Human Capital Function Study Guide

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Questions and Answers

What is the primary responsibility of the Human Capital Function?

To manage human resources to maximize their potential (correct)

To manage financial resources

To handle customer service

To oversee production operations

How many main activities are involved in the Human Capital Function?

8 (correct)

What is the purpose of Manpower Planning?

To evaluate employee performance

To place staff in suitable roles

To determine how many employees are needed and what skills they require (correct)

To develop employee skills

What technique is used to determine the number of people required based on the amount of work?

Workload Analysis Signup and view all the answers

What is the purpose of Recruiting?

To attract job applicants with the necessary skills Signup and view all the answers

What is the purpose of Selection?

To screen applicants and choose the most suitable candidate Signup and view all the answers

What is the first step in the Selection process?

Receipt of Application Forms and CVs Signup and view all the answers

What is the purpose of Induction of Staff?

Not mentioned in the study guide Signup and view all the answers

What is the purpose of placement of staff?

To match individuals' abilities with job requirements Signup and view all the answers

What is the purpose of induction of staff?

To help new employees learn business practices and integrate into the workgroup Signup and view all the answers

What is the purpose of training of staff?

To improve employee performance and efficiency Signup and view all the answers

What is the purpose of evaluation (performance appraisal)?

To evaluate employee performance and provide feedback Signup and view all the answers

What is the purpose of retention?

To retain talented employees and reduce turnover Signup and view all the answers

What determines remuneration based on job importance?

Job evaluation Signup and view all the answers

What type of salary structure includes a separate basic salary and benefits?

Basic Cost Plus Benefits Signup and view all the answers

What is taxable as part of the salary package?

Fringe benefits Signup and view all the answers

Study Notes

Human Capital Function (HCF) / Human Resources Study Guide

The HCF is responsible for personnel sourcing and hiring, selection, placement, induction, skills development, benefits administration, and compliance with government regulations.
The main task of HCF is to manage human resources to maximize their potential and help the business achieve its mission.

Key Activities of Human Capital Function

There are 8 main activities, distinct from the selection process:
- Manpower Planning
- Recruiting
- Selection
- Placement of Staff
- Induction of Staff
- Training of Staff
- Evaluation (Performance Appraisal)
- Retention

Detailed Breakdown of Activities:

Manpower Planning

Purpose: Determine how many employees are needed, what skills they need, and when they are needed.
Techniques:
- Workload Analysis: Determines the number of people required based on the amount of work.
- Job Analysis: Gathers all relevant information about job tasks to make decisions.
- Job Description: Summarizes duties, responsibilities, and level of authority of the job.
- Job Specification: Lists the minimum acceptable human requirements (e.g., experience, education).

Recruiting

Purpose: Attract job applicants with the necessary skills.
Sources/Methods:
- Internal: Promotions or transfers within the business.
- External: Hiring from outside sources (e.g., advertisements, schools, agencies).
Techniques:
- Internal: Job postings, skills inventories, recommendations.
- External: Advertisements, schools, employment agencies, referrals.

Selection

Purpose: Screen applicants and choose the most suitable candidate.
Steps:
- Receipt of Application Forms and CVs: Collect and check documentation.
- Initial Screening: Identify and notify unsuitable applicants.
- CV Evaluation: Rank applicants based on a set scoring system.
- References and Background Checks: Verify information and communicate with referees.
- Interviewing: Assess suitability and fit for the organization.
- Tests and Examinations: Ability/trade tests, psychometric tests, work sample tests, medical examinations.
- Letter of Appointment: Offer the position to the chosen candidate.
- Employment Contracts: Agree and sign a legally binding contract.

Placement of Staff

Purpose: Match individuals' abilities with job requirements.
Example: Assigning the best teacher to a problematic Grade 12 math class.

Induction of Staff

Purpose: Help new employees learn business practices and integrate into the workgroup.
Topics Covered: Company policies, expectations, introductions, and mentorship.

Training of Staff

Purpose: Improve employee performance and efficiency.
Steps:
- Analyze Business Operations: Identify problems and future skill needs.
- Job Analysis: Determine skills required.
- Performance Analysis: Identify training needs.
- Develop Training Objectives: Set SMARTER goals.
- Develop Training Programme: Lessons, lectures, demonstrations.
- Train Staff: On-the-job, off-the-job, apprenticeships, workshops, job rotation, mentorships.
- Evaluate Training Results: Compare performance with objectives.

Evaluation (Performance Appraisal)

Purpose: Assess employee performance and provide feedback.

Retention

Purpose: Retain talented employees and reduce turnover.
Remuneration (Salary/Wage):
- Job Evaluation: Determines remuneration based on job importance.
- Performance Evaluation: Adjusts remuneration based on individual performance.
Types of Remuneration: Salary, performance-based pay, wages, profit-sharing schemes.
Benefits: Pension, medical aid, housing allowance, company car, education allowances, etc.
Tax: Fringe benefits are taxable as part of the salary package.
Salary Structures:
- Basic Cost Plus Benefits: Separate basic salary and benefits.
- Cost to Company: Total package includes all benefits.

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Description

Explore the key activities of Human Capital Function, including manpower planning, benefits administration, and compliance with government regulations. Learn how HCF manages human resources to maximize potential and achieve business goals.