Business studies

• Recruitment


  The process used by businesses to identify vacancies in the business and attract candidates for it
• Recruitment methods


  • Internal
  • External
• Recruitment procedure


  1. Prepare job analysis

  2. Indicate job specifications

  3. Use internal or external recruitment

  4. Advertise vacancy

  5. Consider internal recruitment first, then external if needed

  6. Prepare advertisement with relevant information

  7. Place advertisement in selected media
• Job description

  Describes duties/responsibilities of a specific job
• Job specification


  Specifies the minimum acceptable qualifications needed for the job
• External recruitment


  • New candidates bring new talents and skills to the business
  • Business has a larger pool of candidates to choose from
• External recruitment disadvantages


  • New candidates generally take longer to adjust to a new work environment
  • Information on CVs may not be available
• Internal recruitment advantages


  • Cheaper/Quicker to fill in the post
  • Provides opportunities for career paths within the business
• Internal recruitment disadvantages


  • Current employees may not bring new ideas into the business
  • Number of applicants is limited to the current staff only
• External recruitment sources


  • Billboards
  • Headhunting
  • Newspapers
  • Recruitment agencies
• Internal recruitment sources


  • Office notice board
  • Staff meeting
  • Office notice boards
  • Business newsletters
• Selection procedure


  1. Receive application forms/CVs, proof of qualifications

  2. Screen applicants

  3. Check information on CVs and contact references

  4. Conduct preliminary interviews

  5. Do reference checking

  6. Compile shortlist

  7. Conduct interviews with shortlisted candidates
• Purpose of an interview


  • To determine a candidate's suitability for the job
  • Obtain more information from the candidate
  • Evaluate the skills and personal characteristics of the applicant
  • Matches info provided by the applicant to the job requirement
• Role of the interviewer preparing for an interview


  • Develop a core set of questions
  • Book and prepare the venue
  • Verify the CV of every candidate
  • Inform all shortlisted candidates
• Role of the interviewer during the interview

  • Make the interviewee feel at ease
  • Allocate the same amount of time to each candidate
  • Explain the purpose of the interview
  • Do not mislead the candidate
• Role of the interviewee during the interview

  • Listen carefully to the questions
  • Show confidence and a positive attitude
  • Be honest about mistakes
  • Thank the interviewer
• Contents of the employee contract

  • Personal details
  • Job title/position
  • Hours of work
  • Probation period
  • Place of work
• Legal requirements of the employment contract

  • Both employer and employee must sign
  • Both must agree to changes
  • Employer must explain the terms and conditions
  • Employer must let the employee read through the contract before signing
• Reasons for termination of an employment contract


  • Incapacity to work due to illness/injury
  • Retrenchment
  • Mutual agreement
  • Expiry of contract duration
• Induction


  • New employees are familiar with their new physical work environment
  • New employees are informed about the process/procedures of the business
• Purpose of induction


  • Give new employees a tour
  • Create opportunities to explore departments
  • Make new employees feel welcomed
  • Allow new employees to ask questions
• Induction programme


  • Tour of the premises
  • Safety regulations and rules
  • Discussion of the employment contract
  • Overview of the business
• Benefits of induction


  • Allow new employees to settle in quickly
  • Ensure new employees understand the rules
  • Minimize the need for ongoing training
  • Increase quality of performance/productivity
• Placement


  • A specific job assigned to the selected candidate
  • The qualifications of the selected candidate is matched with the requirements of the job
• Placement procedure


  1. Determine the relationship between the position and the competencies of the new candidate

  2. Determine the successful candidate's strengths/skills by subjecting them to psychometric tests

  3. Outline the specific responsibilities of the new position
• Skills development


  • Ensure training in the workplace is formalized
  • Appoint a skills development facilitator
  • Use the NQF to assess the skills levels of employees
  • The HR function should interpret the aims of the SDA and adapt workplace skills training programs
• Salary determination methods


  • Piecemeal (paid per item/unit produced)
  • Time related (paid per hour/time worked)
• Link between salary determination and the BCEA


  • BCEA outlines legalities, such as the employment contract, which may affect salary determination
  • Businesses are supposed to deduct income tax from the employee's taxable income
• Types of fringe benefits

  • Pension
  • Medical aid
  • Provident fund
  • Allowance
  • Compulsory benefits
  • UIF
• Impact of fringe benefits


  • Positive: Can be used for salary negotiations, improves productivity
  • Negative: Decreases business profits, can create conflict if allocated unfairly
• UIF (Unemployment Insurance Fund)

  • The employer and worker each contribute 1%
  • The fund also assists the dependents of a contributing worker who has died
• Impact of LRA on HR function


  • Protects the rights of employees and employers
  • Allows workers to form workplace forums/trade unions
  • Provides a framework for discussions between employees, trade unions and employers
  • Promotes negotiations and employee participation in decision making
• Impact of BCEA on HR function


  • Ensures equal pay for work of equal value
  • Ensures fair treatment and equal opportunities
  • Promotes affirmative action and diversity
• Impact of SDA on HR function

  • Ensures formalized/structured training in the workplace
  • Uses NQF to assess skills levels
  • Business contributes 1% of salary bill to skills development levy
  • Appoints a skills development facilitator
• Quality


  Refers to a goods/services ability to satisfy a specific need
• Quality control


  Checking raw materials, employees, machinery, and production to ensure high quality standards are being maintained
• Quality assurance


  Checks carried out during and after the production process to ensure the required standards are being met at every stage
• Quality management


  Refers to tools/techniques used to improve the quality of the product
• Quality performance


  Total performance of each department measured against the specified standards
• Quality management systems


  A system that documents processes/procedures/responsibilities for achieving quality policies and objectives