Chapter 2

Human
Resources
Function

INTRODUCTION
The human resources function plays a critical role in
in every organisation. The human resource function
deals with all aspects within the organisation that
relates to employees. It is important that the human
resources function ensures that the right employees
are appointed in all positions.

Once employed the human resources function must

ensure that the employees know what is expected of
them. The business must also ensure that the
employees’ conditions of service and labour rights are
adhered to.

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Overview
TOPIC CONTENT CONTENT DETAILS FOR TEACHING, LEARNING
AND ASSESSMENT PURPOSES
Human  Define the term “job analysis”
Resources • Definition of Job analysis
Function • Differences between job description  Distinguish between job description and
and job specification job specification
 Discuss the following human resource
• Human resources activities:
activities:
o Recruitment, e.g.
types/methods/advantages/disadvantages RECRUITMENT
o Selection procedure/steps: o Meaning of recruitment
o Interviews (purpose, role of the o Recruitment procedure
interviewer/interviewee) o Types/methods
o Induction, e.g. purpose/benefits/ o Sources of recruitment
advantages and aspects that should be o Impact (advantages/disadvantages)
included in an induction programme
o Placement procedure SELECTION
o Selection procedure/steps
• The importance of training/skills
o Purpose, role of the interviewer and
development in HRM
interviewee)
• Retrenchment o Employment contracts, e.g.
• Employment contracts, e.g. legalities, meaning, legalities,
content/details and termination of the content/details/aspects and reasons
contract for termination of the contract.
• Salary determination, e.g. piece meal
and time-related and personal tax (link to INDUCTION
BCEA) o Induction, e.g.
• Employee benefits on businesses: meaning/purpose/benefits/
Fringe benefits: advantages and aspects that should
be included in an induction
o Pension
programme.
o Medical aid
o Provident fund PLACEMENT
o Allowances o Placement procedure
Compulsory benefits:
 The importance of training/skills
o Benefits required by law, e.g. UIF development in HRM
• Impact of fringe benefits to business.  Salary determination, e.g. piecemeal
• The implication of the following Acts and time-related and personal tax (link
on human resources function: to BCEA)
o LRA/ BCEA/EEA/SDA  Give examples of fringe benefits e.g.:
o Pension
o Medical aid
o Provident fund
o Allowances
 Evaluate/Analyse advantages/positives
and/or disadvantages/negatives of fringe
benefits to business.

Compulsory benefits
o Explain UIF as a compulsory benefit.

 Discuss the implication of the following

Acts on human resources function:
o LRA, BCEA, EEA, SDA.

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 Memorising the
the key concepts and
studying the meaning
thereof will assist
you with this topic

2.1 Key concepts

These definitions will help you understand the meaning of key Business
Studies concepts that are used in this chapter.

Term Definition
Job analysis The term “job analysis” refers to the components of job description
and job specification as it relates to employees within an
organisation.
Job description Describes the duties and responsibilities of a specific job.

Job specification Describes the minimum acceptable personal qualities/skills/

qualifications needed for the job.
Recruitment Recruitment is the process used by business to identify vacancies in
the business and attract suitable candidates for it.
Internal recruitment Refers to the use of internal sources to advertise vacancies within an
organisation.
External recruitment Refers to the use of external sources to advertise vacancies within
an organisation.
Interview Refers to a conversation between a job applicant and a
representative of an employer which is conducted to assess whether
the applicant should be hired for a vacancy.
Interviewer Refers to the representative of an employer conducting the interview.

Interviewee Refers to the job applicant who made himself available for the
interview after being shortlisted.
Induction Refers to the process of introducing new employees to the business
and its related aspects.
Placement Process whereby a new employee is placed in a vacant position.

Training/Skills Refers to the acquisition of new skills and [Link] employees.

development
Retrenchment Process whereby an organisation reduces the number of employees
for operational reasons.
Employment Oral or written agreement specifying terms and conditions under
contract which a person consents to perform certain duties in return for an
agreed upon wage or salary.
Piece-meal salary Workers are paid according to the number of items/units produced.
determination
Time-related salary Workers are paid for the amount of time they spend at work/on a
determination task.
Fringe benefits Compensation beyond a regular wage or salary to an employee,
which are exempt from taxation as long as certain conditions are
met.

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 Compulsory Refers to benefits that businesses are legally required to offer its
benefits employees.
UIF The fund offers short-term financial assistance to workers when they
become unemployed or are unable to work because of illness,
maternity or adoption leave.
BCEA This Act regulates labour practices and sets out the rights and duties
of employees and employer.
LRA Ensures social justice by establishing the rights and duties of
employers and employees in the workplace.
EEA Requires employers to engage in proactive employment practices to
increase the representation of designated groups in the workplace.
SDA This act regulates the improvement of the skills of workers by
promoting education and training in the workplace.

Let’s master
This topic
2.2 Job analysis
Meaning of job analysis

The term “job analysis” refers to the components of job

description and job specification as it relates to employees
within an organisation.

Job analysis consist of

the following two
components:

 Job description
 Job specification

You must be able to

distinguish between job
description and job
specification.

Job description and job specification

JOB DESCRIPTION JOB SPECIFICATION
 Describes the duties and responsibilities  Describes the minimum acceptable
of a specific job. personal qualities, skills and
qualifications needed for the job.
Example: Marketing Manager Example: Marketing Manager
o Establishes marketing goals o Degree in marketing
o Research marketing trends o Five years marketing experience
o Report on marketing and sales o Computer Literate
activities o Communicate effectively

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 Activity 1

1. Study the advertisement below and answer the questions that follow.

BUSINESS STUDIES TELEMATICS PROJECT COORDINATOR

 Employer : Western Cape Education Department

 Place : Head Office, Cape Town
 Remuneration : Inclusive package of R30 000 per month
 Job Type : Contract position – 5 years

Details:
 Post graduate qualifications in project management
 Middle management experience of 5 years
 Planning and monitoring the project
 Liaise with the E-Learning team at University of Stellenbosch
 Report on the impact of the intervention
 Computer Literate
 Own transport essential

1.1 Distinguish between the concepts job description and job specification. (4)
1.2 Quote TWO examples of job description from the advertisement. (2)
1.3 Quote TWO examples of job specification from the advertisement. (2)

Answers to Activity 1
1.1 Job description
 Describes the duties and responsibilities√ of a specific job. √

Job specifications
 Describes the minimum acceptable personal
qualities/skills/qualifications√ needed for the job. √ Max (4)

1.2 Job description

 Planning and monitoring the project√
 Liaise with the E-Learning team at University of
Stellenbosch√
 Report on the impact of the intervention√ (2 x 1) (2)

Job specification
 Post graduate qualifications in project management √
© Middle
Department management
of Basic Education 2014 experience of 5 years√
 Computer
Mind the Gap CAPS Grade Literate√
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1) (2) RESOURCES FUNCTION
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 2.3 Human Resource Activities
Note that the
activities follow
The following human resource activities are relevant in all
organisations and forms a critical part of the human resources each other.
functions within the organisation.

Recruitment

Placement Selection

Induction Interviews

Recruitment

Meaning of recruitment
 Recruitment is the process used by business to identify vacancies in the business and attract
suitable candidates for it.
 It aims at finding candidates who have the necessary knowledge/ experience/ qualification to fill the
vacancy.
 Businesses may choose to use an internal or external method of recruitment depending on the
nature/requirements of the vacancy.
 It is an on-going process as employees leave their jobs for other jobs/get promoted /retire/as new
technological skills are required.

Recruitment procedure
 The human resource manager (HRM) should prepare the job description in order to identify
recruitment needs.
 HRM should indicate the job specification/description/key performance areas to attract suitable
candidates.
 Prepare a job analysis, which includes job specification and job description.
 A decision whether to recruit internally should be made to identify suitable candidates from within
the business.
 If internal recruitment is unsuccessful, external recruitment should be considered.
 If the external recruitment is done, the relevant recruitment source should be selected, e.g.
recruitment agencies, tertiary institutions, newspapers,
 The advertisement should be prepared with the relevant information, e.g. the name of the
company, contact details, contact person, etc.
 Place the advertisement in the appropriate media that will ensure that the best candidates apply.

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 Types/methods of recruitment
Internal recruitment and external recruitment
You should be
able to distinguish Internal recruitment
between internal  Refers to the use of internal sources to advertise vacancies inside the
and external business.
recruitment.
External recruitment
 Refers to the use of external sources to advertise vacancies outside
the business.

Sources of Internal recruitment

 Internal emails
 Referrals from management
 Recommendations from current employees
 Internal newsletters

Sources of external recruitment

 Printed media [newspapers
 Electronic media [radio / TV]
 Social media
 Recruitment agencies
 Bill boards

Advantages & Disadvantages of types of When Impact is asked

recruitment In a question you are
required to provide
advantages or disadvantages
or both
 The business recruits from existing employees through
Advantages promotions/transfer from inside the business
 Staff morale and productivity increases if suitable staff members
are promoted regularly.
Internal  Current employees understand how the business operates.
recruitment Disadvantages  Current employees may not bring new ideas into the business.
 Promoting a current employee may cause resentment amongst
other employees.
 The number of applicants is limited to current staff only.

 New candidates bring new talents/ideas/experiences/skills into the

Advantages business.
 It may help the business to meet affirmative action and BBBEE
targets.
External
 There is a larger pool of candidates to choose from.
recruitment
Disadvantages  External sources can be expensive, e.g. recruitment agencies'
fees and advertisements in newspapers/magazines.
 Information on CV's or from references may not be reliable.

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 Activity 2

2.1 Read the case study below carefully and answer the questions that follows.

WAVECREST INTERNATIONAL (WI)

The resignation of the Marketing Manager at Wavecrest International has caused a vacancy to arise
within management of the organisation. The board of directors are looking to appoint foreign expert
to fill in the vacant post. The post was advertised in international newspapers and magazines.

2.1.1 Define the term recruitment. (2)

2.1.2 Identify the type of recruitment that the human resource department will use to attract the right
candidate. Quote from the scenario to support your answer. (3)
2.1.3 Explain the advantages of the type of recruitment identified in QUESTION 2.1.2. (6)

Answers to Activity 2
2.1.1 Recruitment
 Recruitment is the process used by business to identify vacancies in the business√ and
attract suitable candidates for it.√ (2)

2.1.2 Type of recruitment

 External recruitment√√ (2)

Motivation
Post was advertised in international newspapers and magazines. √ (1)

2.1.3 Advantages of external recruitment

 New candidates bring√ new talents/ideas into the business. √
 It may help the business to meet affirmative action√ and BBBEE plans/targets. √
 There is a larger pool of candidates√ to choose from. √
 Minimises unhappiness/conflict amongst current employees√, who may have applied for
the post. √ Max (6)

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 Selection
Selection procedure/steps
 Determine fair assessment criteria on which selection will be
based.
 Applicants must submit the application forms/curriculum vitae and certified
copies of personal documents/IDs/proof of qualifications
 Sort the received documents/CVs according to the assessment/selection
criteria.
 Screen/Determine which applications meet the minimum job requirements
and separate these from the rest.
 Preliminary interviews are conducted if many suitable applications were
received.
 Reference checks should be made to verify the contents of CV's, e.g.
contact previous employers to check work experience.
 Compile a shortlist of potential candidates identified.
 Shortlisted candidates may be subjected to various types of selection
tests e.g. skills tests
 Invite shortlisted candidates for an interview.
 A written offer is made to the selected candidate.
 Inform unsuccessful applicants about the outcome of their application.

Interview
Purpose of an interview
 To determine a candidate's suitability for the job.
 Match the information given by the applicant with the requirements of the job.
 To get more information from the applicant.
 Evaluate the skills/personal characteristics of the applicant.
 Provides the applicant with the opportunity to find out more about the job/salary/working
conditions and the business.

Interviewer
Role of the interviewer before the interview
 The interviewer should develop a core set of questions
based on the skills/knowledge/ ability required.
 The interviewer should check the application/verify the
CV of every candidate for anything that may need to be
explained. Interviewee
 Book and prepare the venue for the interview.
 Set the interview date/Ensure that all interviews take
place on the same date, if possible.
 Inform all shortlisted candidates about the date and place of the interview.
 Notify all panel members conducting the interview about the date and place of the interview.

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 Role of the interviewer during the interview
 Allocate the same amount of time to each candidate.
 Introduce members of the interviewing panel to each candidate/interviewee.
 Make the interviewee feel at ease.
 Do not mislead the interviewee.
 Provide an opportunity for the interviewee to ask questions.
 Close the interview by thanking the interviewee for attending the interview.

Role of the Interviewee during the interview

 Greet the interviewer by name with a solid handshake and a friendly smile.
 Listen carefully to the questions before responding.
 Make eye contact and have good posture/body language.
 Show confidence and have a positive attitude.
 Ask clarity seeking questions and be assertive.

Employment contract
Legalities/ Legal requirements
 Employment contract is an agreement between the employer and the new employee and is
legally binding.
 Employer and employee must agree to any changes to the contract.
 Aspects of the employment contract can be renegotiated during the course of employment.
 Both parties must agree to any changes to aspects of the contract
 The employment contract should include a code of conduct and code of ethics
 It may not contain any requirements that are in conflict with the BCEA
 The remuneration package/including benefits must be clearly indicated
 The employer must allow the employee to read through the contract before it is signed.

Content/Details in an employment contract

 Name/Address/Contact details of Employer
 Personal details/Address of Employee
 Job title/position
 Job description
 Job specification
 Working hours, e.g. normal time
 Overtime
 Salary/Remuneration package
 Termination of the contract
 Signature of both employer and employee

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 Reasons for the termination of an employment contract
Resignation Occurs when an employee chooses to leave the organisation voluntary.
Example: An employee seeking employment with another employer
Dismissal Occurs when the employee is asked to leave the organisation due to bad
conduct, breach of contract or illegal behaviour.
Example: Dishonesty / Absence with-out leave / Regular late coming
Retirement Occurs when an employee reaches certain age and do not have to work any
longer.
Example: An employee reaching the age of 60 years and do not want to
work any longer
Retrenchment Occurs when an organisation is forced to reduce the number of employees
for operational reasons.
Example: Declining profitability; Worsening economic conditions
Occurs when an employer no longer has work for employees and cannot fulfil
Redundancy the contract
Example: When a sub-contract is not renewed and workers are no longer
required

Activity 3
3.1 Read the case study below and answer the questions that follows:

NEW MUTUAL FINANCIAL SERVICES (NMFS)

Ms M Molopo has recently been appointed as a financial advisor at New Mutual Financial Services.
She had a meeting with the human resource manager before starting to work and was given an
employment contract to sign.

The contract stated that Ms M Molopo has to resign if she falls pregnant during the period of
employment. She is forced to work overtime on weekends. The contract also states that she is also
entitled to a vacation leave even though the number of days were left blank.

3.1.1 Define the term employment contract. (2)

3.1.2 Evaluate Ms M Molopo’s employment contract according to the BCEA and make
recommendations for improvement. (9)
Answers to Activity 3
3.1.1 Employment contract
 Oral or written agreement specifying terms and conditions under which a person consents
to perform certain duties in return for an agreed upon wage or salary. √√ (2)

3.1.2 Employment contract

Evaluation
 Ms M Molopo has to resign if she falls pregnant during the period of employment. √
 She is forced to work over-time. √
 Number of leave days were left blank on the contract. √
Sub max (3)
Recommendation
 Ms Molopo is entitled to four months maternity leave if she falls pregnant. √√
 Overtime must be negotiated with the employee. √√
 Type of leave must be specified√√/ Number of leave days must be added to the
contract.√√
Sub max (6)
Max (9)

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Induction
Purpose of induction
 Introduce new employees to management/colleagues to establish relationships with fellow
colleagues at different levels.
 Create opportunities for new employees to experience/explore different departments.
 Explain safety regulations and rules, so that new employees will understand their
role/responsibilities in this regard.
 Communicate information about the products/services of the organisation
 Allow new employees the opportunity to ask questions that will reduce insecurity/anxiety/fear.
 Make new employees feel welcome by introducing them to their physical work space.

Benefits/Advantages of induction
 New employees who are familiar with the business's procedures may easily adapt to his/her new
work environment.
 New employees learn more about the business and understand their role in the business/what is
expected in the job.
 Increased productivity and quality of service/performance.
 Minimises the need for on-going training and development.
 Better focused training may be provided based on the results obtained from the induction process.
 New employees will understand rules/restrictions in the business.

Aspects that should be included in an induction programme

 Safety regulations and rules.
 Overview of the business.
 Information about the business products/services.
 Meeting with senior management who will explain the company’s vision/values/job
descriptions/daily tasks.
 Tour of the premises/Introduction to key people and close colleagues.
 Discussion on employee benefits.

Placement procedure
 Outline specific responsibilities/expectations new position.
 Determine the employee’s strengths/weaknesses/skills/ interests by subjecting him to various
psychometric tests.
 Determine the relationship/similarities between the expectations of the position and the
competencies of the new employee.

The importance of training/skills development in HRM

 The employee who receives the necessary training is more able to perform in their job.
 The investment in training that a company makes shows employees that they are valued.
 A training program allows you to strengthen those skills that each employee needs to improve on.
 Employees who feel appreciated and challenged through training opportunities may feel more
satisfaction toward their jobs
 Productivity usually increases when a company implements training courses.
 Ongoing training and upskilling of the workforce, encourages creativity.
 Having a strong and successful training strategy helps to develop your employer brand.

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2.6 Salary determination methods
Difference between piecemeal and time-related
PIECEMEAL TIME-RELATED
 Workers are paid according to the  Workers are paid for the amount of time
number of items/units produced/action they spend at work/on a task.
performed.
 Workers are not remunerated for the  Workers with the same experience/
number of hours worked, regardless of qualifications are paid on salary scales
how long it took to complete the items. regardless of the amount of work done.
 Mostly used in factories particularly in the  Many private and public-sector businesses
textile/technology industries. use this method.

Link between salary determination and the BCEA

 The BCEA sets out conditions that ensure fair labour and human resources practices.
 According to the BCEA, businesses may use different remuneration methods to pay
their employees.
 Payment of salaries should be based on whether the employee is permanent or
employed on a fixed contract.
 Businesses are supposed to deduct income tax (PAYE) from the employees' taxable
salaries.
 BCEA outlines legalities, such as the employment contract, which may affect salary
determination.

2.7 Employee benefits

Fringe benefits
Pension  Long term savings for retirement.
 Fund that is maintained from monthly contributions by the employee and
employer.
Medical aid  Fund that is maintained from monthly contributions by employees and a
subsidy by employers.
 The fund is accessed when a member or its dependent require medical
attention.
Provident Fund  Long term savings for retirement.
 Fund that is maintained from monthly contributions by the employee and
employer.
Allowances  Amount of money paid by the employer to the employee for specific
expenses to allow the employee to render a more effective service.
 Examples: Car/Cell-phone/Tablet/Travel allowances.

Compulsory benefit
Unemployment Insurance Fund (UIF)
 The fund offers short-term financial assistance to workers when they become unemployed or
are unable to work due to illness, maternity or adoption leave.
 The fund also assists the dependants of a contributing worker who has died.
 Employers must pay unemployment insurance contributions of 2% of the value of each worker’s
salary per month.
 The employer and the worker each contribute 1%.
 Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African
Revenue Services (SARS).

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 Impact of fringe benefits on businesses
Positives/Advantages
 Attractive fringe benefit package may result in higher employee retention/reduces employee
turnover.
 It increases employee satisfaction/loyalty as they may be willing to go the extra mile.
 Improves productivity resulting in higher profitability.
 Businesses save money as benefits are tax deductible.
 Fringe benefits can be used as leverage for salary negotiations.

Negatives/Disadvantages
 Fringe benefits are additional costs that may result in cash flow problems.
 Administrative costs increase as benefits need to be correctly recorded for tax purposes.
 Decreases business profits, as incentive/package/remuneration costs are higher.
 It can create conflict/lead to corruption if allocated unfairly.
 Businesses who cannot offer fringe benefits fail to attract skilled workers.
 Errors in benefit plans may lead to costly lawsuits/regulatory fines.

2.8 The implications of the following acts on the human resources

function
Labour Relations Act
 Allow workers to form workplace forums/trade unions to promote the interests of all
employees.
 Promotes orderly negotiations and employee participation in decision making in the
workplace.
 Protects the rights of employees/employers as outlined in the Constitution.
 Promotes resolution of labour disputes.

Basic Conditions of Employment Act

 Ensure that employees do not work more than 45 hours a week.
 Over-time is limited to a maximum number of 3 hours per day and 10 hours per week.
 Ensure that employees utilise 21 days consecutive leave per year.
 Ensure that employees are granted the 30 days sick leave in a three-year cycle.
 Meal interval for employees of 1 hour after 5 hours of continuous work are adhered to.

Employment Equity Act

 Human resources function must guard against discriminatory appointments.
 Ensure that there is equal representation of all racial groups in every level of employment
 Promote equal opportunities and fair treatment.
 Ensure that diversity/inclusivity in the workplace is achieved.
 Prepare an employment equity plan in consultation with employees.
 Implement an employment equity plan.

Skills Development Act

 The human resources function should interpret the aims and requirements of the SDA and
adapt workplace skills training programmes accordingly.
 Identify the training needs of the employees and provide them with training opportunities
so that they will perform their tasks efficiently.
 Assist managers in identifying skills/training needs to help them to introduce learnerships.
 Ensure training in the workplace is formalised /structured.

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