Summary Business Studies Chapter 4 (Human Capital)

CHAPTER 4
THE HUMAN RESOURCE / HUMAN CAPITAL FUNCTION
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MANPOWER PLANNING AS A PREREQUISITE FOR
RECRUITMENT AND SELECION
This means that the strategic plan of the business will determine which skills are
needed to achieve the goals of the business. Manpower planning refers to the process
of:

• Estimating the number of employees
• Assessing the range of skills required
• Calculating the time framer of the employment needs of the business
Accurate manpower planning:

• Job analysis – determine all tasks and responsibilities associated with each job
in the organisation
• Job description – is done to specify the job title, a summary of the job, duties and
working condition associated with the job
• Job satisfaction – “interprets” the job descriptions into qualifications, skills, and
experience necessary for the employee



THE PROCESS OF PROCURING THE FINEST TALENT FOR THE
BUSINESS
RECRUITMENT
The main focus of the recruitment process is to attract the most competent talent. The
task of the recruitment agent is to determine the most effective communication
channels to be used for the recruitment message.
Consider internal and external options, then select the most appropriate option for the
type of employee desired:
Internal recruitment – transferring an existing employee to a new position or by
promoting an existing employee.

• The business may invite existing employees, to apply for the job
• Post the position on an intranet or notice board
• Current employees may also be asked to recommend someone outside of the
business
The advantage:

• Employee morale is improved if they know there are opportunities for promotion
• It is more cost effective
• Employees past performance and attitude is known

, External recruitment – the business recruits’ employees externally This can be done by
using one or a combination of the following techniques:

• The position is advertised via an employment agency
• Decide to advertise the position in newspapers, trade journals or at trade shows
• Depending on the qualifications needed they can seek suitable candidates
• Suitable employees may be sourced by looking at CVs of casual applicants or
“walk-ins”
• Employees can also be “head hunted”
The advantages:

• New skills and ideas are brought in
• Gives a business an opportunity to employ more Affirmative Action candidates to
meet Employment Equity targets
• Head hunted employees can provide insight into operations of competitors
• No infighting occurs among employees for the position


SELECTION
The recruitment process is complete the selection process begins after by identifying
the most suitable candidates to interview for the position.
A. In response to the position advertised, the business will receive application
forms
B. Evaluate all the application forms and CVs to see which candidates meet the
prescribed criteria
C. Compile a shortlist of candidates for the first round screening
D. A background and reference check is done
E. Interviews are conducted
F. Candidates may be required to undergo certain tests to evaluate their suitability
for the position:
• Work sample tests – to measure the candidate’s ability and their actual
performance. Psychometric tests – to check if the candidate’s mental
ability and personality are well matched for the position
• A medical examination may only be conducted if a certain aspect is an
inherent requirement of the job
G. Candidates are ranked and the highest rated candidate who gets all or most of
the requirements is offered the position
H. A contract is signed by both parties. Details specified in the employment
contract my include:
• Full details of the employer
• Full details of the employee
• Details regarding the position