Human Capital
Manpower planning
• Top-down process.
• The strategic plan will detemine what skills are needed to achieve the goals of the business.
Number of employees Range of skills Timeframe of
needed needed employment needs
Job analysis Tasks and responsibilities associated with each job.
Job description Job title, summary of the job, duties and working conditions and the degree of
supervision.
Job speci cation Quali cations, skills and experience needed to do the job.
Skills gap Di erence between skills needed and skills available.
Procurement Process
1. Recruitment
• Process of attracting the most competent sta .
Internal: transferring an existing employee to a External: looking outside the business.
new position or promoting them. 1. Advertuse through an employment agency.
1. Invite existing employees to apply for the 2. Advertise in newspaper, journals or trade
position. journals.
2. Search internal les or post to intranet. 3. Approach schools, universities or colleges.
3. Hybrid method: internal sta recommend an 4. CVs of casual applicants or ‘walk-ins’ are
outsider. considered.
5. Employees can be head-hunted.
Advantages Advantages
Morale improves New ideas and skills
Opportunity to employ a rmative action candidates
It is cost-e ective
If head-hunted, they can provide insight into competitors
Past performance and attitude is known
No in ghting
2. Selection
• Identifying the most competent sta .
Business receives application forms, CVs and other relevant documentation. This is checked to
make sure everything has been received.
All applications and CVs are evaluated to see who meets the prescribed criteria. Candidates who
don’t meet the criteria are informed.
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, A shortlist is compiled of candidates for the rst round of screening. Each applicant is compared
to a predetermined list of criteria.
A background and reference check is done. A predetermined list of questions veri es an
applicants references and ensures fairness.
Interviews are conducted. Should be done with a panel and a list of predetermined questions. The
purpose is to assess the applicant and their qualities.
Candidates can be asked to undergo certain tests.
Work sample: measures the candidates ability to do their job.
Psychometric test: measures the candidates mental ability and personality.
Medical exam: conducted if certain health requirements are an inherent requirement for the job.
In order of preference, candidates are ranked and the highest on the list is o ered the job. If they
decline, the next person on the list is o ered the job.
Once the employment o er is accepted, an employment contract is signed.
3. Placement
• Usually placed in the position applied for.
• If it emerges that the employee has a special skill that makes them suitable for a di erent position, they should
be put in that position.
• To move an employee to another position requires the employment contract being re-negotiated.
4. Induction
• NOT THE SAME AS TRAINING!
• It is training that is done with ALL NEW employees to get them accustomed to the business.
• There is no “one-size- ts-all” recipe for an induction programme but there are a few things that should always
be included:
1. Written copy of policies and procedures.
2. Organogram or organisational chart.
3. A face-to-face introduction with sta members in department and management.
4. A tour of facilities.
5. Precise instructions outlining how new sta should perform certain tasks.
6. A mentor or buddy system.
Advantages of a good induction programme:
Helps reduce stress and anxiety. New employees become mindful of the business culture.
Ensures new sta start with the right information. Retention of sta is higher.
Prevents wasting time and resources.
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Manpower planning
• Top-down process.
• The strategic plan will detemine what skills are needed to achieve the goals of the business.
Number of employees Range of skills Timeframe of
needed needed employment needs
Job analysis Tasks and responsibilities associated with each job.
Job description Job title, summary of the job, duties and working conditions and the degree of
supervision.
Job speci cation Quali cations, skills and experience needed to do the job.
Skills gap Di erence between skills needed and skills available.
Procurement Process
1. Recruitment
• Process of attracting the most competent sta .
Internal: transferring an existing employee to a External: looking outside the business.
new position or promoting them. 1. Advertuse through an employment agency.
1. Invite existing employees to apply for the 2. Advertise in newspaper, journals or trade
position. journals.
2. Search internal les or post to intranet. 3. Approach schools, universities or colleges.
3. Hybrid method: internal sta recommend an 4. CVs of casual applicants or ‘walk-ins’ are
outsider. considered.
5. Employees can be head-hunted.
Advantages Advantages
Morale improves New ideas and skills
Opportunity to employ a rmative action candidates
It is cost-e ective
If head-hunted, they can provide insight into competitors
Past performance and attitude is known
No in ghting
2. Selection
• Identifying the most competent sta .
Business receives application forms, CVs and other relevant documentation. This is checked to
make sure everything has been received.
All applications and CVs are evaluated to see who meets the prescribed criteria. Candidates who
don’t meet the criteria are informed.
ff fi fiff fi ffi ff ff ff
, A shortlist is compiled of candidates for the rst round of screening. Each applicant is compared
to a predetermined list of criteria.
A background and reference check is done. A predetermined list of questions veri es an
applicants references and ensures fairness.
Interviews are conducted. Should be done with a panel and a list of predetermined questions. The
purpose is to assess the applicant and their qualities.
Candidates can be asked to undergo certain tests.
Work sample: measures the candidates ability to do their job.
Psychometric test: measures the candidates mental ability and personality.
Medical exam: conducted if certain health requirements are an inherent requirement for the job.
In order of preference, candidates are ranked and the highest on the list is o ered the job. If they
decline, the next person on the list is o ered the job.
Once the employment o er is accepted, an employment contract is signed.
3. Placement
• Usually placed in the position applied for.
• If it emerges that the employee has a special skill that makes them suitable for a di erent position, they should
be put in that position.
• To move an employee to another position requires the employment contract being re-negotiated.
4. Induction
• NOT THE SAME AS TRAINING!
• It is training that is done with ALL NEW employees to get them accustomed to the business.
• There is no “one-size- ts-all” recipe for an induction programme but there are a few things that should always
be included:
1. Written copy of policies and procedures.
2. Organogram or organisational chart.
3. A face-to-face introduction with sta members in department and management.
4. A tour of facilities.
5. Precise instructions outlining how new sta should perform certain tasks.
6. A mentor or buddy system.
Advantages of a good induction programme:
Helps reduce stress and anxiety. New employees become mindful of the business culture.
Ensures new sta start with the right information. Retention of sta is higher.
Prevents wasting time and resources.
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