CHAPTER 4 – HUMAN CAPITAL/HUMAN RESOURCE
They have the responsibility to ensure all requirements regarding labor legislation are met
and assert if a gap in skills is evident
GAP – Difference between skills available in the business and skills needed
1. MANPOWER
This is a top down process, meaning that the strategic plan of the business will determine
what skills are needed to achieve the goals of the business
Refers to:
1) estimating the number of employees
2) assessing range of skills required
3) calculating time frame of employment needs of business
The job must be:
1. Analyzed (JOB ANALYSIS)
Used to determine all tasks and responsibilities associated with each job
2. Described (JOB DESCRIPTION)
Specifies the job title, a summary of job and degree of supervision required
3. Job specific (JOB SPECIFICATION)
This interprets the job description into qualifications and skills necessary
Used as a guide during the recruitment process
NB – Aim of the recruitment and selection process is to eliminate the skills gap
2. PROCESS OF PROCURING THE FINEST TALENT
1) Recruitment
The business needs to attract the most competent talent, weighing in the internal and
external options available when recruiting potential candidates
HYBRID RECRUITMENT –
Current employees may be asked to recommend someone outside of the business
,Task of recruitment agent:
Determine the most effective communication channels
Internal Recruitment:
Transferring an existing employee to a new position or via promotion
- The business may invite existing employees who are candidates for the job to apply for the
position (done by searching files to identify candidates based on skills and qualifications)
- The business may post the position on an intranet or notice board within the business to
invite staff to apply
ADVANTAGES –
Employee morale is improved if they know there is opportunities for promotion
More cost effective
Employees past performance is known
External Recruitment:
- The position is advertised via an employment agency
- Advertised in the newspaper
- The business may approach schools or universities
- Employees may be head hunted (a suitable employee who works for a competitor is
identified and asked to apply for the position)
ADVANTAGES –
New ideas and skills are brought into the business
Can employ more affirmative action candidates to meet with employment equity act
Insight into operations of competitors
2) Selection
After recruitment, the selection process begins by identifying the most suitable candidates
to interview for the position
, STEPS
1. The business will receive CV’S and application forms that is pertinent from the
candidates.
2. The business will evaluate all the CV’s and application forms to see which candidates
meet the criteria. Candidates not meeting criteria are informed.
3. The business will compile a shortlist of candidates for the first screening round. This is
done by comparing the candidates to predetermined criteria.
4. A background and reference check will be done, while checking for criminal record or
credit checks if needed.
5. Interviews will be done. The interview will be conducted by a panel using a list of
questions to ensure complete impartiality. The business can also obtain any other
relevant information and allows the candidate to ask questions about the position
6. Candidates may undergo certain tests such as a work sample test to measure their
actual performance or a psychometric test.
7. A medical examination will be done if certain health aspects are needed for the job.
8. Candidates who are the highest rated meeting all or most of the requirements will be
offered the job.
9. Once the offer is accepted, a contract will be signed by the employer and the employee
EMPLOYMENT CONTRACT
Full details of employee
Full details of employer
Details regarding job title, duties and notice perios
3) Placement
The employee will be placed into the position they applied for
Correct placement:
Ensures the employee is optimally utilized in the best interests of the individual and the
business
They have the responsibility to ensure all requirements regarding labor legislation are met
and assert if a gap in skills is evident
GAP – Difference between skills available in the business and skills needed
1. MANPOWER
This is a top down process, meaning that the strategic plan of the business will determine
what skills are needed to achieve the goals of the business
Refers to:
1) estimating the number of employees
2) assessing range of skills required
3) calculating time frame of employment needs of business
The job must be:
1. Analyzed (JOB ANALYSIS)
Used to determine all tasks and responsibilities associated with each job
2. Described (JOB DESCRIPTION)
Specifies the job title, a summary of job and degree of supervision required
3. Job specific (JOB SPECIFICATION)
This interprets the job description into qualifications and skills necessary
Used as a guide during the recruitment process
NB – Aim of the recruitment and selection process is to eliminate the skills gap
2. PROCESS OF PROCURING THE FINEST TALENT
1) Recruitment
The business needs to attract the most competent talent, weighing in the internal and
external options available when recruiting potential candidates
HYBRID RECRUITMENT –
Current employees may be asked to recommend someone outside of the business
,Task of recruitment agent:
Determine the most effective communication channels
Internal Recruitment:
Transferring an existing employee to a new position or via promotion
- The business may invite existing employees who are candidates for the job to apply for the
position (done by searching files to identify candidates based on skills and qualifications)
- The business may post the position on an intranet or notice board within the business to
invite staff to apply
ADVANTAGES –
Employee morale is improved if they know there is opportunities for promotion
More cost effective
Employees past performance is known
External Recruitment:
- The position is advertised via an employment agency
- Advertised in the newspaper
- The business may approach schools or universities
- Employees may be head hunted (a suitable employee who works for a competitor is
identified and asked to apply for the position)
ADVANTAGES –
New ideas and skills are brought into the business
Can employ more affirmative action candidates to meet with employment equity act
Insight into operations of competitors
2) Selection
After recruitment, the selection process begins by identifying the most suitable candidates
to interview for the position
, STEPS
1. The business will receive CV’S and application forms that is pertinent from the
candidates.
2. The business will evaluate all the CV’s and application forms to see which candidates
meet the criteria. Candidates not meeting criteria are informed.
3. The business will compile a shortlist of candidates for the first screening round. This is
done by comparing the candidates to predetermined criteria.
4. A background and reference check will be done, while checking for criminal record or
credit checks if needed.
5. Interviews will be done. The interview will be conducted by a panel using a list of
questions to ensure complete impartiality. The business can also obtain any other
relevant information and allows the candidate to ask questions about the position
6. Candidates may undergo certain tests such as a work sample test to measure their
actual performance or a psychometric test.
7. A medical examination will be done if certain health aspects are needed for the job.
8. Candidates who are the highest rated meeting all or most of the requirements will be
offered the job.
9. Once the offer is accepted, a contract will be signed by the employer and the employee
EMPLOYMENT CONTRACT
Full details of employee
Full details of employer
Details regarding job title, duties and notice perios
3) Placement
The employee will be placed into the position they applied for
Correct placement:
Ensures the employee is optimally utilized in the best interests of the individual and the
business
