THE HUMAN RESOURCE/HUMAN CAPITAL
FUNCTION
1. Manpower planning as a prerequisite for recruitment and
selection
Manpower planning refers to the process of:
• Estimating the number of employees needed.
• The skills required.
• The time frame of employment needed.
To do accurate manpower planning each job in the business must be analysed, described and a job specification
must be drafted.
• A job analysis is a performed to determine the tasks and responsibilities associated with the job.
• Job description – specifies the job title, summary of the job, duties, working conditions, and the degree
of supervision required to do the job.
• Job specification – interprets the job description into qualifications, skills, and experience necessary.
The job description guides the recruitment and selection process.
2. The process of procuring
2.1 Recruitment
Forms of internal recruitment:
• The business invites existing employees they feel may be suitable to apply for the job.
• The position may be posted on the intranet or notice board inviting interested employees to apply.
• Current employees may be asked to recommend someone outside the business for the job.
Advantage of internal recruitment:
✓ Improves employee morale if they know there is opportunities for promotion.
✓ Cost effective.
✓ Employee performance and attitude is known.
Form of external recruitment:
• The position is advertised through an employment agency.
• The position is advertised in newspapers, trade journals, or at trade shows.
• The business may approach schools, colleges, or universities to seek suitable candidates.
• Looking at CVs of casual walk-ins.
• Head-hunting: this is when suitable employee who works for a competitor is asked to apply.
Advantages of external recruitment:
✓ New ideas and skills are brought into the business.
✓ Gives the business an opportunity to employ more Affirmative Action candidates to meet Employment
Equity targets.
✓ When an employee is head hunted, they provide insights on competitors.
✓ No infighting occurs between employees for the position.
, 2.2 Selection
The selection process is as follows:
1. The business will assess all relevant application forms and information such as CVs.
2. These forms will be evaluated to see which candidates meet the criteria.
3. A shortlist of the most suitable candidates will be compiled for the first round of screening.
4. Background checks are conducted.
5. Interviews are conducted.
6. Candidates may be required to undergo certain tests to evaluate their suitability for the position.
7. Candidates are ranked in order of preference. The most suitable candidate is offered the position, if they
don’t accept the next most suitable candidate is offered the position.
8. Once the offer is accepted, a contract is signed by both parties. The Employment contract includes:
- Full details of the employer.
- Full details of employee.
- Details regarding the position.
2.3 Placement
The employee is placed in the position for which they applied.
2.4 Induction
Induction is training (orientation) given to all new employee to help them adjust to the business as soon as
possible. An effective induction program may include:
✓ A copy of the business’ policies and procedures.
✓ Some form of organisational chart to identify the various role players in the business.
✓ A face-to-face introduction with managers and employees.
✓ A tour.
✓ Precise instructions on how certain tasks should be performed.
✓ Allocating the new employee a “buddy” or mentor to help them if needed.
Advantages of a well-structed and well-implemented induction program:
✓ It reduces stress and anxiety the new employee faces.
✓ Ensures the employee starts off with the correct information to do the job.
✓ It prevents wasting time because employees learn the procedures immediately.
✓ New employees quickly adapt to the business culture.
✓ Staff retention is higher.
2.5 Remuneration and employee benefits
How employees may be remunerated:
• Permanent or temporary workers may earn a salary. A salary is a fixed amount paid once a month.
• Wages – paid weekly or daily and may be a fixed sum or calculated according to output.
• Commission – often used in sales and is where the employee receives a percentage of the sale, therefore
more sales = more commission. This motivates employees to make more sales.
• Additional remuneration may come in the form of bonuses.
According to the BCEA (Basic Conditions of Employment Act) the employer can’t deduct any money from an
employee’s remuneration unless it’s:
A voluntary deduction being made.
A legal requirement like UIF or income tax.
The BCEA also states restrictions on how much overtime an employee may work and how overtime
remuneration should be calculated.
FUNCTION
1. Manpower planning as a prerequisite for recruitment and
selection
Manpower planning refers to the process of:
• Estimating the number of employees needed.
• The skills required.
• The time frame of employment needed.
To do accurate manpower planning each job in the business must be analysed, described and a job specification
must be drafted.
• A job analysis is a performed to determine the tasks and responsibilities associated with the job.
• Job description – specifies the job title, summary of the job, duties, working conditions, and the degree
of supervision required to do the job.
• Job specification – interprets the job description into qualifications, skills, and experience necessary.
The job description guides the recruitment and selection process.
2. The process of procuring
2.1 Recruitment
Forms of internal recruitment:
• The business invites existing employees they feel may be suitable to apply for the job.
• The position may be posted on the intranet or notice board inviting interested employees to apply.
• Current employees may be asked to recommend someone outside the business for the job.
Advantage of internal recruitment:
✓ Improves employee morale if they know there is opportunities for promotion.
✓ Cost effective.
✓ Employee performance and attitude is known.
Form of external recruitment:
• The position is advertised through an employment agency.
• The position is advertised in newspapers, trade journals, or at trade shows.
• The business may approach schools, colleges, or universities to seek suitable candidates.
• Looking at CVs of casual walk-ins.
• Head-hunting: this is when suitable employee who works for a competitor is asked to apply.
Advantages of external recruitment:
✓ New ideas and skills are brought into the business.
✓ Gives the business an opportunity to employ more Affirmative Action candidates to meet Employment
Equity targets.
✓ When an employee is head hunted, they provide insights on competitors.
✓ No infighting occurs between employees for the position.
, 2.2 Selection
The selection process is as follows:
1. The business will assess all relevant application forms and information such as CVs.
2. These forms will be evaluated to see which candidates meet the criteria.
3. A shortlist of the most suitable candidates will be compiled for the first round of screening.
4. Background checks are conducted.
5. Interviews are conducted.
6. Candidates may be required to undergo certain tests to evaluate their suitability for the position.
7. Candidates are ranked in order of preference. The most suitable candidate is offered the position, if they
don’t accept the next most suitable candidate is offered the position.
8. Once the offer is accepted, a contract is signed by both parties. The Employment contract includes:
- Full details of the employer.
- Full details of employee.
- Details regarding the position.
2.3 Placement
The employee is placed in the position for which they applied.
2.4 Induction
Induction is training (orientation) given to all new employee to help them adjust to the business as soon as
possible. An effective induction program may include:
✓ A copy of the business’ policies and procedures.
✓ Some form of organisational chart to identify the various role players in the business.
✓ A face-to-face introduction with managers and employees.
✓ A tour.
✓ Precise instructions on how certain tasks should be performed.
✓ Allocating the new employee a “buddy” or mentor to help them if needed.
Advantages of a well-structed and well-implemented induction program:
✓ It reduces stress and anxiety the new employee faces.
✓ Ensures the employee starts off with the correct information to do the job.
✓ It prevents wasting time because employees learn the procedures immediately.
✓ New employees quickly adapt to the business culture.
✓ Staff retention is higher.
2.5 Remuneration and employee benefits
How employees may be remunerated:
• Permanent or temporary workers may earn a salary. A salary is a fixed amount paid once a month.
• Wages – paid weekly or daily and may be a fixed sum or calculated according to output.
• Commission – often used in sales and is where the employee receives a percentage of the sale, therefore
more sales = more commission. This motivates employees to make more sales.
• Additional remuneration may come in the form of bonuses.
According to the BCEA (Basic Conditions of Employment Act) the employer can’t deduct any money from an
employee’s remuneration unless it’s:
A voluntary deduction being made.
A legal requirement like UIF or income tax.
The BCEA also states restrictions on how much overtime an employee may work and how overtime
remuneration should be calculated.
