Chapter 8 – Recruitment, Selection and Training of Employees

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Cambridge IGCSE Business Studies

Recruitment, Selection and Training of Employees

This chapter explains how businesses manage employees through the Human Resources department, recruit and select suitable workers, train staff, reduce the workforce when needed, and follow legal controls that protect employees.

👥 HR department 🧾 Recruitment process 📋 Job description 🎯 Job specification 🏢 Internal recruitment 🌍 External recruitment 🎓 Training methods ⚖️ Employment law
Human Resources department responsibilities including recruitment, selection, training, wages, health and safety, redundancy and dismissal.

Topic 1: Human Resources and Recruitment Basics

Students should first understand what HR does and the difference between recruitment and selection.

1. Human Resources Department

The Human Resources (HR) department is responsible for managing employees within the business.

Five important responsibilities

🔎Recruitment and selection

Finding and choosing suitable employees.

🎓Training

Identifying and providing employee training.

💰Wages and salaries

Helping ensure pay attracts and retains employees.

🛡️Health and safety

Making sure employment laws are followed.

🚪Redundancy and dismissal

Dealing with employees who leave because they are no longer needed or because of unsatisfactory performance.

2. Recruitment and Selection

Recruitment

Recruitment is the process from identifying the need for a new employee until applications are received.

Employee selection

Employee selection is choosing the most suitable applicant for the job.

Why a business may recruit

  • An employee has left.
  • A new business is starting.
  • The business is expanding.
Recruitment and selection process from vacancy arising to offering the job.

3. Main Stages of Recruitment and Selection

The main recruitment process is:

1. Vacancy arises→2. Job analysis→3. Job description→4. Job specification→5. Advertise the vacancy→6. Applications received and shortlist prepared→7. Interviews and selection→8. Suitable applicant offered the job
Exam focus: Students should understand the order of these stages.

Topic 2: Job Documents and Recruitment Methods

This topic separates the documents used before advertising a vacancy from the methods used to attract applicants.

Job analysis, job description and job specification compared.

4. Job Analysis

A job analysis identifies and records the tasks and responsibilities involved in a job.

It helps the business decide exactly what the new employee will need to do.

5. Job Description

A job description outlines the duties and responsibilities of a particular job.

What it may include

  • Job title
  • Department
  • Who the employee reports to
  • Main duties and responsibilities
  • Working conditions

Why it is useful

  • Applicants know what the job involves.
  • It helps the business check whether the employee is performing the required duties.

6. Job Specification

A job specification describes the type of person needed for the job.

What it usually includes

  • Qualifications
  • Experience
  • Skills and knowledge
  • Personal qualities
Important difference: Job description = information about the job. Job specification = information about the person needed. This distinction is important for examinations.

7. Internal Recruitment

Internal recruitment is filling a vacancy using someone who already works for the business.

Advantages

  1. Cheaper and quicker than recruiting externally.
  2. The business already knows the employee's abilities and reliability.
  3. Promotion opportunities may motivate other employees.

Disadvantages

  1. No new ideas or experience are brought into the business.
  2. Other employees may become jealous if they are not promoted.

8. External Recruitment

External recruitment means filling a vacancy with someone who does not currently work for the business.

Benefits

  • Can bring new ideas, skills and experience into the business.
  • Gives the business a wider choice of applicants.

Drawbacks

  • Usually more expensive.
  • The business does not already know how well the applicant will perform.

9. Methods of External Recruitment

Important methods include:

📰Local newspapers

Suitable for jobs where many local people may have the necessary skills.

Example: shop assistant or factory worker.

🗞️National newspapers

Suitable for senior or specialised jobs where suitable applicants may live further away.

🌐Online recruitment

Websites and professional networks can advertise vacancies to a large number of people.

🤝Recruitment agencies

Specialist organisations that help businesses find suitable employees. They may save the business time but can be expensive.

10. Job Advertisements

A job advertisement usually contains:

  • Job title
  • Duties
  • Qualifications required
  • Salary
  • Working conditions
  • How to apply

Choosing the advertising method

The method of advertising should depend on:

  • The type of job
  • Level of skills required
  • Cost of advertising

Topic 3: Applying, Selection and Types of Workers

This topic explains how candidates apply, how the business chooses the best employee, and how part-time and full-time workers differ.

11. Applying for a Job

Applicants may be asked to provide:

  • An application form, or
  • A letter of application and CV/résumé.

What a CV summarises

  • Education and qualifications
  • Work experience
  • Responsibilities
  • Interests
  • References

The business compares applications with the job specification and creates a shortlist of suitable candidates.

12. Methods of Selection

The most common selection method is an interview.

What an interview helps the business assess

  • Ability to perform the job
  • Personal qualities
  • Personality and suitability for the organisation

Other selection methods

🧪Skills tests

Test whether applicants can perform specific tasks.

🧠Aptitude tests

Measure a candidate's potential to learn new skills.

🙂Personality tests

Assess whether the person's personality is appropriate for the job.

📞References

Previous employers or other referees provide information about the applicant's character and reliability.

13. Choosing the Best Employee

The most suitable applicant may be selected based on:

  • Work experience
  • Qualifications
  • Skills
  • Knowledge of the business
  • Suitability for the particular job
There is no single factor that is always most important. It depends on the job.

14. Part-Time and Full-Time Employees

Part-time employee

A part-time employee usually works fewer hours than a full-time employee.

Full-time employee

A full-time employee will normally work around 35 hours or more per week.

Benefits of part-time workers to a business

  1. They provide flexibility, especially at busy times.
  2. They may reduce labour costs.
  3. They can help businesses extend opening hours.

Limitations

  1. They may be less committed to the business.
  2. Communication may be more difficult because they are not always at work.
  3. They may receive less training and gain less experience.

Topic 4: Training Employees

Training helps workers gain the skills and knowledge needed to perform better and adapt to business changes.

Induction, on-the-job and off-the-job training compared.

15. Importance of Training

Training helps employees improve their skills and knowledge.

Businesses provide training to:

  • Increase employee skills
  • Improve efficiency and productivity
  • Introduce new technology or equipment
  • Improve quality and customer service
  • Reduce accidents

Three main types of training

1. Induction training2. On-the-job training3. Off-the-job training

16. Induction Training

Induction training is training given to a new employee when they first join the business.

It introduces them to:

  • The business
  • Other employees
  • Workplace procedures
  • Health and safety
  • Their job

Advantages

  • Helps employees settle in quickly.
  • Reduces the chance of mistakes.
  • Makes employees aware of health and safety procedures.

Disadvantage

Takes time and costs money while the employee is not fully productive.

17. On-the-Job Training

On-the-job training occurs at the workplace, usually by watching and learning from an experienced worker.

Advantages

  • Usually cheaper than off-the-job training.
  • Training is directly related to the employee's actual job.
  • The employee can produce some output while learning.

Disadvantage

The experienced worker may become less productive while training the new employee, and poor working habits could be passed on.

18. Off-the-Job Training

Off-the-job training takes place away from the normal workplace, often at:

  • A college
  • Training centre
  • Specialist course

It may involve:

  • Classroom learning
  • Role play
  • Case studies
  • Simulations

Advantages

  • Specialist trainers may be used.
  • Employees can learn a wider range of skills.

Disadvantages

  • Can be expensive.
  • Employees may not produce any output while attending training.
  • Better qualifications may make it easier for employees to find another job.

Topic 5: Reducing the Workforce and Employment Law

This topic helps students distinguish between dismissal and redundancy and understand the main legal controls protecting employees.

Dismissal, redundancy and legal controls over employment.

19. Why a Business May Reduce Its Workforce

A business may need fewer employees because of:

🤖Automation

Machines or technology replace some workers.

📉Falling demand

Lower sales mean fewer employees are required.

📦Closure or relocation

A factory, shop or office may close or move elsewhere.

Other reasons can include mergers and takeovers where some jobs are duplicated.

20. Dismissal

Dismissal occurs when an employee is required to leave because their work or behaviour is unsatisfactory.

Examples

  • Repeatedly arriving late
  • Stealing
  • Failing to perform the job properly
The business must follow employment law when dismissing an employee.

21. Redundancy

Redundancy occurs when an employee loses their job because the business no longer needs the position, not because the employee has done anything wrong.

Example: A fall in sales may mean a factory no longer needs as many workers.

Dismissal → problem with the employeeRedundancy → job is no longer needed

22. Choosing Employees for Redundancy

A business may consider:

  • Whether workers volunteer for redundancy
  • Length of service
  • Skills needed by the business
  • Attendance and performance record

23. Legal Controls Over Employment

Important legal controls include:

  • Employment contracts
  • Protection against unfair dismissal
  • Protection against discrimination
  • Health and safety laws
  • Minimum wage laws

24. Contract of Employment

A contract of employment is a legal agreement between an employer and employee that sets out their rights and responsibilities.

What it may include

  • Job title
  • Working hours
  • Rate of pay
  • Benefits
  • Holidays
  • Notice period

It helps both employer and employee know what is expected.

25. Unfair Dismissal

Unfair dismissal occurs when an employee is dismissed for a reason that is not legally acceptable or not allowed under the employment contract.

Employees may be able to:

  • Take legal action
  • Receive compensation
  • Regain their job

26. Discrimination

Discrimination occurs when employees or applicants are treated unfairly because of characteristics such as:

  • Race
  • Religion
  • Sex
  • Age
  • Disability
Employment decisions should be based on the person's ability and suitability for the job.

27. Health and Safety Laws

Employers may be legally required to:

  • Protect workers from dangerous machinery
  • Provide safety equipment
  • Maintain safe and hygienic working conditions
  • Provide suitable breaks

Effects on businesses

These laws increase costs for businesses but can:

  • Reduce accidents
  • Increase employee motivation
  • Reduce compensation claims

28. Legal Minimum Wage

A legal minimum wage makes it illegal for employers to pay workers below a minimum hourly rate set by the government.

Benefits to employees

  • Protects low-paid workers from exploitation.
  • Increases income and living standards.

Possible effect on businesses

Higher wages increase labour costs and could cause some businesses to:

  • Increase prices
  • Employ fewer workers

Topic 6: Key Definitions and Examination Checklist

Use this final topic for quick revision before attempting past-paper questions.

Key Definitions

TermMeaning
RecruitmentProcess of attracting applicants for a vacancy
SelectionChoosing the most suitable applicant
Job analysisIdentifying the tasks and responsibilities of a job
Job descriptionDocument describing duties and responsibilities of a job
Job specificationDocument describing the qualifications, skills and qualities required
Internal recruitmentFilling a vacancy with an existing employee
External recruitmentFilling a vacancy with someone from outside the business
Induction trainingIntroduction and training for a new employee
On-the-job trainingTraining received while doing the job
Off-the-job trainingTraining away from the normal workplace
DismissalEmployee loses job because of unsatisfactory work or behaviour
RedundancyEmployee loses job because the position is no longer required
Contract of employmentLegal agreement stating employee and employer rights and responsibilities
Workforce planningDeciding the number and skills of employees the business will need in the future

What Students Must Know for the Examination

Students should be able to:

  • Explain the main responsibilities of the Human Resources department.
  • Understand the stages of recruitment and selection.
  • Distinguish between job analysis, job description and job specification.
  • Distinguish between internal and external recruitment.
  • Identify appropriate methods of advertising vacancies.
  • Explain how employees are selected.
  • Distinguish between part-time and full-time workers.
  • Explain why training is important.
  • Distinguish between induction, on-the-job and off-the-job training.
  • Distinguish between dismissal and redundancy.
  • Explain why businesses may reduce their workforce.
  • Understand the main laws protecting employees.
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