Grade 12 Business Studies
Luthando Zulu – Teach Me 2
Human Resources/Human Capital Management:
HR management includes all activities and decisions intended to improve the effectiveness of employees and of business as a
whole.
Employees are regarded as an asset with certain skills, knowledge, experience, characteristics and attitudes.
The business has to determine current and future value of employees, reward them in a fair manner and invest in training and
development of employees.
MANPOWER PLANNING: Manpower planning is a prerequisite for recruitment and selection. It is a top-down process – strategic plan to
determine which skills are needed to achieve the goals of the business. The process of manpower planning involves identifying:
How many employees the business needs?
What skills these employees must have?
When these employees will be needed?
The following techniques can be applied to answer these questions:
Work-load To determine how many people are needed for the amount of work that must be done.
analysis
Job analysis Determine all the tasks and responsibilities associated with each job. Information can be gathered through interviews, observation
of the worker (work study) and or questionnaires.
➢ Job description (about the job): Specify the job title, a summary of the job, duties, working conditions, degree of
supervision required to perform the job. State what is to be done, how it should be done, why, when and where.
➢ Job specification (about the worker): Interprets the job description into qualifications, skills and experience
necessary for the employee to do the job. This is used as a guide for recruitment and selection.
Results from these analyses will enable HR manager to draw up a manning table showing the number of people required and the skills they
must have.
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Gr 12 Business Studies HR
Position Employees Skills required
required
Secretary 2 Competent in Word and Excel
Domestic 1 Cleaning, preparation or refreshments and basic
First Aid
Manual labourers 9 Short description relevant to the position
TOTAL 12
Recruitment
Example of
Recruitment plan will then be drawn up, based on the difference between employees needed and current employees.
Position Required employees Present employees Number to be
Plan
recruited
Secretary 2 1 1
Domestic 1 1 0
Labourers 9 6 3
TOTAL 12 8 4
The HR function must determine if there is a skills gap - the difference between skills available and skills needed. Recruitment, selection and
training process will eliminate the skills gap.
THE PROCESS OF PROCURING (FINDING) THE FINEST TALENT
RECRUITMENT: Recruiting is attracting the most competent job applicants with the necessary skills and motivation to cover skills
shortages. There are certain internal and external options available when recruiting potential candidates
, 3
Gr 12 Business Studies HR
Internal External
Within the firm where people can be appointed to new positions by Outside the business by appointing people from other businesses,
means of transfer, upgrade or promotion schools, colleges and universities
Important to determine the most effective communication channel for the recruitment message. The whole recruitment process may be
observed by staff representatives e.g., a trade union representative to ensure that the process is fair to all applicants.
Internal recruiting External recruiting
A number of techniques can be used: When the organization cannot find the right person from within they
• Job posting – the employer notifies all present employees of have to recruit externally. The following techniques can be used:
vacancies (intranet or notice boards) and interested staff can apply. • Employment Agencies: Some operate exclusively on the internet
• Skills inventories – organization searches its files for potentially while others traditional advertising media.
• Business advertising: Newspapers, trade journals, radio, window
qualified candidates by looking at skills, qualifications and
displays or trade shows.
experience and identified candidates are contacted and asked if• Educational institutions: Schools, colleges, universities, etc.
they want to apply. depending on the qualifications needed for the position.
• Hybrid (combination of internal and external) – present• Walk-ins: Look at the CV’s of casual applicants
employees recommend someone outside the business. • Head-hunt: Suitable employee who works for a competitor is
identified and asked to apply for the vacant position.
• Advantages of internal recruitment:
• Advantages of external recruitment:
o Opportunities for promotion improve employee morale
o New ideas and skills brought into the business
o More cost effective
o Opportunity to employ more Affirmative Action candidates to
o Employee’s past performance and attitude towards the
meet EE targets.
business is known.
o People who are head-hunted may give insight into operations of
competitors.
o No infighting among employees for the position.
SELECTION: After recruitment process, selection process begins by identifying the most suitable candidate to interview for the position.
Selection usually consist of the following steps:
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