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Grade 11 Notes TERM 4 Chapter 18 Human Resource

Function
Business Management (University of the Witwatersrand, Johannesburg)

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

BUSINESS STUDIES
GRADE 11

TERM FOUR

WEEK 1 AND 2

CHAPTER EIGHTEEN

INTRODUCTION TO HUMAN RESOURCE

Revised notes according to 2023 ATP

This chapter consists of 10 pages

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

TABLE OF CONTENTS
TOPICS PAGES
Exam guidelines for introduction to human 2
resources.
Terms and definitions 3
The meaning of human resources 3
Recruitment 3-5
Selection 6
The purpose of the interview 6
The role of the interviewer during the interview 6
Employment contract. 7
Importance of an employment contract 7
The meaning & purpose of induction. 8
The placement procedure. 8
Salary determination methods 9
Employee benefits 9-10

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES

Learners must be able to:

• Explain the role of the human resources function. (Recap).
• Outline/Mention/Explain/Discuss the human resources activities e.g.:
o Recruitment
o Selection
o Contracts
o Induction
o Salaries
o Benefits
• Define/Elaborate on the meaning of recruitment.
• Outline/Explain/Discuss the recruitment procedure.
• Discuss/Explain the components of job analysis.
• Differentiate/Distinguish between job description and job specification as components of job
analysis.
• Explain/Discuss the internal and external methods of recruitment.
• Outline/Explain/Discuss the purpose of an interview.
• Explain/Discuss the role of the interviewer during the interview.
• Outline/Mention aspects/content of the employment contract.
• Evaluate an employment contract from given scenarios and make recommendations for
improvement.
• Explain the meaning of induction.
• Discuss/Explain the purpose of induction.
• Discuss/Explain the placement procedure.
• Outline/Mention/Explain different system of salary determination methods e.g. piecemeal
and time related.
• Distinguish between piecemeal and time-related salary determination methods.
• Outline/Mention/Explain employee benefits.

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

1. TERMS AND DEFINITIONS

TERM DEFINITION
Human Resource The Human Resource Functions deals with all aspects within the
Function organisation that relates to employees.
Job analysis The term “job analysis” refers to the components of job description
and job specification as it relates to employees within an
organisation.
Job description Describes the duties and responsibilities of a specific job.
Job specification Describes the minimum acceptable personal qualities/skills/
qualifications needed for the job.
Recruitment Recruitment is the process used by business to identify vacancies in
the business and attract suitable candidates for it.
Selection To choose the best candidate to suite the position from a pool of
applicants.
Employment Oral or written agreement specifying terms and conditions under
contract which a person consents to perform certain duties in return for an
agreed upon wage or salary.
Salaries Workers are compensated for work done or services delivered.
Benefits Compensation beyond a regular wage or salary of an employee or
when a business are legally required to offer its employees.
Induction Refers to the process of introducing new employees to the business
and its related aspects
Placement Process whereby a new employee is placed in a vacant position.
Gross salary What a company pays to an employee before deductions
Nett salary What an employee receives after deductions

1 The meaning of the human resources function

• The human resources function is responsible for administering and controlling the workforce
of a business to achieve its objectives.
• The human resources manager is responsible for performing the following activities:
o Recruitment
o Selection
o Contracts
o Induction
o Salaries
o Benefits

2 Analysis of the human resources activities

2.1 Meaning of recruitment
• Recruitment is the process used by business to identify vacancies and attract suitable
candidates for the job.
• It aims at finding candidates who have the necessary knowledge/ experience/ qualification to
fill the vacancy.
• Businesses may choose to use an internal or external method of recruitment depending on
the nature/requirements of the vacancy.
• It is an on-going process as employees leave their jobs for other jobs/get promoted /retire/as
new technological skills are required

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

2.2 Recruitment procedure

• The human resource manager (HRM) should prepare a job analysis/determines the job
needs in the business to identify vacancies
• Prepare the Job description and Job specification.
• Determine the key performance areas of the job.
• Choose the recruitment method e.g. internal or external method of recruitment
• Vacancies can be internally advertised via internal email/word of mouth/ posters/staff
notices.
• If internal recruitment was unsuccessful, consider external recruitment.
• The advertisement should be prepared with the relevant information, e.g. the name of the
company, contact details, contact person, etc.
• Place the advertisement in the appropriate media that will ensure that the best candidates
apply
NOTE: The procedure can be in any order

The meaning of job analysis

• A job analysis is a tool used by the human resources function to source and analyse
information about the business’s workforce.
• This information is then used to place/recruit the right person in the right job.
• A job analysis consists of a job description and job specification.
• The employer must be clear about the nature/type of work a potential employee will need to
perform so that an appropriate job description and job specification can be prepared.

The differences between a job description and job specification

Job description Job specification
• Describes duties/responsibilities of a • Describes the minimum acceptable
specific job. personal qualities/skills/qualifications
needed for the job.
• A written description of the job and its • A written description of specific
requirements. /A summary of the qualifications/skills/experience needed
nature/ type of job. for the job
• Describes key performance areas for • Describes key requirements for the
a specific job, for example, job title/ person who will fill the position, for
duties/working conditions/locations of example, formal qualifications/
the place of work/relationship of the willingness to travel/work unusual
job with other jobs in the business, hours, etc.
etc.

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

Methods of recruitment
• Two main/central methods of recruitment may be used by a business.
• The method of recruitment used by the business is determined by the nature/type of job and
its specific requirements.

Internal recruitment
• This is the process of filling job vacancies within a company by exclusively considering current
employees.
• It involves advertising positions internally within the business.
• It is a method that uses existing talent from different teams and departments to address skills
gaps and promote career growth.
• Refers to the use of internal sources to advertise vacancies inside the business.
Internal source of recruitment
• Examples of sources of internal sources of recruitment:
o Internal e-mails/Intranet/web sites to staff
o Word of mouth
o Business newsletter/circulars
o Internal/management referrals
o Notice board of the business
o Internal bulletins
o Recommendation of current employees
o Head hunting within the business/organisational database

External recruitment
• When companies recruit candidates who are not a part of the organisation,
• The business looks for a suitable person outside the business.
• External recruitment is an intensive process wherein companies must post the job
descriptions on different job boards.
• Refers to the use of external sources to advertise vacancies outside the busine.

External source of recruitment

• Examples of sources of internal sources of recruitment:
o Recruitment agencies
o Billboards
o Printed media, e.g. newspapers/flyers/magazines/posters
o Electronic media, e.g. radio/TV
o Social media/Social networks/Internet/Business websites
o Recruitment agencies
o Walk-ins
o Head hunting
o Professional associations
o Networking
o Educational/Training institutions
o Word of mount

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

2.3 Meaning of selection

• Selection is done after recruitment where a business receives many application forms after
advertising a job.

The selection procedure

• Determine fair assessment criteria on which selection will be based.
• Applicants must submit the application forms/curriculum vitae and certified copies of
personal documents/IDs/proof of qualifications
• Sort the received CVs according to the assessment/selection criteria.
• Screen applications meet the minimum job requirements and separate these from the rest.
• Preliminary interviews are conducted if many suitable applications were received.
• Reference checks should be made to verify the contents of CV's, e.g. contact previous
employers to check work experience.
• Compile a shortlist of potential candidates identified.
• Shortlisted candidates may be subjected to various types of selection tests e.g. skills tests
• Invite shortlisted candidates for an interview.
• A written offer of employment is made to the selected candidate.
• Inform unsuccessful applicants about the outcome of their application.

The purpose of an interview

• Assess the general character, strengths, and weaknesses of the candidate.

• Determine the candidate’s suitability for the position based on his/ her skill, experience, and
qualifications.
• Assist the employer in selecting the most suitable candidate.
• Ensure that the information supplied by the candidate is matched to the requirements of the
position.
• Provides the employer with the opportunity for information sharing between the business and
the candidate.
• Assess the suitability of a candidate for the vacant position by evaluating his/ her
temperament.

The role of the interviewer during the interview

• Allocate the same amount of time to each candidate.
• Introduce members of the interviewing panel to each candidate/interviewee.
• Make the interviewee feel at ease.
• Record the interview responses of the interviewees for future reference or if disputes occur.
• Explain the purpose of the interview to the interviewee and interview panel.
• Ask open-ended work-related questions.
• Ensure that the interviewee should not be misled or be misinformed deliberately.
• Provide an opportunity for the interviewee to ask questions.
• Close the interview by thanking the interviewee for attending the interview.

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

2.4 Employment contract

• The employment contract is an agreement between the employer and the newly appointed
employee and is legally binding.

2.4.1 Aspects/content of the employment contract

• The full name and address of the employer
• Signature of both employer and employee.
• Job title/position
• Job description.
• Job specification
• Working hours, e.g. normal time / overtime
• Overtime.
• Salary/Remuneration package.
• Termination of the contract
• The date of commencement of employment and the details of a probation period.
• Other types of payment(benefits)
• Details of deductions e.g., PAYE, UIF, Medical Aid etc.
• Frequency of pay-outs and methods used e.g. direct bank deposit

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

2.5 The meaning of induction/Orientation

• Once the successful candidate has accepted the job offer and signed the employment
contract. The employee will go through a process of induction.
• The process of introducing the new employee to the business/ fellow colleagues/the work
unit and the work that needs to be done.
• An overview of the business/the procedure at work/communication channels/general rules of
the business are explained to the new employee.

2.5.1 The purpose of induction

• To introduce new employees to management/colleagues to establish relationships with
fellow colleagues at different levels.
• A tour, layout of the building maps, and other general information should be given to new
employees on arrival.
• Create opportunities for new employees to experience/explore different departments.
• Explain safety regulations and rules, so that new employees will understand their
role/responsibilities in this regard.
• Communicate information about the products/services of the organisation
• Allow new employees the opportunity to ask questions that will reduce
insecurity/anxiety/fear.
• Make new employees feel welcome by introducing them to their physical work space.
• To ensure that the employees settle into their work environment and become industrious as
soon as possible.
• Inform new employees about the rules, policies, standard procedure and communication
channels.

2.6 The placement procedure

• The new employee must be placed where he/she will add the most value to the business.
• The placement procedure outline specific responsibilities/expectations new position
• Determine the employee’s strengths/weaknesses/skills/ interests by subjecting him to
various psychometric tests.
• Determine the relationship/similarities between the expectations of the position and the
competencies of the new employee

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

2.7 Salary determination methods

• There are different systems to determine how to pay employees.
• The suitability of the system will depend on the type of job
• There two types of salary determination methods namely:
Piece meal and time related methods

2.7.1 Difference between piecemeal and time related salary payment

PIECEMEAL TIME-RELATED
• Workers are paid according to the • Workers are paid for the amount of time they
number of items/ units produced spend at work/on a task.
/action performed.
• Workers are not remunerated for the • Workers with the same
number of hours worked, regardless experience/qualifications are paid on salary
of how long it takes them to make scales regardless of the amount of work
the items done.
• Mostly used in factories particularly • Many private and public sector businesses use
in the textile/technology industries. this method

2.8 Employee benefits

2.8.1 Pension /Provident fund

• Long term savings that pay employees a pension when they retire.
• Fund that is maintained from monthly contributions by the employee and employer.
• Money is invested by the fund administrators to provide the member with a lump sum and
monthly pension on retirement.
• Examples of pension: Government Employee Pension Fund [GEPF].
2.8.2 Medical aid
• Fund that is maintained from monthly contributions by employees and a subsidy by
employers.
• The fund is accessed when a member or its dependent require medical attention.
• The fund will pay the medical service provider the full amount or a portion of the expense.
• Example of medical aid: GEMS; Discovery

2.8.3 Allowances
• Amount of money paid by the employer to the employee for specific expenses to allow the
employee to render a more effective service.
• Examples of allowances: car/cell-phone/ tablet/travel allowances etc.
• Employees are taxed to the extent that they use these allowances for personal reasons.

2.8.4 Staff discounts/free or low-cost meal/canteen facilities

• A benefit is allocated to employees as an additional extra and as part of their remuneration

package.

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GDE BUSINESS STUDIES GRADE 11 NOTES CHAPTER 18

2.8.5 Unemployment Insurance Fund (UIF)

• This is a compulsory amount that every company pays for each employee.
• The employee is only required to pay 1% of the total income earned deducted from the
employee’s salary
• The employer pays the other 1%.
• The fund provides benefits to employees that lose their job or unable to work due to
illness/pregnancy/adoption etc.
• The fund also contributes to dependents if the employee dies.

2.8.6 Housing subsidy

• The business pays part of part of the cost of the home
• Housing subsidies assist low-middle income groups to buy their own home.

2.8.7 Funeral benefits

• Special benefits such as a cash payment provided to employees by the employer in
the event of the death of an employee.
2.8.8 Performance-based incentives
• This is paid to employees when they have surpassed their expected work
performance within one year’s cycle.

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