend funerals of family members
and colleagues.

• Productivity may decline because of employees’ inability to perform at peak


levels.

• Medical health clams will increase and this will affect medical contributions.

• Higher recruitment and training costs can be expected.

• Staff loans often have to be written off.

• Greater demand on pension schemes.

One of the most effective ways of reducing and managing the impact of HIV/AIDS in
the workplace is through the implementation of an HIV/AIDS policy and programme.
Addressing aspects of HIV/AIDS in the workplace will enable employers, trade unions
and government to actively contribute towards local, national and international efforts
to prevent and control HIV/AIDS.

20 © Business Management Training College (Pty) Ltd


MANAGING HIV/AIDS IN THE WORKPLACE

2.2.2 MID-YEAR POPULATION STATISTICS ON HIV/AIDS (2017)

Below is a summary of the mid-year population estimates document P0302, 2017


published by Statistics SA. (Statistics South Africa, 2017)

THE REPORT SUMMARY

• This release uses the cohort-component methodology to estimate the 2017 mid-
year population of South Africa.

• The estimates cover all the residents of South Africa at the 2017 mid-year, and
are based on the latest available information. Estimates may change as new data
become available. With the new estimate comes an entire series of revised
estimates for the period 2002–2017.

• For 2017, Statistics South Africa (Stats SA) estimates the mid-year population at
56,52 million.

• Approximately 51% (approximately 28,9 million) of the population is female.

• Gauteng comprises the largest share of the South African population.


Approximately 14,3 million people (25,3%) live in this province. KwaZulu-Natal is
the province with the second largest population, with 11,1 million people (19,6%)
living in this province. With a population of approximately 1,21 million people
(2,1%), Northern Cape remains the province with the smallest share of the South
African population.

• About 29,6% of the population is aged younger than 15 years and approximately
8,1% (4,60 million) is 60 years or older. Similar proportions of those younger than
15 years live in Gauteng (21,1%) and KwaZulu-Natal (21,1%). Of the elderly
aged 60 years and older, the highest percentage 24,0% (1,10 million) reside in
Gauteng. The proportion of elderly persons aged 60 and older is increasing over
time.

• Migration is an important demographic process in shaping the age structure and


distribution of the provincial population. For the period 2016–2021, Gauteng and

Module 2: Employee Wellbeing 21


THE HIV/AIDS CHALLENGE

Western Cape are estimated to experience the largest inflow of migrants of


approximately, 1 595 106 and 485 560 respectively (see migration stream tables
for net migration).

• Life expectancy at birth for 2017 is estimated at 61,2 years for males and 66,7
years for females.

• The infant mortality rate for 2017 is estimated at 32,8 per 1 000 live births.

The estimated overall HIV prevalence rate is approximately 12,6% among the South
African population. The total number of people living with HIV is estimated at
approximately 7,06 million in 2017. For adults aged 15–49 years, an estimated 18,0%
of the population is HIV positive.

2.2.3 ANTIRETROVIRAL THERAPY (ART) FOR ADULTS AND CHILDREN

Those who become infected with HIV do not need treatment with antiretroviral drugs
immediately. There is an asymptomatic period during which the body‘s immune
system controls the HIV infection. After some time the rapid replication of the virus
overwhelms the immune system and the patient is in need of antiretroviral treatment
(The United States Agency for International Development, 2013).

The WHO recommends that cotrimoxazole is provided to all children born to HIV+
mothers until their status can be determined. With normal antibody tests a child‘s HIV
status cannot be determined until 18 months of age because the mother‘s antibodies
are present in the child‘s blood. Thus all children born to HIV-positive mothers should
receive cotrimoxazole until aged 18 months. For children aged between 18 months
and 5 years the WHO recommends cotrimoxazole should be provided to all children
who are HIV positive. After the age of 5 years children should be on cotrimoxazole if
they have progressed to Stage III or IV. If early diagnosis is available then only HIV-
positive children are considered in need of cotrimoxazole (The United States Agency
for International Development, 2013)

22 © Business Management Training College (Pty) Ltd


MANAGING HIV/AIDS IN THE WORKPLACE

Table 2.1 shows the number of adults receiving ART, number of children receiving
ART and percentage of children receiving cotrimoxazole, 2005–2010

TABLE 2.1: ESTIMATED NUMBER OF PEOPLE RECEIVING ARTS (2005-


2010)

Adults (15+ years) Children


Year Estimated number Estimated number Estimated percentage
receiving ART* receiving ART* receiving cotrimoxazole

2005 101 416 11 959 2,0

2006 215 875 23 369 4,0

2007 386 315 37 694 12,0

2008 609 762 68 788 21,0

2009 839 519 87 439 29,0

2010 1 058 399 105 123 38,0

Source: Health Information Epidemiology Evaluation and Research, Department of


Health (November 10 / Report)

2.2.4 HIV PREVALENCE

Table 2.2 shows the prevalence and the total number of people living with HIV from
2002 to 2017. The total number of persons living with HIV in South Africa increased
from an estimated 4,94 million in 2002 to 7,06 million in 2017. For 2017 an estimated
12,57% of the total population is HIV positive.

Module 2: Employee Wellbeing 23


THE HIV/AIDS CHALLENGE

TABLE 2.2: HIV PREVALENCE (2002-2017)

Prevalence %
HIV
Women Adult Youth Total Incidence
Year population
15-49 15-49 15-24 population rate % 15-49
(millions)
2002 20,23 17,65 7,31 10,91 1,90 4,94
2003 20,42 17,77 7,02 11,15 1,87 5,09
2004 20,56 17,85 6,68 11,33 1,88 5,23
2005 2065 17,89 6,78 11,48 1,86 5,35
2006 20,70 17,90 6,71 11,58 1,83 5,47
2007 20,79 17,95 6,60 11,70 1,74 5,60
2008 20,00 18,11 6,56 11,88 1,74 5,77
2009 21,16 18,22 6,48 12,01 1,62 5,92
2010 21,31 18,31 6,32 12,14 1,46 6,08
2011 21,45 18,39 6,09 12,28 1,33 6,25
2012 21.53 18,43 5,82 12,39 1,21 6,41
2013 21,48 18,35 5,45 12,43 1,02 6,54
2014 21,40 18,25 5,12 12,46 0,97 6,67
2015 21,34 18,17 4,92 12,50 1,01 6,80
2016 21,29 18,10 4,79 12,55 1,00 6,93
2017 21,17 17,98 4,64 12,57 0,91 7,06

You may view the rest of the report on the internet, it includes very interesting statistics
regarding HIV and AIDS in South Africa (Statistics South Africa, 2017).

Given the stigma as well as the myths and misconceptions surrounding HIV and AIDS
in many communities, there is a tendency for people, particularly those with high-risk
profiles, to be hesitant or even fearful of being tested for HIV.

24 © Business Management Training College (Pty) Ltd


MANAGING HIV/AIDS IN THE WORKPLACE

The potential for stigmatization, discrimination and even victimization is real - Hence
the need for testing and counselling to be voluntary. Despite the continued AIDS
epidemic affecting our country, the majority of South African companies have not
begun to fully assess the impact of the disease on their workplaces.

There are a variety of criteria that companies should look at when assessing the risk
to their workplaces:

• The first is labour intensity. The more labour-intensive a company the greater the
impact of Aids will be.

• The demographics of employees are also important criteria. Women are more
affected by the disease than men and unskilled workers are disproportionately
affected compared to skilled workers.

• Skilled workers who become infected, however, will cost the company
considerably more money as they command more comprehensive benefit
packages. Depending on the company's benefits structure, the infection of one
skilled employee can cost the company six times that employee's salary every
year in medical bills, absenteeism and lost productivity.

• Where skilled employees are highly specialised in their field of expertise, the loss
of such an employee can cost the company millions of rand - and such skills are
often irreplaceable

• Certain industries are at greater risk than others: the transport industry, for
example, is considered high risk as it employs workers who spend time away
from home. So too are companies that employ migrant labour such as in mining
and construction.

• The company's customer-base will also be affected by HIV/Aids and will not only
show declining growth in absolute numbers as breadwinners become sick with
Aids, but also purchasing patterns may change as consumers spend more
money on healthcare.

Module 2: Employee Wellbeing 25


THE HIV/AIDS CHALLENGE

It is recommended that companies begin the risk assessment process by conducting


anonymous KAP (Knowledge, Attitude and Practices) surveys. In addition, prevalence
testing entails employees volunteering and giving their consent to have an anonymous
HIV test.

This enables the company to compile accurate HIV statistics. AIDS training by firms
should be consistent and on-going and should follow a multifaceted approach to stand
any chance of getting employees to change their ways.

Companies which believe that simply handing out condoms and putting up posters will
lead to any positive lifestyle changes by their employees are sadly mistaken. A
successful training intervention will ensure that both employees and management are
taught the basics of HIV/Aids.

Firstly, they should not assume that management is knowledgeable about the disease,
because in many instances they are not. Secondly, lower-level employees may not
understand concepts such as immune system, viruses and Aids-related syndromes.
These should be explained using pictures and analogies that people can relate to
easily. Life skills training, human anatomy and a healthy lifestyle may also have to be
covered.

Companies should not think that only their lower-level workers are at risk of HIV
infection, and offer training to these employees. Not only does this send out the
message that Aids is their problem, and not ours, but it is also completely wrong when
one considers that soon 15% of South Africa's skilled workforce is expected to be HIV-
positive.

Central to Aids education is the need to tackle head-on the negative attitudes,
discrimination and the overwhelming stigma surrounding the disease. This should be
done in a straightforward, open and honest manner and should take into account the
real fears of employees. Negative attitudes tend to be prevalent in some cultures and
therefore cultural sensitivity is required.

26 © Business Management Training College (Pty) Ltd


MANAGING HIV/AIDS IN THE WORKPLACE

The good news is that both attitudes and cultures are learned and can therefore be
challenged and changed over time. Aids trainers should not shy away from dealing
with difficult questions surrounding sex, culture, religion and politics, as only by
beginning a dialogue involving these issues will we ever begin to value our differences
and create a no-blame culture.

HIV/Aids disproportionately affects women in our society. When one considers that in
Africa six times more females are infected than males and that, according to the
Department of Health, the highest rates of infection in South Africa are now in girls
aged between 13 and 19, the urgent need to address gender issues becomes glaringly
apparent (Department of Health, 2014). Gender-equality awareness should therefore
be incorporated into Aids training, or run parallel to it.

Some of the problems directly facing women in the fight against Aids are the
extraordinarily high rape statistics in South Africa and the continued disempowerment
of women, especially relating to sexual issues and condom usage in male-dominated
cultures. The solution is to persuade people to value basic human dignity and respect
between individuals irrespective of gender, culture and race, she says.

Health and safety representatives should have their skills updated so they are
competent in reducing the risk of HIV transmission in the event of workplace accidents.
They should especially be trained in universal safety precautions, the use of
mouthpieces, the administering of post-exposure prophylactics, post-accident HIV
testing and compensation claims.

All employees should be taught their legal rights in the workplace concerning Aids, but
managers, in particular, should have a sound understanding of the legal implications
to avoid unnecessary litigation. Managers should be aware they may not ask any
employee if they have HIV. And should an employee disclose his or her status to a
manager, that manager may not tell anyone else without the employee's written

Module 2: Employee Wellbeing 27


THE HIV/AIDS CHALLENGE

consent. To do so could lead to the manager's dismissal. Aids training should also be
included in the company's induction programme for new workers.

Finally, it is important that the Aids message is not lost in translation and, preferably,
should be conveyed in the worker's mother tongue. Holistic educational interventions
do work but a sustained effort is required as well as a dedicated leadership team, she
says.

There are many myths about contracting HIV/Aids in the workplace, and often very
little preparation to prevent it from being contracted. There is no known risk of getting
HIV from working in a normal group setting.

The virus dies within three seconds of being exposed to air. Although occupational
transmission of the disease is unlikely, it is possible for employees to get cuts from
sharp utensils or equipment. The best policy is to treat all workers and colleagues as
if they were HIV positive in cases of workplace accidents. This does not discriminate
against anyone.

For example, company’s drivers should have protective gloves in their vehicles in case
of motor accidents. Keep Jik or bleach in your first-aid kit for cleaning up after
accidents. If it is proved that an employee has contracted HIV from a workplace
accident, the onus is on the employer to assist that employee in applying for
workman’s compensation.

The company should send any employee who fears the risk of HIV infection due to a
workplace accident for a test to determine their status - if the employee wishes.
HIV/Aids is already beginning to impact directly and indirectly on company profits.

No company is immune to the effects and costs will grow exponentially without
interventions. Aids have major cost implications for group life and medical aid claims,
lower productivity and rising replacement and training costs.
28 © Business Management Training College (Pty) Ltd
MANAGING HIV/AIDS IN THE WORKPLACE

For treatment programmes to succeed, the company's support, both financial and
through staff and management counselling is needed. There is still a misguided
tendency in many boardrooms to view HIV and AIDS as a social welfare issue and not
a corporate responsibility, beyond paying lip service to ineffective awareness
programmes and making provisions in company medical aid and group life schemes.

Aids sufferers are seen as being replaceable and there is a belief that the problem is
self-managing and that there will always be work-seekers. "The statistics are
staggering. The epidemic is rapidly spreading through the economically active
population, 13% of the national population is currently infected and with the total
number of infections expected to reach nine million in 2015, the prognosis for future
costs is bleak without risk-management interventions.

The first step in managing the situation is to determine a company's HIV prevalence
level by undertaking a confidential benchmark survey of HIV infections, which would
provide data for forwarding projections of Aids-related liabilities. The company should
then develop strategies for risk-management interventions using a battery of tools
including medical interventions, management training and insurance.

Each company is unique in its Aids risk profile. The extent of those risks varies even
within a larger group and from province to province. KwaZulu-Natal has the highest
incidence, followed by Mpumalanga and Gauteng. The Aids problem will not go away,
the "ostrich manoeuvre" is not an appropriate response, and HIV has to be recognised
as a treatable chronic disease for which affordable medication and other interventions
are available.

"When the costs of leaving the situation unchecked are balanced against effective
interventions, it becomes apparent that this is both the financial and morally correct
route to take. HIV/Aids is a reality and it will hit at least 20-30% of the economically
active and productive members of our population over the next 20 years. Economic

Module 2: Employee Wellbeing 29


THE HIV/AIDS CHALLENGE

productivity and consumption will fall dramatically as those who produce and consume
the economic wealth die. No business will be unaffected.

The way in which employers choose to handle HIV-Aids in their workplaces has legal
implications for businesses. Legislation will both directly and indirectly affect the rights
of employers and employees.

2.3 LEGISLATION IN TERMS OF HIV/AIDS

Section 7 of the EEA makes it illegal for any employer to request that an employee
take an HIV test. In order to test employees for HIV, employers need to apply to the
Labour Court which will determine whether the employer's particular circumstances
make testing justifiable. The Labour courts have so far denied all applications.

Employers who embark on sustained HIV-Aids awareness and prevention


programmes may encourage voluntary testing, but in order for this to be successful,
they should make incentives available. The Skills Development Act provides financial
incentives to employers for staff training and the insurance industry has written unit
standards for HIV-Aids workplace training.

The Labour Relations Act deals with good practice on dismissing employees for
incapacity due to ill health. This is what employers will have to draw from once
employees who develop full-blown Aids are no longer fit for work.

The transmission of HIV-Aids in the workplace is dealt with under the Occupational
Health and Safety Act. An employer is obliged to provide, as far as is reasonably
practicable, a safe workplace. This may include ensuring that the risk of occupational
exposure to HIV is minimised. Workplaces should have available protective gloves
and mouthpieces for mouth-to-mouth resuscitation.

30 © Business Management Training College (Pty) Ltd


LEGISLATION IN TERMS OF HIV/AIDS

Finally, the Medical Schemes Act provides that employees with HIV or Aids may not
be unfairly discriminated against in the allocation of employee benefits. Employees
who become ill with Aids should be treated like any other employee with a comparable
life-threatening illness with regard to access to employee benefits.

The above legislation, in conjunction with the code of good practice, should guide
companies in the development of an effective Aids policy and the implementation of
an intervention strategy. There is evidence of panic and despair in the way
corporations are dealing with the HIV/Aids pandemic, which costs them money and
affects their production capacity.

Over the next five years the number of Aids sufferers employed in South Africa is
expected to grow to well over one million and notwithstanding the relatively small
number of Aids sufferers in the workplace at present, it is evident that corporate South
Africa is already feeling the harsh impact of HIV/Aids. Once the extent of the problem
has been determined, the company can embark on a strategy to manage it.
Absenteeism and low productivity are the obvious problems facing an organisation
and it is these issues that need to be addressed. Productivity will drop off in a sick
labour force and extra workers will have to be hired to cover for those who are absent.

Provided there is early detection, the application of primary health care principles and,
at the right time, the introduction of anti-retroviral drugs, we can prolong the pre-Aids
period of the disease and make for more productive HIV-positive workers.

A Code of Good Practice has been developed for application within employer
Employment Equity Act (EEA) obligations. More precisely, the code's primary
objective is "to set out guidelines for employers and trade unions to implement so as
to ensure individuals with HIV infection are not unfairly discriminated against in the
workplace.

Module 2: Employee Wellbeing 31


THE HIV/AIDS CHALLENGE

In this regard, provisions in relation to the following are contained in the code:

• The creation of non-discriminatory work environment;

• HIV testing, confidentiality and disclosure;

• The provision of equitable employee benefits;

• The management of grievance procedures.

A secondary objective of the code is "to provide guidelines for employers, employees
and trade unions on how to manage HIV/Aids within the workplace".

Pursuant to this objective, guidelines are provided for in the code of good practice
which include:

• the creation of a safe working environment;

• the development of procedures to manage occupational incidents and claims for


compensation;

• the introduction of measures to prevent the spread of HIV;

• strategy development to assess and reduce the impact of the epidemic upon the
workplace; and

• support for individuals infected with and/or affected by HIV/Aids so that they may
continue to work productively for as long as possible.

The code has been specifically issued in accordance with section 54(1) of the EEA,
although it has relevance to a broad range of legislation including but not limited to
Labour Relations Act, the Basic Conditions of Employment Act, the Occupational
Health and Safety Act and the Promotion of Equality and Prevention of Unfair
Discrimination Act.

32 © Business Management Training College (Pty) Ltd


LEGISLATION IN TERMS OF HIV/AIDS

The timing of the issuing of the code is significant as it coincides with the formative
stages of employer Employment Equity Plan implementation.

The HIV/Aids code should be incorporated into the Employment Equity Plans and be
monitored. While section 187(1)(f) of the Labour Relations Act prohibits an employer
from dismissing an employee purely on the grounds of their HIV positive status, such
an employee's employment termination may be permissible in accordance with section
188(1)(a)(i) of the Labour Relations Act (i.e.: for a valid reason related to the
employee's capacity).

This accords with section 8(1) of the Occupational Health and Safety Act which
stipulates that an employer must, as far as is reasonably practicable, provide a safe
workplace which (according to section 5.3.6 of the HIV/Aids code) "may include
ensuring that the risk of occupational exposure to HIV is minimised.

Nel et al. (2012) provide the following guidelines in terms of dealing with HIV/AIDS
in the workplace:

• HIV/AIDS in the workplace should be managed by means of an integrated


strategy that includes an understanding and assessment of the impact of the
disease in the workplace, and long– and short-term measures to deal with and
reduce this impact.

• HIV/AIDS policies and programmes incorporating ongoing sustained prevention


of the spread of HIV among employees and their communities should be
developed and implemented.

• Employees with HIV/AIDS should be managed so that they are able to work
productively for as long as possible.

Module 2: Employee Wellbeing 33


THE HIV/AIDS CHALLENGE

• Strategies should be formulated to deal with the direct and indirect costs of
HIV/AIDS in the workplace.

• Procedures to deal with employee incapacity should be devised. Should an


employee be dismissed because of his or her HIV/AIDS status or be forced to
resign because of being positive, such a dismissal will be an automatically unfair
one in terms of the LRA.

• No employee, or applicant for employment, may be required to undergo an


HIV/AIDS test in order to ascertain his or her HIV/Aids status. HIV/AIDS testing
by or on behalf of an employer may only take place under certain conditions. The
test must, for example, be voluntary and anonymous. It is also important that
pre– and post-test counselling be provided and that strict procedures relating to
confidentiality exist. Employers may approach the Labour Court to obtain
authority for testing.

• Employers are required, in terms of both the Occupational Health and Safety Act
and Mine Health and Safety Act, to provide, as far as reasonably practicable, a
safe workplace. This may include ensuring that the risk of occupational exposure
to HIV/AIDS is minimised.

• An employee who is infected with HIV/AIDS as a result of an occupational


exposure to infected blood or bodily fluids may apply for benefits in terms of
Section 22(1) of the Compensation for Occupational Injuries and Diseases Act
No.130 of 1993.

2.4 THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF


HIV/AIDS AND EMPLOYMENT

The Code of Good Practice on key aspects of HIV/AIDS and employment is issued by
the Minister of Labour Commission, on the advice of the Commission for Employment
Equity in terms of section 54 (1) (a) of the Employment Equity Act, 1998 (Act No. 55
of 1998).

34 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

The Code's primary objective is to set out guidelines for employers and trade unions
to implement so as to ensure individuals with HIV infection are not unfairly
discriminated against in the workplace.

The Code's secondary objective is to provide guidelines for employers, employees


and trade unions on how to manage HIV/AIDS within the workplace. The Code
therefore includes principles on the following:

• Creating a safe working environment for all employers and employees.

• Developing procedures to manage occupational incidents and claims for


compensation.

• Introducing measures to prevent the spread of HIV.

• Developing strategies to assess and reduce the impact of the epidemic upon the
workplace.

• Supporting those individuals who are affected or infected by HIV/AIDS so that


they may continue to work productively for as long as possible.

In addition, the Code promotes the establishment of mechanisms to foster cooperation


at the following levels:

• between employers, employees and trade unions in the workplace; and

• between the workplace and other stakeholders at a sectoral, local, provincial and
national level.

2.4.1 THE CODE MAKES THE FOLLOWING RECOMMENDATIONS

1. Awareness and de-stigmatisation training forms an integral part of managing


HIV/AIDS in the workplace. The objectives of this type of training are:

Module 2: Employee Wellbeing 35


THE HIV/AIDS CHALLENGE

a. To educate employees generally about HIV/AIDS.


b. To educate employees about the interventions.
c. To provide sufficient information to employees so that they can examine
their own attitudes and prejudices with regard to HIV/AIDS.
d. Reinforce training, counselling and change behavioural patterns.
2. The desired results of awareness and de-stigmatisation training are:
a. A basic understanding of the scientific and medical facts pertaining to
HIV/AIDS, including safe sex, modes of transmission, means of prevention,
the progression of the disease, treatment options and the effects of STIs on
transmission.
b. A basic understanding of socio-economic factors pertaining to HIV/AIDS
including substance abuse, family violence, poverty and malnutrition.
3. Voluntary counselling and testing (within or outside the organisation) and
available support systems and resources should also be addressed during
awareness training sessions.
4. Ethical principles of a counsellor, such as confidentiality, honesty, integrity,
respect for others, pursuit of excellence and accountability should be
discussed.

TABLE 2.3: EXTRACT EEA (1998) CODE OF GOOD PRACTICE ON HIV AND
AIDS AND THE WORLD OF WORK

2. INTRODUCTION

2.1 HIV and AIDS are a serious public health challenge which has socioeconomic,
employment and human rights implications.

2.2 HIV poses a significant obstacle to the attainment of decent work and
sustainable development. It has led to the loss of the livelihoods of millions of
persons living with or affected by HIV and AIDS. Its effects are concentrated among
the most productive age groups and it imposes huge costs on enterprises through
falling productivity, increased labour costs and the loss of skills and experience.

2.3 HIV and AIDS affect every workplace, with prolonged staff illness, absenteeism,
and death, which impacts on productivity, employee benefits, occupational health

36 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

and safety, production costs, workplace morale and escalating HIV associated with
TB and STis.

2.4 HIV thrives in an environment of poverty, rapid urbanisation, violence and


destabilisation. Transmission is exacerbated by disparities in resources and
patterns of migration from rural to urban areas. Women are particularly more
vulnerable to infection in cultures and economic circumstances where they have
limited sexual reproductive choices and rights.

2.5 Through this Code, the country commits to mitigate the impact of the epidemic
in the world of work taking into account all relevant Conventions of the International
Labour Organization, including Recommendation No. 200.

2.6 One of the most effective ways of reducing and managing the impact of HIV and
AIDS in the workplace is through the implementation of workplace HIV and AIDS
policies and programmes. Addressing aspects of HIV and AIDS in the workplace will
enable employers, workers and their organisations and government to actively
contribute towards local, national and international efforts to prevent and control HIV
and AIDS.

2.7 Every person should take personal responsibility in relation to HIV and AIDS to
educate themselves, prevent transmission, seek available treatment and treat
others with dignity and respect. All persons have the responsibility to support the
achievement of the objectives of this Code.

2.8 Partnerships between government, employers, workers and their organisations


and other relevant stakeholders are encouraged to ensure effective delivery of
services and increased coverage.

3. OBJECTIVES OF THE CODE

The primary objective of this Code is to provide guidelines to assist employers,


workers and their organisations to develop and implement comprehensive gender
sensitive HIV and AIDS workplace policies and programmes. These policies and
programmes must be developed within the framework of decent work in the formal
and informal sectors in both the public and private sectors to:

Module 2: Employee Wellbeing 37


THE HIV/AIDS CHALLENGE

a) eliminate unfair discrimination and stigma in the workplace based on real or


perceived HIV status, including dealing with HIV testing, confidentiality and
disclosure;

b) promote access to education, equitable employee benefits and employment


protection;

c) manage grievance procedures in relation to HIV and AIDS;

d) create a safe and healthy working environment;

e) promote appropriate and effective ways of managing HIV and AIDS and TB in the
workplace; and

f) give effect to the international and regional obligations of the Republic of South
Africa on HIV and AIDS and TB in the world of work.

4. SCOPE OF THE CODE

This Code applies to:

4.1 All workers working under all forms or arrangements, and at all workplaces,
including:

a) persons in any employment or occupation;

b) those in training, including interns and apprentices;

c) volunteers;

d) jobseekers and job applicants; and

e) laid-off and suspended workers.

4.2 All sectors of economic activity, including the private and public sectors and the
formal and informal economies.

4.3 Armed forces and uniformed services.

5. KEY PRINCIPLES

The guiding principles in this Code are based on International Conventions and
Recommendations, The Constitution of the Republic of South Africa and· national
laws, which include:

5.1 Respect for human rights, fundamental freedoms and equality

38 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

The response to HIV and AIDS must be recognised as a contributing factor to the
realization of human rights, dignity, fundamental freedoms, responsibility and
equality for all, including workers and their dependants.

5.2 HIV and AIDS is a workplace issue HIV and AIDS is a workplace issue and must
be treated like any other serious illness or condition in the workplace. HIV and AIDS
must be included among the essential elements of the national, provincial, local and
sectoral response to the pandemic with full participation of all stakeholders.

5.3 Reduce HIV-related stigma and unfair discrimination and promote equality of

opportunity and fair treatment Elimination of unfair discrimination remains a key


principle for protection of the rights of individuals. There must be no unfair
discrimination against or stigmatisation of workers on the grounds of real or
perceived HIV status. It is the responsibility of every worker and employer to

eliminate unfair discrimination in the workplace.

5.4 Gender Equality

Women and girls are at greater risk and more vulnerable to HIV infection and are

disproportionately affected by HIV compared to men as a result of gender inequality.


Women's empowerment is a key factor in responding to HIV and AIDS and the world
of work. Measures must be taken in the world of work to ensure gender equality,
prevent violence and harassment, protect sexual and reproductive health and rights
and involve men and women workers, regardless of their sexual orientation, in the
HIV response.

5.5 The right to access and continuation of employment

Real or perceived HIV status is not a valid cause for termination of employment.
Workers with HIVrelated illness must not be denied the possibility of continuing to
carry out their work unless proven medically unfit to do so. As with many other
conditions, workers with HIV and AIDS must be reasonably accommodated and be
able to work for as long as medically fit. Medical examination should be limited to
the capacity of a worker to perform the task(s) of a particular job.

5.6 Prevention

Module 2: Employee Wellbeing 39


THE HIV/AIDS CHALLENGE

Prevention of all modes of HIV transmission and TB is a fundamental priority for the
country. In keeping with this principle the workplace must facilitate access to
comprehensive information and education to reduce the risk of HIV transmission
and HIV-TB co-infection and STI's.

5.7 Treatment, Care and Support Treatment, care and support services on HIV and
AIDS must be accessible to all workers and their dependants. All workers must have
access to affordable health services, social security, insurance schemes or other
employment-related benefits either through the employer, the State or
nongovernmental organisations. Programmes of care and support must include
measures of reasonable accommodation in the workplace for persons living with
HIV or HIV-related illnesses.

5.8 Social Dialogue/Consultations Implementation of policies and programmes on


HIV and AIDS should be based on cooperation and trust amongst government,
employers and workers and their representatives. Employers and workers should
engage in the design, implementation and evaluation of national and workplace
programmes, with the active involvement of persons living with HIV and AIDS.

5.9 Occupational Health and Safety The workplace must be safe and healthy for all
workers, and they must benefit from programmes to prevent specific risks of
occupational transmission of HIV and related transmissible diseases, such as TB,
especially in jobs most at risk, including the health care sector.

5.10 Testing, Confidentiality and Disclosure Workers and their dependants must
enjoy protection of their privacy, including confidentiality relating to their own HIV
status or that of their co-workers. Workers must not be required to undergo HIV
testing or other forms of screening for HIV unless found to be justified by the Labour
Court. The results of HIV testing must be confidential and not endanger access to
jobs, tenure, job security or opportunities for advancement.

…. You may wish read the rest of the code from the government’s website (link at
the end)

7.2 HIVTesting

7.2.1 Authorisation for mandatory HIV testing of workers may only be obtained from
the Labour Court in terms of Section 7{2) of the Employment Equity Act.

40 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

7.2.2 Mandatory Testing for HIV is not a requirement in the world of work, including
the following circumstances: a) during an application for employment; b) as a
condition of employment; c) during procedures related to termination of employment;
and d) as an eligibility requirement for training or staff development programmes.
7.2.3 Anonymous, unlinked surveillance or epidemiological HIV testing in the
workplace may occur provided it is undertaken in accordance with ethical and legal
principles. The information obtained must not be used to unfairly discriminate
against workers. Testing will not be considered anonymous if there is a reasonable
possibility that a worker's HIV status can be deduced from the results.

7.3 Confidentiality and Disclosure

7.3.1 All persons, including those with HIV and AIDS have the legal right to privacy.
A worker is therefore not legally required to disclose his or her HIV status or related
medical information to his or her employer or to other workers.

7.3.2 The results of HIV testing must be confidential and not endanger access to
jobs, tenure, job security or opportunities for advancement.

7.3.3 Where a worker chooses to voluntarily disclose his or her HIV status to the
employer or to other workers, this information must not be disclosed to others
without the worker's express written consent. Where written consent Is not possible,
steps must be taken to confirm that the worker wishes to disclose his or her HIV
status.

7.3.4 Mechanisms must be created to encourage openness, acceptance and


support for those employers and workers who wish to voluntarily disclose their HIV
status within the workplace.

7.3.5 Access to personal data relating to a worker's HIV status and related medical
data must be bound by the rules of confidentiality consistent with the relevant
national laws.

… You may wish read the rest of the code from the government’s website (link at
the end)

7.5 Employee Benefits

Module 2: Employee Wellbeing 41


THE HIV/AIDS CHALLENGE

7.5.1 Workers with HIV and AIDS must not be unfairly discriminated against in the
allocation of employee benefits.

7.5.2 Where an employer offers a medical benefit, that employer must ensure that
this benefit does not unfairly discriminate, directly or indirectly, against any worker
on the basis of his or her real or perceived HIV status.

7.5.2.1 There should be no unfair discrimination against workers or their dependants


based on real or perceived HIV status to access social security systems and
occupational insurance schemes or in relation to benefits under such schemes,
including health care and disability, death and survivor's benefits.

… You may wish read the rest of the code from the government’s website (link at
the end)

9. MANAGEMENT OF HIV AND AIDS IN THE WORKPLACE

9.1 Assess the Impact of HIV and AIDS in the Workplace

Employers, trade unions and employees must develop and effectively implement
integrated gender sensitive strategies to respond to the impact of HIV and AIDS,
including TB and STis, in the workplace. This must be done as far as possible in
cooperation with national, provincial, local and sectoral initiatives, including:

a) Impact assessment that includes risk profiling, resource implications,


environmental assessment, vulnerability and susceptibility to HIV infection, and

b) The development and implementation of HIV and AIDS workplace policies and

programmes that are free from unfair discrimination and promote human rights.

9.2 Developing HIV and AIDS Workplace Programmes

In developing and implementing long and short term measures to deal with and
reduce this impact, the following must be taken into account:

a) Compliance with legal obligations;

b) Management commitment;

c) Consultation with relevant stakeholders;

42 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

d) Development and effective implementation of HIV and AIDS and TB Workplace


Policies,

Prevention and Wellness Programmes;

e) Resources, including human, financial and operational resources must be


allocated for

the effective development and implementation of policies and programmes;

f) Policies and programmes must be informed by the outcomes of research and


evidence;

and

g) Monitoring and Evaluation of HIV and AIDS policies and programmes must be
put in place.

9.3 Education, Training and Information

All social partners have the responsibility to promote education, training and
information about HIV and AIDS in the world of work.

9.3.1 Training, safety instructions and any necessary guidance in the workplace
related to HIV and AIDS must be provided in a clear and accessible form for all
workers.

Source: Department of Labour (2012)

The complete Code of Good practice can be accessed from the following website:

https://www.gov.za/sites/default/files/gcis_document/201409/35435gon451.pdf

2.4.2 SUPPORTING PEOPLE WITH HIV/AIDS

South Africa's Code of Good Practice on HIV-Aids has been adopted internationally
by the International Labour Organisation (ILO) and is a comprehensive document and
good start for employers who would like to know more about the do's and don’ts of the
disease.

Module 2: Employee Wellbeing 43


THE HIV/AIDS CHALLENGE

It draws largely from the provisions of the Employment Equity Act (EEA) which
prohibits discrimination against any employee, or applicant for employment, on the
basis of HIV status.

TABLE 2.4: EXAMPLE OF AN ORGANISATION’S HIV/AIDS POLICY

ELIMINATION OF STIGMA AND DISCRIMINATION

Confidentiality

An employee who is, or becomes, HIV infected has the right to confidentiality and
privacy, as is the case with an employee who has experienced or is experiencing
any other medical or psychosocial related incident. HIV infected employees are not
obliged to inform management, or any other person in their organisation, of their HIV
status. There is no justification for asking job applicants to disclose HIV related
personal information. Nor are employees obliged to reveal such personal
information to fellow employees. All reasonable precautions are taken to ensure that
information regarding individual HIV status, voluntarily provided to anyone in the
organisation, or ascertained through a medical consultation, via an HIV test or
disclosure of known HIV positive status, is maintained in strict confidence. Such
information is not disclosed to any other person in, or outside, the organisation
without the individual’s express written consent. Organisation summary statistics,
concerning group HIV infection rates and/or other HIV/ AIDS outcomes and
HIV/AIDS-related risk behaviours, compiled from individual HIV testing, and/or
knowledge, attitude and practice surveys, may be shared with employees while
respecting and maintaining the confidentiality of individual responses and results.
These statistics are scientifically and ethically derived and only provided to external
stakeholders once appropriate attempts have been made to share these with
employees and their representatives.

44 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

Non-discrimination

ABC Company does not tolerate any form of unfair discrimination against those
infected with HIV and takes all reasonable steps to respect their dignity and their
individual human rights. All employees, supervisors, managers, and medical staff
who know (or think they know) an individual’s HIV status are made aware of the
requirements and responsibilities of disclosing this information to a third party, and
the consequences that could arise if this responsibility is disregarded.

Gender Equality

ABC Company recognises that women are more likely to become infected and are
more often adversely affected by the HIV/AIDS epidemic than men due to biological,
socio-cultural and economic reasons. ABC Company strives to equalise gender
relations, recognising that the empowerment of women is vital to successfully
prevent the spread of HIV infection and enable women to cope with HIV/AIDS.

Social dialogue

The successful implementation of an HIV/AIDS policy and programme requires


cooperation and trust between employers, employees and their representatives, and
government with the active involvement of employees infected and affected by
HIV/AIDS. ABC Company strives to form alliances and build partnerships in order
to develop a common vision and shared strategy with all stakeholders.

ABC Company recognises that it takes courage for individuals to disclose their HIV
positive status, and that such disclosure challenges the stigma associated with the
epidemic. The company encourages employees to be open about their HIV or AIDS

Module 2: Employee Wellbeing 45


THE HIV/AIDS CHALLENGE

status if they so wish and takes all reasonable steps to ensure that such employees
are not unfairly discriminated against or stigmatised and that they have access to
appropriate counselling and support.

Employment

Applicants for employment, for any occupation or position, are required to pass a
standard pre-placement medical examination. This does not include an HIV test, nor
indirect screening methods, such as questions in verbal or written form about
previous HIV tests and/or questions related to the assessment of HIV risk behaviour.
The only health-related criterion for employing an individual is the person’s fitness
to perform the work offered. If a person makes his/her HIV/AIDS status known
voluntarily, it shall not be a basis for refusing to conclude, continue or renew an
employment contract. Employees with HIV/ AIDS are governed by the same
contractual obligations as all other employees.

Employees who become HIV positive will continue to be employed until they become
medically unfit to work. Medical incapacitation is handled in the same way as all
other ill-health conditions in terms of ABC Company’s incapacitation policy and
procedure. An employee’s HIV status is not considered grounds for any other
employee refusing to work with him/her. Working with an HIV positive person does
not put an employee at risk of becoming infected in the course of normal working
contact. ABC Company’s policy includes all ill-health retirements irrespective of the
cause, and no special conditions exist for persons with HIV/ AIDS which might place
them at a disadvantage relative to others. HIV infected employees and those
suffering from AIDS are entitled to the same sick leave, disability, pension and
medical benefits as all other employees.

ABC Company encourages all employees who are at risk of HIV infection to undergo
voluntary counselling and testing. We believe that voluntary counselling and testing
for HIV is a critical intervention that helps to link care and support for those with HIV

46 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

infection to our broader prevention programmes aimed at turning the tide of the
HIV/AIDS epidemic. No employee is forced or coerced to undergo such testing.

Access to appropriate support and counselling services, at no cost to employees,


and adapted to the different needs and circumstances of men and women, is
available to HIV infected and affected employees. Where these services are not
offered on site, employers arrange for counselling and testing to be provided by
approved HIV/AIDS centres/agencies, including self-help groups and services within
the local community. Counselling is provided before and after testing.

HIV testing requires informed consent. This implies that the individual knows and
understands that the test is, why it is necessary, the benefits, risks, alternatives and
any possible social or economic implications of the outcome. Counselling provides
information, education, and psychological and emotional support in order to maintain
optimal health and well-being and the capacity to be effective employees for as long
as possible. Counselling services inform employees of their rights and benefits in
relation to statutory social security programmes and medical and other employee
benefits as well as any life skills programmes, which may help employees cope with
HIV/AIDS. Counselling services are also linked to programmes of direct care and
support for employees with HIV/AIDS.

Employees are encouraged to motivate sexual partners to avail themselves of


counselling and testing services offered by the organisation as well as those in the
community.

Voluntary Counselling and Testing

Information and education programmes on HIV/AIDS are available to all employees


and are sustained, coordinated and focused. The programmes are conducted in a

Module 2: Employee Wellbeing 47


THE HIV/AIDS CHALLENGE

manner that takes into account levels of education and literacy and the need to be
situated in an appropriate cultural context. Educational strategies are based on
consultation between employers and employees and their representatives and the
methods used are as interactive and participatory as possible.

We strive to ensure that our information and education programmes are sensitive,
accurate and current.

The programmes aim to:

• communicate basic knowledge about the disease and its prevention;

• build community acceptance of persons living with HIV/AIDS to avoid feelings


of rejection and isolation;

• provide information to employees about voluntary counselling and testing


within the organisation, about wellness programmes and medication available,
about coping with work performance and what happens when employees are
too sick to work, and about employee benefits on medical incapacity
termination of services;

• inform employees about protection measures for anyone potentially exposed


to HIV in the course of their duties. These prevention programmes are
available to all levels of employees. ABC Company companies are encouraged
to extend prevention programmes to families of employees and to the
communities associated with their operations, in partnership with
governments, trade unions, NGOs and donor agencies.

Prevention

There is increasing evidence that early care and support improves the quality and
length of life of people living with HIV/AIDS. Medical assistance is provided for HIV

48 © Business Management Training College (Pty) Ltd


THE CODE OF GOOD PRACTICE ON KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT

positive employees, in accordance with medical benefit arrangements pertaining


from time to time.

ABC Company must ensure that employees are aware of any limitation of benefits
imposed in terms of these arrangements. Notwithstanding these limitations, ABC
Company are encouraged to:

• keep HIV positive employees healthy and productive for as long as possible,
through early participation in wellness programmes;

• prevent opportunistic infections that account for most of the morbidity and
mortality associated with AIDS, particularly TB • reduce mother to child
transmission of HIV by facilitating access to appropriate antiretroviral therapy
(ART);

• offer appropriate and effective ART on an affordable and sustainable basis for
all employees who develop AIDS • ensure that HIV care and support
programmes are extended into the community through existing public and
private health service providers and through NGOs;

• provide management advice to community-based HIV/AIDS programmes and


facilitate their access to donor funding;

• facilitate the establishment of self-help groups within the enterprise or the


referral of employees affected by HIV/AIDS to self-help groups and support
organisations in the local community.

Care and Support

ABC Company are developing appropriate strategies to assess and appropriately


respond to the impact of HIV/AIDS on their operations. Impact assessment depends
on accurate information on the prevalence and incidence of HIV infection in the

Module 2: Employee Wellbeing 49


THE HIV/AIDS CHALLENGE

workplace. ABC Company operating in countries highly affected by HIV/AIDS are


encouraged to carry out anonymous, unlinked HIV prevalence surveys, with the
maximum participation of all stakeholders in the planning, implementation and
reporting of such surveys. Particular care is taken to ensure that no employee or
group of employees is prejudiced in any way by an HIV prevalence survey and that
ABC Company’s policy applying to the elimination of stigma and discrimination is
observed and maintained at all times. The information derived from HIV prevalence
surveys is used to communicate the nature and extent of the HIV/AIDS epidemic to
employees and other stakeholders and to plan appropriate responses in terms of
prevention, care and support, and impact mitigation.

MANAGEMENT AND MITIGATION OF THE IMPACT OF HIV/AIDS

Policy Review

This policy will be reviewed on a regular basis to take account of the progression of
the epidemic; developments in medical care; experience in preventing new
infections and managing HIV/AIDS in the workplace; its impact on employee benefit
schemes; and changes to relevant legislation.

Source: Author’s own compilation

50 © Business Management Training College (Pty) Ltd


CHAPTER THREE

The Nature of
Organisational
Change
IN THIS CHAPTER

3.1 CHAMPIONING CHANGE ............................................................................. 52

3.2 LEWIN’S THREE PHASE MODEL OF CHANGE .......................................... 58

3.3 MAKING RECOMMENDATIONS FOR CHANGE.......................................... 60

3.4 PROMOTING CHANGE ................................................................................ 60

3.5 DEALING WITH RESISTANCE TO CHANGE ............................................... 61

3.6 OVERCOMING RESISTANCE TO CHANGE ................................................ 64

3.7 STARTEGIES TO ENSURE SUCCESSFUL ORGANISATIONAL CHANGE 65

3.8 IMPLEMENTING CHANGE ........................................................................... 67

3.9 WHAT IS A CORPORATE CULTURE? ......................................................... 70


THE NATURE OF ORGANISATIONAL CHANGE

CHAPTER 3: THE NATURE OF ORGANISATIONAL


CHANGE

AT THE END OF THIS CHAPTER YOU SHOULD BE ABLE TO:

• Engage in a debate about the complex and multidimensional nature of


organisational change;

• Analyse the internal and external forces that may be driving change;

• Identify individual and organisational-level factors of resistance to change;

• Apply ways to reduce and deal with resistance to change;

• Explain the nature and importance of change and transformation in South African
organisations;

• Define stress and identify its potential sources;

• Identify the consequences of stress;

• Contrast the individual and organisational approach to managing stress.

CONCEPTS AND VOCABULARY

• Change: moving from the familiar to unfamiliar. It is about making things


different. Change varies in scale, the number of people involved, the driving force
or triggers and the methods of change.

• Change management: Planning, implementing, controlling and reviewing the


movement of an organisation from its current state to a new one.

3.1 CHAMPIONING CHANGE

Change is the continuous adoption of business strategies and structures in response


to changing internal pressures or external forces. Change happens whether we
encourage and welcome it or not. To take control of it and to ensure that it is a positive

52 © Business Management Training College (Pty) Ltd


CHAMPIONING CHANGE

and not a negative process, businesses must have a vision, a strategy and a proven
and adaptable process for managing change.

Change can be planned in anticipation of future events or it can be in reaction to


events. Some changes are predictable, others completely discontinuous. Internal
change comes about from the fact that South African businesses are continually
confronted with demands originating from political change incorporating affirmative
action and the elimination of discrimination concerning race or gender. Organisations
today are faced with a diverse workforce in terms of race, age, culture, gender, and
education etc. Change can come from a variety of sources.

In this chapter we discuss how organisations can manage and control strategic change
and the importance of promoting change.

Stone (2008) is of the opinion that the need for change becomes evident when there
is a gap between organisations, division, function or individual performance objectives,
and actual performance of the organisation.

According to Nel et al. (2012) change drastically shortens the lifespan of organisations.
This in turn reflects the organisation’s ability to phase out strategies, policies, and
businesses that are no longer relevant, whilst creating new activities, product,
services, and strategies to sustain performance, relevance, and success.

Nel et al. (2012) point out that the Human Resource Manager will have to improve the
balance between the competing demands of managing current performance, and let
go of some other activities, attitudes, and patterns of thinking.

Module 2: Employee Wellbeing 53


THE NATURE OF ORGANISATIONAL CHANGE

Jones (2010) is of the opinion that transformation or change in an organisational


sense, is associated with the restructuring of companies needing to respond to change
in their environments, mission, strategies, advances in technology, and leadership.

3.1.1 EXTERNAL TRIGGERS FOR CHANGE

The following are examples of external triggers for change (Jones, 2010; Wadell,
Cummings, & Worley, 2007):

• Changes in the broader environment such as political shifts and social events,
(for example, September 11 in the US in 2001, and the catastrophic tsunamis,
Bali bombings, the Iraqi and Afghanistan wars, Haiti earthquake, etc.)

• Technological developments and techno-structural interventions include


engineering, sociology and psychology, socio-technical systems and
organisational design;

• Changes in the economic and legal frameworks (for example legislation on


age discrimination, the requirements of BBBEE in South Africa, world
agreements and national policies on pollution and the environment, international
agreements on tariff and trade);

• Industry specific trends and organisational growth and expansion (as an


organisation increases in size, so may the complexity of the organisation,
requiring the development of appropriate coordinating mechanisms);

• Globalisation of markets and the internationalisation of business (the need to


accommodate new competitive pressures bith in the home market and overseas)

• HRM interventions that are rooted in the disciplines of labour relations,


economics, wage and compensation, and performance appraisals;

• Fluctuations in business cycles (for example, changes in the level of economic


activity both within national economies and within major trading blocks.)

54 © Business Management Training College (Pty) Ltd


CHAMPIONING CHANGE

3.1.2 INTERNAL TRIGGERS FOR CHANGE

The following are examples of internal triggers for change (Jones, 2010; Wadell,
Cummings, & Worley, 2007):

• the implementation of a new it system;

• a new CEO with a unique management style or strategy;

• new products or market developments;

• process innovation; and

• restructuring.

3.1.3 ORGANISATIONAL DEVELOPMENT

Organisational development is a field of applied behavioural science focused on


understanding and managing organisational change. Organisational development
is defined as a planned effort by organisations, managed from the top to increase
organisational effectiveness through planned interventions in the organisations
processes using behavioural science knowledge.

This includes making changes in:

• Job descriptions;

• Decision-making processes;

• Shape, size and nature of divisions and departments;

• Managerial style;

• Quality of programmes;

• Mechanisms for reporting and exercising accountability; and

Module 2: Employee Wellbeing 55


THE NATURE OF ORGANISATIONAL CHANGE

• Human resource management practises.

Field analysis remains a popular change management tool. It conceptualises


organisational change as a process shaped by the interaction of driving forces for
change with retraining forces impending change. Organisations are systems held in
balance by equal and opposing forces.

When examining the internal and external driving forces of change, we need to look
at the variables in the macro– and market environment.

For this balance to be altered, in other words for change to take place, there must be
either a strengthening of the driving forces for example:

• legislation;

• globalisation has the effect of world-class competitors entering the South African
market;

• economic imperatives;

• competitive pressure;

• changing needs and preferences of the business’s customers;

• technological innovation such internet banking etc.

or a weakening of the straining forces (forces against change) for example:

• traditional practices;

• organisational culture;

• job security;

• fear of the unknown;

56 © Business Management Training College (Pty) Ltd


CHAMPIONING CHANGE

• potential loss of power base;

• lack of resources;

• lack of organisational capability.

Stone (2008) identifies two basic forms of change in organisations namely planned
and unplanned change.

According to Net et al. (2012) planned change occurs when change results form a
deliberate decision to alter the organisation. A company moves from one structure to
another to alter the structure of functions in the organisation.

Unplanned change is when alternations occur as a result of imposed conditions.


Such change may be unforeseen. Unplanned changes may be environmental for
example, natural disasters. Government regulations and economic decisions may lead
to abrupt and unexpected changes for organisations.

According to Nel et al. (2012) whether forced or planned, change must be managed,
because it can be either disruptive or constructive, depending on how effectively the
process is executed. Net et al. identifies three scopes for planned change:

3.1.4 TYPES OF CHANGE

• Incremental change: Making change to a small work procedure will fall into this
category; it is usually a change involving minor improvement or adjustments.

• Strategic change: This includes change on a large scale such as the


restructuring of an organisation. In strategic change the organisation moves from
the old to the new during a controlled phase. Strategic change usually involves
a series of planned steps.

Module 2: Employee Wellbeing 57


THE NATURE OF ORGANISATIONAL CHANGE

• Transformational change: This type of change involves dramatic changes to


the organisational. The organisation moves direction to a sometimes unknown
future. In this change, the organisation’s mission, culture, goals, structure and
leadership may change altogether.

3.2 LEWIN’S THREE PHASE MODEL OF CHANGE

Kurt Lewin is responsible for introducing the force field analysis approach to manage
planned business change. This model recognises that change is the consequence of
a disturbance in the force field surrounding an entity or business, and that the objective
should be to re-establish a situation of equilibrium (balance). The underlying principle
is that the driving forces must outweigh straining or resisting forces in any situation if
change is to happen (Cameron & Green, 2012)

3.2.1 THIS FORCE FIELD SYSTEM CONSISTS OF THREE STAGES TO


DESCRIBE THE PROCESS OF ORGANISATIONAL CHANGE:

3.2.1.1 Stage 1:

Unfreezing the current organisational balance. This involves the process of making
people aware of their habitual modes of thinking and behaviour and making them
aware of the need to change (Senior, 2002)

Main tasks of the change agent during this stage are to: (Kroon, 1995)

• create a need to change by identifying the reasons for the need;

• to analyse the current situation;

• to describe the ideal future state;

• to prepare a strategic plan.

58 © Business Management Training College (Pty) Ltd


LEWIN’S THREE PHASE MODEL OF CHANGE

3.2.1.2 Stage 2:

Moving / changing to a new position. This process involves making the actual changes
that will take the business to a new level.

The main tasks involve:

• establishment of new strategies and structures;

• establishment of new policies and systems.

3.2.1.3 Stage 3:

Refreezing in the new position. This process involves making the changes permanent
and rewarding desired outcomes by offering rewards for performance.

The main tasks involve:

• offering positive reinforcement

• providing resource support;

• the change agent should stabilise the change.

Therefore the best strategy for change is to reduce the restraining forces and thereby
increasing the driving forces. The organisation must be awakened by a new reality
and must disengage from the past, recognising that the old ways of doing things is no
longer acceptable.

The organisation needs to embrace a new vision of the future, uniting behind the steps
necessary to achieve that vision. Finally as new attitudes, practises, processes and
policies are put in place to change the company, these must be “refrozen” or solidified.

Module 2: Employee Wellbeing 59


THE NATURE OF ORGANISATIONAL CHANGE

This effort can only be successful if the whole company participates in the change
effort.

A change agent is mostly used to manage the planned change process as he/she is
an independent external management consultant or facilitator.

People in the organisation can be divided into three change categories:

• Change strategists: The board of senior managers and professional leadership.

• Change implementers: This could be project coordinators for quality


improvement.

• Change recipients: This includes all the employees in the organisation.

3.3 MAKING RECOMMENDATIONS FOR CHANGE

Goal directed recommendations are made for consideration by management. Key


stakeholders are approached with recommendations. Barriers to achieving the desired
outcomes is identified and solutions are presented.

3.4 PROMOTING CHANGE

Promoting change is an important function of management. According to Stimpson


and Farquharson (2012) gaining acceptance of change (both by the workforce and
stakeholders) will be much more likely to lead to a positive outcome than imposing
change on unwilling groups. If change is not ‘sold’ or promoted to the people most
affected by it, then it is almost certainly going to build up damaging resistance that
could increase the chance of failure.

60 © Business Management Training College (Pty) Ltd


DEALING WITH RESISTANCE TO CHANGE

3.5 DEALING WITH RESISTANCE TO CHANGE

Jones et al. (2010) refers to organisations’ inability to change as organisational


inertia— the tendency of an organisation to resist change and maintain the status quo.
Resistance to change lowers and organisation’s effectiveness and reduces its
chances of renewal and survival. Change has to be managed, because people
generally fear and resist change.

3.5.1 RESISTANCE TO CHANGE ON AN INDIVIDUAL LEVEL

Jones (2010) and Stone (2008) describe how employees often resist change when
they do not understand its implications, and perceive that it might cost them much
more than the amount they will gain.

Change triggers emotional reactions because of the accompanied uncertainty. The


business manager should take resistance to change into account when considering
making changes and during the planning phase of change. Resistance to change by
organisational stakeholders is a strong restraining force. Resistance can be a major
source of conflict. There are many personal reasons for resistance to change, one of
which some people are more concerned about their own interests than that of the
business.

Questions such as: “what about me?” often arise. People fear that they might lose
something valuable through the change process, such as their job, status in the
business or fear of their future role in the business. Often, people don’t understand the
reasons for the change or don’t agree with the changes.

Stakeholders resist change not purely on emotional grounds, but for reasonable and
predictable reasons:

Module 2: Employee Wellbeing 61


THE NATURE OF ORGANISATIONAL CHANGE

1. Narrow-minded self-interest.

Nel et al (2012) point out that people perceive change as a threat to their self-interest.
Reactance is a negative reaction that occurs when people feel that their personal
freedom is threatened. This may also occur when stakeholders expects to lose
something as a result of change being implemented.

It may include factors such as:

• loss of power or control (feeling that things are being done ‘to’ them rather than
’by’ them or ’with’ them to improve a situation);

• loss of confidence (feeling incapable of performing well under the new way of
doing things);

• additional workload;

• loss of income (feeling that their pay and benefits may be reduced or that they
may lose their jobs);

• job insecurity .

2. Resentment.

Resentment develops either within particular people because of change, often called
change fatigue or due to the increased presence of power and authority. This accurse
as a result of the number and range of instructions that almost inevitably flow from
management in implementing change.

3. Different perceptions of change.

Perceptions depends on a person’s position in the company and their access to


information.

62 © Business Management Training College (Pty) Ltd


DEALING WITH RESISTANCE TO CHANGE

4. Misunderstanding or lack of trust.

Not trusting those who proposing change, this is normally a symptom of poor
communication.

5. Low tolerance for change.

Fear of being unable to learn new skills or new work behaviour.

6. Fear of the Unknown.

Not understanding what is happening and why it is happening.

7. Disrupted habits.

Feeling upset when old ways of doing things will no longer be accepted

8. Poor timing.

Feeling inadequate or humiliated because the ‘old’ ways are no longer perceived as
good ways.

9. Lack of purpose.

Not seeing a reason for change or not understanding the benefits.

10. Group pressure.

Team norms may be altered if they conflict with the desired changes.

Module 2: Employee Wellbeing 63


THE NATURE OF ORGANISATIONAL CHANGE

3.5.2 RESISTANCE TO CHANGE AT GROUP (DIVISION OR DEPARTMENT)


LEVEL:

These people may resist change if they feel that their group structure, social norms or
power base is being affected. At organisational level it has been suggested that a
series of interrelated factors may contribute to resistance, including organisational
structures, culture and strategy.

3.5.2.1 Resistance to change has been characterised as cognitive


blockage:

• “Don’t need to change” blockage: based on the inability or unwillingness to


monitor the organisational environment for forces of change.

• “Can’t change” blockage: This blockage centres around the lack of resources or
power

• “Won’t change” blockage: This blockage is primarily linked to political issues in


which people or groups think that the cost of change outweighs the potential
benefit.

3.6 OVERCOMING RESISTANCE TO CHANGE

The following strategies can be used to overcome resistance to change:

• Education and communication: People need to understand the reasons for


change. Allow employees the opportunity to ask questions. Confirm the benefits
of the changes to all the stakeholders. One-on-one discussions about the
proposed changes should be held to encourage participation in a heartfelt
environment. Stone (2008) points out that management should give advance
information regarding the reason for change, the nature of the change, the
planned timing of the change, and the possible impact on the organisation and
employees.

64 © Business Management Training College (Pty) Ltd


STARTEGIES TO ENSURE SUCCESSFUL ORGANISATIONAL CHANGE

• Participation: When employees are encouraged to participate in the planning


process they feel that their opinions and view matter to the organisation. This will
give them a sense of belonging and worth.

• Guarantee: Management should guarantee that employees will not be


disadvantaged.

• Facilitation and support: Facilitation involves providing resources to the


employees to perform the changes without any deviations in performance.
Employees should be support on a psychological and emotional level to help
them cope with their reactions to the new changes.

• Negotiation and reward: A possible way to reduce resistance to change is to


offer and negotiate something of value to the employee in exchange for their
support. This strategy is however a very dangerous rout to take as it can open
up the possibility of satisfying one group and aggravating another.

3.7 STARTEGIES TO ENSURE SUCCESSFUL ORGANISATIONAL


CHANGE

1. Changes for quality improvement should be driven by a “vision” of what


needs to be accomplished. The “why” and “when” of the change must be
realised. A fundamental change strategy should be adopted by all.
2. The culture of the organisation needs to be receptive to change for change
to actually occur. Perceptions and behaviour of individual stakeholders and
recipients must be acknowledged, resistance overcome. Change must be
supported by the entire organisation.
3. Focused attention is needed on the process of implementing the changes.
Change does not happen because someone has a vision. It happens where
there is a shared vision and the change is managed in a receptive culture.
Taking into account individual styles, motivations and readiness to adopt
change, the rational, emotional, as well as a flexible approach to managing the
whole change process.

Module 2: Employee Wellbeing 65


THE NATURE OF ORGANISATIONAL CHANGE

FIGURE 3.1: STEPS TO OVERCOME RESISTANCE TO CHANGE

Step 1 • Mobilise commitment to change

Step 2 • Develop a shared vision

Step 3 • Necessary competence for the new vision

Step 4 • Spread revitalisation to all departments

• Institutionalise revitalisation through formal


Step 5 policies, systems and structures

Step 6 • Monitor and adjust strategies

Source: Developed by A.J. du Plessis

According to Du Plessis (2007) and Swanepoel (2003) the six-step process to


overcome resistance to change should be implemented sequentially as follows:

Step 1: Mobilise commitment to change through joint analysis of business problems.


Assist all employees to develop a shared opinion of what is wrong in the organisation
and what can and must be done about it.

Step 2: Develop a shared vision of how to organise for competitiveness. Once


commitment it obtained to the analysis of the problem, managers lead employees
towards a task-aligned vision of the organisation.

Step 3: Promote consensus for the new vision and the necessary competence to
follow it through. Managers who cannot adapt to change and transformation issues
during this period must be replaced.

66 © Business Management Training College (Pty) Ltd


IMPLEMENTING CHANGE

Step 4: Spread the message of regeneration and renewal to all departments without
pushing it from the top. Use the team to break down resistance by enlisting their
feedback about how to organise departments and responsibilities.

Step 5: Institutionalise revitalisation/regeneration through formal policies, systems


and structures. Enact changes in structures and systems that are consistent with
change and transformation during this step (not earlier).

Step 6: Monitor and adjust strategies in response to problems in the revitalisation


process. Monitor the change and transformation process needs to be shared by all
employees through the use of an oversight team—key manager(s), union leaders,
secretary, engineer, someone from finance, etc. Regular attitude survey to monitor
behaviour patterns is also essential.

3.8 IMPLEMENTING CHANGE

Change must be implemented according to the agreed methods. Support measures


are implemented. Individuals are assisted with overcoming resistance to change and
rewarded for positive contributions.

3.8.1 RECOMMENDATIONS FOR THE IMPLEMENTATION OF CHANGE


PROCESS

• Continually align the project with the vision of where the company is going and
with the wider organisations vision.

• Manage the project effectively by employing or appointing a person who is


dedicated to the task of overseeing the project on a day to day basis.

• Appoint a project team from across different levels in the organisation to advise
on the process.

Module 2: Employee Wellbeing 67


THE NATURE OF ORGANISATIONAL CHANGE

• Show or demonstrate early and middle term success to all involved in the process
by showing evidence of benefits achieved through the implemented changes.

• Allow time for feedback from all involved. Take time to listen to positive
responses, objections and allow for adjustments.

• Planning for individual futures takes time. Have a source of transitional funding
available to provide incentives for change. From physical restructuring to
redundancy or early retirement payment as well as Training and Development
funds for skills development initiatives. Anticipate the need for such investments
rather than being reactive to events or barriers brought up during the process.

Progress is monitored to ensure smooth implementation. Progress is regularly


reported to all stakeholders. Stakeholders’ needs to be informed of the progress made
since the implementation of the project.

A project champion is often appointed by senior management to help drive a


programme of change. The project champion is usually responsible for drawing up a
progress report.

A progress report may take on many forms:

• Memoranda;

• Letters;

• Short reports;

• Formal reports;

• Presentations.

68 © Business Management Training College (Pty) Ltd


IMPLEMENTING CHANGE

3.8.2 THE CONTENT OF A PROGRESS REPORT

Depending on the situation most progress reports have the following similarities in
content:

1. Background on the project itself: In many instances, the stakeholders is


responsible for several projects. Therefore, they expect to be informed as to:
a. what the project is about;
b. what its objectives are;
c. what the status of the project was at the time of the last reporting.
2. Discussion of achievements since the last reporting. This stage follows the
progress of the tasks presented in the proposal's schedule.
3. Discussion of problems that occurred. Progress reports are not necessarily for the
benefit of only the stakeholders. Often, the project manager benefits from the
reporting because he or she can share or warn the stakeholders about problems
that occurred. In some situations, the stakeholders or people involved in the
change process might be able to direct the organisation toward possible solutions.
In other situations, you might negotiate a revision of the original objectives, as
presented in the proposal.
4. Discussion of work that lies ahead. During this stage, the plan for meeting the
objectives of the project should be discussed. In many ways, this section of a
progress report is written in the same manner as the "Plan of Action" stage of the
proposal, except that now you have a better perspective for the schedule and
calculated earlier.
5. Assessment of whether the objectives will be met. Stakeholders expect that the
objectives will change somewhat during the process, so be honest about the
changes. A positive attitude needs to be communicated to strengthen confidence
in the project.

Module 2: Employee Wellbeing 69


THE NATURE OF ORGANISATIONAL CHANGE

3.9 WHAT IS A CORPORATE CULTURE?

A commonly used definition of corporate culture is ‘the way we do things around


here’. This means how the people within the organisation look at the world and how
they respond to it in trying to achieve certain goals. It is widely understood that different
organisation have distinctive cultures. The culture of an organisation gives it a sense
of identity and is based on the values, attitudes and beliefs of the people who work in
it—especially senior management. As with leadership styles, there is no ‘right’ or
‘wrong’ culture for a business. The appropriate culture will depend on the
organisation’s objectives, types of industry and the values and expectations of
managers and employees.

3.9.1 TYPES OF CORPORATE CULTURE

According to Stimpson and Farquharson (2012) there are five different types of
corporate culture:

• Power culture: This is power is concentrated at the centre of the organisation.


Swift decision can be made as so few people are involved in the decision-making
process. This type of culture is mostly associated with autocratic leadership
styles.

• Role culture: People in an organisation with role culture show little creativity and
operate within rules. The structure of the organisation is well-defined and each
individual has clear delegated authority. Power and influence come from a
person’s position within the organisation. This corporate culture is mostly
associate with bureaucratic organisations.

• Task culture: Groups are formed to solve particular problems and there will be
clear lines of communication similar to a matrix structure. Such teams often
develop a distinctive culture because they have empowered to make decisions.
Team members are encouraged to be creative.

• Person culture: Individuals in the organisation are given freedom to express


themselves fully and make decisions for themselves. There may be a conflict

70 © Business Management Training College (Pty) Ltd


WHAT IS A CORPORATE CULTURE?

between individuals of the whole organisation, but this is the most creative type
of culture.

• Entrepreneurial culture: Success is rewarded in an organisation with an


entrepreneurial culture. Management and workers are encouraged to take risks,
to come up with new innovative ideas and to test new business ventures.

3.9.2 REASONS FOR CHANGING A CORPORATE CULTURE

Many businesses have turned themselves around converting potential bankruptcy into
commercial success. Very often this transformation has been achieved by changing
the corporate culture of the business.

Let’s discuss some of the possible situations in which changing culture would seem
essential according to Stimpson and Farquharson (2012):

• A traditional family orientated organisation converts from a closed corporation to


a public limited company. They previously mostly promoted members of their
family into management positions. The new investors require transparency in the
organisation and therefore insist on recognition of natural talent to recruit new
employees.

• A product-led business needs to respond to changing market conditions by


encouraging more staff involvement. A team– or task-based culture may need to
be adopted.

• A merger or takeover may result in one of the businesses having to adapt its
culture to ensure consistency within the newly created larger business unit.

Module 2: Employee Wellbeing 71


THE NATURE OF ORGANISATIONAL CHANGE

3.9.3 THE CHALLENGES ASSOCIATED WITH CHANGING THE


CORPORATE/ORGANISATIONAL CULTURE

Changing the culture means changing the way people think and react to problematic
situations. It can also mean changing the way things have been done for years. It may
also involve major changes such as job descriptions, communications methods and
working practices.

TABLE 3.1: OTHER RECOMMENDED READING

“Who moved my cheese?” by Dr Spencer Johnson is a must read for any one going
through change. The importance of understanding different personalities of people
and how they react to change. Written for all ages this story takes less than an hour
to read, but its unique insights can last for a lifetime. “Who moved my cheese? is a
simple parable that reveals profound truths. It is an amusing and enlightening story
of four characters who live in a maze and look for cheese to nourish them and make
them happy. Cheese is a metaphor for what we want to have in life and the maze is
where we look for what we want. This profound book from bestselling author, Dr S
Johnson will show you how to anticipate change, adapt to change quickly, enjoy
change and lastly be ready to change quickly, again and again.”

The manager’s pocket guide to Corporate Culture Change by Richard Bellingham,


Ed.D. ISBN. 087425616X. This guide provides the essential methods for mobilising
people behind shared values. The book provides interesting reading material on how
to overcome cultural barriers and focus on change. All improvements require
change, and improving quality in an organisation involves changing the way that
things are done, changes in processes and in the behaviour of people and teams of
people. Whether a quality improvement programme includes the whole organisation
in “macro” change or whether a team, division or department is reorganising on a
“micro” scale, the same principals of change management apply.

Source: Author’s own compilation

72 © Business Management Training College (Pty) Ltd


BIBLIOGRAPHY

Cameron, E., & Green, M. (2012). Making sense of change management (3rd ed.).
London: Kogan Page.

Department of Health. (2014). Joint Review of HIV, TB and PMTCT Programmes in


South Africa - Main report. Pretoria.

Department of Labour. Code of Good Practice on HIV and AIDS and the world of work
(2012). Staatskoerant, 15 June 2012. Retrieved from
https://www.worklaw.co.za/SearchDirectory/Codes_Of_Good_Practice/HIV_and
_AIDS_and_the_World_of_Work.pdf

Jones, G. (2010). Organisational theory, design and change (6th ed.). New Jersey:
Pearson Education.

Mulvihill, M. (2003). The definition and core practices of wellness: wellness is a


growing player in the integration movement, and EA professionals need to
understand the principles around which it is organized. The Journal of Employee
Assistance.

Nel, P., Werner, A., Du Plessis, A., Ngalo, O., Poisat, P., Sono, T., … Botha, C. (2012).
Human resource management (8th ed.). Cape Town: Oxford University Press.

O’Donnell, M. P. (2008). Evolving definition of health promotion: what do you think?


American Journal of Health Promotion, 23(4).

Senior, B. (2002). Organisational change. London: Prentice Hall.

Statistics South Africa. (2017). Statistical Release P0302. Pretoria. Retrieved from
http://www.statssa.gov.za/publications/P0302/P03022017.pdf

Stone, R. J. (2008). Human Resource Management (5th Ed.). Milton: John Wiley &
Sons.

The United States Agency for International Development. (2013). Health Policy
initiative in Tanzania report (2009-2013). USA. Retrieved from
http://pdf.usaid.gov/pdf_docs/PA00JFN7.pdf

Wadell, D. M., Cummings, T. G., & Worley, C. G. (2007). Organisational development

Module 2: Employee Wellbeing 73


and change: Asia Pacific (3rd ed.). Victoria: Thomson Learning.

74 © Business Management Training College (Pty) Ltd

You might also like