Human Resources Function Overview
Human Resources Function Overview
PAPER 1
BUSINESS STUDIES
GRADE 12
TERM ONE
REVISED CHAPTER 2
HUMAN RESOURCES FUNCTION
TABLE OF CONTENTS
TOPICS PAGES
Examination guidelines for human resources 2-3
Terms and definitions 3-4
Recruitment 4-7
Selection 7-10
Induction 10-11
Placement 11-12
Importance of training 12
Salary determination 12
Link between salary determination & BCEA 12
Fringe benefits 13-14
Implication of Acts on HR 14-15
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HUMAN RESOURCES FUNCTION CHAPTER 2
RECRUITMENT
Explain/Elaborate on the meaning of recruitment.
Outline/Discuss/Explain the recruitment procedure.
Explain the meaning of job a analysis.
Differentiate/Distinguish between job description and job specification as
components of a job analysis.
Identify job description and job specification from given statements/scenarios.
Identify methods of recruitment
(internal/external recruitment) from given scenarios/statements
Explain/Discuss/Analyse the impact (positives/advantages and/or
negatives/disadvantages of the above mentioned methods of recruitment.
Identify/Give examples of sources of internal/external recruitment from given
scenarios/statements.
SELECTION
Outline/Discuss/Explain the selection procedure.
Explain the meaning of screening as part of the selection procedure.
Discuss/Explain the purpose of an interview.
Outline/Explain/Discuss the role of the interviewer before and during the interview.
Outline/Explain/Discuss the role of the interviewee during the interview.
Define/Elaborate on the meaning of an employment contract.
Name/Outline/Mention the details/aspects/ contents of an employment contract.
Outline/Explain/Discuss the legal requirements legalities of the employment contract.
Analyse an employment contract from given scenarios and make recommendations
for improvement.
Outline/Explain/Discuss the reasons for the termination of an employment contract.
INDUCTION
Define/Elaborate on the meaning of induction.
Outline/Explain/Discuss the purpose of induction.
Mention/Outline aspects that must be included in the induction programme.
Evaluate an induction programme from given scenarios and make recommendations
for improvement.
Discuss/Explain the advantages/benefits of induction for businesses.
Identify the benefit of induction from given scenarios.
PLACEMENT
Elaborate on the meaning of placement
Outline/Explain/Discuss the placement procedure.
Explain/Discuss/the importance of training/skills development in HR
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FRINGE BENEFITS
Explain/Differentiate/Distinguish between piece meal and time-related salary
determination methods.
Explain the link between salary determination and the Basic Conditions of
Employment Act.
COMPULSORY BENEFITS
Name/Mention/Give examples of employee benefits e.g.
o Pension
o Medical aid
o Provident fund
o Allowances
Compulsory benefits:
Benefits required by law, e.g. UIF, etc.
Explain/Discuss/Evaluate advantages/positives and/or disadvantages/negatives of
fringe benefits to business.
LEGISLATION
Discuss the implications of the LRA/ BCEA/EEA/SDA on the human resources
function.
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.
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Employment Oral or written agreement specifying terms and conditions under which a
contract 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 task.
determination
Fringe benefits Compensation beyond a regular wage or salary to an employee, which are
exempt from taxation as long as certain conditions are met.
Compulsory benefits Refers to benefits that businesses are legally required to offer its 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.
1.1 RECRUITMENT
Meaning of recruitment
Recruitment is the process used by businesses 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 should evaluate the job/prepare a job analysis, that
includes the job specification/job description/in order to identify recruitment needs.
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.
Choose the method of recruitment, e.g. internal/external, to reach/target the suitable
applicants/candidates.
Vacancies can be internally advertised via internal email/word of mouth/ posters/staff
notices.
If the external recruitment is chosen, the relevant recruitment sources should be
selected, e.g. recruitment agencies/tertiary institutions/ newspapers, etc
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,
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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.
NOTE: The procedure can be in any order
INTERNAL RECRUITMENT
Refers to the use of internal sources to advertise vacancies inside the business.
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HUMAN RESOURCES FUNCTION CHAPTER 2
Negative/Disadvantages
It may close the door to new ideas from outsiders.
Employees who are not promoted may feel demotivated
The promotion of an employee could cause resentment among other employees.
The number of applicants from which to choose is limited to existing staff only.
It is possible to promote certain employees who do not really have the required skills
for the new job.
The business has to spend more money on training/developing existing
employees on the new position.
EXTERNAL RECRUITMENT
Refers to the use of external sources to advertise vacancies outside the business.
Positives/Advantages
New candidates bring new talents/ideas/experiences/skills into the business.
There is a larger pool of candidates to choose from.
It may help the business to meet affirmative action and BBBEE targets.
Minimises unhappiness/conflict amongst current employees who may have
applied for the post
There is a better chance of getting a suitable candidate with the required
skills/qualifications/competencies who do not need much training/ development which
reduce costs.
AND/OR
Negatives/Disadvantages
Information on CV's/referees may not be reliable.
Many unsuitable applications can slow down the selection process.
New candidates generally take longer to adjust to a new work environment.
External sources can be expensive, e.g. recruitment agencies' fees/advertisements
in newspapers/magazines.
The selection process may not be effective and an incompetent candidate may
be chosen.
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2 SELECTION
2.1 Selection procedure
Option 1
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, etc.
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, etc.
Invite shortlisted candidates for an interview.
A written offer is made to the selected candidate.
Inform unsuccessful applicants about the outcome of their application./Some
adverts indicate the deadline for informing only successful candidates.
NOTE: The procedure can be in any order
Option 2
Receive documentation, e.g. application forms and sort it according to the criteria
of the job.
Evaluate CVs and create a shortlist/Screen the applicants.
Check information in the CVs and contact references.
Conduct preliminary sifting interviews to identify applicants who are not suitable
for the job, although they meet all requirements.
Assess/Test candidates who have applied for senior positions/to ensure the best
candidate is chosen.
Conduct interviews with shortlisted candidates.
Offer employment in writing to the selected candidate(s).
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4 INDUCTION
Meaning of induction
New employees are familiarised with their new physical work environment/
organisational culture/products and services.
New employees are informed about the processes/procedures of the
business.
New employees should have a basic knowledge of what is expected in the job.
/Understand his role and responsibilities in his new job.
New employees must be well conversant with the business safety regulations
and rules.
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NOTE: Businesses must benefit from inducting new employees. Do not confuse the
purpose of induction with the benefits.
5 PLACEMENT
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8 FRINGE BENEFITS
8.1 Examples of fringe benefits in the workplace
Medical Aid Fund/Health Insurance Fund
Pension Fund
Provident Fund
Funeral benefits
Car/Travel/Housing/Cell phone/Clothing allowance
Performance based incentives
Issuing of bonus shares
Staff discount/Free or low cost meal/Canteen facilities
AND/OR
Negatives/Disadvantages
Businesses who cannot offer fringe benefits fail to attract skilled workers.
It can create conflict/lead to corruption if allocated unfairly.
Fringe benefits are additional costs that may result in cash flow problems.
Errors/Mistakes in benefit plans may lead to costly lawsuits/regulatory fines.
Decreases business profits, as incentive/package/remuneration costs are higher.
Businesses who offer employees different benefit plans may create resentment to
those who receive less benefit resulting in lower productivity.
Administrative costs increase as benefits need to be correctly recorded for tax
purposes
Workers only stay with the business for fringe benefits, and may not be
committed/loyal to the tasks/business.
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HUMAN RESOURCES FUNCTION CHAPTER 2
Businesses have to pay advisors/attorneys to help them create benefit plans that
comply with legislation.
Implication of the Skills Development Act (SDA) on the Human Resources function
Contribute 1% of their salary bill to the Skills Development Levy/SDL.
Ensure training in the workplace is formalised /structured
Appoint a full/part time consultant as a Skills Development Facilitator.
Assist managers in identifying skills/training needs to help them to introduce
learnerships.
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The human resources manager 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.
Use the National Qualification Framework/NQF to assess the skills levels of
employees.
Interpret/Implement the aims/requirements of the framework for the National Skills
Development Strategy.
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