Chapter 8

Recruitment, Selection and

Training of Employees
IGCSE Business Studies

8.1 The Work of the Human

 Resources Department
● Recruitment is the process of identifying that the business needs to employ someone up to the point
at which applications have arrived at the business.
● Employee selection is the process of evaluating candidates for a specific job and selecting an
individual for employment based on the needs of the business.

Roles of the Human Resources Department:

● Recruitment and selection: involves attracting and selecting the best candidates for vacancies that
arrive.
● Training programs: involves assessing and fulfilling the training needs of employees.
Linked to the future plans of the business.
● Wages and salaries: must attract and retain the right people. Should set wages to motivate employees. ●
Health and safety: must make sure the business complies with all the health and safety laws. ● Industrial
relations: effective communication between representatives of the management and the workforce:
○ To resolve grievances and disputes
○ To put forth ideas and suggestions for improvements.
● Redundancy (retrenchment) and dismissal: involves releasing employees either because of: ○
the business changes in some way.
○ The employee’s performance is not satisfactory.
 ○ And should make sure the business complies with laws on redundancy, dismissal and
disciplinary matters.

8.2 Recruitment
&
Selection
● A business starts the process of recruitment and selection when:
○ An employee leaves and they need to be replaced.
○ It is a new business and needs employees.
○ It wants to expand
● The recruitment process gives the business an opportunity to:
○ Assess the roles of employes,
○ The nature of their jobs,
○ And future work requirements.
● In large businesses, the process is undertaken by the HR department.
 ● In small businesses, usually the manger undertake the process.
● The more important the job is, the more technical and senior the position is, the more careful and
time-consuming the process is.

The Recruitment Process:

1 Vacancy Arises 2 Job Analysis 3 Job description 4 Job specification

Selection 8 The end — vacancy filled

5 Job advertised 6 Application forms &

7 Interviews and Short-listing

8.3 Job analysis

&
Job description
 ● The first step of the recruitment process is to carry out a job analysis.
● A job analysis identifies and records the responsibilities and tasks relating to the job. ●
One the job analysis is done, a job description is produced.
● A job description outlines the responsibilities and duties to be carried out by someone employed to do a
specific job.
○ Functions of a job description:
■ It is given to applicants, so they know what the job entails.
■ It will allow a job specification to be drawn up.
■ A job description will also show if a new employee is working effectively.
■ It can also be referred to solve disputes.
Example Job description:
● Organising repairs and replacements
● Advising staff about queries
Job Title: Housekeeper ● Checking for belongings left
Department: Housekeeping ● Informing reception when rooms are ready.
Responsible to: Hotel Manager Occasional duties:
Responsible for: Cleaners and Room Attendants. Main Purposes of the
job:
● Responsible for domestic services in the hotel, with an aim to keep
accommodation clean and maintained for the guests.
● Responsible for cleaners and room attendants — A supervisory role.
Main Duties:

● Allocation of duties
● Sending soiled linen for wash ● Appointment and Training of new staff
 ● Disciplining and dismissing staff if necessary. hours of work, pension, staff welfare, training and promotion
Other information included — conditions of employment (salary, opportunities)
● A Job specification is a document which outlines the requirements, qualifications, expertise and
physical requirements for a specific job.
Example Job Specification:

Job Title: Housekeeper

Department: Housekeeping
Details of the job:
● Responsible for domestic services in the hotel, with an
aim to keep accommodation clean and maintained.
● Responsible for cleaners and room attendants.
● Supervisory role.
Qualifications:
● Essential: 4 IGCSE (A-C grades) including Maths and
English.
Experience:
● Desirable: Minimum 1 years experience at hotels.
Skills:
● Effective communication.
● Ability to manage people.
Physical fitness:
● Fit, need to be on feet all day.
Personal Characteristics:
● Honest
● Responsible
● Friendly
 ● Organised
● Helpful

8.4 Internal
&
External
Recruitment
Internal Recruitment:
● Internal recruitment is when a vacancy is filled by someone who is an existing employee of the business. ●
This method of recruitment is suitable for an employee looking for a promotion. ● The vacancy maybe
advertised on a notice board on the company newspaper.
Advantages:
 ● Quicker and cheaper than external recruitment.
● The person, their reliability, potential and ability is already known to the business. ● The person
already knows how the organisation works, its structure and what is expected of them. ● Can be
motivating to see other co-workers getting promoted — might work harder now. Disadvantages:
● No new ideas or experience comes into the business.
● Rivalry might occur between employees — jealousy.
● Quality of internal candidates might be low.

External Recruitment:
● External recruitment is when a vacancy is filled by someone who is not an existing employee of the
business.
Ways to Advertise Job Vacancies:
● Recruitment agencies — for professionals
● Job centres by the Government — for unskilled workers ●
Local newspapers — for low skill-level jobs
● National newspapers — for senior positions
● Online recruitment sites like LinkedIn
● Specialist magazines — for specialist technical employees.
Job Advertisements for External recruitment:
● What should be included?
○ Information about the job, like:
■ Duties involved
■ Qualifications required
■ Salary
■ Conditions of employment
■ Information on method of application

8.5 Methods of
Application &
Selection
● A job advertisement requires applicants to apply in writing by:
 ○ Filling in an application
○ Writing a letter of application
○ Enclosing a CV (Curriculum Vitae) or Resume.
● A business uses the application forms to chose the applicants who best match the job specifications. ○
The best match is invited for an interview.
○ A short list will also be drawn up.

Curriculum vitae or CV:

● A CV is a summary of a person’s qualifications, experience and and qualities ●
Should be well laid-out and clear.
● It should include:
○ Name ○ Positions of Responsibility
○ Telephone no. ○ Address ○ Education and Qualifications
○ Nationality ○ Name and Addresses of referees
○ Work Experience (references)

○ Interests
Letter of Application:
● It should include:
○ Why the applicant wants the job?
 ○ Why does the applicant thinks he/she would be suitable for the job?

Application form:
● Sometimes asks the same information as a CV.
● May ask for some more information relevant to the job.

Selection:
● Referees given by candidates — who are shortlisted and invited to interview — will be contacted. ●
Referees are people who will be asked to provide a reference.
○ They give their view on applicant’s:
■ Character
■ Honesty
■ Reliability
■ Suitability for the job
○ References are usually confidential.
○ Applicant = school graduate, reference = school.
○ Applicant = older, reference = previous or old employer.
Interviews:
● Main purposes of an interview are to assess:
○ The applicant’s ability to do the job.
 ○ Any personal qualities that are advantageous or disadvantageous to the business. ○
The general character and personality of the applicant — will they fill in?
● Interviews can be one-on-one, two-on-one, or a panel of people.
● Some businesses include:
○ Skill tests
○ Aptitude tests
○ Personality tests
○ Group situation tests.

Factors that affect who to employ:

● Work Experience
● Education and other qualifications
● Age
When the suitable applicant has been offered the job and has accepted it, the unsuccessful applicants would be
informed and thanked for applying.

8.6 Full-time
 &
Part-time
Employee
s
Full-time Employees:
● A full-time employee will usually work 35 or more hours a week.

Advantages of employing full-time employees:

● More likely to seek training.
● Faster to recruit 1 full-time employees than 2 part-time employees.
 ● More committed and less likely to leave.
● More likely to get promoted — would have gained more skills and experience than part-time employees. ●
Easier to communicate with.

Disadvantages of employing full-time employees:

● Less flexible work hours.
● Harder to ask to work only at busy times.
● Harder to extend business hours.
● Not willing to accept lower pay.
● Increased business costs.
Part-time Employees:
● A part-time employee is someone who works fewer hours than a full-time employee. ○
A part-time employee usually works 1-30/35 hours a week.

Advantages of employing Part-time employees:

● More flexible work hours.
● Easier to ask to work at only busy times.
● Easier to extend business hours by working evenings and weekends. ●
Fits in with looking after children and may accept lower pay.
 ● Reduces business costs.
● Easier to make redundant.

Disadvantages of employing Part-time employees:

● Less likely to seek training.
● Takes longer to recruit 2 part-time employees than 1 full-time employee. ●
May be less committed and more likely to leave.
● Less likely to be promoted.
● More difficult to communicate with.

8.7 Training
Objectives of training:
● Introduce a new process or new equipment.
● Improve the efficiency of the workforce.
● Provide training for unskilled workers to make them more valuable and productive. ●
Decrease the supervision needed.
● Improve the opportunity for internal promotions.
● Decrease the chance of accidents.
But it is usually provided to:
● To increase skills.
● To increase knowledge.
● To improve employees’ attitudes to encourage them to accept changes and raise awareness.

Types of Training:
● Induction Training
● On-the-Job Training
● Off-the-Job Training
Induction training:
● Induction training is an introduction given to a new employee, explaining the business’s activities,
customs, procedures and introducing them to their fellow employees.

Advantages:
● Helps employees to settle into their jobs quickly.
● May be a legal requirement to give health and safety training at the start.
● Less likely to make mistakes.

Disadvantages:
● Time-consuming.
 ● Delays the start of the employee commencing their job.
● Wages are paid, but no work is being done.
On-The-Job training:
● On-the-Job training occurs by watching a more experience worker doing the job. ●
This method is only suitable for unskilled and semi-skilled jobs.

Advantages:
● Individual tuition is given.
● Travel costs are saved, cheaper than Off-the-Job training.
● It ensures that some production is happening while they are training. ●
Training is tailored to specific needs of the business.

Disadvantages:
● The trainer will not be productive as usual.
● The trainer may have bad habits and may pass it onto to the trainee. ●
It may not satisfy the training qualifications outside the business.
Off-The-Job training:
● Off-the-Job training involves being trained away from the workplace, usually by specialist workers. ●
This training often involves classroom learning, using lectures, role play, case studies or computer
 simulations.

Advantages:
● A broad range of skills can be taught.
● The business only needs to pay for the course and will not lose the output of the worker as well, if the
course is in the evenings.
● Employees become versatile and multi-skilled.
● Employees can learn from experts who are up-to-date.

Disadvantages:
● High costs for the business.
● Wages are paid but no work is done if the course is during the day.
● The additional qualifications means the employee can leave and find another job easily.

8.8 Workforce Planning

● Workforce planning is establishing the workforce needed by the business for the foreseeable future in
terms of numbers and skills of employees needed.
● The number of employees required depends on the business’s sales forecast and future plans like
 automation or expansion.

Sometimes businesses downsize the workforce because of:

● Introduction of automation.
● Falling demand for goods and services.
● Factory or Shop or Office closure.
● Relocation of factory abroad.
● Business has merged to taken over and some jobs have become surplus.

The HR department can plan how many employees and what skills are needed
by: ● Finding out the skills of all the present employees.
○ Not including anyone who will leave soon.
● Consulting with existing staff as to who will and could retrain to fill new jobs. ● Preparing a
recruitment plan to show how many new staff will be needed and how they should be recruited.
Reducing workforce:
● Dismissal is when employment is ended against the will of the employee, usually for not working in
accordance with the employment contract.
● Redundancy is when an employee is no longer needed ans so loses their job.
○ It is not due to any part of their work being unsatisfactory.
○ They may be compensated.
Factors that decide which worker to make redundant:
● Some workers may be happy to be made redundant, as they may have another job, or they may retire, or
start their own business.
● Length of the time employed by the business.
● Workers with essential skills needed by the business are often retained.
● Employment history, poor attendance, punctuality and appraisal record.
● Which department needs to lose workers.

8.9 Legal Controls

The Contract of Employment:
● A contract of employment is a legal agreement between an employer and an employee, listing the rights
and responsibilities of the employee.
● It is usually in writing and will include:
○ Name of employee and employer.
○ Job title.
○ Employment start date.
○ Working hours.
 ○ Rate of pay and other benefits.
○ Frequency of payments.
○ Holiday entitlement.
○ Notice period for ending employment.

Impact of employment contracts:

● Both employers and employees know what is expected of them.
● Employee gets some security of employment.
● If employee fail to meet with the contract conditions, legal dismissal is allowed. ● If employer fail to
meet with the contract conditions, employee can seek legally binding compensation.
Unfair dismissal:
● When an employer ends a worker’s employment contract for a reason that is not covered by the contract. ●
This may be for reasons like:
○ Discrimination
○ If employer wants to reduce workforce but doesn't want to pay redundancy compensation. ● The
worker has the right to be offered compensation or to be offered their old job by taking the case to an
industrial tribunal.
● An industrial tribunal is a type of law-court (or in some countries, a legal meeting) that makes judgments
on disagreements between companies and employees.
Impact of unfair dismissal:
● Employers must keep very accurate records of workers’ performances if they want to claim that the worker
has broken their contract before dismissing them.
○ Allows employees to take their employers to the industrial tribunal.
○ Makes a business likely to treat employees unfairly.
Protection against discrimination:
● Discrimination at work is when the employer makes decisions that are based on unfair reasons. ●
Workers are treated differently:
○ As they are of another race
○ Or they belong to another religion
○ Or they are the opposite gender
○ Or they are considered to be too old/yong
○ Or as they are disabled in some way.
● Employees should be paid equally.
● Everyone should be treated equally during recruitment.
● Employers should word advertisements carefully.
● If a business doesn’t treat candidates fairly during recruitment, they can be prosecuted. ●
Businesses should recruit and promote staff on merit alone.
Health and Safety:
 ● In many countries, there are laws that:
○ Protect workers from dangerous machinery.
○ Provide safety equipment and clothing.
○ Maintain reasonable workplace temperatures.
○ Provide hygienic working facilities.
○ Decrease shift hours and increase breaks.

Impact:
● Increased business costs.
● More time spent on health and safety training.
● Workers feel safer = more motivation.
● Reduces accident rates = less compensation for injured costs.

● Some businesses in countries with weaker laws still provide safe working conditions as they have made an
ethical decision.
● An ethical decision is a decision taken by a company because of the moral code followed by the firm.
Legal Minimum Wage:
● A minimum wage makes it illegal for an employer to pay an hourly rate below the minimum wage set. ●
Workers have a right to get paid for the work they do.
 ● The contract of employment also specifies:
○ The wage rate to be paid.
○ The frequency of the wages paid.
○ What deductions will be made.
● In some countries, employers can pay whatever wage rate they like: workers are exploited. ●
So many countries has a legal minimum wage.

Impact:
● Prevents strong employers from exploiting unskilled workers.
● Encourages employers to train unskilled workers.
● Encourages more people to work.
● Low-paid workers earn more = higher living standards.
● Some employers may not be able to afford the new wage, so redundancies may rise, causing
unemployment to rise.

Thank you :)