Human Capital Function / Human Capital Management Flashcards
(68 cards)
1
Q
Employees are regarded as an _______.
A
Asset
2
Q
Employees are regarded as an asset with certain _____, _____, ______, ______ and ______.
A
Skills, knowledge, experience, characteristics, attitudes.
3
Q
What is human capital management?
A
Includes all the activities and decisions that are intended to improve the effectiveness of the human resources (employees) and of the enterprise as a whole.
4
Q
What is the purpose of the human capital function?
A
To Manage personnel in order to maximise their potential, thereby enabling the business to achieve its vision.
5
Q
What is the focus of the human capital function?
A
- Interpretation of employer/employee needs
- Coordination of management and staff requirements
- Implementation of various activities
6
Q
What is manpower planning?
A
- A top down, ongoing process that is a prerequisite for recruitment and selection.
- The strategic plan of the business will determine which skills are needed to achieve the business’ goals.
- Required skills will be acquired via manpower planning and training … depth knowledge of all labour
related legislation (laws), ability to plan for the future, ability to work under pressure are all needed. - Manpower planning refers to the process of
-> Estimating the number of employees
->Assessing the range of skill required for the business to operate
->Calculating the time frame of the employment needs of the business
7
Q
Manpower planning refers to the process of..?
A
Manpower planning refers to the process of:
-> Estimating the number of employees
->Assessing the range of skill required for the business to operate
->Calculating the time frame of the employment needs of the business
8
Q
What must be done in order to do accurate manpower planning?
A
Each position in business must be analysed, described and a job specification drafted.
Job ADS:
- Job analysis: performed to determine all the tasks and responsibilities associated with each job in the organisation
- Job description: a result of the job analysis, done to specify the job title, a summary of the job, duties and working conditions associated with the job and degree of supervisions required to perform the job
- Job specification: interprets the job description and qualifications, skills and experience necessary
for the employee to do the job. Used as a guide during the recruitment and selection process
9
Q
What does job: ADS stand for?
A
- Job analysis: performed to determine all the tasks and responsibilities associated with each job in the organisation
- Job description: a result of the job analysis, done to specify the job title, a summary of the job, duties and working conditions associated with the job and degree of supervisions required to perform the job
- Job specification: interprets the job description and qualifications, skills and experience necessary
for the employee to do the job. Used as a guide during the recruitment and selection process
10
Q
What is a skills gap?
A
Skills gap: difference between skills available in the business and the skills needed. Recruitment and selection process will aim to eliminate the skills gap.
11
Q
What is the purpose of recruitment?
A
to attract the most competent talent
12
Q
What must a recruitment agent do?
A
Recruitment agent must determine the most effective communication channels to be used for the recruitment message.
Can use Internal or External recruitment.
13
Q
Recruitment is often viewed as _______.
A
positive
14
Q
Recruitment can be done _________ and ___________.
A
Internally and externally
15
Q
What is internal recruitment?
A
done by transferring an existing employee to a new position or by promoting an existing employee
16
Q
What are some options for carrying out internal recruitment?
A
1) Invite existing employees to apply for the job. Search employee files, or use word of mouth, to identify potential candidates based on skills, qualifications, and experience.
Manager may recommend a specific employee.
2) Post the position on the intranet or notice board within the business.
Invite interested staff to apply (known as “Job Posting”).
3) Current employees may be asked to recommend someone outside the business for the position - this is a hybrid of internal and external recruitment.
17
Q
If an organisation cannot find someone to recruit within the business, they will recruit from…? This is known as..?
A
the outside labour market
External recruitment
18
Q
Advantages of Internal Recruitment?
A
- Employee morale is improved if they know there are opportunities for promotion
- More cost effective
- Employee’s past performance and attitude towards the business is known.
19
Q
What is external recruitment?
A
Appointing people from an outside labour market (other businesses, schools, universities) when it is not possible or desirable to recruit employees from within the company.
20
Q
What are some techniques for external recruitment?
A
- Position is advertised via an employment agency
- Some agencies operate exclusively on the internet
- Others use internal and traditional advertising media
- Advertise the position in newspapers, trade journals, trade shows
- Business may approach businesses, schools, universities, other educational institutions to seek suitable candidates, depending on the qualifications needed
- Look at CV’s of casual applicants or “walk ins”
- Does not happen often for senior positions UNSKILLED WORKERS (Does not really happen due to high unemployment rate)
- Employees can be sourced using this method
21
Q
What is headhunting?
A
A suitable employee who works for a competitor is identified and asked to apply for the vacant position
22
Q
Advantages of External Recruitment?
A
- New ideas and skills are brought into the business
- May give the business an opportunity to employ more Affirmative Action candidates to meet
- Employment Equity Targets
- Head hunted employees may provide insight into the operations of competitors
e.g UNIQ manager - No infighting occurs among employees for the position
23
Q
Describe the selection process.
A
- Selection process begins after the recruitment process is complete
- Begins by identifying the most suitable candidates to interview for the position
- Often viewed as negative
- Selection favours the most desired employees
- Only a selected few progress to the next step
- Unsuitable applicants are disregarded
24
Q
First step in the selection process?
A
- Business receives CV’s and other relevant information.
- Response to the position advertised.
- Checked to ensure that all pertinent information has been received from the applicants
25
Second step in the selection process?
2. Evaluate all the application forms and CVs
- See which candidates meet the prescribed criteria
- Candidates not meeting the criteria, will be informed that their applications were unsuccessful
- The business may stipulate in the advert:
"If you have not been contacted by (date), your application was not successful"
26
Third step in the selection process?
3. Compile a short list of candidates for the first round of screening
- Compare each applicant to a predetermined list of criteria required for the position
- Ensures the process is objective
27
Fourth step in the selection process?
4. Background and reference check
- A pre-determined list of questions verifies the applicant's references and ensures fairness
- Credit checks and checks for criminal records can be done
- Depends on the nature of the position
28
Fifth step in the selection process?
5. Interviews are conducted
Follows the selection of the most suitable candidates
- Interviews are conducted, preferable with a panel
- Use a predetermined interview guide, set of questions (ADS)
- Helps to ensure complete impartiality
- A final interview may be conducted with people selected after the first round of interviews
- Purpose of interviews: obtain additional information from the applicants
qualities of the people and their suitability for the position and the business
- Candidate can also ask questions about the position or business
29
Sixth step in the selection process?
6. Candidate can also ask questions about the position or business
- Candidates may have to undergo certain tests
- To evaluate their suitability for the position
- Work sample tests
- Measure the candidate's ability and actual performance
- Psychometric tests
- Mental measurement
- Check a candidate's mental ability and personality are well matched for the position
- Medical examination
- Can only be conducted if a certain health aspect is an inherent requirement of the job
- Business pays for any costs incurred
30
Seventh step of the selection process?
7. Candidates are ranked
- In order of preference
- Highest rated candidate meets all / most of the requirements is offered the position
- If the candidate does not accept the offer, the next suitable candidate is offered the position
31
Eighth step of the selection process?
8. Contract is signed by both parties
-Once the employment offer is accepted
- Details specified in the employment contract (full details of employer, full details of employee, details regarding the position)
32
Describe Placement, the next process following selection.
- Employee is usually placed into the position they applied for
- It may emerge that the employee has a special skill, making them more suited to another position.
- The business may re-negotiate remuneration and other benefits with the employee before engaging them into the position
- Correct placement ensures the employee is optimally utilised
33
Discuss Induction, the process that follows Placement.
- This is NOT the same as training for a specific job
- Induction is training (orientation), given to all new employees to help them become productive role players in the business as soon as possible
- There is no one method for a good induction programme
34
What Standard information is included in an effective induction programme?
- Written copy of the business' policies and procedures (Code of Conduct & COE)
- Some form of organogram / organisational chart to identify the various role players in the organisation
- A face to face introduction to the manager and other staff members in the department
- A tour of the facilities
- How to log a call if there is a problem with the technology
- Precise instructions on how to perform certain tasks; any unique or unusual requirements or tasks should be clarified
- Allocating the new employee a buddy or mentor in case questions or uncertainty arises (helps the new recruit settle in more quickly)
35
What are the advantages of a well structured and well implemented induction program?
-Helps reduce stress and anxiety of new employees
- Creates a positive impression of the business
- Assists the new employee to become part of the team more easily
- Ensures the new employee starts off with the correct information about the job
- Prevents wasting the business' times and money, employee learns the correct procedure immediately
- New employees quickly becomes mindful of the business culture (beliefs and values) and readily adapts to the business' processes
- Retention of staff is higher
36
Discuss remuneration and employee benefits.
- Remuneration and additional benefits that have a monetary value are part of the reward system
- Enable employees to maintain a certain standard of living
- One of the biggest operating expenses that the business will incur
- Salaries and benefits are an important issue from both the employee's and the business' point of view
37
What are the key remuneration concepts?
- Salaries
- Wages
- Commission
- Overtime
- Bonus
38
Discuss salaries as a key remuneration concept.
- Earned by permanent or temporary workers
- A fixed amount
- Paid once a month on a pre-determined date
39
Discuss wages as a key remuneration concept.
- Usually paid on a daily or weekly basis
- R28.79 Min wage (NMW)
- May be a fixed sum
- Calculated on the basis of the number of hours worked
- Based on a piece rate; the amount of output produced
40
Discuss commission as a key remuneration concept.
- To motivate employees to deliver more
- Often used in sales
- Employees receive a percentage of the sales as commission
- The more sales the employee makes, the more commission may be earned
- An incentive for the employee to improve their performance
41
Discuss overtime as a key remuneration concept.
hours worked by an employee exceeding their regularly scheduled working hours, making extra in addition to being paid a salary, wage or commission
42
Discuss bonus as a key remuneration concept.
- Additional remuneration
- May be guaranteed in the employment contract as a 13th cheque
- Could be paid for meeting performance targets (360performance appraisal)
- May qualify for performance bonus and a 13th cheque
- 0 Profit sharing works very well because employees are motivated to keep the costs low, so the profits are higher and their bonus is higher
43
An employer may not deduct any money from an employee's remuneration unless it is..?
- A voluntary deduction is being made
EG: life insurance, medical aid
- A legal requirement (compulsory):
--> Unemployment Insurance Fund
--> Income Tax (PAYE Pay As You Earn). Tax in South Africa is p`rogressive = the higher the salary, the higher the percentage of tax paid by employees
44
Is the business's method of structuring their salary accessible information to the employee?
Yes! Employee will be informed about method used by the business in the employment contract
45
What are methods for structuring salaries?
- Cost plus benefits
- Cost to company
- Fringe benefits
46
Discuss cost plus benefits as a method for structuring salaries.
The business pays a basic salary and then makes additional contributions towards fringe benefits. Benefits may include contribution towards
- Pension
- Medical aid
- Travel allowance
- Housing
- Meals
- Accommodation
47
Discuss cost to company as a method for structuring salaries.
- Employer pays an employee a salary
- No additional contributions will be made by the employer
- Employee can structure a salary package best suited to his/her circumstances
- Used by most businesses
48
Discuss fringe benefits as a method for structuring salaries.
Consists of things like:
- Pensions
- Medical aid
- Meals
- Accommodation
- Travel allowance
49
What is the concept of a pension as part of fringe benefits?
- A fixed sum is invested
- Becomes available at retirement age
- Payments are drawn to support the person's retirement (made in periodic payments)
-A benefit plan or a defined contribution plan
50
What is the concept of medical aid as a fringe benefit?
- Covers the whole or a part of the risk of a person incurring medical expenses (sickness or injury).
- Pay a monthly premium
- Administered by a central organisation
51
What is the concept of meals as a fringe benefit?
- Meal or a refreshment voucher
- For free or for less than the actual value of the meal during business hours
- Payment for a meal enjoyed by employee due to entertaining an employee on the employer's behalf
52
What is the concept of accommodation as a fringe benefit?
- Accommodation provided by the business
- Usually for free or for less than the value of such an accommodation
53
- Also called a subsistence allowance
- Allowance paid by the employer to the employee
- Cover accommodation, meals or incidentals costs
- When the employee is obliged to spend at least one night away from his or her usual place of residence
- Due to employment
54
Define training versus skills development.
The process of ensuring that employees have specific skills needed to perform the job. Versus skills development - targets a broader range of skills or even attitudes that are not job specific.
55
Why should a business allow for training and skills development?
Necessary if it wants to be successful in a constantly changing business world
56
Why would a manager not want to invest in training and skills development?
- Do not see the benefits of training
- Cannot justify the expense or do not see it as cost effective
- An employee may leave shortly after being trained
- No guarantee that training will improve an employee's performance
- Inter-departmental transfers may make the training impractical or ineffective
- Line managers may have a negative attitude towards training; takes employee away from their work station during training and job does not get done while the employee is away
57
Staff development comprises a ______ portion of the budget
big
58
What are the five steps to a useful skills development program?
Step 1: identify the skills gap
Step 2: consider the training resources available
Step 3: Design the program
Step 4: implement the program
Step 5: Evaluate the success of the program
59
Describe step one of implementing a useful skills development program.
Step 1: identify the skills gap
- Look at the desired skills and the existing skills (difference)
- The difference is the skills and/or attitudes that should be developed
60
Describe step two of implementing a useful skills development program.
Step 2: consider the training resources available
- The business has to make a decision to do in house training or outsource DELPHI TECHNIQUE
- Can also be a combination of the two HYBRID
61
Describe step three of implementing a useful skills development program.
Step 3: design the program
- Describe what the employee should be able to do upon completion of the training
- Training material will have to be developed for in house training e .g Manual
- Training company must be advised of the required criteria if training is outsourced
The Unit Standard must be used
62
Describe step four of implementing a useful skills development program.
Step 4: Implement the program
- The actual training and skills development takes place
- Training is utilised to:
-->Give employees new skills
-->Modify attitudes
-->Modify behaviour
63
Describe step five of implementing a useful skills development program.
Step 5: Evaluate the success of the program
- Business wants to see a return on investment=increased productivity, better quality motivation, better customer service = in reputation /loyalty
- Business wants to see the new skills applied to improve productivity and efficiency
64
Discuss various training methods.
- On the job training: Employee receives training from a more experienced colleague while the job is being performed e.g buddy/mentor
- Classroom training: a lecture is given by someone in the business/ by a training provider, course at a college or university
- E-learning (done through the INTRANET): Employee learns via interaction with an electronic device
- Workshop e.g on customer Service
- Self study
- Buddy / mentor system: Enabling expert employees to show in experienced employees what to do
- Learner-ship preparing employees for management or promotion purposes. Allows an employee the opportunity to work within the business while studying
towards a qualification e.g MRP Jumpstart Programme
- A blended approach (HYBRID): Combining two or more other methods
65
What is a performance appraisal?
- Planning tool: Performance targets are agreed upon between the employee and their manager
- Evaluation tool: PROBLEM SOLVING TOOL that could be applied: 360 degree performance appraisal
--> The performance is jointly evaluated by the employee and their manage
--> Discrepancies, between self-evaluation and the manager are discussed
- Feedback tool: If targets are not met, reasons must be discussed
--> Gives the employee and the manager an opportunity to raise concerns in a formal meeting
--> Action plans are formulated to solve existing problems and anticipate future ones
--> Personal Improvement Plans (PIPs) are outlined
--> May require the employee to get more training or performance has to improve
--> Promotion opportunities and career paths are discussed
66
What are common reasons an employee leaves a business?
- Better salary or benefits
- Employee is unhappy with the way they are treated by management
- Employee does not get along with colleagues
- Employee feels there is no job satisfaction
- Lack of opportunities to grow and develop, not enough training or a lack of promotion opportunities exist
- Employee is unhappy with the working conditions
- Travelling time to work is unacceptable
- Health reasons
- Retirement
- Spouse is transferred to another town
- Lack of balance between work and personal life
67
What are some consequences of a high employee turnover?
- Reduced productivity levels
- Additional work burden on employees who need to work harder while the new staff member settles
- Low morale when employees become aware of too many vacancies
- A negative public perception of the business
- More money and time are needed to invest in retraining of new staff members
68
How can a business improve staff retention?
- When a staff member leaves, there should be an exit interview: people who are leaving are prepared to reveal what bothered them and provide reasons for leaving.
- Existing employee may fear negative consequences from managers
- HC manager should take note of the reasons employees choose to leave
- Address these issues as soon as possible
