Skills Development Act Overview

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Questions and Answers

Which aspect should NOT be included in evaluating a strategy?

Continuously measuring the effectiveness

Taking corrective action when required

Monitoring the financial outcomes

Using competitor analysis exclusively (correct)

What should a business do to effectively implement selected strategies?

Only organize the business's resources

Evaluate past sales to gauge success

Focus solely on market competition

Communicate to all stakeholders and motivate staff (correct)

Which of the following is a strength of Dave Digital Sound (DDS)?

They specialize in selling large sound systems

They employ qualified sound engineers (correct)

They have inadequate marketing campaigns

They are located in a high crime area

What is a weakness identified in Dave Digital Sound's SWOT analysis?

They have insufficient capital to buy and sell large sound systems Signup and view all the answers

What does the power of suppliers indicate in a business context?

Suppliers have less influence if their numbers are few Signup and view all the answers

Which of the following represents a threat in DDS's SWOT analysis?

Ineffective marketing campaigns in the industry Signup and view all the answers

What opportunity does DDS have according to its SWOT analysis?

Capitalize on failing competitors' marketing strategies Signup and view all the answers

What does the power of buyers allow them to do effectively?

Bargain for prices when buying in bulk Signup and view all the answers

What percentage of their payroll must businesses contribute to fund skills development programs?

1% Signup and view all the answers

Which level of the BEE scorecard is promoted for Exempted Micro Enterprises (EMEs) with at least 50% black ownership?

Level 3 Signup and view all the answers

What is one method businesses can use to support black-owned suppliers aside from monetary contributions?

Consulting services Signup and view all the answers

What critical areas should businesses focus on in their Corporate Social Investment (CSI) initiatives?

Environmental awareness and education Signup and view all the answers

How can large businesses foster entrepreneurship among black individuals?

By forming joint ventures with small black-owned businesses Signup and view all the answers

What is the primary goal of skills development programs in relation to black employees?

To increase the pool of skilled workers Signup and view all the answers

What type of financial support can businesses offer to small black-owned suppliers aside from loans?

Development of sales techniques Signup and view all the answers

What is the primary purpose of recruitment in a business?

To identify vacancies and attract suitable candidates Signup and view all the answers

What does ESD stand for in the context of enterprise development?

Enterprise Supplier Development Signup and view all the answers

What is included in a job description?

Duties and responsibilities of the specific job Signup and view all the answers

Which of the following is not a compulsory benefit required by law?

Pension Signup and view all the answers

When is external recruitment considered by a human resource manager?

After internal recruitment efforts are unsuccessful Signup and view all the answers

What does a job specification outline?

The minimum acceptable qualifications for the job Signup and view all the answers

Which act primarily influences the human resources function regarding employee rights?

Labour Relations Act (LRA) Signup and view all the answers

What is the significance of preparing a job analysis during the recruitment process?

It identifies required qualifications and responsibilities Signup and view all the answers

Which of the following is a common mistake in preparing job advertisements?

Failing to specify how to apply Signup and view all the answers

What is a primary purpose of the Skills Development Act?

To develop the skills of people in South Africa. Signup and view all the answers

Which of the following is a negative impact of the Skills Development Act on businesses?

Requires extensive paperwork for training programs. Signup and view all the answers

How are Sector Education and Training Authorities (SETAs) primarily funded?

Via contributions from the Skills Development Levy. Signup and view all the answers

What is one of the BBBEE pillars that businesses must consider?

Skills development. Signup and view all the answers

What is one consequence of non-compliance with the Skills Development Act?

Loss of the ability to claim grants from the SDA. Signup and view all the answers

Which action is regarded as discriminatory under the Skills Development Act?

Disallowing age-based enrollment in learnerships. Signup and view all the answers

What is a potential benefit of the Skills Development Act for businesses?

Increased return on investment in workforce training. Signup and view all the answers

Which of the following is NOT an implication of the BBBEE pillars on businesses?

Mandatory job quotas for all higher positions. Signup and view all the answers

What is the impact of having few powerful buyers on a business?

It allows buyers to dictate prices and terms. Signup and view all the answers

How does the uniqueness of a competitor's product affect competitive rivalry?

It increases their power in the market. Signup and view all the answers

What is the consequence of a business having easily substituted products?

It weakens the business's power in the market. Signup and view all the answers

What factor influences the power of new entrants in a market?

The ease and cost of entering the market. Signup and view all the answers

Why is it important for a business to create a competitor's profile?

To assess their own strengths and those of competitors. Signup and view all the answers

What is the relationship between the number of competitors in the market and a business's power?

Many competitors reduce a business's market power. Signup and view all the answers

What does the term 'threat of substitutes' refer to?

The existence of products that meet the same consumer needs. Signup and view all the answers

What typically happens if new competitors can easily enter the market?

It increases competitive pressure in the market. Signup and view all the answers

Study Notes

Skills Development Act (SDA)

Purpose: Improve productivity, invest in education and training, increase job opportunities for previously disadvantaged individuals, encourage worker participation in learning programs, and redress past imbalances.
Impact on Businesses:
- Positives: Improved employee skills lead to increased productivity, promotion of self-employment and black entrepreneurship, increased return on investment in education and training, global competitiveness, and a larger pool of skilled employees in areas with skills shortages.
- Negatives: Increased costs due to extensive paperwork, difficult monitoring and control of SDA implementation, skills programs may not always address specific training needs, skills development levy can be a burden for struggling businesses, potential for monitoring and control by government departments not focused on education and training.
Discriminatory Actions: Preventing employees from signing for a learnership based on age or position, unfair promotion of skills development and training to certain employees, providing employment services for gain without registering as an employer, and submitting false information on prescribed documents.
Penalties for Non-Compliance: Businesses not paying the skills development levy may not offer learnerships or claim grants, and must contribute 1% of their payroll to fund skills development programs. Businesses benefit from increased access to skilled workers.

Human Resource Development Strategy

SETAs (Sector Education and Training Authorities):
- Role: Implement skills development programs targeted at specific industries, oversee quality assurance of training programs, and fund skills development initiatives.
- Funding: Primarily through a levy paid by employers based on their payroll, supplemented by government funding and other sources.

Broad-Based Black Economic Empowerment (BBBEE)

Pillars:
- Ownership: Inclusive of black individuals in shareholding, partnerships, and franchises. Exempted Micro Enterprises (EMEs) with 50% or more black ownership achieve Level 3 of the BEE scorecard.
- Management Control: Includes black people in management positions, decision-making roles, and leadership.
- Skills Development: Provides opportunities for black individuals to develop skills and advance within the company.
- Enterprise and Supplier Development (ESD): Businesses invest in, support, and develop Black owned Small, Medium and Micro Enterprises (SMMEs). This can include monetary contributions like loans, investments, or donations, and non-monetary contributions such as consulting services, advice, and entrepreneurial training.
- Socio-Economic Development: Focuses on Corporate Social Investment (CSI) initiatives that address critical socio-economic issues in South Africa.
Implications for Businesses: BBBEE compliance is essential for growth and competitiveness in many sectors. Businesses must demonstrate progress in all pillars to achieve a favorable BEE scorecard, which can benefit them in tenders, procurement, and other aspects of business.

Penalties for Non-Compliance with Acts

SDA: Failure to pay the skills development levy may prevent businesses from offering learnerships or claiming grants.
BBBEE: Businesses that fail to comply with BBBEE requirements can face penalties, including loss of tender opportunities, exclusion from procurement programs, and reputational damage.

Actions Deemed Discriminatory by Acts

SDA: Discrimination based on age, position, race, gender, or disability is prohibited.
BBBEE: Excluding or limiting opportunities for black individuals in ownership, management, skills development, or enterprise development based on race or ethnicity.
Employment Equity Act: Unfair discrimination based on race, gender, disability, sexual orientation, or other grounds is prohibited.
Labour Relations Act: Unfair dismissal or unfair treatment of employees based on discrimination is prohibited.

Business Compliance Strategies

SDA: Pay the skills development levy, offer learnerships, and implement training programs aligned with business needs.
BBBEE: Develop a comprehensive BEE strategy, actively promote inclusive ownership structures, increase participation of black individuals in leadership, invest in ESD programs, and engage in meaningful CSI initiatives.
Employment Equity Act: Conduct a comprehensive Employment Equity analysis, set measurable targets, and implement proactive strategies to promote employment equity.
Labour Relations Act: Develop inclusive HR policies, ensure fair treatment of employees, and proactively address potential discrimination issues.

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Description

This quiz covers the Skills Development Act (SDA), focusing on its purpose, impacts on businesses, and the associated benefits and challenges. It aims to enhance productivity and provide training opportunities while addressing past imbalances. Participants will learn about how the SDA can affect both employers and employees.