Cambridge IGCSE Business Studies 2.3 Recruitment, selection and training of workers

2.3.1 – The methods of recruiting and selecting workers

Why do businesses recruit?

• To replace staff who have left or been promoted
• Bring in staff with new skills
• Recruit more staff as business expands

Job Analysis – A study of the tasks and activities to be carried out by the new employee

Job Description – This describes the main duties and responsibilities of the job

Job Specifications – The qualifications and qualities necessary to perform the job (e.g. educational requirements, experience needed)

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Advertising the vacancy 

Internal Recruitment – Promoting staff or moving workers from one job to another within the company.

Advantages

• Saves time and money – Don’t need to spend money on advertising the job vacancy
• Applicants ‘know’ the firm
• Motivates other workers (chance for them to get promoted)

Disadvantages

• Applicants may not bring in new ideas
• Promoting an employee may make other employees jealous and demotivated

External Recruitment – Recruiting someone who is not an existing employee and will be new to the business.

Advantages

• New ideas from new workers
• More likely to hire someone who matches job specification

Disadvantages

• Expensive – need to advertise job
• Demotivating for internal candidates

Recruiting channels 

Internal 

• Noticeboards
• Company Newsletters
• Email

External

• Local newspaper
• National newspaper
• Recruitment agencies
• Job centres

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Selection of staff

Application forms and CVs – To see if applicant matches the job specification

Interviews – Find out information about candidate’s abilities and personal qualities

Purpose of interview

1. Find out if applicant has the ability to do the job
2. Personal qualities about the applicant
3. To see if the candidate will ‘fit in’ with the culture of the business

Testing – Applicants may be required to undertake tests to check their ability to do the job.

Type of tests

1. Skill test – to observe the candidate’s skills
2. Aptitude test – to see how quickly candidate can learn new skills
3. Personality test – to see if their personality has the characteristic that the job may require
4. Group situation test – to see how candidate(s) works as a team

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Part-time worker – employee that works fewer hours than a full-time worker.

Advantages

• Have more employees during busy periods
• Flexible working hours
• Less expensive than hiring full-time employees

Disadvantages

• Workers are less trained than full-time employees (because their job is temporary)
• Less committed to the business (temporary job)
• More difficult to communicate with part-time workers when they are not at work

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2.3.2 – The importance of training and the methods of training

Why train employees?

• Trained workers are more productive
• decrease the amount supervision required
• may lead to job satisfaction
• reduce accidents and injuries
• improve chances for internal promotion

Induction training – Introduction given to a new employee explaining the company’s activities and procedures and introducing them to other employees.

Advantages

• Helps new employee settle in
• Health and safety training may be required

Disadvantages

• Time consuming (delays the start of employee’s work)
• Wages are paid but no work has been done by the employee

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On the job training – Experienced worker teaches new worker how to do the job.

Advantages

• Training is cheap
• Training is specific for their job
• Work can be done while training

Disadvantages

• The trainer will not be getting work done.
• Training won’t be effective if the trainer is bad

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Off the job training – Training taking place off the job (not being trained while doing job)

Advantages

• Trainers are experts (Skills can be taught)
• Training can be done outside of working hours (in employee’s own time)

Disadvantages

• Off the job training is expensive
• Worker may receive training paid by business and leave
• Training may not be specific for the job

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2.3.3 – Why reducing the size of the workforce might be necessary

Why might a business need to reduce the number of employees?

• automation (machines replace humans)
• factory/shop closure
• business relocating
• demand for goods/services falling
• business merging

Dismissal – Employee is told to leave because of bad behavior

Redundancy – Employee told to leave because the business doesn’t need a worker for that job anymore (not employees fault)

How to decide who is made redundant?

• Some workers may volunteer because they might have planned to leave anyways.
• Lenght of time worked (employees who have worked there for a long time can stay)
• Workers with good skills remain
• Worker’s employment history (e.g. behavior / performance of employee)

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2.3.4 – Legal controls over employment issues and their impact on employers and employees

Most countries have laws to ensure that employees are treated equally

• Business must be careful when advertising job and while selecting applicants to make sure they are all treated fairly/equally (e.g. Gender / race)

Employees need to be protected from

• Unfair discrimination at work and when applying for job
• Wage protection (e.g. minimum wage)
• Health and safety standards
• Unfair dismissal