Business Studies Grade 12 | Human Resource Function

Human resource function


The Human Resources function plays a crucial role in any business, and significantly impacts the quality of employees a company attracts and retains. This multifaceted function covers various disciplines and activities that are essential for achieving organizational goals. These include recruiting, hiring, onboarding, placement, salary determination, benefits, and compliance with legislation, which all further the achievement of the organization’s objectives.

The Human resource activities

Human resource activities include a broad range of essential functions within an organization, all directed towards managing and optimizing the workforce to effectively achieve organizational goals. These activities
include:

1, Recruitment

Recruitment is the process used by businesses to identify specific job openings within the organization and attract suitable candidates to fill them. Businesses may choose to use either internal or external recruitment methods based on the nature and requirements of the job.

Employees are a business’s most valuable asset and effectiveness of recruitment processes influence business success. Recruitment aims to attract/source the best applicants with required skills, knowledge, qualifications, competencies, and experience to fill vacancies

Recruitment is typically a continuous process due to employees leaving for new opportunities, advancing within the company, retiring, or the emergence of new technical skill requirements. The process begins with the active search for and identification of potential candidates for job vacancies and concludes with the effective integration of the chosen candidate into the company.

The recruitment procedure


The following key steps constitute the recruitment procedure,

1, Evaluate the Job and Prepare a Job Analysis
The first step in the recruitment process is for the HR manager to evaluate the job thoroughly. This involves preparing a detailed job analysis that includes both the job specification and job description. The job analysis is crucial as it helps identify the specific recruitment needs by outlining the necessary skills, qualifications, and responsibilities associated with the position. For example, for a marketing manager position, the job analysis would include responsibilities like developing marketing strategies, managing the marketing team, and analyzing market trends.

2, Indicate Job Specifications and Key Performance Areas
Once the job analysis is complete, the HR manager must clearly define the job specifications and key performance areas. These details are essential to attract suitable candidates. Job specifications outline the required qualifications, experience, and skills, while key performance areas highlight the primary responsibilities and expectations for the role. For instance, for a marketing manager role, the job specification might include a bachelor’s degree in marketing, 5 years of experience in a similar position, and strong leadership and analytical skills.

3, Choose the Method of Recruitment
The HR manager must then decide on the method of recruitment to be used, choosing between internal and external recruitment. This decision is based on where the most suitable applicants are likely to be found. Internal recruitment can save time and resources, while external recruitment can bring in fresh talent and new perspectives. For example, if the company has a strong internal talent pool, internal recruitment via job postings or employee referrals might be the preferred method.

4, Select Recruitment Sources
If the decision is made to pursue external recruitment, the HR manager must select appropriate recruitment sources. These sources can include recruitment agencies, tertiary institutions, newspapers, and electronic media. The choice of sources should align with the target audience to ensure that the job posting reaches the most qualified candidates.

5, Internal Advertisement of Vacancies
Before resorting to external recruitment, it is important to advertise the vacancies internally. This can be done through various internal communication channels such as internal email, word of mouth, posters, and office notice boards. Internal advertisements give current employees the opportunity to apply for the position, which can be beneficial for morale and career development within the company.

6, Consider External Recruitment if Necessary
If internal recruitment efforts do not yield suitable candidates, external recruitment should be considered. This step ensures that all possible avenues are explored to find the best fit for the job, especially when internal options have been exhausted.

7, Prepare the Advertisement
Once the recruitment method and sources are determined, the HR manager should prepare a comprehensive advertisement. This advertisement must include all relevant information such as the name of the company, contact details, and the contact person. A well-prepared advertisement is essential for attracting the right candidates.

8, Place the Advertisement
The final step is to place the advertisement in the selected media channels. This strategic placement ensures that the job posting reaches the intended audience and attracts the best possible candidates. Whether through newspapers, online job portals, or social media, the aim is to maximize the visibility of the job advertisement to find the ideal candidate for the position.

Job Analysis


What is Job Analysis?


Job analysis is a tool used by the human resources (HR) function to gather and evaluate information about a business’s workforce. This process helps to ensure that the right person is recruited and placed in the right job, thereby aligning employee skills and capabilities with the specific needs of the organization.

A job analysis consists of a job description and a job specification. It is crucial for the employer to have a clear understanding of the type of work a potential employee is expected to perform in order to create a suitable job description and job specification.

Business functions and the activities of the business.

The differences between a job description and job specification

The differences between a job description and job specification are as follows

1, A job description outlines the duties and responsibilities of a specific job, whereas a job specification details the minimum personal qualities, skills, and qualifications required for the job.

2, A job description provides a written summary of the job and its requirements, detailing the nature and type of the job. In contrast, a job specification outlines the specific qualifications, skills, and experience required for the job.

3, A job description outlines the key performance areas of a specific role, including the job title, duties, working conditions, location of the workplace, and the job’s relationship with other positions within the company. on the other hand, a job specification details the essential requirements needed by the person who will fill the role, such as formal qualifications, willingness to travel, and availability to work unusual hours.

Methods of recruitment
There are two primary methods of recruitment that a business may employ, namely internal and external recruitment and the choice of recruitment method is dictated by the nature of the job and its specific requirements.

Internal recruitment
Internal recruitment is the process of sourcing from a company’s current workforce for open roles within the organization.

Sources of internal recruitment

Below are the most common sources of internal recruitment:

1, Internal Emails/Intranet/Websites to Staff
This method involves sending out emails, posting on the company intranet, or advertising job openings on internal websites to notify current employees about available positions. It ensures that all employees are informed about new opportunities within the organization.

2, Word of Mouth
This approach relies on informal communication among colleagues or managers to spread the word about job opportunities within the company. It leverages personal networks and direct conversations to disseminate information about open roles.

3, Business Newsletters/Circulars to Staff
This strategy includes job openings and opportunities in regular newsletters or circulars sent to employees. By incorporating job announcements in these communications, the company keeps staff updated on available positions as part of their routine informational materials.

4, Internal/Management Referrals
This technique encourages current employees or managers to refer potential candidates from within their networks or among acquaintances. Referrals often come from trusted sources, potentially leading to higher quality candidates.

5, Office Notice Boards
This practice involves posting physical notices or job advertisements on bulletin boards within the office premises. It provides a visible and accessible way for employees to learn about new job opportunities while moving around the workplace.

6, Internal Bulletins
This method uses internal communication platforms to publish announcements or updates regarding job openings. Bulletins can be regularly updated and are typically accessible to all employees, ensuring timely dissemination of information.

7, Recommendation of Current Employees
This tactic is similar to referrals, where current employees may recommend or endorse their peers for open positions. It relies on employees’ knowledge of their colleagues’ skills and suitability for specific roles.

8, Headhunting within the Business/Organizational Database
This method involves actively seeking out potential candidates within the company’s existing talent pool or employee database, which may include qualified individuals who haven’t necessarily applied for a specific role.

The Impact of Internal Recruitment

Positives/Advantages

1, Promotion and Transfer of Existing Employees
The business recruits existing employees through promotions and transfers, providing a clear career progression path and retaining valuable talent within the organization.

2, Motivation Through Promotion
Opportunities for promotion serve as a reward for good work, motivating current employees to perform at their best, knowing that their efforts can lead to career advancement.

3, Retention of Reliable Staff
Reliable and key staff members are retained when they are promoted or transferred within the business, ensuring that their experience and institutional knowledge continue to benefit the organization.

4, Increased Staff Morale and Productivity
Staff morale and productivity increase when suitable staff members are promoted regularly. Recognizing and advancing internal talent fosters a positive work environment and encourages employees to stay engaged and committed.

5, Understanding of Business Operations
Current employees already understand the operations and functions of the business, reducing the learning curve and increasing efficiency when they transition into new roles.

6, Knowledge of Candidate’s Personality and Abilities
The business is already familiar with the personality, strengths, and weaknesses of internal candidates, allowing for more informed and confident hiring decisions.

7, Faster and Less Expensive Recruitment Process
The recruitment process is faster and less expensive when candidates are known to the business. There is no need for extensive advertising, and the vetting process is streamlined, reducing overall hiring costs and time.

Disadvantages of internal recruitment

The following disadvantages may be experienced when a business recruits internally.

1, Internal recruitment may limit idea generation
Current employees may not bring new ideas into the business, leading to a limited influx of fresh perspectives and innovative thinking.

2, This method can cause resentment among employees
Promoting a current employee may cause resentment among existing or other employees, potentially creating tension and dissatisfaction within the team.

3, Internal recruitment has a limited pool of applicants
The number of applicants is limited to current staff only, which may restrict the business from finding the best possible candidate for the position.

4, This method may lead to promoting unqualified employees
Employees who do not have the required skills for the new job may be promoted, which can result in inefficiencies and performance issues in the new role.

5, Internal recruitment can be costly and time-consuming
Current employees may need to be trained or developed before they can be promoted, which can be both expensive and time-consuming for the business.

6, This method can demotivate employees who are not promoted
Employees who are not promoted may feel demotivated, which may hamper productivity and reduce overall morale
within the organization.

External recruitment.


External recruitment refers to the process of hiring individuals from outside an organization.

Sources of external recruitment.

  1. Traditional Print Media
    Businesses can utilize traditional print media like newspapers, flyers, and magazines to reach a wide audience, effectively targeting diverse demographics.
  2. Electronic Media Platforms
    They can also make use of electronic media platforms such as radio and TV to broadcast job openings to a large audience, enabling them to attract candidates from various backgrounds.
  3. Social Media and Online Job Boards
    Another approach is to leverage social media, social networks, internet job boards, and business websites to reach a vast online audience. These platforms offer targeted advertising options and facilitate interactions with potential candidates.
  4. Recruitment Agencies and Staffing Firms
    Businesses can partner with recruitment agencies or staffing firms to access their extensive candidate databases and benefit from their expertise in sourcing and screening applicants.
  5. Walk-in Applicants
    They may also consider accepting walk-in applicants who directly approach seeking job opportunities, allowing for spontaneous interactions and immediate assessments of potential candidates.
  6. Headhunters and Executive Search Firms
    Engaging headhunters or executive search firms to actively seek out and recruit highly qualified candidates, often from competitor organizations or specific industries, is another option.
  7. Professional Associations
    Connecting with professional associations relevant to the industry or job role to access their networks and advertise job openings to qualified professionals is also a viable strategy.
  8. Networking
    Networking with industry professionals, colleagues, and acquaintances can help spread the word about job opportunities and attract potential candidates through referrals.
  9. Educational Institutions and Training Centers
    Collaborating with educational institutions and training centers to target students, graduates, and professionals seeking career advancement opportunities is another effective method.
  10. Posters and Billboards
    Lastly, businesses can use posters and billboards placed just outside the business premises to attract the attention of passersby and potential candidates in the local area. These visual displays serve as effective marketing tools to promote job openings.

The impact of external recruitment

Positives or advantages of external recruitment.

A business may experience the following advantages when it decides to recruit externally

1, New talents, ideas, experiences, skills, and knowledge:
External recruitment broadens the talent pool by bringing in individuals who offer fresh perspectives and skills. For instance, a marketing firm may hire a candidate from a different industry who can introduce innovative strategies learned from their previous experiences.

2, Meeting affirmative action/EEA and BBBEE targets:
External recruitment can assist businesses in meeting diversity and inclusion goals mandated by affirmative action, Equal Employment Opportunity Act (EEA), or Broad-Based Black Economic Empowerment (BBBEE) regulations. For example, a company aiming to increase its representation of minority groups may actively recruit candidates from those communities.

3, Larger pool of candidates:
By looking beyond internal resources, businesses have access to a broader range of candidates with varying backgrounds and experiences. This increases the likelihood of finding the ideal candidate for the role.

4, Acquiring suitable candidates with required skills/qualifications:
External recruitment allows companies to find candidates who possess the specific skills, qualifications, competencies, and experiences needed for the role. This reduces the need for extensive training or development programs, thus lowering associated costs. For instance, a technology company may recruit an experienced software engineer who already possesses the necessary coding skills, saving time and resources on training.

5, Minimization of unhappiness/conflict among current employees:
External recruitment can prevent internal conflicts that may arise when promoting from within. By hiring externally, the organization avoids potential resentment among existing employees who may have applied for the position but were not selected. This maintains a harmonious work environment and preserves morale.

6, Enhanced efficiency and productivity:
When the new hire effectively contributes to the organization, it leads to increased efficiency and productivity. For instance, a manufacturing company may recruit an operations manager with a track record of optimizing production processes, resulting in streamlined operations and higher output.

Negatives or disadvantages of external recruitment

A business may experience the following disadvantages when it decides to recruit externally

1, High Costs associated with external sources:
Utilizing external sources for recruitment, such as recruitment agencies or advertisements in newspapers and magazines, can incur significant expenses. For example, recruitment agencies typically charge fees based on a percentage of the candidate’s salary, adding to the overall recruitment costs.

2, Risk of selecting ineffective candidates:
Despite thorough selection processes, there’s always a chance of hiring an ineffective or incompetent candidate. This can happen due to factors such as poor interview techniques or insufficient assessment methods, leading to mismatches between the candidate’s skills and the job requirements.

3, Reliability of information on CVs/referees:
Information provided on CVs or by referees may not always be accurate or reliable. Candidates may exaggerate their qualifications or experience, or referees might provide biased or incomplete assessments, making it challenging for recruiters to make informed decisions.

4, Increased time and expense due to background checks:
External recruitment often requires extensive background checks to verify candidates’ credentials and ensure they meet the organization’s standards. This process adds to the time and cost involved in recruitment, prolonging the hiring timeline and increasing expenses.

5, Longer adjustment period for new hires:
External hires typically require more time to acclimate to a new work environment compared to internal promotions. This adjustment period can impact productivity and may delay the new hire’s ability to fully contribute to the organization.

6, Need for in-service training:
External hires may require additional training to familiarize themselves with the organization’s processes, systems, and culture. This training period can temporarily decrease productivity and increase training costs for the business.

7, High volume of unsuitable applications:
External job postings often attract a large number of applicants, many of whom may not meet the required qualifications or fit the organizational culture. Sorting through these unsuitable applications can be time-consuming and may slow down the selection process, delaying the hiring of suitable candidates.

Selection


Selection is a crucial process for the efficient operation of any business. It aids in choosing the most suitable candidate for a position based on job analysis. Implementing effective and accurate selection procedures ensures that a business can recruit the most competent candidates. On the other hand, improper application of these procedures can result in the squandering of valuable resources, such as finances and time, thereby limiting the business to attain its organizational objectives.

What is selection?


Selection is the process of choosing a qualified candidate or applicant for an available position based on the requirements determined by job analysis.

The Selection Procedure:


The following are the steps of the selection procedure

  1. Establish Fair Assessment Criteria:

Before beginning the selection process, it’s crucial to define clear and fair assessment criteria. These criteria should directly align with the job requirements and essential skills needed for successful performance in the role. By establishing transparent and objective criteria upfront, the selection process becomes more standardized and ensures equal opportunities for all applicants.

  1. Use the assessment criteria to assess all CVs/application forms received

Once the assessment criteria are in place, the next step is to conduct a preliminary screening of all received CVs and application forms. This involves evaluating each applicant’s qualifications, experiences, and suitability for the position based on the established criteria. Preliminary screening helps to narrow down the pool of applicants and identify those who are most likely to meet the job requirements.

  1. Document Verification:

To maintain the integrity of the selection process, it’s essential to verify the authenticity of the documents submitted by applicants. This includes checking for any forged certificates, degrees, or achievements. Document verification ensures that only genuine and qualified candidates progress further in the selection process.

  1. Make a preliminary list of all applicants who qualify for the post.

After completing the initial screening and document verification process, a preliminary list of qualified applicants is compiled. These are the candidates who have successfully met the established assessment criteria and passed the initial screening stages. This stage marks the transition from reviewing applications to assessing candidates for further consideration.

  1. Reference Check:

To gain additional insights into the candidates’ backgrounds and suitability for the role, reference checks are conducted. This may involve contacting previous employers, checking criminal records, assessing credit history, and reviewing social media presence. Reference checks help verify the information provided by candidates and ensure that potential red flags are identified before proceeding further in the selection process.

  1. Preliminary Interviews:

Preliminary interviews are conducted to further assess the suitability of candidates for the position. These interviews provide an opportunity to evaluate candidates’ communication skills, personality traits, and alignment with the company culture. Preliminary interviews help to identify top candidates who will be invited for the next stage of the selection process.

  1. Notification:

After completing the preliminary stages of the selection process, all applicants are informed about the outcome of their application. This includes notifying both successful candidates who qualify for further consideration and unsuccessful candidates who will not proceed to the next stage. Providing timely and transparent feedback to all applicants maintains a positive candidate experience and upholds the organization’s reputation.

  1. Shortlisting:

Based on the assessment of preliminary interviews and application materials, a shortlist of approximately five candidates is compiled. These are the candidates who have demonstrated the strongest potential to excel in the role based on their qualifications and performance in the initial stages of the selection process.

  1. Interview Invitation:

Shortlisted candidates are invited to participate in further interviews, which may be conducted in-person or virtually. Interview invitations include details about the interview format, schedule, and any additional information candidates need to prepare. Inviting shortlisted candidates for interviews marks a critical stage in the selection process, where final assessments are made to determine the best fit for the role.

  1. Selection Tests:

In addition to interviews, shortlisted candidates may be required to undergo various selection tests, such as skills assessments or psychometric tests. These tests provide objective measures of candidates’ abilities and help assess their suitability for the role based on specific job-related criteria. Selection tests complement the interview process and provide valuable insights into candidates’ capabilities and potential for success in the position.

  1. Offer:

Once the selection process is complete, a written offer is extended to the selected candidate(s). The offer includes details about the position, compensation package, benefits, and any other relevant terms and conditions of employment. Extending a written offer marks the final stage of the selection process, where the chosen candidate is formally welcomed to the organization and begins the onboarding process.

Option two of the Selection Process.


The selection process may also be carried out using this option, which is shorter and consists of the following steps.

  1. Receive Documentation:

The first step in this selection process is to collect all relevant documentation from applicants, such as application forms and CV’s. This documentation is then sorted according to the specific criteria of the job. Sorting applications at this early stage ensures that only candidates who meet the minimum requirements proceed further in the selection process, making it more efficient and manageable.

  1. Evaluate CV’s and Create a Shortlist:

Once the applications are sorted, the next step is to evaluate the CV’s in detail. This involves assessing each candidate’s qualifications, experience, and skills in relation to the job criteria. Based on this evaluation, a shortlist of the most promising candidates is created. Screening applicants in this way helps to focus on those who are most likely to succeed in the role.

  1. Check Information and Contact References:

After shortlisting candidates, it’s essential to verify the information provided in their CV’s. This includes contacting references to confirm previous employment details, roles, responsibilities, and achievements. Reference checks provide an additional layer of validation, ensuring that the candidates’ claims are accurate and reliable.

  1. Conduct Preliminary Interviews:

Preliminary interviews are then conducted with the shortlisted candidates. The purpose of these interviews is to identify applicants who, despite meeting the basic job requirements, may not be suitable for the role. This stage helps to filter out candidates who may not fit well with the company culture or who may not have the necessary soft skills or attitudes.

  1. Assess/Test Senior Position Candidates:

For candidates applying for senior positions, additional assessments or tests may be required. These assessments could include leadership evaluations, strategic thinking exercises, or other role-specific tests. The goal is to ensure that the best candidate is chosen for these critical roles, as they have a significant impact on the organization.

  1. Conduct Interviews with Shortlisted Candidates:

Next, formal interviews are conducted with the remaining shortlisted candidates. These interviews provide a deeper insight into the candidates’ abilities, motivations, and fit for the company. This stage is crucial for making final decisions, as it allows the hiring team to explore candidates’ experiences and skills in more detail.

  1. Make a Written Employment Offer:

Finally, a written employment offer is made to the selected candidate or candidates. The offer includes all necessary details about the position, such as salary, benefits, start date, and any other terms of employment. Making a formal offer marks the conclusion of the selection process, transitioning the candidate from the recruitment phase to the onboarding phase.

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