IGCSE Business Studies: Manpower

Manpower

4.2.1 Stages of recruitment and selection

Internal recruitment: Using a current employee to fill a vacancy in the company. This is suitable for employees who are looking for a promotion.

Advantages:

It would save money and time from advertising and interviewing for this vacancy.
As it is a person already in the business, the managers would be clear about that person's strengths and weaknesses.
The person would easily adapt to their new role and he/she would already understand how the business works.

Disadvantages:

There would not be any new ideas or skills entering the business.
It might result in jealousy among other employees.
External recruitment: A position being filled by a person who is not currently employed by the company.

Advantages:

The new recruit would have different skills which the business does not already have.
Disadvantages:

They would need to advertise for the vacancy which would be costly. They could place it in specialist magazines, recruitment agencies, newspapers etc.

Main stages of recruitment and selection:

Identify a vacancy.
Draw up a job description.
Draw up a job specification.
Advertise the job vacancy in an appropriate location.
Send out application forms for interested applicants.
Produce a shortlist.
Interview the people on the shortlist.
Select a suitable candidate(s).
Organize induction training for the successful applicant(s).
Job description: It outlines the duties and responsibilities which is to be carried out by the employee.

Job specification: It outlines the requirements for the job. For example, their qualifications, experience and physical attributes.

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4.2.2 Training methods

On-the-job training: This is when the employee is trained by watching a more experienced worker doing his/her work.

Advantages:

Reduced cost in traveling as off-the-job training would require the employee to travel somewhere else to be trained.
Disadvantages:

The trainer would not be as productive in their job as he/she is busy training the trainee.
The trainer might pass bad habits onto the trainee.
Off-the-job training: This is when the employee is trained off the work site or area. They would usually go to a specialist training center or college to be trained.

Advantages:

They would be able to acquire a new range of skills which would be helpful for the business.
The employee would feel valued.
Disadvantages:

It could be expensive and the employee would not be carrying out their usual duties if the training course is during their usual work hours.
4.2.3 Dismissal and redundancy

Dismissal: This is when an employee is told to leave their job because of inappropriate behavior or for breaching their contract.

Redundancy: This is when an employee's job is not necessary anymore. It could be due to downsizing or the business has to close the factory or branch due to a fall in profits. These employees would be given some money in compensation for this. There is also something called voluntary redundancy where an employee is willing to make themselves redundant. This is usually for older employees.

Possible reasons for redundancy:

Downsizing: This is when the business wants to remove a layer of management or to reduce manpower due. It could be due to a fall in profits or due to the change in management.
Automation: This is when the job could be carried out by computers instead of labor. When a factory becomes capital intensive the workers would become redundant.
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