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Business Studies Grade 12 > Chapter 4: Human Capital > Flashcards

Chapter 4: Human Capital Flashcards

1
Q

Manpower planning

A
  • Estimating the number of employees
  • Assessing the range of skills needed for the business to function
  • Calculating the time frame of the employment needs of business
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2
Q

Manpower planning: jobs

A
  • Job analysis: All the tasks and responsibilities associated with each job in the business
  • Job description: The job title, summary of the job’s duties and working conditions, and any supervisions required for the job
  • Job specification: The qualifications, skills and experience necessary to fulfill the job, used in recruitment
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3
Q

Recruitment: Internal

A
  • The business may use word of mouth where a manager recommends an employee or the employer may search employee files to see who matches the qualifications needed
  • The employee may also post the position on the business’s notice board
  • May also use a hybrid method where the business asks internal employees to recommend someone from outside

Advantages: Improved employee morale, cost effective, employee’s past performance and attitude is known

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4
Q

Recruitment: External

A
  • Business may post the position through an employment agency
  • Post position on newspaper or magazine
  • Post position at schools and other educational institutions
  • Accept walk-ins with CVs
  • Head hunt employees form competing businesses and ask them to apply

Advantages: new ideas and skills, potential insight into competitors, no conflict among employees who want the position

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5
Q

Selection: 8 steps

A
  1. Business will receive application forms and CVs in response to the post
  2. Business will review all the applications to see which meet the requirements they are looking for, the rest of rejected
  3. A short list of applicants will be chosen for the first round of screening by comparing the applications to a predetermined list of criteria
  4. Background, reference, criminal record, and credit checks are done
  5. Interviews are held with a panel of people and a set of questions
  6. Tests are done
  7. Candidates are ranked and the highest ranking gets the position
  8. Employee and employer sign a contract with their full details and the position
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6
Q

Selection 6: Tests

A
  • Psychometric test: Tests is the mental ability and personality of applicant matches the position
  • Medical examination
  • Work sample test: Examinees present situation representative of actual position and examine applicants response
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7
Q

Placement

A
  • Employee is usually placed in the position they applied for
  • The abilities of the employees are matched to the requirements of the position
  • If the employee has a certain skill they may be placed somewhere else more suitable, remuneration must then be negotiated
  • Correct placement ensures the employee is placed in a position that will best benefit the business and the individual
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8
Q

Induction

A
  • Training/orientation to all new employees to help them adjust ASAP

It includes:
* A written copy of the business policies and procedures
* A face-to-face introduction to managers and staff
* Some form of an organisational chart to identify various role players
* Provide a tour of the facilities like bathrooms and meeting rooms
* Provide a mentor or buddy system
* Provide specific instructions on how to perform tasks and mention any unique/unusual instructions or tasks expectedd from them

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9
Q

Induction: Advantages

A
  • Reduces anxiety for new staff members as they were introduced to business and can now become part of the team
  • Ensures new employees start off with the correct information
  • Business does not waste time because the employees will learn the correct procedures immediately
  • Familiarises the new employees with the business culture and can thus adapt to procedures
  • Creates staff retention
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10
Q

Remuneration and employee benefits

A
  • Largest expense of the business
  • Must pay for overtime according to BCEA
  • Can either be Cost to company or Cost plus benefits
  • Cost plus benefits: salary is paid and then makes contribution towards fringe benefits
  • Cost to company: a salary is paid and no additional benefits are contributed
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11
Q

BCEA: overtime pay and deductions

A
  • Extra remuneraton may br paid in the form of a 13th cheque or a bonus, an employee may qualify for both for meeting performance targets
  • Bonuses differ from business to business, some dont offer any at all
  • May offer extra remuneration by offering the employee share options in the business

May only deduct from pay if:
* Deduction is voluntary, like paying union fees
* Deductions is a legal requirement, like PAYE or UIF

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12
Q

Difference between training and skills development

A
  • Training: Ensuring that employees have the necessary skills needed to do their job
  • Skills development: The same thing but these skills are much broader and not job specific
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13
Q

Job-specific training

A
  • A systematic process meant to help the employee improve their performance and thus increase efficiency in the firm
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14
Q

Disadvantages of training/skills development

A
  • Employees may leave after training
  • There’s no guarentee that the training will improve the employee’s performance
  • Takes employee away from doing work for the time period of the training
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15
Q

Steps in training/skills development

A
  1. Identify gap in skills
  2. Identify the training resources available(will it occur inhouse or externally or both)
  3. Design the program(what should th employees be able to do at the end of the training)
  4. Implement the training
  5. Evaluate the success of the training
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16
Q

Step 3 in training: Training methods

A
  • On the job training: when an employee will recieve training from a more experienced employee while the job is being done
  • Classroom training: A lecture is given by someone in the business, a training provider or from a course at a uni
  • E-learning: employees learn through interacting on an electronic device
  • Workshop
  • Self-study
  • Buddy system/mentor
  • Learnership: employee can work at the business while studying toward a qualification
  • Blended approach: combining two or more of the above
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17
Q

Employee evaluation: Performance appraisals

A

It is a
* A planning tool: Perfomance targets are agreed upon contractually between the employee and the manager
* An evaluation tool: At the next appraisal the performance is evaluated
* A feedback tool: If targets weren’t met they must discuss why and plans must be made to solve the problems/anticipate future ones

PIP- personal improvement plans

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18
Q

Retention

Consequences of high staff turnover

A
  • High employee turnover means that something is wrong in the business

Consequences of high employee turn-over:
* Reduces productivity
* Added pressure on employees while new employees settle in
* Negative public perception
* Low morale
* More money spent on training new staff`

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19
Q

LRA main objectives

A
  • Enforce the rights stipulated in the Constitution relating to labour
  • Provide a frame work for collective bargaining to solve labour disputes in order to promote peace, economic development
  • Employees and employers right to freedom of association
  • Protection of employees and people seeking employment
  • Workplace forum
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20
Q

Positive implications of the LRA

A
  • Ensures international labour standards are applied in the South African labour context
  • Ensures basic rights of the employee/er are protected in the workplace (right of association to trade union/organisation)
  • Provides guideline as to how labour disbutes must be handled
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21
Q

Negative implications of LRA

A
  • Trade unions tend to get involved in politics under the pretext of the LRA
  • Small business have a hard time knowing whats allowed and whats not because they lack the know-how, so they have to hire a labour consultant
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22
Q

Progressive approach to discipline

A

Providing the most linient discipline measure that’s appropriate for the issue, then escalating to a harsher one should the problem still occur

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23
Q

Possible steps toward discipline

A
  • Coaching and counselling: Manager will determine what can be done to correct behaviour, then plan of action will be made to ensure employee understands expectations
  • Correction: A more formal method where verbal warnings, written warnings, suspensions, or dismissals are options
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24
Q

Difference between Grievance procedure and a Disciplinary policy

A
  • Disciplinary policy: Informa employees of expected behaviour and standards and what happens when expectations are not met
  • Grievance procedure: Allows an employee to resolve a problem they may have with their employment by communicating with their employer about the problem via a predetermined procedure/structure
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25
Q

Three substantive reasons for dismissal

A
  • Dismissal due to incapacity
  • Dismissal due to operational reasons
  • Dismissal due to misconduct
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26
Q

Dismissal due to incapacity

A

Incapable of meeting the required standard
1. Poor performance
* Could be missing deadlines, carelessness, inaccurate work, etc.
* Employer must prove that work standard is
fair and that employee had enough support to fulfil job
* A demotion or transfer must be considered before dismissal

  1. Poor health
    * Employer must try to modify the employee’s work to accomodate to the employee’s health
    * Unpaid leave for an extended amount of time must be offered if the employee will be able to recover and return to work
    * Transfering the employee to more suitable tasks should be considered before dismissal
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27
Q

Probation

A
  • New employees are given a three month probation period , or more if job is complex
  • Manager/employer uses it to see if new employee is capable
  • Probation period may be extended by another three months
  • Probation period / extension and work standards must be communicated to employee immediately
  • Employee must always be supervised and guided by manager
  • Manager must regularly have meetings to evaluate employee’s performance
  • Meeting must be held if employment contract is to be terminated
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28
Q

Dismissal due to misconduct

What should be done before dismissal

A
  • A Discipline code should stipulate what is regarded as an offense and what action correlates with that offense
    Before dismissal :
  • Employer must prove that rules were clearly stipulated
  • Prove that employee was aware of the rules
  • Prove that rules were reasonable/possible to follow
  • Prove that employer was enforcing rules consistently
  • The appropriate action was followed for breaking the rule
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29
Q

Procedural fairness for incapacity/misconduct

A
  • The complaint should be in writing and be investigated, the investigating process should also be in writing
  • The accused should be made aware of the accusations made against them and have access to all statements collected
  • Date, time, and venue of disciplinary hearing should be given to accused in writing
  • Accused must be given enough time to prepare for hearing
  • Accused may have a language interpreter
  • Complainant presents case first and must provide evidence and witnesses, accused must cross examine witnesses
  • Chairperson of hearing will determine whether theyre guilty or not and have it in writing, if guilty a fair punishment will be decided considering mitigating circumstances, they can also take it to CCMA
30
Q

Dismissal due to operational reasons: reasons for retrenchment

A
  • Automation
  • Restructuring of the business/department
  • Closing of the business
  • Cost reductions
31
Q

Dismissal due to operational reasons: Procedural fairness

A
  • Business must prove the reason for retrenchment
  • Must prove that other alternatives were considered
  • Steps that were taken to minimise or prevent the retrenchment
  • Consultation that took place with the affected employees
  • Criteria used to select who gets retrenched
  • Notice period provided to retrenched employees
  • Any possibility of re-employment at a later stage
32
Q

What constitutes as unfair treatment

A
  • Unreasonably long probation periods
  • Unfair discrimination
  • Mistreatment of an employee after whistleblowing
  • Unfair distribution of benefits
  • Trying to prevent an employee from join a trade union
  • Unfair suspension or any other disciplinary action
33
Q

What constitutes as unfair dismissal

A
  • Employee is dismissed due to participating in activities relating to their trade union
  • Is dismissed due to participating in a protected strike
  • Is dismissed due to pregnancy or not being allowed to return after maternity leave
  • Employment contract is terminated without appropriate notice to the employee
  • Constructive dismissal (making work impossible for employee so they leave)
  • Is dismissed due to arbitrary reasons(age, race, gender, etc)
34
Q

Remedies for unfair dismissal

A
  • Compensation (max of 24 months of the employee’s salary)
  • Re-employment
  • Combination of two
35
Q

When re-employment is not an option

A
  • Dismissal was procedurally unfair but substantively fair: You were dismissed because of incapacity, misconduct, or operational reasons, but the dismissal process was inappropriate)
  • The employee does not want to be re-employed
  • The relationship between the two would be intolerable for both parties if employee was re-employed
  • It would not be practical to re-employ the employee
36
Q

Industrial relations

A
  • The relationship between the employer(manager) and the employee(trade union) and other parties like the government
  • The aim is to create industrial peace by ensuring high work morale and a functional work place for productivity
37
Q

Collective bargaining

A

When the employer and trade union representing the employee negotiate the terms of employment such as:
* Remuneration, overtime pay, fringe benefits
* Working conditions
* Working hours
* Leave

38
Q

Industrial action

A
  • When employees take action to enforce their demands because the feel collective bargaining did not meet their needs
  • According to the LRA, employees have the constitutional right to industrial action as long as they follow the correct procedures
  • Employers have the Constitutional right to perform a lock-out in response to the industrial action
39
Q

Types of industrial action

A
  • Strike: When two or more employees refuse to work based on a shared, work-related experience
  • Go-slow: When employees continue to work but they slow down their productivity
  • Work-to-rule: When employees fulfill only the minimum requirements of their tasks
  • Picketing: When striking employees demonstrate publicly outside the wokrplace, may only be organised by a trade union
  • Intermittent strikes: When employees stop and start a strike over a period of time
  • Sympathy/secondary strikes: When employees strike in support of another strike, can only be protected if original strike is supported
  • Overtime bans: When employees refuse to work overtime
40
Q

Reasons for industrial action

A
  • For trade union to be recognised
  • Employer made unilateral changes to working conditions
  • Remuneration issues
41
Q

Protected strikes

A

Is considered protected if:
* The matter for which workers want to strike is communicated to CCMA or other councils
* CCMA has 30 days to resolve the conflict
* If they cannot, they release a letter stating so
* If business is private sector a 48hr notice of the strike is given to employer, a 7 day one is given if business is public sector
* If employer made unilateral changes then employees may immediately perform industrial action without this procedure

42
Q

Benefits of protected strike from employee’s perspective

A
  • Employees may not be dismissed for striking, they may however still be dismissed for any misconduct during the strike, but the strike itself may not be declared misconduct
  • Employers may not claim damages for any loss of productivity/income during the strike
  • Employers have to still provide food and accomodation if it’s part of the employees remuneration
  • Employers may not get a court interdict to stop the strike
43
Q

Unprotected strikes

A

It’s an unprotected strike if:
* There was an agreement that certain issues may not be striked and must be taken to Labour court
* The correct procedure was not followed
* The workers striking are essential service workers( SAPS, parliament, services that would endanger people if discontinued like doctors)

44
Q

Lockout

A
  • If the correct procedure was followed, an employer may prevent the employees from entering the workplace in order to force them to agree to the employer’s demands
  • Employees may not sue employer for loss of income
45
Q

Dispute-resolution mechanisms: Collective Bargaining

A
  • Manager and trade union discuss issues of concern in order to resolve them
  • Trade union provides more bargaining power for the employee
  • When an agreement is reached, the agreements will be recorded in a collective agreement, all parties will sign the agreement, and be bound by that agreement
46
Q

Centralised collective bargaining

A
  • When employers that belong to a certain sector will come together and negotiate with one or more trade unions that represent employees of that same sector
47
Q

Bargaining councils

A
  • They may be formed by trade unions or Employers’ organisations
  • They must have enough representation for both employees and employers before it is established
  • NEDLAC must approve of their representation
  • An agreement made through collective bargaining will affect all parties within that sector, regardless of whether they agreed to it or not
  • If the agreement negatively impacts an employer, they may apply to be exempt from the agreement
48
Q

Aim of bargaining councils

A
  • Negotiate and enforce collective agreements on issues like grievances, wages and benefits
  • Design and propose/submit new policies/laws that affect that sector
  • Prevent and resolve labout conflicts
  • Establish training and education
49
Q

Statutory council

A
  • Established in sectors that have no bargaining council
  • A statutory council is similar to a bargaining council exept decisions made here cannot affect all other parties in that sector before they have been approved by the Minister of Labour
  • The requirement of a Statutory council is 30% representation of employees and employers within that sector
  • They administer pension funds, training and education schemes
50
Q

Workplace Forum

A

It’s a mechanism whereby employers and employees(for business with over 100) can make joint decisions on :
* Health and safety measures
* Job grading
* New work methods that may lead to restructuring
* Retrenchment
* Criteria for merits and bonuses
* Education and training
* NOT wages

If issues cannot be settled, they can go to CCMA

51
Q

CCMA

A

An independant resolution body that is aimed at resolving disputes between employers and employees, is not owned by government, a business or trade union
* Conciliation: A commissioner meets with the employee and employer to explore ways the issue can be resolved mutually
* Mediation: This will happen if Conciliation did not work. If matter does not concern a strike, Arbitration will follow after Conciliation
* Arbitration: Commissioner will issue a decision that is legally binding on both parties
* If Arbitration does not work, the parties have 6 weeks to take the matter to the Labour Court

52
Q

Trade Unions

A

A group of workers that affiliate themselves under as a collective organisation with the aim of participating in collective bargaining with employers/Employer Organisations
* They ensure that workers are treated fairly
* They make decisions regarding labour issues and influence policies to create industrial peace
* They address issues like remuneration and working conditions

53
Q

Biggest trade unions in SA

A
  • COSATU: The Congress of South African Trade Unions
  • FEDUSA: The Federation of Unions of South Africa
  • NACTU: The National Council of Trade Unions
54
Q

NEDLAC

A

National Economic Development and Labour Council
Aims:
* Make economic decision-making more inclusive
* Promote goals of social equity and economic growth

They intervene as a dispute-resolution body when there’s conflict between government, businesses and trade unions

55
Q

EE Act

A

Employment Equity Act
* Purpose is to redress the inequalities of the past through Affirmative Action
* PDIs are given preferential treatment to ensure there is equal representation in the workplace
* All inequalities due to past practices has to be rectified in terms of remuneration, training and promotion
* All business must comply with EE or will face penalties

56
Q

Positive Implications of EE

A
  • Addresses unfairness and imbalances from the past
  • Creates a more diverse workforce that represents all people
  • Creates a more diverse management team that represents all people
  • Businesses who meet EE requirements are in a better position to negotiate contracts with government
  • Theres an increased emphasis on training fro PDIs
  • Businesses have to analyse and identify equity issues and submit it as part of the EE report
57
Q

Negative Implications of EE

A
  • Individuals who are not marginalised may feel that their opportunities are limited
  • It creates more workload to create the EE report
  • It makes the recruitment process more time consuming, might not find a candidate that meets the EE requirements
58
Q

Purpose of BBBEE

5 Elements/Pillars of BBBEE

A

Broad Based Black Economic Empowerment
1. Percentage of black owners in a business has to increase to 40% to get maximum BBBEE points
2. Empower more black people to become more active at management level
3. Promote human capital development of black people by emphasising learnerships, internships, and skills development among black people
4. Encourage businesses to make us of black-owned suppliers in order to include black people in the economy
5. Create socio-economic development by ensuring black people have access to funds to become economically empowered business owners

59
Q

Positive Implications of BBBEE

A
  • Promotes human rights as part of the Constitution
  • Has improved the standard of living of middle class black people
  • Has created skills development for black people
  • Real opportunities have been created for black people to become part of the economy
60
Q

Negative Implications of BBBEE

A
  • BBBEE has not redressed all issues yet as majority of black people still live in poor conditions with low standards of living
  • Some business partake in window dressing in order to get maximum BBBEE points and get better contracts from government
61
Q

Aims of Skills Development Act

A
  • Increase employment opportunities for PDIs
  • Help people develop their qualifications and skills
  • Achieve economic development so people can have high standards of living
  • To boost learnerships so the workplace can become a place of learning
  • Encourage entrepeneurship through training and improved skills
  • Encourage employees to be involved in training to improve skills
62
Q

How businesses pay for SDA

A
  • Businesses pay Skills Development Levy to SETA
  • Business pays 1% of payroll if they make more than R500 000 p.a to SARS that pays to SETA
  • Can claim back 20% from mandatory grant if they submitted a WSP(workplace skills plan) and an ATR(annual training report) and if they actually did the training
  • If they want the Discretionary fund(49,5%) they must do pivotal training from an accredited training provider, provide learnerships or bursaries
63
Q

Aims of SETA

A

They work out which skills are needed in the sectors (Sector Skills Plan) and implement plans that will ensure the skills are developed
* They watch over education and training in the sector
* Approve the WSP and ATR from employers
* Ensure learnerships are intergrated in businesses
* Make funds available to businesses and trainers in order to fulfil Sector Skills Plan

64
Q

WSP

Workplace Skills Plan

A
  • A plan that a business draws up after identifying skill needs from a skills gap analysis
  • Plan is submitted to SETA where they will analyse all the WSPs from that sector and identify all the critical and scarce skills, and then help employees develop them
65
Q

ATR

Annual Training Report

A
  • A report in which the business shows which of the training from the previous year’s WSP was done
  • Dealine to submit is 30 April
66
Q

Positive Implications of SDA/SDL

A
  • More skills are developed
  • Completed learnerships leads to more employment opportunites
  • Better skilled workers will lead to better performance for the business and thus competitive advantage
  • Skills are not compromised when budgets are reduced as funding for skills comes from SDL
  • 20% may be claimd back if WSP and ATR are submitted, encourages businesses to plan
67
Q

Negative Implications of SDA/SDL

A
  • The 1% SDL is an additional cost as it may not be deducted from employees’ salaries
  • SETAs overseeing in training is not always effective and may lead to lots of money that should be spent on training to sit in SETA’s bank account
  • Business can only claim 20% of mandatory grant, claiming discretionary means meeting very strict requirements
  • Small businesses may have trouble finding the time to allow employees to go for training as it will affect productivity
  • It’s a waste of money if the employee ends up leaving the business
  • If a business goes against the act they could face a fine or jail time
68
Q

Purpose of BCEA

A
  • Ensures employees are treated fairly
  • Creates economic development
  • No employer may include anything in an employment contract that is not approve by the BCEA
69
Q

Issues covered in the BCEA

A
  • Employees may not work more than 45hours a week
  • Employees must be paid 1.5 times their salary for overtime, and/or the employer must give them time off
  • Employees may not deduct anything from the employee’s remuneration that they didnt sign to in writing or that isn’t a legal requirement
  • If an employee works during a public holiday they get paid double or get time off
  • Employees are entitled to leave
  • A dismissal notice period of 1 week if they worked for less than a month, 2 weeks if less than a year, and 1 month if worked for a year or more
70
Q

Types of leave

A
  • Annual leave: all employees are entitled to 21 consecutive days
  • Sick leave: Employees are entitled to 30 days in a three cycle if they work 5 days a week/ 36 days if they work 6 days a week
  • Maternity leave: Employees are entitled to 4 consecutive months but doesn’t have to be paid, employer can decide that. She may also claim UIF if she doesn’t recieve full salary
  • Family responsibility leave: Only applies to employee that has been employed for longer than 4 months and works 4 days a week or more. Employee is entitled to 3 days a year
71
Q

Positive Implications of BCEA

A
  • Protects vulnerable workers from being exploited
  • Provides mechanisms to set minimum wage for farm and domestic workers
  • Prevents child labour
  • Protects employees from unreasonably long working hours
  • Ensures employees are being fairly treated
72
Q

Negative Implications on BCEA

A
  • Income potential of employee is limitted if they wish to work overtime because there’s a limit
  • Some employers cannot afford to employ many workers if the minimum wage is too high, while some people will be willing to work for low wages

Business Studies Grade 12 (9 decks)

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