Study material

📌 Recruitment and Selection of Employees

Recruiting and selecting the right employees is crucial for business success. Recruitment is the process of
identifying the need for a new employee, defining the job role, and attracting suitable candidates. Once
applicants have been sourced, the business begins the selection process to choose the most appropriate
person for the job.

There are two main types of recruitment: internal and external. Internal recruitment involves filling a
vacancy from within the organization—such as promoting an existing employee. Its advantages include
lower costs, quicker process, and improved staff motivation. However, it may limit the range of applicants
and could create resentment among employees not chosen. On the other hand, external recruitment is
when candidates are hired from outside the business. This can bring in fresh ideas and a wider range of
applicants, but it is often more expensive and time-consuming.

The main stages in recruitment and selection include: identifying a vacancy, preparing a job description
and person specification, advertising the job, shortlisting candidates, and conducting interviews or other
assessment methods such as tests. The selection process should aim to match the right skills, experience,
and personality with the job requirements.

In given business scenarios, students may be asked to recommend and justify who to employ. To do this,
they should consider the qualifications, past experience, performance in interviews, and how well the
candidate meets the person specification. For instance, if a business needs someone quickly trained for a
short-term project, a candidate with relevant experience and availability would be preferred over someone
needing longer induction.

Businesses can choose between full-time and part-time employees. Full-time employees typically work
35–40 hours a week and offer consistency, greater availability, and loyalty. However, they cost more in
terms of salary and benefits. Part-time employees, working fewer hours, offer flexibility and lower costs,
but they may lack long-term commitment and availability during busy periods. The choice depends on the
nature and demands of the business.

📌 The Importance of Training and Methods of Training

Training is essential for both employees and businesses. It improves worker performance, increases
productivity, reduces errors, and enhances customer satisfaction. For employees, it boosts confidence,
improves job satisfaction, and may lead to career progression.

There are three main types of training: induction training, on-the-job training, and off-the-job training.
Induction training is given to new employees to introduce them to the workplace, policies, health and
safety rules, and colleagues. It ensures a smoother start but may not cover job-specific skills deeply.
On-the-job training happens at the workplace while the employee works. It is cost-effective and directly
relevant, but the quality depends on the trainer and can lead to disruptions in normal work. Off-the-job
training occurs away from the workplace and includes workshops or courses. It often provides
higher-quality learning from professionals, but is more costly and time-consuming.

📌 Why Reducing the Size of the Workforce Might Be Necessary

Sometimes, businesses must reduce their workforce due to external or internal pressures. This is known as
downsizing. Common reasons include automation (where machines replace humans), a fall in demand for
the business’s products, or a need to reduce costs to remain competitive.

It’s important to understand the difference between dismissal and redundancy. Dismissal occurs when an
employee is let go due to poor performance, misconduct, or breaking company rules—such as consistently
arriving late or theft. Redundancy happens when the employee's job no longer exists, not because of their
performance. For example, if a business closes a factory due to low sales, the workers there may be made
redundant.

In business case studies, students may be asked to recommend and justify which employees to make
redundant. They should consider factors like employee performance, skills, length of service, and future
needs of the business. The decision should be fair, legal, and aligned with business goals.

📌 Legal Controls Over Employment Issues and Their Impact

Governments enforce legal controls to protect employees and ensure fair treatment in the workplace.
Businesses must provide employment contracts, which state job roles, wages, working hours, and terms of
employment. Contracts give clarity to both employers and employees and can reduce misunderstandings.

Laws also protect employees from unfair dismissal—being fired without a valid reason or proper
procedure. Discrimination laws ensure that businesses treat all employees equally, regardless of gender,
race, age, religion, or disability. Health and safety regulations ensure that businesses provide a safe
working environment, reducing the risk of accidents and illness.

One major legal requirement in many countries is the legal minimum wage. It ensures workers are paid
fairly and helps reduce poverty. However, it can increase business costs, especially for firms employing
many low-skilled workers.

For businesses, following these laws ensures a better reputation, improved employee relations, and
reduced risk of legal action. However, legal compliance may increase costs and reduce flexibility.
Employees, on the other hand, benefit from greater security, equality, and better working conditions.
definitions
​
​
1. Recruitment is the process from identifying that the business needs to employ someone up to the point at
which applications have arrived at the business.

2. Employee selection is the process of evaluating candidates for a specific job and selecting an individual
for employment based on the needs of the organisation.

3. A job analysis identifies and records the responsibilities and tasks relating to a job.

4. A job description outlines the responsibilities and duties to be carried out by someone employed to do a
specific job.

5. A job specification is a document which outlines the requirements, qualifications, expertise, physical
characteristics, etc., for a specified job.

6. Internal recruitment is when a vacancy is filled by someone who is an existing employee of the business.

7. External recruitment is when a vacancy is filled by someone who is not an existing employee and will be
new to the business.

8. Part-time employment is often considered to be between 1 and 30–35 hours a week.

9. Full-time employees will usually work 35 hours or more a week.

10. Induction training is an introduction given to a new employee, explaining the business’s activities,
customs and procedures and introducing them to their fellow workers.

11. On-the-job training occurs by watching a more experienced worker doing the job.

12. Off-the-job training involves being trained away from the workplace, usually by specialist trainers.

13. Workforce planning is establishing the workforce needed by the business for the foreseeable future in
terms of the number and skills of employees required.

14. Dismissal is when employment is ended against the will of the employee, usually for not working in
accordance with the employment contract.

15. Redundancy is when an employee is no longer needed and so loses their job. It is not due to any
aspect of their work being unsatisfactory.

16. A contract of employment is a legal agreement between an employer and employee, listing the rights
and responsibilities of workers.

17. An industrial tribunal is a type of law court (or in some countries, a legal meeting) that makes judgments
on disagreements between companies and their employees, for example, workers’ complaints of unfair
dismissal or discrimination at work.

18. An ethical decision is a decision taken by a manager or a company because of the moral code
observed by the firm.
mcq
📘 Recruitment and Selection
1.​ What is the first stage in the recruitment process?​
A. Advertising the vacancy​
B. Conducting interviews​
C. Identifying a job vacancy​
D. Writing the employment contract​

2.​ Which of the following is NOT an advantage of internal recruitment?​

A. Lower recruitment costs​
B. Shorter induction time​
C. Access to a wider pool of talent​
D. Boosts staff morale through promotion​

3.​ Which document outlines the responsibilities and duties of a specific job?​
A. CV​
B. Job description​
C. Person specification​
D. Employment contract​

4.​ Which of the following is true about external recruitment?​

A. Increases employee loyalty​
B. Is always cheaper than internal recruitment​
C. Limits innovation within the business​
D. Offers a broader range of applicants​

5.​ A person specification is most useful for:​

A. Designing a training program​
B. Identifying key qualities needed in a candidate​
C. Outlining health and safety duties​
D. Determining wage levels​

6.​ Which of the following methods is a selection tool?​

A. Job advertisement​
B. Shortlisting​
C. CV collection​
D. Staff induction​

7.​ Which scenario best suits employing a part-time worker?​

A. Managing business accounts​
B. Covering peak lunch hours in a restaurant​
C. Operating heavy machinery on a full-time basis​
D. Managing a factory team​

8.​ Which is a disadvantage of employing full-time workers?​

A. Lower salary payments​
B. Reduced productivity​
C. Limited working hours​
D. Higher employment costs​

9.​ Which of these best defines recruitment?​

A. Promoting internal employees​
 B. Removing underperforming staff​
C. Finding and attracting potential employees​
D. Selecting between two suppliers​

10.​In recruitment, shortlisting is used to:​

A. Train the selected employees​
B. Fire unsuccessful applicants​
C. Choose candidates to move forward in the selection process​
D. Promote internal candidates only​

11.​Induction training is mostly given to:​

A. Staff returning from sick leave​
B. Long-serving managers​
C. New employees​
D. Employees on night shifts​

12.​Which training is conducted while the employee performs their job tasks?​
A. Online training​
B. Off-the-job training​
C. On-the-job training​
D. Workshop training​

13.​Which is a likely disadvantage of on-the-job training?​

A. Expensive fees from external trainers​
B. Employees learning while disrupting workflow​
C. Lack of real-time experience​
D. No immediate application of skills​

14.​Which training method would likely involve a training center away from the workplace?​
A. On-the-job​
B. Off-the-job​
C. Apprenticeship​
D. Induction​

15.​What is a key reason for businesses to invest in training?​

A. Reduce salaries​
B. Increase staff turnover​
C. Improve employee performance​
D. Reduce recruitment costs​

16.​Which of the following is true of off-the-job training?​

A. Cheaper than on-the-job​
B. Less structured​
C. Requires no time off​
D. May be delivered by specialists​

17.​Training helps employees by:​

A. Lowering their wages​
B. Reducing their responsibilities​
C. Increasing their confidence​
D. Limiting promotion opportunities​
18.​A potential drawback of induction training is:​
A. It delays contract signing​
B. It is irrelevant to health and safety​
C. It may not focus on job-specific skills​
D. It replaces job interviews​

19.​A business seeking to cut training costs might choose:​

A. University diploma courses​
B. External conferences​
C. On-the-job training​
D. Overseas training​

20.​Why would a business choose off-the-job training over on-the-job training?​

A. It is free​
B. It offers real-time customer interaction​
C. It allows access to professional trainers​
D. It causes less employee absence​

21.​Which of these best defines redundancy?​

A. Ending employment due to poor discipline​
B. Firing a worker for underperformance​
C. Ending a role that is no longer required​
D. Voluntary resignation by an employee​

22.​Dismissal typically occurs due to:​

A. Business relocation​
B. Staff misconduct​
C. Technological change​
D. Product decline​

23.​What is a valid reason for downsizing a workforce?​

A. Expansion into a new market​
B. Hiring additional interns​
C. Replacing machines with workers​
D. Fall in customer demand​

24.​Which of the following is NOT a fair factor in choosing redundancies?​

A. Employee's race or religion​
B. Skills and qualifications​
C. Length of service​
D. Performance review​

25.​Automation usually results in:​

A. Increased job creation​
B. Lower employee wages​
C. Need for more supervisors​
D. Reduction in workforce​

26.​An employment contract typically does NOT include:​

A. Job title​
B. Working hours​
C. Marital status​
 D. Wage details​

27.​The purpose of a legal minimum wage is to:​

A. Help firms save on labour costs​
B. Encourage longer working hours​
C. Ensure employees are paid fairly​
D. Support only full-time workers​

28.​Which law protects employees from being treated unfairly due to their background?​
A. Contract law​
B. Discrimination law​
C. Patent law​
D. Consumer protection law​

29.​Health and safety laws require employers to:​

A. Avoid training costs​
B. Allow unlimited overtime​
C. Provide a safe working environment​
D. Offer company shares​

30.​Unfair dismissal occurs when an employee is:​

A. Promoted without notice​
B. Fired for breaking safety rules​
C. Fired without valid reason or procedure​
D. Retired after 60​
mcq answer
1.​ C. Identifying a job vacancy​

2.​ C. Access to a wider pool of talent​

3.​ B. Job description​

4.​ D. Offers a broader range of applicants​

5.​ B. Identifying key qualities needed in a candidate​

6.​ B. Shortlisting​

7.​ B. Covering peak lunch hours in a restaurant​

8.​ D. Higher employment costs​

9.​ C. Finding and attracting potential employees​

10.​C. Choose candidates to move forward in the selection process​

11.​C. New employees​

12.​C. On-the-job training​

13.​B. Employees learning while disrupting workflow​

14.​B. Off-the-job​

15.​C. Improve employee performance​

16.​D. May be delivered by specialists​

17.​C. Increasing their confidence​

18.​C. It may not focus on job-specific skills​

19.​C. On-the-job training​

20.​C. It allows access to professional trainers​

21.​C. Ending a role that is no longer required​

22.​B. Staff misconduct​

23.​D. Fall in customer demand​

24.​A. Employee's race or religion​

25.​D. Reduction in workforce​

26.​C. Marital status​

27.​C. Ensure employees are paid fairly​

28.​B. Discrimination law​

29.​C. Provide a safe working environment​

30.​C. Fired without valid reason or procedure​

ESQ
✅ GROUP 1 – "ZenTech Solutions"
Case Study:​
Ravi and Anika recently launched ZenTech Solutions, a company offering IT support to local businesses.
As demand increased, they realized the need to hire new technicians. Ravi prefers promoting existing staff
to fill the vacancies, while Anika believes hiring new people will bring in fresh skills. They are also
considering whether to offer full-time or part-time contracts. Meanwhile, one client project was cancelled,
and they may need to reduce staff to cut costs.

Questions:

a. Define recruitment. [2]​

b. Identify two advantages of internal recruitment. [2]​
c. Outline two benefits to ZenTech Solutions of hiring part-time employees. [4]​
d. Explain two factors the business should consider before deciding which employees to make redundant.
[6]​
e. Do you think ZenTech should recruit externally or internally to fill the new positions? Justify your answer.
[6]

✅ GROUP 2 – "FreshBloom Organics"

Case Study:​
Meera owns FreshBloom Organics, a business selling organic skincare products. She wants to ensure
high quality and safe production standards, so she recently hired new staff and organized training sessions.
Her team now debates the best method of training. While some prefer learning on the job, others want to
attend workshops outside the workplace. Meera is also reviewing employment contracts and ensuring she
complies with health and safety laws.

Questions:

a. Define on-the-job training. [2]​

b. Identify two features of an employment contract. [2]​
c. Outline two benefits of induction training for new employees at FreshBloom Organics. [4]​
d. Explain two reasons why Meera must comply with health and safety laws. [6]​
e. Do you think off-the-job training is a better option than on-the-job training for FreshBloom’s employees?
Justify your answer. [6]

✅ GROUP 3 – "GreenWheel E-Mobility"

Case Study:​
Jatin and Sneha started GreenWheel E-Mobility, a company that manufactures electric bikes. As sales
grow, they are struggling to meet demand with their current team. They plan to hire a production manager.
Sneha supports external recruitment to bring in new ideas, while Jatin thinks an internal candidate can fill
the role more quickly. The company also plans to introduce structured training, but needs to manage costs.
Additionally, due to rising production expenses, they are considering downsizing one department.

Questions:
a. Define redundancy. [2]​
b. Identify two methods GreenWheel can use to select the best candidate. [2]​
c. Outline two ways training can improve employee performance. [4]​
d. Explain two reasons why GreenWheel might choose to downsize its workforce. [6]​
e. Should GreenWheel hire a new production manager from within the business or externally? Justify your
answer. [6]
suggested ESQ Answer
✅ GROUP 1 – ZenTech Solutions
a. Define recruitment. [2]​
Recruitment is the process of identifying the need for a new employee, attracting suitable candidates, and
encouraging them to apply for a job in the business.

b. Identify two advantages of internal recruitment. [2]

●​ It is usually quicker and cheaper than recruiting externally.​

●​ It motivates existing employees by offering career progression.​

c. Outline two benefits to ZenTech Solutions of hiring part-time employees. [4]

●​ Part-time employees allow ZenTech to match staff hours with peak demand, especially if client
workloads fluctuate.​

●​ They help reduce wage costs, as the business only pays for limited working hours and may reduce
benefit-related expenses.​

d. Explain two factors the business should consider before deciding which employees to make
redundant. [6]​
ZenTech should consider skills and qualifications of employees. Workers with specialized IT skills that
are hard to replace should be retained, even if their current projects are cancelled.​
They should also assess length of service and past performance. Employees with long, loyal service
and strong reviews may be more valuable to the company in the long term.​
These factors help ensure redundancy decisions are fair, legal, and in the best interests of the business’s
future needs.

e. Do you think ZenTech should recruit externally or internally to fill the new positions? Justify your
answer. [6]​
ZenTech could benefit from internal recruitment, as it is quicker and cheaper. Existing employees
understand company processes and may require less training. It can also boost morale.​
However, external recruitment brings in fresh ideas and a broader range of skills, which might be
important in a fast-evolving IT industry.​
If ZenTech is seeking innovation or lacks the required skills internally, external recruitment may be more
suitable. But if cost and speed are priorities, internal recruitment may be better.

✅ GROUP 2 – FreshBloom Organics

a. Define on-the-job training. [2]​
On-the-job training is where employees learn by doing their work under supervision in the workplace, often
guided by a more experienced colleague or manager.

b. Identify two features of an employment contract. [2]

●​ Details of working hours and job responsibilities.​

 ●​ Information on wages or salary and terms of payment.​

c. Outline two benefits of induction training for new employees at FreshBloom Organics. [4]

●​ Induction training helps new employees settle quickly by introducing them to the workplace layout,
rules, and team members.​

●​ It improves early productivity and reduces mistakes, especially in a business where health and
safety and product handling are important.​

d. Explain two reasons why Meera must comply with health and safety laws. [6]​
Complying ensures the safety and wellbeing of employees. In skincare manufacturing, staff may handle
chemicals and machinery; proper training and safety gear reduce the risk of accidents.​
Secondly, it protects the business from legal consequences. Non-compliance can result in fines, legal
action, or business closure, which could harm FreshBloom’s reputation and finances.

e. Do you think off-the-job training is a better option than on-the-job training for FreshBloom’s
employees? Justify your answer. [6]​
Off-the-job training may offer higher quality learning, especially from external experts in cosmetic safety
or production. It can introduce advanced skills or methods.​
However, it can be expensive and time-consuming, and may not be customized to FreshBloom’s specific
needs.​
If the goal is to improve technical skills or innovate, off-the-job training may be better. But for cost
efficiency and role-specific learning, on-the-job may be more appropriate.

✅ GROUP 3 – GreenWheel E-Mobility

a. Define redundancy. [2]​
Redundancy is when an employee loses their job because the role they were performing is no longer
required, not because of their performance.

b. Identify two methods GreenWheel can use to select the best candidate. [2]

●​ Conducting structured interviews.​

●​ Using practical assessment tests to evaluate job-related skills.​

c. Outline two ways training can improve employee performance. [4]

●​ Training increases job-specific knowledge, helping employees work more accurately and
efficiently.​

●​ It can improve confidence and motivation, leading to better quality output and reduced
supervision needs.​

d. Explain two reasons why GreenWheel might choose to downsize its workforce. [6]​
The company may reduce staff to cut costs due to rising production expenses. Fewer employees would
lower wages and other employment-related costs.​
Another reason could be technological improvements. If new machines increase efficiency, fewer staff
may be needed in certain departments.​
Both actions help maintain profitability, but must be legally and ethically managed.

e. Should GreenWheel hire a new production manager from within the business or externally?
Justify your answer. [6]​
Hiring internally could save costs and time. The person already knows company procedures and culture,
reducing training needs.​
However, external recruitment can bring in new skills and ideas, especially useful in a growing company
with production challenges.​
If existing staff lack leadership experience or technical expertise, hiring externally might be the better
long-term investment.
story
“Stark Enterprises: Human Resources Assemble”

(A fun and educational Marvel dialogue inspired by the IGCSE Business Studies unit on recruitment,
training, and workforce management)

[Scene: Stark Tower, Human Resources Department. Iron Man (Tony Stark) calls an emergency
meeting.]

Tony Stark:​
Team, I need help. We’ve got three open positions in the R&D division. One of our tech engineers just got
poached by Oscorp. We need to recruit, select, and train — fast.

Peter Parker (Spider-Man):​

Wait, Mr. Stark. Shouldn’t we first identify exactly what kind of person we need? Like… their role?

Tony:​
Exactly, kid. Step one — identify the job vacancy. J.A.R.V.I.S., pull up the old job description and let’s
update the person specification. We need someone with skills in AI, nanotech, and quantum computing.

Shuri (Black Panther’s sister):​

Why not recruit internally? Someone from the Wakandan outreach team could easily step up. It’ll be
quicker and save money on external recruitment.

Tony:​
True, internal recruitment boosts morale too. But I want fresh brains — not just Vibranium brains.

Peter (grinning):​
So… external recruitment it is? Should we advertise the job on LinkedIn or S.H.I.E.L.D. Careers Portal?

Natasha Romanoff (Black Widow):​

Hold on. Once we’ve got applications, we’ll need to shortlist candidates, right? And then do interviews.
Some applicants fake their way in.

Tony:​
Exactly. No one’s building suits unless they pass a rigorous skills test. Last guy we hired accidentally
launched a missile into the janitor’s closet.

Shuri:​
Oh wow. Also, once they're hired — don’t forget training. Induction first. No one wants to get zapped by
Friday's biometric door system on their first day.

Peter:​
Induction training helps them settle in. But what about on-the-job training? Like… letting them work with me
while I test web fluid prototypes?

Tony:​
Sure, but only if you don’t swing from the ceiling during sessions.

Shuri:​
Off-the-job training could be useful too. Send them to Wakanda’s tech labs for high-level workshops. It’s
costly, but worth it.
Tony (sighs):​
Sounds like a lot of planning. And guess what — Pepper just told me we need to reduce the workforce in
our robotics unit. Too many overlaps since we automated production.

Natasha:​
You’ll have to decide who to make redundant, Stark. Not dismiss — redundant. It’s not their fault.

Peter:​
So… no firing people for breaking coffee machines?

Tony:​
Nope. Redundancy is when their job is no longer needed — not because they underperformed. Be fair.
Consider length of service, skills, flexibility.

Shuri:​
And follow the law, Stark. Employment contracts, health and safety, no discrimination. Wakanda doesn’t
mess with that.

Tony:​
Of course. We’ve got legal controls in place — minimum wage compliance, anti-discrimination policies, and
fair dismissal procedures.

Peter:​
So… should we call this “Avengers: Age of Recruitment”?

Tony:​
No, Parker. Call it “Human Resources Assemble.”

🦸 THE END – But Learning Continues

Key Takeaways:

●​ Recruitment involves both internal and external methods.​

●​ Selection must be fair and structured.​

●​ Training improves performance and confidence.​

●​ Downsizing must follow legal and ethical standards.​

●​ Employment laws protect both businesses and workers.​