BUSINESS PAPER 1 2025 FINAL.

The meaning of recruitment

The process used by a business to identify certain vacancies in the business and attract suitable candidates for them.

Recruitment is an ongoing process because employees leave their jobs for other jobs/achieve promotions/retire/as new technical skills are required

Recruitment procedure

The HRM should indicate the job specification/key performance areas to attract suitable candidates.

Choose the method of recruitment.

Vacancies can be internally advertised via internal email/word of mouth/posters/office notice boards.

External requirement should be considered if internal recruitment was unsuccessful.

The advertisement should be prepared with the relevant information.

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.

Differences between a job description and job specification

Job description describes duties/responsibilities of a specific job and job specification describes the minimum acceptable personal qualities/skills/qualifications needed for the job. Job description is a written description of the job and its requirements. And a written description of specific qualifications/skills/experience needed for the job.

Sources of internal recruitment

Internal emails/websites to staff. Word of mouth. Business newsletters. Internal bulletins.

The impact of internal recruitment advantages

Staff morale and productivity increases if suitable staff members are promoted regularly. Current employees understand the operations/functions of the business. The business knows the personality, strengths and weaknesses of the candidate. The recruitment process is faster/less expensive if the the candidates are known to the business.

The impact of internal recruitment disadvantages

Promoting a current employee may cause resentment amongst existing/other employees.

The number of applicants is limited to current staff only.

Employees who do not have the required skills for the new job may be promoted. Current employees may need to be trained/developed before they can be promoted, which can be expensive.

Purpose of an interview

Creates an opportunity where information about the business and applicant can be exchanged.

Gathers information about the strengths and weaknesses of each candidate.

Matches information provided by the applicant to the job requirements.

Evaluates the skills/personal characteristics/qualities of the applicant

The role of the interviewer BEFORE the interview

Book and prepare the venue for the interview.

Set the interview date.

Inform all shortlisted candidates about the date and place of the interview.

Allocate the same amount of time to interview each candidate on the program.

The role of the interviewer DURING the interview

Allocate the same amount of time to each candidate.

Make the interviewee feel at ease.

Do not misinform/mislead the interviewee.

Provide an opportunity for the interviewee to ask questions.

The role of the interviewee DURING the interview

Greet the interviewer by name with a solid handshake and a friendly smile.

Ask clarity-seeking questions.

Show confidence and have a positive attitude.

Listen carefully to the questions before responding.

Meaning of an employment contract

Establishes both the rights and responsibilities of the employer and the employee.

Legal requirements of an employment contract

The employer and employee must agree to any changes to the contract.

Aspects of the employment contract can be negotiated during employment.

The employer and the new new employee must both sign the contract.

Reasons for the termination of an employment contract

Misconduct. - The employer may dismiss the employee for valid reasons

Redundancy.

Retirement. - An employee may have reached the pre-determined age for retirement.

Mutual agreement. - The employer and employee may reach a mutual agreement

Health incapacity.

Contract duration.

Resignation.

Retrenchment.

The meaning of induction

Induction is the process of introducing new employees to a business/work environment.

The job expectations/roles/responsibilities are explained to new employees.

The purpose of induction

Provides new employees with a tour.

Familiarises new employees with the organizational structure/their supervisors/direct managers.

Communicates information about the products/services offered by the business.

Aspects that must be included in the induction programme

Safety regulations and rules.

Overview of the business.

Tour of the premises.

Information about the business products.

Advantages of induction for businesses

Reduces staff turnover as new employees have been inducted properly.

Minimises the need need for ongoing training and development.

Increased productivity/efficiency and quality of service/performance

Improved/better focused training may be provided based on the results obtained from the induction process.

The meaning of placement

Selected candidates are placed/positioned where they will function optimally and add value to the business.

A specific job is assigned to the selected candidate.

Placement procedure

the business should outline specific responsibilities/expectations/requirements of the new position.

Determine the successful candidate’s strengths/weaknesses/skills/interests/competencies by subjecting the candidate to various psychometric tests.

Determines the relationship between the position and the competencies of the new employee.

The importance of training/skills development in Human Resources

Ongoing training and upskilling of the workforce encourages creativity.

Contributes positively towards the aims/compliance of the SDA.

Overall profitability of the business will improve because of effective/regular training.

Productivity usually increases when the Human Resources function implements training courses.

Piecemeal

Workers are paid according to the number of items produced.

Mostly used in factories- particularly textile/technology industries..

Time related

Workers are paid for the amount of time they spent at work.

Many private and public sector businesses use this method.

Examples of employee benefits

Medical aid.

Pension fund.

Funeral benefits

Performance based incentives.

The implication of the skills development act

Use the NQF to assess the skills levels of employees.

Implement the requirements of the framework for the NSDS.

The implication of the employment equity act

The HRM must provide equal opportunities and promote equality in the workplace.

Ensure that affirmative action promotes diversity in the workplace.

The implication of the labour relations act

Protects the rights of employees/employers as outlined in the constitution.

Advances economic development/social justice/labour peace.

Sources of external recruitment

printed media, Walk-ins. Headhunting and networking

Advantages of external recruitment

New candidates bring new ideas/skills/knowledge into the business. There is a larger pool of candidates to choose from.

Disadvantages of external recruitment

New candidates generally take longer to adjust to a new work environment. Information on CVs may be falsified.

Selection procedure opt.2

Recieve documentation. Evaluate CVs and screen the applicants. Check information on the CVs and contact references. Conduct interviews with shortlisted candidates. A written employment offer is made to the selected candidates.

Advantages of fringe benefits

Improves productivity resulting in higher profitablility. Businesses save money as benefits are tax-deductible..

Disadvantages of fringe benefits

Creates conflict/corruption if fringe benefits are allocated unfairly. Decreases business profits because incentives/remuneration costs are higher.

Selection procedure opt.1

Determine fair assessment criteria on which selection will be based.

Check that the applicants aren’t submitting false documents such as forged achievements.

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

Screen and check references.

Conduct preliminary interviews to identify suitable applicants.

Inform all applicants about the outcome of the application.

Details of an employment contract

Personal details of the employee

Job title/position.

Hours of work.

Period of contract.

Rumeration.

The link between salary determination and the BCEA

The BCEA sets out conditions to ensure fair labour and human resources practices take place within the business.

According to the BCEA, businesses may use different remuneration methods to pay their employees.

Unemployment Insurance Fund as a benefit required by law

By law, employees are required to contribute 1% of their basic salary towards UIF.

Employers are also required to contribute 1% of an employee’s basic salary towards UIF.

The implication of the BCEA

Ensures that employees recieve double their rate if they work on public holidays/sundays.

Ensures that employees only work 9 hours per day in a 5-day work week/ 8 hours per day in a 6-day work week.

Quality control

• Includes setting targets/measuring performance and taking corrective measures.

• A system that ensures the desired quality is met by inspecting the final product to ensure that it meets the required standards.

Quality assurance

• Checks are carried out during and after the production process.

• Ensure that required standards have been met at every stage of the process.

• Ensure that every process is aimed at getting the product ‘right the first time’ and purposefully/actively preventing mistakes from happening.

Quality management

• Refer to techniques used to design the quality of a product.

• Can be used for accountability within each of the business functions.

• Aims to ensure that the quality of products is consistent.

Quality performance

• can be obtained if all departments work together towards the same quality standards.

• The total performance of each department is measured against the specified standards.

Benefits of a good quality management system

• Enhances the ability of the business to achieve its vision/mission!goals.

• Increased market share/more customers improve profitability.

• Improves business image as there are fewer defects/returns.

• Improves the financial sustainability of the business as customers are retained.

Quality of performance HR

• low staff turnover/low employee attrition rates in the business.

• Positive relationships with employees improve employee morale.

• Offer performance incentives for staff to enhance productivity.

• Fair rumereration packages aligned to the industry.

Quality of performance General management

• Develop/monitor/maintain effective strategic plans

• Set direction and establish priorities for their business

• Ensure that all departments meet their deadlines/target/achieve goals

• Lead by example./ Set an example of the behavior that is expected from employees regarding professionalism/productivity/work.

Quality of performance public relations

• provide regular positive press releases

• Implement sustainable Corporate Social Investment programmes.

• Provide good results from public surveys on the business image.

Role of quality circles

• solve problems related to quality and implement improvements.

• Identify problems and suggest management solutions.

• Reduce costs of redundancy in the long run.

• Discuss ways of improving the quality of work.

PDCA model

PLAN:

Plan the new method and approach to improve the quality of their products.

DO:

Implement the processes and systems as planned.

CHECK/ANALYSE:

Check whether the processes are working effectively.

ACT:

Devise strategies on how to continually improve.

TQM Elements

1. Continuous skills development/education and training.

2. Continuous improvement to processes and systems.

3. Adequate financing and capacity.

4. Monitoring and evaluation of quality processes.

5. Total client/customer satisfaction

Quality management systems

A quality management system is a framework that a business uses to manage key organisational processes.

It is a formalized system that documents procedures/processes for achieving quality policies.

Quality assurance vs Quality control

Quality assurances:

Checks carried out during and after the production process.

Ensures that required standards have been met at every stage of the process.

Quality control:

System that ensures the desired quality is met by inspecting the final product.

Ensures that finished products meet the required standards.

Quality management vs Quality performance

Quality management:

Techniques used to design the quality of a product.

Can be used for accountability within each of the business functions.

Quality performance:

The total performance of each department is measured against the specified standards.

Can be obtained if all departments work together towards the same quality standards.

Quality indicators production function

Products meet customers’ requirements by being safe/reliable/durable.

The production manager should communicate the roles and responsibilities to the production workers.

Quality indicators Purchasing function

Buying raw materials in bulk at lower prices.

Ensures required quantities are delivered at the right time and place.

Quality indicators Marketing function

Use aggressive advertising campaigns to sustain the market share.

Acquire a greater market share through good/efficient customer service.

Identify competitive gaps in the market and conduct regular market research

Quality indicators Financial function

Implement credit-granting/debt collecting policies to monitor cash flow.

Update financial control measures to prevent fraud.

Acquire capital from the most suitable/reliable sources.

Quality indicators Administration function

All documentation is kept neatly and orderly in a safe place.

Easy to recall/find information/documentation.

The meaning of TQM

TQM enables businesses to continuously improve on the delivery of products to satisfy the needs of customers.

Management ensures that each employee is responsible for the quality of their work.

Continuous skills development/education and training

The correct training programmes must be conducted to train employees for the correct application of the various TQM concepts.

Continuous improvement to processes and systems

The ability of the business to pursue continuous improvement to processes and systems.

Adequate financing and capacity

The business needs to ensure that there is adequate financing and capacity available for all operations to meet TQM requirements

Monitoring and evaluation of quality processes

The effective implementation of TQM requires monitoring and evaluation of quality processes throughout the entire business.

Total client/customer satisfaction

The ability of the business to achieve total client/customer satisfaction.

The impact of TQM if poorly implemented

Settting unrealistic deadlines that may not be achieved.

The decline in productivity because of delays.

Bad publicity due to poor quality products supplied.

High staff turnover because of poor skills development.

Ways in which TQM can reduce the cost of quality

Schedule activities to eliminate duplication of tasks.

Share responsibility for quality output amongst management and workers.

Introduce quality circles to discuss ways of improving the quality of work.

The meaning of quality circles as part of continuous improvement to processes and systems

They investigate problems and suggest management solutions.

Management can implement suggestions that were made by quality circles.

Impact of Continuous Skills development/education and training

Advantages:

Ability to afford specialised employees.

May be able to hire qualified trainers to train employees regularly.

Disadvantages:

It may be difficult to monitor the effectiveness of training.

Trained employees may leave for better jobs after they have gained more skills.

Impact of continuous improvement to processes and systems

Advantages:

Large businesses have more available resources to check on quality performance in each unit.

They can afford to use the services of the quality circle to stay ahead of their competitors.

Disadvantages:

Quality control can become complicated with large-scale manufacturing processes.

Risk of changing parts of the business that are working well.

Impact of adequate financing and capacity

Advantages:

Able to afford product research to gather information.

Can afford to purchase quality raw materials and equipment.

Disadvantages:

Large rapidly growing businesses can consume large amount of capital as they try to balance normal operations and expansion.

Monitoring and evaluation of quality processes

Advantages:

Large businesses may be better equipped to get things right the first time.

Improve performance and increase productivity.

Disadvantages:

Large businesses are often divided and the departments work in silos.

It often takes longer to detect problems or respond to weaknesses.

Impact of total client satisfaction

Advantages:

Continuously promote a positive business image.

Large businesses may be able to gain access to the global market.

Disadvantages:

Not all employees may be involved to total client satisfaction.

Reaction time to changing consumer demand may be influenced by a delay in market research.

Business sectors

Primary sector:

The primary sector is dependent on nature because it utilises the earth’s natural resources, land, minerals and vegetation.

Secondary sector:

It uses the natural resources sourced by the primary sector and adds value to them.

Tertiary sector:

It plays a unique role because it allows natural resources that were collected and transformed available to consumers/customers.

Business environments

Micro environment:

Refers to the internal environment in which the business operates.

Market environment:

Refers to the immediate external environment.

Macro environment:

Refers to the external environment that is directly outside the market environment.

the extent of control and challenges

Micro environment:

Full control. Difficult employees, Lack of visio/mission, Strikes, Poor working conditions, Outdated goals, Lack of adequate management skills.

Market environment:

Some control. Competition, Supply shortages, Changes in consumer behaviour, Demographics, socio-cultural factors.

Macro environment:

No control. Changes in income levels. Political changes. Contemporary legislation. Labour restrictions. Globilisation. Socio-economic issues.

Possible challenges Micro environment

Mission and vision:

Lack of mission/vision exists within the business.

Goals and objectives:

The business does not achieve its objectives because of a lack of planning.

Organisational resources:

There are limited resources available to achieve productivity.

Organisational processes:

Internal control mechanisms are not in place to improve organisational processes.

Organisational culture:

There is a lack of integrity/professional business practices.

Business functions:

Poor strategic direction within the business functions

Examples of challenges Market environment

Customers:

Changes in the demand of customers.

Suppliers:

Suppliers increasing the prices of inputs.

Competitors:

Market share of competitors is increasing.

Intermediaries:

Intermediaries increasing the prices of their products/services.

Civil society:

Civil society may disrupt how business activities may be conducted.

Trade unions:

May place unreasonable pressure on the business to increase wages/salaries/employee benefits.

Examples of challenges Macro environment

Political:

The government increases the corporate tax rate for businesses.

Economic:

A decrease in the availability of credit in the country.

Social:

A decline in the income of consumers because of increases in the unemployment rate.

Technological:

New technology becomes unaffordable for businesses

Legal:

Current legislations that affect the operations of the business.

Environmental:

Environmental degradation can cause a reduction in the availability of natural resources

Pillars of the BBEE

Management control

Ownership

Enterprise and supplier development

Skills development

Social responsibility

The rights of consumers in terms of the NCA

Receive information in plain and understandable language.

Receive protection of their personal information.

Fair and responsible credit marketing.

Refuse a credit increase.

The role of SETA

Promote and establish various learnerships.

Register various learnerships and learning programmes.

Develop skills plans that are in line with the aims of the NSDS.

Meaning of learnership

Agreement between a learner/trainee, employer and training provider.

The purpose of the LRA

Promotes collective bargaining at the workplace.

Promotes fair labour practices between employers and employees.

Advances social justice which ensures that the workplace maintains the basic rights of employees

The impact of LRA on businesses

Advantages:

Promotes quick and less expensive labour dispute resolutions.

Protects the rights of businesses and employer organisations in labour-related issues.

Disadvantages:

Decreased profitability of businesses because of a decline in productivity and sales.

The implementation of the LRA may be very costly and time consuming especially the dispute resolution process.

Ways in which businesses can comply with the LRA

Display a summary of the EEA in the workplace where it is visible to all employees.

Provide equal opportunities to all employees in the workplace.

Rights of employers in terms of LRA

Form employee organisations.

Form bargaining councils for the purpose of collective bargaining.

The rights employees in terms of the LRA

Join a trade union of their choice.

Embark upon legal strikes as a remedy for grievances.

Refer unresolved CCMA disputes to the labour court for appeal.

Porter’s five models

Bargaining power of suppliers/power of suppliers

Bargaining power of buyers/power of buyers

Barriers of new entrants to market

Competitive rivalry/power of competitors

Threat of substitution

Bargaining power of suppliers

The more powerful the suppliers, the less control the business has over them.

Assess the power of the suppliers in influencing prices.

Bargaining power of buyers

Conduct market research to gather more information about its buyers.

Buyers buying in bulk can bargain for prices in their favour.

Barriers of new entrants to the market

If there are few suppliers of a product but many buyers, it may be easy to enter a market.

If the barriers to enter a market are low, then it is easy for new businesses to enter the market/industry.

Power of competitors

If competitors have a unique/scarce product then they will have greater power.

A business with many competitors in the same market has very little power in its market.

The threat of substitutes

Change/improve the design/efficiency of products to remain competitive.

If the business’s product can be easily substituted, it weakens/reduces the power of the business in the market.

Steps in strategy evaluation

1. Examine the underlying basis of a business strategy.

2. Look forward and backwards into the implementation process.

3. Compare the expected performance witht the actual performance

4. Measure the business performance in order to determine the reasons for deviations and analyse these reasons.

5. Take corrective action so that deviations may be corrected.

Strategic management process

Have a clear vision, misson statement and measurable objectives in place.

Formulate alternative strategies to respond to business challenges.

Organise the business resources and motivate staff.

Identify strengths/weaknesses/opportunities/threats by conducting environmental scanning.