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Teacher's Copy 2024 Revised Grade 12 Notes on Human Resources Function.

The document provides comprehensive notes on the Human Resources Function for Grade 12 Business Studies, covering key topics such as recruitment, selection, induction, placement, salary determination, and fringe benefits. It outlines definitions, procedures, and the implications of various acts on human resources, along with detailed explanations of recruitment methods and selection processes. The notes serve as a guide for teaching, learning, and assessment in the context of human resources management.

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100% found this document useful (1 vote)
76 views

Teacher's Copy 2024 Revised Grade 12 Notes on Human Resources Function.

The document provides comprehensive notes on the Human Resources Function for Grade 12 Business Studies, covering key topics such as recruitment, selection, induction, placement, salary determination, and fringe benefits. It outlines definitions, procedures, and the implications of various acts on human resources, along with detailed explanations of recruitment methods and selection processes. The notes serve as a guide for teaching, learning, and assessment in the context of human resources management.

Uploaded by

ahmedbentum2016
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 16

BUSINESS STUDIES

GRADE 12

PAPER 1

TERM 1

REVISED NOTES

CHAPTER 2

HUMAN RESOURCES FUNCTION

2025

TABLE OF CONTENTS

TOPICS PAGES
2021 Examination Guidelines for Human Resource Function 2
Terms/Concept and Definitions/Meaning 3-4
Recruitment 4-7
Selection 7-10
Induction 11-12
Placement 13
Importance of training 13
Salary determination 13-
The link between salary determination and BCEA 14
Fringe benefits 14-15
Implication of Acts on Human Resource 15-16

This chapter consists of 16 pages

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HUMAN RESOURCES FUNCTION CHAPTER 2

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES


HUMAN RESOURCE ACTIVITIES: REFER TO PAGE 11-13 OF THE 2021 EXAMINATION
GUIDELINES

RECRUITMENT
 Explain/Elaborate on the meaning of recruitment.
 Outline/Discuss/Explain the recruitment procedure.
 Explain the meaning of job analysis.
 Differentiate/Distinguish between job description and job specification as components of a
job analysis.
 Identify job description and job specification from given statements/scenarios.
 Identify methods of recruitment
 (internal/external recruitment) from the given scenarios/statements
 Explain/Discuss/Analyse the impact (positives/advantages and/or negatives/disadvantages
of the above-mentioned methods of recruitment.
 Identify/Give examples of sources of internal/external recruitment from given
scenarios/statements.

SELECTION
 Outline/Discuss/Explain the selection procedure.
 Explain the meaning of screening as part of the selection procedure.
 Discuss/Explain the purpose of an interview.
 Outline/Explain/Discuss the role of the interviewer before and during the interview.
 Outline/Explain/Discuss the role of the interviewee during the interview.
 Define/Elaborate on the meaning of an employment contract.
 Name/Outline/Mention the details/aspects/ contents of an employment contract.
 Outline/Explain/Discuss the legal requirements legalities of the employment contract.
 Analyse an employment contract from given scenarios and make recommendations for
improvement.
 Outline/Explain/Discuss the reasons for the termination of an employment contract.

INDUCTION
 Define/Elaborate on the meaning of induction.
 Outline/Explain/Discuss the purpose of induction.
 Mention/Outline aspects that must be included in the induction programme.
 Evaluate an induction programme from given scenarios and make recommendations for
improvement.
 Discuss/Explain the advantages/benefits of induction for businesses.
 Identify the benefit of induction from given scenarios.

PLACEMENT
 Elaborate on the meaning of placement.
 Outline/Explain/Discuss the placement procedure.
 Explain/Discuss/the importance of training/skills development in HR.

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HUMAN RESOURCES FUNCTION CHAPTER 2

FRINGE BENEFITS
 Explain/Differentiate/Distinguish between piecemeal and time-related salary determination
methods.
 Explain the link between salary determination and the Basic Conditions of Employment Act.

COMPULSORY BENEFITS
 Name/Mention/Give examples of employee benefits for an example.
o Pension
o Medical aid
o Provident fund
o Allowances
 Explain/Discuss/Evaluate the advantages/positives and/or disadvantages/negatives of fringe
benefits to business.
 Compulsory benefits:
 Benefits required by law, e.g. UIF, etc.

LEGISLATION
 Discuss the implications of the LRA/ BCEA/EEA/SDA on the human resources function.

TERMS AND DEFINITIONS


TERMS/CONCEPTS DEFINITION/ MEANING
An employment a legally binding agreement between the employer and the
contract employee.
Curriculum Vitae (CV) a summary of the education, qualifications, experience, skills,
previous occupations and special personality traits of an individual
that is used when applying for a job.
External recruitment process of sourcing potential candidates for certain available posts
from outside the business.
Fringe benefits benefits provided by the business to employees in addition to their
salaries.
Induction includes introductory training of new workers to the workplace/
organisation which includes valuable information about
products/services/ processes/procedures/policies/immediate team
and management.
Internal recruitment process of sourcing potential candidates for certain available posts
from within the business.
Interview a formal meeting where information is exchanged between the
interviewer and the interviewee/ respondent/applicant.
Interviewee applicant/candidate that answers the questions during the interview.
Interviewer individual/manager responsible for asking questions during the
interview/conducting the interview.
Job analysis a tool used by the human resources function to obtain and analyse
information about the business’s workforce so that they can place
the right person in the right job and consists of the job description
and job specification.
Job description describes the duties/responsibilities/of a specific job.
Job specification describes the minimum acceptable personal qualities/skills/
qualifications needed for the job.

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HUMAN RESOURCES FUNCTION CHAPTER 2

Placement selected candidates are placed/positioned where they will function


optimally and add value to the business.
Preliminary interviews a short form of interviewing potential candidates in order to
determine which candidates meet the specific criteria.
Recruitment process used by businesses to identify vacancies in the business
and attract suitable candidates for it.
Selection choosing a qualified candidate/applicant for an available post
based on the requirements of job analysis.
Selection procedure the process that needs to be followed before appointments are
made.
Training/Skills refers to the acquisition of new skills and knowledge by employees.
development
UIF the fund offers short-term financial assistance to workers when
they become unemployed or are unable to work because of illness,
maternity or adoption leave.

HUMAN RESOURCES ACTIVITIES


1.1 Recruitment

1.3 Meaning of recruitment


 Recruitment is the process used by businesses to identify vacancies in the business and
attract suitable candidates for them.
 Recruitment aims at finding candidates who have the necessary knowledge/
experience/qualifications to fill the vacancy.
 Businesses may choose to use an internal or external method of recruitment depending on
the nature/requirements of the vacancy.
 Recruitment is an ongoing process as employees leave their jobs for other jobs/get promoted
/retire/as new technological skills are required.
 Recruitment begins with the process of actively seeking out/finding candidates for vacancies,
to the successful integration of the candidates/recruit into the business.

1.2 Recruitment procedure


 The human resource manager should evaluate the job/prepare a job analysis, that includes
the job specification/job description/in order to identify recruitment needs.
 HRM should indicate the job specification/description/ to attract suitable candidates.
 Choose the method of recruitment, e.g. internal/external, to reach/target the suitable
applicants/candidates.
 If external recruitment is chosen, the relevant recruitment sources should be selected, e.g.
recruitment agencies/tertiary institutions/ newspapers, etc
 Vacancies can be internally advertised via internal email/word of mouth/ posters/staff notice
boards.
 External recruitment should be considered if internal recruitment is unsuccessful.
 If the external recruitment is done, the relevant recruitment source should be selected, e.g.
recruitment agencies, tertiary institutions, newspapers,
 The advertisement should be prepared with the relevant information, e.g. the name of the
company, contact details, contact person, etc.

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HUMAN RESOURCES FUNCTION CHAPTER 2

 Place the advertisement in the appropriate media that will ensure that the best candidates
apply.
NOTE: The procedure can be in any order

1.3 The meaning of job analysis


 A job analysis is a tool used by the human resources function to obtain and analyse
information about the business’s workforce so that they can place the right person in the right
job.
 A job analysis consists of the job description and job specification.
 The employer must be clear about the nature of the work to be performed so that an
appropriate job description and job specification can be prepared.

1.4 The differences between job description and job-specification


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

1.5 METHODS OF RECRUITMENT


Internal recruitment and External recruitment

1.5.1 Internal recruitment


 Refers to the process of sourcing potential candidates for certain available posts from within
the business.
1.5.2 Internal recruitment
Sources of Internal recruitment
 Internal e-mails/Intranet/websites to staff
 Word of mouth
 Business newsletter/Circulars
 Internal/management referrals
 Notice board of the business
 Internal bulletins
 Recommendation of current employees
 Headhunting within the business/organisational database.

1.5.3 The impact of internal recruitment


Positives/advantages
 The recruitment process is faster/less expensive if the candidates are known to the business.

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HUMAN RESOURCES FUNCTION CHAPTER 2

 The business recruits existing employees through promotions/transfers from inside the
business.
 Opportunities for promotion reward good work and motivate current employees.
 Provides opportunities for career paths within the business.
 Reliable/key staff members are retained if they are promoted/transferred within the business.
 Staff morale and productivity increase if suitable staff members are promoted regularly.
 Reduces the chances of losing employees, as future career prospects are available
 Placement is easy, as management knows the employees' skills/personality/
experience/strengths.
 Current employees understand the operations/functions of the business.
 The business knows the personality, strengths and weaknesses of the candidates.
 Detailed, reliable information can be obtained from the supervisors/
employee records.
AND/OR

Negative/disadvantages
 Current employees may not bring new ideas into the business/limited ideas generation from
current employees.
 Employees who are not promoted may feel demotivated, which may hamper
productivity/reduce morale.
 Promoting a current employee may cause resentment among existing/other employees.
 The number of applicants from which to choose is limited to current staff only/Limited pool of
applicants.
 Employees who do not have the required skills for the new job may be promoted.
 The business has to spend more money on training/developing existing
employees in the new position.

1.5.4 External recruitment


 Refers to the use of external sources to advertise vacancies outside the business.

1.5.5 Sources of external recruitment


 Recruitment agencies
 Billboards
 Printed media, for example newspapers/flyers/magazines/posters
 Electronic media for example radio/TV
 Social media/Social networks/Internet/Business websites
 Walk-ins
 Headhunting
 Professional associations
 Networking
 Educational/Training institutions

The impact of external recruitment

Positives/advantages
 New candidates bring new talents/ideas/experiences/skills into the business.
 There is a larger pool of candidates from which to choose.
 It may help the business to meet affirmative action/EEA and BBBEE targets.

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HUMAN RESOURCES FUNCTION CHAPTER 2

 Minimises unhappiness/conflict amongst current employees who may have


 applied for the post
 There is a better chance of getting a suitable candidate with the required
skills/qualifications/competencies who does not need much training/ development which
reduces costs.
 Overall efficiency/productivity may occur if the new worker actively adds value to the
business.

AND/OR
Negatives/disadvantages
 Information on CVs/referees may not be reliable/may be falsified.
 Many unsuitable applications can slow down the selection process.
 New candidates generally take longer to adjust to a new work environment.
 External sources can be expensive, e.g. recruitment agencies' fees/advertisements in
newspapers/magazines.
 The selection process may result in an ineffective/incompetent candidate being chosen.
 The recruitment process takes longer/is more expensive as background checks
must be conducted.
 In-service training may be needed which decreases productivity during the time
of training.

1.6 Selection

Selection procedure
Option 1
 Determine fair assessment criteria on which selection will be based.
 Use the assessment criteria to assess all CVs/application forms received during
recruitment./Conduct preliminary screening, which is sorting the applications received
according to the criteria for the job.
 Check that applicants are not submitting false documents such as forged
certificates/degrees/achievements.
 Applicants must submit the application forms/curriculum vitae and certified copies
 of personal documents/IDs/proof of qualifications, etc.
 Sort the received documents/CVs according to the assessment/selection criteria.
 Screen/Determine which applications meet the minimum job requirements and
 separate these from the rest.
 Preliminary interviews are conducted if many suitable applications were
received.
 Conduct preliminary interviews to identify suitable applicants.
 Reference checks should be made to verify the contents of CVs, e.g. contact
previous employers to check work experience.
 Compile a shortlist of approximately five candidates.
 Invite shortlisted candidates/applicants for an interview.
 Shortlisted candidates may be subjected to various types of selection tests e.g. skills tests,
etc.
 Once candidates have been selected, a written offer is made to them.
 Inform unsuccessful applicants about the outcome of their application./Some
adverts indicate the deadline for informing only successful candidates.

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HUMAN RESOURCES FUNCTION CHAPTER 2

NOTE: The procedure can be in any order

Option 2
 Receive documentation, for example, application forms and sort it according to the criteria of
the job.
 Evaluate CVs and create a shortlist/Screen the applicants.
 Check the information in the CVs and contact references.
 Conduct preliminary sifting interviews to identify applicants who are not suitable
for the job, although they meet all requirements.
 Assess/Test candidates who have applied for senior positions/to ensure the best
the candidate is chosen.
 Conduct interviews with shortlisted candidates.
 A written employment offer is made to the selected candidate(s).

1.7 Screening as part of the selection procedure


 Check application documents against the requirements of the job.
 Candidates/applicants who meet the minimum requirements are separated from others.
 Conduct/perform background/credit/reference checks of applicants who qualify for the job.
 Prepare a shortlist of suitable candidates after screening.

1.8 Purpose of an interview


 Creates an opportunity where information about the business and applicant can be
exchanged.
 Determine a candidate's suitability for the job/Determine whether the candidates would add
value to the business
 Obtains information about the strengths and weaknesses of each candidate.
 Evaluate the skills and personal characteristics of the applicant
 Helps the employer in choosing/making an informed decision about the most
suitable candidate.
 Matches information provided by the applicant to the job requirements.
 Evaluates the skills/personal characteristics/qualities of the applicant.
 Verifies to a certain degree, the accuracy regarding the information presented on the CV.

1.8.1 Role of the interviewer when PREPARING/BEFORE the interview


 The interviewer should develop a core set of questions based on the skills/knowledge/ ability
required.
 Check/read the application/verify the CV of every candidate for anything that may need to be
explained.
 Book and prepare the venue for the interview.
 Set the interview date./Ensure that all interviews take place on the same date, if possible.
 Inform all shortlisted candidates about the date and place of the interview.
 Notify all panel members interviewing the date and place of the interview.
 Plan the programme for the interview and determine the time that should be allocated to each
candidate.
 Allocate the same amount of time to interview each candidate in the program.

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HUMAN RESOURCES FUNCTION CHAPTER 2

1.8.2 Role of the interviewer and interviewee DURING the interview


Role of the INTERVIEWER during the Role of the INTERVIEWEE during the
interview interview
 Allocate the same amount of time to each  Greet the interviewer by name with a
candidate. solid handshake and a friendly smile.
 Introduce members of the interviewing  Listen carefully to the questions before
panel to each candidate/interviewee. responding.
 Make the interviewee feel at ease.  Make eye contact and have good
 Explain the purpose of the interview to the posture/body language.
panel and the interviewee.  Show confidence and have a positive
 Record interviewees' responses for future attitude/be assertive.
reference.  Be inquisitive and show interest in the
 Do not misinform/mislead the interviewee. business.
 Pose the same set of questions to all  Ask clarity-seeking questions, about the
candidates/interviewees. job/position offered.
 Provide an opportunity for the interviewee  Show respect and treat the interview with
to ask questions. its due importance.
 Close the interview by thanking the  Be honest about mistakes and explain
interviewee for attending the interview how you dealt with them.
 Know your strengths and weaknesses
and be prepared to discuss it
 Thank the interviewer for the opportunity
to be part of the interviews.

1.9 Meaning of an employment contract


 An employment contract is an agreement between the employer and the employee and is
legally binding.
 establishes both the rights and responsibilities of the employer and the employee.
 specifies the duties that would be carried out by the employee in exchange for remuneration
from the employer.

1.9.1 Aspects that should be included in an employment contract


 Personal details of the employee.
 Details of the business/employer e.g. name/address, etc.
 Job title/Position
 Job description e.g. duties/ working conditions
 Job specification e.g. formal qualifications/willingness to travel.
 Date of employment/commencement of employment.
 Place where the employee will spend most of his/her working time.
 Hours of work, e.g. normal time/overtime.
 Remuneration, e.g. weekly or monthly pay.
 Benefits/Fringe benefits/Perks/Allowances.
 Leave, e.g. sick/maternity/annual/adoption leave.
 Employee deductions (compulsory/non-compulsory).
 Period of contract/Details of termination.
 Probation period.
 Signatures of both the employer and employee.

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HUMAN RESOURCES FUNCTION CHAPTER 2

 List of documents that form part of the contract, e.g. appointment letter/code of
conduct/ethics.
 Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable behaviour

1.9.2 Legal requirements of the employment contract


 The employer and new employee must both sign the contract.
 Employer and employee must agree to any changes to the contract.
 No party may unilaterally change aspects of the employment contract.
 The remuneration package/including benefits must be clearly indicated.
 It may not contain any requirements that conflict with/do not comply with the BCEA.
 The employment contract should include a code of conduct and code of ethics.
 Aspects of the employment contract can be renegotiated during
 employment.
 The employer must explain the terms and conditions of the employment contract
 to the employee.
 Conditions of employment/duties/responsibilities of the employees must be
 stipulated clearly.
 All business policies, procedures and disciplinary codes/rules can form part of the
employment contract.
 The employer must allow the employee to thoroughly read through the
contract before it is signed.

1.9.3 Reasons for terminating an employment contract


 The employer may dismiss an employee for a valid reason(s), e.g. unsatisfactory job
performance, misconduct, etc.
 Employer) may no longer have work for redundant employees/cannot fulfil the contract/is
restructuring.
 The employer may retrench some employees due to insolvency/may not be able
to pay the employees.
 Employees decided to leave by resigning voluntarily for better job opportunities.
 An employee may have reached the pre-determined age for retirement.
 Incapacity to work due to illness/injuries.
 By mutual agreement between the employer and employee.
 The duration of the employment contract expires/comes to an end

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1.10 Induction

10.1 Meaning of induction


 Induction is the process of introducing new employees to a business/work
environment/organisation.
 New employees become familiar with their new physical work environment/
 organisational culture/products and services.
 Information regarding the processes/procedures of the business is communicated to new
employees.
 The job expectations/roles/responsibilities are explained to new employees.
 New employees must be well conversant with the business safety regulations
and rules.

10.2 The purpose of induction


 Introduce new employees to management/colleagues to establish relationships with
colleagues at different levels.
 Provides new employees a tour/information about the layout of the building/office
 Make new employees feel welcome by introducing them to their physical workspace.
 Improve skills through in-service training
 Familiarise new employees with the organisational structure/their supervisors
 Allow new employees the opportunity to ask questions that will put them at ease/reduce
insecurity/anxiety/fear.
 Create opportunities for new employees to experience/explore different departments.
 Explain safety regulations and rules, so that new employees will understand their
role/responsibilities in this regard.
 Ensure that employees understand their roles/responsibilities so that they will be more
efficient/productive.
 Communicate information about the products/services offered by the business.
 Communicate business policies regarding ethical/professional conduct/
procedures/employment contract/conditions of employment, etc.
 Improve skills through in-service training.
NOTE: Businesses use the purpose of induction to draw up the induction programme.

10.3 Aspects to be included in an induction programme


 Safety regulations and rules.
 Overview of the business.
 Tour of the premises.
 Information about the business products/services.
 Discussion of the employment contract and conditions of service.
 Discussion of employee benefits
 Introduction to key people and immediate colleagues.
 Meeting with senior management who will explain the company's vision/value
descriptions/daily tasks.
 Conditions of employment, e.g. working hours/leave application process/disciplinary
procedures, etc.
 Administration details on systems/processes/logistics.
 Discussion of personnel policies, e.g. making private phone calls/using the Internet, etc.

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HUMAN RESOURCES FUNCTION CHAPTER 2

 Corporate social responsibility programmes.

10.4 Benefits/advantages of induction for businesses


 Increases quality of performance/productivity
 Allows new employees to settle in quickly and work effectively.
 Ensures that new employees understand the rules and restrictions in the
business.
 New employees may establish relationships with fellow employees at different
levels.
 Employees will be familiar with organisational structures, e.g. who are their
supervisors/low-level managers.
 Make new employees feel at ease in the workplace, which reduces anxiety/ insecurity/fear.
 New employees will understand their role/responsibilities concerning safety
regulations and rules
 Minimises/Decreases the need for ongoing training and development.
 The results obtained during the induction process provide a base for focused
training.
 Opportunities are created for new employees to experience/explore different
Departments
 New employees will know the layout of the building/factory/offices/where
everything is, which saves production time.
 New employees learn more about the business so that new employees understand their
roles/responsibilities in order to be more efficient.
 Company policies are communicated, regarding conduct and procedures/safety
and security/employment contract/conditions of employment/working hours/leave.
 Realistic expectations for new employees as well as the business are created.
 New employees may feel part of the team resulting in positive morale and
motivation.
 Employees may have a better understanding of business policies regarding
ethical/professional conduct/procedures/CSR, etc.
 Reduces staff turnover as new employees have been inducted properly

NOTE: Businesses must benefit from inducting new employees.

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HUMAN RESOURCES FUNCTION CHAPTER 2

LEARNERS DO NOT CONFUSE THE PURPOSE OF INDUCTION WITH THE


BENEFITS OF INDUCTION.

11 Placement
11.1 Meaning of placement
 Selected candidates are placed where they will function optimally and add value to the
business.
 A specific job is assigned to the selected candidate.
 The qualifications/skills/personality of the selected candidate are matched with the
requirements of the job.
11.2 Placement procedure
 The business should outline specific responsibilities/expectations of the employee's new
position.
 Determine the employee’s strengths/weaknesses/skills/ interests by subjecting him to various
psychometric tests.
 Determine the relationship/similarities between the expectations of the position and the
competencies of the new employee/candidate.

11.3 The importance of training/skills development in human resources.


 The employee who receives the necessary training is more able to perform in their job.
 The investment in training that a company makes shows employees that they are valued.
 An effective training program allows employees to strengthen their skills.
 Productivity usually increases when the human resources function implements training
courses.
 Ongoing training and upskilling of the workforce encourages creativity.

11.4 Salary determination methods

Differences between piecemeal and time-related salary determination methods


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

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HUMAN RESOURCES FUNCTION CHAPTER 2

11.5 The link between salary determination and the BCEA


 The BCEA outlines legalities, such as the employment contract, which may affect salary
determination.
 Payment of salaries should be based on whether the employee is permanent or employed on
a fixed contract
 The BCEA sets out conditions that ensure fair labour and human resources practices.
 According to the BCEA, businesses may use different remuneration methods to pay their
employees.
 Businesses are supposed to deduct income tax (PAYE) from the employees' taxable salaries.
 The BCEA also regulates the minimum wage rates per sector and the business must
therefore ensure that remuneration reflected in the employment contract is not below the
minimum wage.

12 Fringe benefits

12.1 Examples of fringe benefits in the workplace


 Medical Aid Fund/Health Insurance Fund.
 Pension Fund.
 Provident Fund.
 Funeral benefits.
 Car/Travel/Housing/Cell phone/Clothing Allowance.
 Performance-based incentives.
 Issuing of bonus shares.
 Staff discount/Free or low-cost meals/Canteen facilities.

12.2 The impact of fringe benefits on businesses

Positives/advantages
 Improves productivity\ resulting in higher profitability
 Attractive fringe benefit packages may result in higher employee retention/reduce employee
turnover.
 Attracts/Retains qualified/skilled/experienced employees who may positively contribute
towards the business goals/objectives
 It increases employee satisfaction/loyalty/morale as they may be willing to go the extra mile.
 Businesses save money as benefits are tax deductible.
 Fringe benefits can be used as leverage for salary negotiations.

AND/OR
Negatives/Disadvantages
 Businesses that cannot offer fringe benefits fail to attract skilled workers.
 It can create conflict/lead to corruption if allocated unfairly.
 Fringe benefits are additional costs that may result in cash flow problems.
 Errors/Mistakes in benefit plans may lead to costly lawsuits/regulatory fines.
 Decreases business profits, as incentive/package/remuneration costs are higher.
 Businesses that offer employees different benefit plans may create resentment toward those
who receive fewer benefits resulting in lower productivity.
 Administrative costs increase as benefits need to be correctly recorded for tax purposes.

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HUMAN RESOURCES FUNCTION CHAPTER 2

 Workers only stay with the business for fringe benefits, and may not be committed/loyal to
the tasks/business.
 Businesses have to pay advisors/attorneys to help them create benefit plans that comply with
the law

Benefits required by the law

Unemployment Insurance Fund (UIF)


 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.
 Employers must pay unemployment insurance contributions of 2% of the value of each
worker’s salary per month
 The fund also assists the dependants of a contributing worker who has died.
 The fund offers short-term financial assistance to workers when they become unemployed or
are unable to work due to illness, maternity or adoption leave.
 Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African
Revenue Services (SARS).

Implications of Acts on the Human Resources Function

Implications of the Labour Relations Act (LRA) (No. 66 of 1995) on the Human Resources
Function
 Allows for the establishment of trade unions/collective bargaining/bargaining councils, which
may directly influence operations within human resources/ the business.
 Promotes resolution of labour disputes.
 Protects the rights of employees/employers as outlined in the Constitution.
 Advances economic development/social justice/labour peace.
 Provides for unresolved disputes to be referred to Labour Courts/Labour Appeal Courts.
 Promotes orderly negotiations and employee participation in decision-making in the
workplace.
 Employees cannot be easily dismissed as bargaining council/Commission
for Conciliation, Mediation and Arbitration (CCMA) processes need to be followed.
 Provides a framework for bilateral meetings where employees, trade unions and employers
discuss matters relating to employment.
 The human resource manager should allow workers to form workplace forums/trade unions
to promote the interests of all employees.
 Clarify the transfer of contracts of employment/If a business is transferred to
another owner then the employee contracts are also transferred.

The Implications of the Employment Equity Act) (EEA) (No. 55 of 1998) on the Human
Resources Function
 Equal pay for work of equal value.
 Ensure that affirmative action promotes diversity in the workplace.
 The human resources manager must promote/provide equal opportunities in the workplace.
 Retrain/Develop/Train designated groups through skills development programmes.
 Define the appointment process clearly to ensure all parties are well informed.
 Compile employment equity plans that indicate how they will implement
affirmative action.

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HUMAN RESOURCES FUNCTION CHAPTER 2

 Assign a manager to ensure that the employment equity plan will be implemented/
regularly monitored.
 Display a summary of the Act where employees can clearly see it/have access to it.
 The Human resource manager must report to the Department of Labour on the progress in
the implementation of the equity plan.
 Conduct medical/psychological tests fairly to employees/when deemed necessary.
 Ensure that the workplace represents the demographics of the country at all
levels.
 Restructure/Analyse current employment policies/practices/procedures to accommodate
designated groups.

The implication of the Skills Development Act (SDA) (No. 97 of 1998) on the human
resource function
 The human resources manager should interpret the aims and requirements of the SDA and
adapt workplace skills training programmes accordingly/ Training conducted by the
business/HRM should be aligned to the SDA.
 Identify the training needs of the employees and provide them with training opportunities so
that they will perform their tasks efficiently.
 Contribute 1% of their salary bill to the Skills Development Levy/SDL.
 Ensure training in the workplace is formalised /structured
 Appoint a full/part-time consultant as a Skills Development Facilitator.
 Assist managers in identifying skills/training needs to help them to introduce learnerships.
 opportunities so that they will perform their tasks efficiently.
 Use the National Qualification Framework/NQF to assess the skill levels of employees.
 Interpret/Implement the aims/requirements of the framework for the National Skills
Development Strategy.

The implications of the Basic Conditions of Employment Act (BCEA)


(No. 75 of 1997) on the Human Resources function
 Ensures that business practices such as basic conditions of employment within the
workplace do not contravene/violate the provisions of the BCEA.
 The HRM must ensure that all employee contracts are aligned with the provisions of the
BCEA.
 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.
 Ensures that employees are correctly remunerated for overtime/Overtime should not exceed
10 hours per week.
 Ensures that employees have a 60-minute break after five hours of work.
 Ensures that employees are entitled to take six weeks of paid sick leave during a 36-month
cycle.
 Ensures that employees receive double their rate if they work on public holidays/Sundays.
 Ensures that the business does not participate in child labour practices/does not employ
children under the age of 16.

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