The research topic focuses on the HR function and the differences and similarities in the HR function regarding two organisations. The comparison will occur between Deli Deli, a popular take way and catering business as well as Star Cabs, a transportation service. Both of these businesses are dissimilar and occur in different realms of the business environment. One of the organisations focal point is completely different from the other. However, this does not make either one of them wraithlike with regards to the Human resource function.
Literature Review
The Human resources department handles many functions of one’s business. This can include may aspects such as hiring and training, performance issues and compensation. According to Lisa Mooney, it is important that all these aspects are taken care of within the business because without this “your business would not be able to meet the essential needs of the management and staff.”
The aim of the Human Resource function is to manage human resources in order to maximise their full potential and to achieve the business’s vision and mission. In order to do this, the following should be the focus of the HR function.
- Interpretation od employer/employee needs
- Coordination of staff and management requirements; and
- Implementation of various activities of personnel management such as:1. Manpower planning2. Recruitment
3. Selection
4. Employment contracts
5. Placement of staff
6. Remuneration and employment benefits
7. Induction
8. Training of staff and skills development
9. Evaluation
10. Retention and
11. Succession planning
1) Manpower/ human resource planning: this is an ongoing task, even if there are no current vacancies in the business the HR department always needs a plan B, in case of emergencies. The purpose of manpower planning is to determine how many employees is needed, what skills must they have and by when (specifically) these employees will be needed.
The following techniques are implied in order to answer questions during the process of manpower planning, this is the work-load analysis and the job analysis. The work-load analysis is the analysis done to determine how many people are required with regards to how much work is needed to be done. (it has got nothing to do with what type of skills is needed). In contrast, job analysis is gathering information for a specific job helping one gain an accurate understanding of the specific job.
2) Recruitment: This process attracts job applicants with the necessary skills and motivation to cover these specific shortages. This can be done within the business or outside the business.
3) Selection: this is the process whereby the most suitable candidate is chosen for the job. A good selection process will result in a lower turn over of staff, lower production costs and less training costs.
4) Employment contracts: the foundation of the employment contract has to follow the Labour Relations act as well as the Basic Conditions of employment act. The employer may provide better conditions of employment however, he/she cannot provide less than what is given in the act.
5) Placement of staff: the skills and abilities of the individuals are compared with what is required of them in the vacant positions. If a person has all the necessary skills and abilities they will be placed in this position in the business.
6) Remuneration and employment benefits: salaries and wages are usually determined using the Basic conditions for employment act and it also the main reason why a person chooses to take a certain position in the organisation. Employment benefits can either be compulsory e.g. UIF or non-compulsory e.g. Medical aid.
7) Induction: this is the process whereby the new employees are given important information regarding the organisation such as ways in which the business does or does not do things. It will also help the new employees socialise and fit in.
8) Training of staff and skills development: this process will help the new employees gain the necessary skills and improve his/her performance. Many of these aims are set out in the Skills development Act as well as the skills development levies act.
9) Evaluation: this enables the management to check up and see whether the training goals have been met, make sure to address shortcomings and make sure thy compensate for these.
10) Retention: it is important that the organisation to retain employees, this will result in better public image and an increased employee morale.
11) Succession planning: this occurs when key personnel are trained and put into key positions in the organisation. They are then prepared for future advancement and promotion. This planning ensures that the business is ready for future expansion.
In conclusion, the HR function holds a very important place in the business world. If an organisation does not have a sufficient enough HR department, this will cause a ripple effect on the rest of the business causing many other problems to unfold. Therefore, if they take int consideration all the aspects needed in HR for the organisation to be successful there should be a low number of shortcomings or none at all.
Research proposal
The methods of gathering my research in the specific task was an important aspect in helping me answer the specific questions set out in this assignment. I decided that I was going set out questionnaires for the two organisations to fill in, this way it will be easier to get sufficient information from the organisations for me to critically analyse it. It will also give them a longer period of time to fill the answers in, giving them the time to write detailed and thorough answers. For the literature review I used the internet as well as my Grade 12 NSC business studies textbook to help me gain the proper knowledge of the research topic. Once I adopted the necessary information from all three sources (organisation A and B, the internet and the grade 12 textbook) I worked through all of it and made sure to take out information which I considered necessary and left any that didn’t hold much value to the assignment. Personally, trying to gain information from organisations seemed to be a challenge at times. This is due to the fact that any of them times they do not answer emails or phone calls. However, I did end up physically going to one of the organisations to hand in the questionnaire. Although it took time to receive the completed questionnaire, it was filled in with sufficient information. This research assignment did take a lot of time however it did help me gain a better insight into what the HR function consists of and how organisations can differ in the business world.
Background details on organisation A
Organisation A is Delhi Deli which is a family run business located in 131 GOLDMAN STREET, FLORIDA, ROODEPOORT, 1709. This is an halaal restaurant and catering business which caters to private and corporates. They also provide food for meetings and training centers. They also offer halaal platters for kid’s functions. It has been around for many years and is run by Zaahida Mahomet and her husband Aadihl.
Background of Organization B
Summary of Data collected
For organization A (Delhi deli)
they have a hierarchal business organizational structure with an autocratic leadership style. This means that their business has many different levels with the managers on the top. Their autocratic leadership style means that the manager has absolute power, also meaning that the manager makes the final say. This organization only has on manager with operational control. In terms of their recruiting of the staff, their process consists of the following:
1. Perusing suitable C’Vs
2. Interviewing the candidates
3. Reference checking occurs and;
4. The most suitable candidate is chosen
When they choose the suitable candidate, they work on a trial basis, they valuate the staff for a six-week period before the candidate is permanently employed. However, for this specific organization there is no induction orientation. With regards to skill development and training, the only training this business undergoes is on the job training once the employee gets employed. Furthermore, the employees’ salaries are calculated based on their position skills and performance. They however do not receive any benefits.
This organization does have a few industry related issues such as increase in costs, lack of qualified staff and a high staff turnover.
Organization B
Organization Bs organizational structure is also a hierarchical one with the managing director on the top followed by the mechanical director then the administrator. This business follows the democratic style of leadership, they gather information from different spheres of the business, make decisions and then they implement them. There are 3 managers who run this organization namely, the managing director, the mechanical manager and the administrator. Their process of recruitment looks like the following:
1. Advertising the position
2. Short listing applicants
3. Interviewing process
4. Trail period
5. Appointment (Contract)
They have an in-depth process of the selection of their staff, the process goes as follows:
1. Background records checks
2. Previous employment duration
3. Previous employment checks (stability, reasons for leaving)
4. Experience and capabilities check
5. Internal training
For training, the business makes use of NEASA, the National Employment Agency of South Africa and their main focus is internal training and development.
The salaries of employees are determined as follows:
- Hourly rates for office staff
- Fixed rates for workshop staff
- commission based to independent operators
unlike the other, this business includes benefits for the staff. This includes transport to and from work and also, staff get invited to partnership functions.
There are a few industry related issues which occur in this business, this includes aspects such as permit restrictions as well as fuel fluctuations.
Analysis of data
2.8.1) Recruitment tries to attract the necessary job applicant with the necessary skills and motivation. Selection refers to when an organization chooses the most suitable candidate for the specific job. Yes, the process of recruitment differs from Delhi deli and Star Cabs. Delhi Deli’s process is fairly simple since they are a smaller company than Star Cabs. Their process includes looking at the candidate’s CV’s, followed by interviews then a reference check and last but not least the most suitable candidate it chosen. Star Cabs has amore in depth process of recruiting and placing staff this is because this business is much larger than Deli Delhi and requires a higher standard of skill. Unlike Delhi Deli, Star cabs does a lot of background checks on the employees. This gives them information about aspects such as the previous employment duration and reasons as to why they have left their previous jobs. They also have an experience and reference check followed by internal training. The reason for this is that these companies are in two different industries. Delhi Deli is situated in the food industry while Star Cabs in the transport industry.
2.8.2) The induction program is important in a business because it will introduce aspects to the employees that they NEED to know. For example, what they can and cannot do in the organization. Delhi deli does no have an induction of staff. However, Star Cabs has an induction program which is fairly well established. Their induction program is limited to a WhatsApp group with a welcoming and function. Because this business is the larger one of the two it is essential that they have an induction program to welcome the large number of new employees. Delhi Deli feels that it is not necessary to have an induction program because they employ a small number of employees where the rules of the business can be addressed throughout the period time that they work there. Also, any issues can be solved rather quicker than it would be at Star Cabs. Therefore, Star Cabs will be introduced to more costs because of their introduction functions. However, this money is spent in order to make sure that the employees gain the sufficient knowledge about the organization.
2.8.3) Training is an essential part of the business. It helps the employees continuously gain knowledge of the organization throughout the time that they work there. Star Cabs has the most comprehensive training program this is because the business aligns itself with the National Employers’ Association of South Africa. This means that their training programs and the needs of their employers meet the standards set out by NEASA. The NEASA’s vision “is guided by a passion to, in a hostile and extremely competitive business environment, proactively empower and promote the interests of employers, in respect of all the essential elements required for a productive and prosperous workplace and economic environment.” With the help of this their employees will be well trained with the necessary skills and motivation to make the business a success. In contrast, Delhi Deli does no have a very large training program, the only training they do is on the job training which takes place in the real work situation and takes a hands-on approach. Therefore, their training program is not very comprehensive.
2.8.4) Star Cabs has the most advantageous benefits and incentive scheme. This is because they offer transport from and to work and are invited to partnership functions. This might make their employees more motivated because these benefits can also be seen as rewards for their hard work. Unlike star Cabs, Delhi Deli does not offer any employee benefits this might be because they might not find it necessary because of the size of the business. Star Cabs is a much larger business so therefore they have to try and keep their employees satisfied. Their benefits that they receive can be a driving force in the success of keeping all their employees for the time intended.
2.9) Human Resources is defined as all the activities and decisions intended to improve the effectiveness of the enterprise as a whole. With this being said it can be seen through the research I have conducted on both organizations, it can be seen that all businesses have a different way of going about their human resource function. Their decisions are strictly based on their business morale, what their business entails (vision and mission) as well as where their business is situated in the business industry. Furthermore, it can be said that the effectiveness of the HR function all comes down to how the business implements all the HR activities and how well they can be evaluated.
Recommendations
Delhi Deli
- introduce benefits which will contribute to the wellbeing of the employee (such as pension and medical aid)
- Have an induction program so that the employees fully know what the business entails. (explaining the code of ethics)
- Make use of other training methods such as buddy systems and workshops.
- Ensure retention of employees to reduce the high employee turnover
- Ensure good budgeting so that there are no unnecessary high costs
- Make sure succession planning is sufficient so that the business has a better idea of their position in the future and how they can possible expand
Star Cabs
- Make use of a better induction program (should not only be limited to WhatsApp group)
- Have an induction program so that the employees fully know what the business entails. (explaining the code of ethics)
- Make use of other training methods such as buddy systems and workshops.
- Ensure retention of employees to reduce the high employee turnover
- Make sure succession planning is sufficient so that the business has a better idea of their position in the future and how they can possible expand