Kayla Humphries
Chapter 4 – Human Resource/Human Capital Function
Status of employees has changed, regarded as assets.
Business has to determine current & future value of employees and reward them in
a fair manner.
• Knowing future value of employees should be enhanced through
investment in training and development.
• Reason for change in name to human capital function.
Department responsible to ensure all requirements regarding labour legislation
are met.
Manpower planning as prerequisite for recruitment & selection
• Manpower planning = top-down process
o Meaning strategic plan of business determines what skills are
needed to achieve goals of business.
o Skills acquired via manpower planning & training.
• Manpower planning refers to:
o Estimating number of employees.
o Assessing range of skills required for business to operate.
o Calculating time frame of employment needs of business.
• Accurate manpower planning = each position analysed, described,
specified:
o Job analysis: determine tasks & responsibilities of each job.
o As a result, job description done to specify job title, summary of
job, duties etc. and degree of supervision needed for job.
o Job specification: “interprets” the job description necessary to
perform the job. Used as a guide during recruitment/selection
processes.
Once categories/skills identified, HC function has to ascertain if skills gap is
evident.
• Difference between skills available & skills needed.
• Recruitment & selection processes aim to eliminate skills gap.
, Kayla Humphries
THE PROCESS OF PROCURRING THE FINEST TALENT FOR THE
BUSINESS:
Recruitment Remuneration & employee benefits
Selection Training and skills development
Placement Employee evaluation
Induction Retention
1. Recruitment:
• The main focus of the recruitment process is to attract the most competent
talent
• Task of agent: determine most effective communication channels for
recruitment message.
Internal recruitment - done by transferring an existing employee to a new position or
promoting existing employee.
• The business may invite existing suitable employees to apply for job. This is
done by searching employee files to identify potential candidates based on
skill, qualifications and experience.
• Post positions available on notice boards within the business and to invite
interested staff
• Current employees recommend someone from outside the business for the
position = combination of int. and ext. recruitment.
ADVANTAGES OF INTERNAL RECRUITMENT:
• The employee morale is improved if they know there is an opportunity for
promotion
• It is more cost effective
• The employees past performance and attitude to the business is known
, Kayla Humphries
External recruitment - from outside the company
• The position is advertised via an employment agency
• They may advertise in newspapers, trade journals or trade shows
• The business may approach certain places for suitable candidates e.g.
varsities
• Suitable employees may be sourced by looking at CV’s of casual applicants
• Employees may be head hunted - competitors may be identified and asked
ADVANTAGES OF EXTERNAL RECRUITMENT:
• New ideas and skills are brought into the business
• When an employee is head hunted then they can give information about the
competitors plans
• No infighting occurs among employees for the position
2. Selection
Once the recruitment process is complete the selection process begins by identifying
the most suitable candidates
• CV’s are checked to ensure all pertinent information has been received from
candidates
• Evaluate CV’s to see which candidates meet the prescribed criteria
• Compile a short list of candidates who met the criteria
• A background and reference check is completed
• Interviews are conducted
- Ensures complete impartiality
- They can obtain additional information
- Employee can ask questions about position/organisation.
• Candidates may undergo tests
- Work sample tests
- Medical examination
• The candidates are ranked highest to lowest - the candidate at the top is
selected for the job. Offered to next person if declined.
• A contract is signed by employer and employee - details may include:
- Full details of the employer and employee
- Detail regarding the job title
Selection process favours most desirable candidates. Unsuitable applications
disregarded.
Chapter 4 – Human Resource/Human Capital Function
Status of employees has changed, regarded as assets.
Business has to determine current & future value of employees and reward them in
a fair manner.
• Knowing future value of employees should be enhanced through
investment in training and development.
• Reason for change in name to human capital function.
Department responsible to ensure all requirements regarding labour legislation
are met.
Manpower planning as prerequisite for recruitment & selection
• Manpower planning = top-down process
o Meaning strategic plan of business determines what skills are
needed to achieve goals of business.
o Skills acquired via manpower planning & training.
• Manpower planning refers to:
o Estimating number of employees.
o Assessing range of skills required for business to operate.
o Calculating time frame of employment needs of business.
• Accurate manpower planning = each position analysed, described,
specified:
o Job analysis: determine tasks & responsibilities of each job.
o As a result, job description done to specify job title, summary of
job, duties etc. and degree of supervision needed for job.
o Job specification: “interprets” the job description necessary to
perform the job. Used as a guide during recruitment/selection
processes.
Once categories/skills identified, HC function has to ascertain if skills gap is
evident.
• Difference between skills available & skills needed.
• Recruitment & selection processes aim to eliminate skills gap.
, Kayla Humphries
THE PROCESS OF PROCURRING THE FINEST TALENT FOR THE
BUSINESS:
Recruitment Remuneration & employee benefits
Selection Training and skills development
Placement Employee evaluation
Induction Retention
1. Recruitment:
• The main focus of the recruitment process is to attract the most competent
talent
• Task of agent: determine most effective communication channels for
recruitment message.
Internal recruitment - done by transferring an existing employee to a new position or
promoting existing employee.
• The business may invite existing suitable employees to apply for job. This is
done by searching employee files to identify potential candidates based on
skill, qualifications and experience.
• Post positions available on notice boards within the business and to invite
interested staff
• Current employees recommend someone from outside the business for the
position = combination of int. and ext. recruitment.
ADVANTAGES OF INTERNAL RECRUITMENT:
• The employee morale is improved if they know there is an opportunity for
promotion
• It is more cost effective
• The employees past performance and attitude to the business is known
, Kayla Humphries
External recruitment - from outside the company
• The position is advertised via an employment agency
• They may advertise in newspapers, trade journals or trade shows
• The business may approach certain places for suitable candidates e.g.
varsities
• Suitable employees may be sourced by looking at CV’s of casual applicants
• Employees may be head hunted - competitors may be identified and asked
ADVANTAGES OF EXTERNAL RECRUITMENT:
• New ideas and skills are brought into the business
• When an employee is head hunted then they can give information about the
competitors plans
• No infighting occurs among employees for the position
2. Selection
Once the recruitment process is complete the selection process begins by identifying
the most suitable candidates
• CV’s are checked to ensure all pertinent information has been received from
candidates
• Evaluate CV’s to see which candidates meet the prescribed criteria
• Compile a short list of candidates who met the criteria
• A background and reference check is completed
• Interviews are conducted
- Ensures complete impartiality
- They can obtain additional information
- Employee can ask questions about position/organisation.
• Candidates may undergo tests
- Work sample tests
- Medical examination
• The candidates are ranked highest to lowest - the candidate at the top is
selected for the job. Offered to next person if declined.
• A contract is signed by employer and employee - details may include:
- Full details of the employer and employee
- Detail regarding the job title
Selection process favours most desirable candidates. Unsuitable applications
disregarded.
