The Compensation for Occupational Injuries and Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997) recognises that some occupations are dangerous and expose workers to health risks. Therefore, there are cost implications to both employers and employees when workplace-related accidents or diseases occur. With reference to the statement above:
- Discuss the nature of COIDA.
- Explain the rights of employees as outlined in the Act.
- Outline THREE actions that could be regarded as discriminatory.
- Analyse the impact of this Act on businesses.
- Recommend ways in which businesses can comply with COIDA.
Introduction
- COIDA was introduced to protect the health and safety of employees in the workplace.√
- COIDA provides guidelines for the compensation of employees who are disabled because of injuries sustained/diseases contracted at work.√
- It also provides for compensation if a worker dies due to a work-related injury/ disease.√
- Injuries and diseases for which claims can be made are specified in the Act.√
- Any other relevant introduction related to COIDA.
Nature of COIDA
- COIDA applies to all casual and full-time workers who become ill/injured/ disabled/killed√ due to a workplace accident/disease.√
- It excludes workers√ who are guilty of wilful misconduct/workers working outside South Africa for at least twelve months/members of the SA Defence Force/ Police services.√
- It provides for the establishment of a Compensation Board√ whose function is to advise the Minister of Labour on the application/provisions of COIDA.√
- Medical expenses/Other types of compensation are paid to employees and/or their families√ depending on the type/severity of the injuries.√
- Employers have to pay a monthly amount to the Compensation Fund√ depending on the number of employees/the level of risk they are exposed to.√
- Any other relevant answer related to the nature of COIDA.
Rights of employees outlined in COIDA
- Ensure they are not injured√ as a result of serious/wilful misconduct.√
- Notify the employer of the accident√ as soon as possible.√
- Comply with the necessary medical assessment√ to assess the nature of the injury/disease.√
- May claim for compensation√, if he/she is partially/permanently disabled.√
- Employees' dependants have a right to claim√ when the employee dies as a result of injuries at work.√
- Any other relevant answer related to the rights of employees outlined in COIDA
Discriminatory actions
- Employers who bribe employees not to report the accident/injury.√√
- Providing false information about previous, serious accidents/occupational diseases.√√
- Employers who do not contribute to the Compensation fund.√√
- Employers who do not allow claims for injuries, discriminates against injured employees.√√
- Employers that take too long to process claims/delay the claiming process.√√
- Compensation that is set off against any debt of the person entitled to the compensation.√√
The impact of COIDA on businesses
- Promotes safety√ in the workplace.√
- Creates a framework√ for acceptable employment practices/safety regulations.√
- Supply administrative guidelines/mechanisms√ for dealing with/processing claims.√
- Eliminates time and costs spent√ on lengthy civil court proceedings.√
- Covers all employees at the workplace√ if both parties meet all the necessary safety provisions in the Act.√
- Employees are compensated financially for any injury/disability√ resulting from performing their duties at their workplace.√
- In the event of the death of an employee as a result of a work-related accident/ disease√, his/her dependant(s) will receive financial support.√
- Employers are protected from financial burden should an accident occur in the workplace√ provided that the employer was not negligent.√
- Employees do not have to contribute√ towards this fund.√
- Employees receive medical assistance√ provided there is no other party involved.√
- Any compensation to an employee/the family√ is exempt from income tax.√
- The processes√ are relatively simple.√
- Makes businesses more socially responsible√ as they cannot just employ workers at random in dangerous working conditions.√
- Workers are treated with dignity/respect√ as businesses view them as valuable assets and not just as workers.√
- Any other relevant answer related to the advantages/positives of COIDA.
Positives/Advantages
Negatives/Disadvantages
- Claiming processes/procedures√ can be time consuming.√
- Processes/Procedures required by this Act may be costly√ as paperwork places an extra administrative burden on businesses.√
- Employers have to register all their workers/make annual contributions to COIDA√, which may result in cash flow problems.√
- Employers may be forced to pay heavy penalties√ if they are found guilty of negligence/not enforcing safety measures.√
- Workers who are temporarily/permanently employed in foreign countries√ are not covered.√
- Domestic/Military workers√ are not covered.√
- Any other relevant answer related to the disadvantages/negatives of COIDA
Recommendations on ways to comply with COIDA
- Businesses should provide a healthy/safe working environment.√√
- They should register with the Compensation Commissioner and provide the particulars of the business.√√
- Must keep records of employees' income and details of work for four years.√√
- Obliged to report all incidents causing death/injury/illness of employees.√√
- Businesses should submit returns of earnings by no later than 1 March annually.√√
- Levies must be paid to the Compensation Fund.√√
- Ensure that the premises/equipment/machinery is in good working condition.√√
- Should allow regular assessment of the workplace by inspectors in order to determine the level of risk their employees are exposed to.√√
- Employers may not make deductions for COIDA from employees' remuneration packages.√√
- Businesses must ensure that claims are lodged within twelve months of the date of the accident.√√
- Any other relevant answer related to ways in which businesses have to comply with COIDA.
Conclusion
- Good progress has been made as businesses are now more socially responsible in improving safety measures/working conditions/being responsible for workers and their dependents.√√
- Workers in some industries are being compensated for contracting diseases such as tuberculosis, silicosis√√, etc.
- If death occurs, families may benefit as the deceased worker may be substituted by another family member in the same industry.√√
- Any other relevant conclusion related to COIDA.
Businesses operate in dynamic and risky environments. Insurance will always play a vital role in ensuring that they are sustainable. Gant Ltd believe that insurance is a sound investment and want to make informed decisions about their insurance and investments. Gant Ltd contacted you as an independent financial investment advisor. Your advice must include the following:
Insurance
- Explain the importance of insurance to businesses.
- Differentiate between compulsory insurance and non-compulsory insurance and give TWO examples of each.
- Advise the company by providing a description of any FOUR suitable forms of investments. Elaborate on the risk factor of EACH.
INTRODUCTION
- Insurance is extremely beneficial to businesses as it provides financial relief in times of unforeseen financial losses.√
- Insurance indemnifies businesses against certain types of risk.√
- Business owners should have a clear understanding of the financial impact of accidents/disasters on their business operations, so that they can make provision for that in advance.√
- Businesses should always assess the viability/relevance of insurance in the context of their business activities.√
- Investors have a range of investment opportunities to choose from.√
- These investment opportunities are measured against criteria for good investment, such as financial stability of the institution, reliable management and regular feedback on the investment.√
- The type of investment as well as the period of the investment will influence the risk/chance of receiving an income/increasing the value of the investment.√
- Any other relevant introduction related to insurance for businesses, forms of investment and the risk of investments
Importance of insurance to businesses
- Transfers the risk from the business/insured√ to an insurance company/insurer.√
- The transfer of the risk is subject to the terms and conditions√ of the insurance contract.√
- Protects the business against theft and loss of stock and/or damages√ caused by natural disasters such as floods, storm damage, etc.√
- The business will be compensated√ for insurable losses.√
- Valuable business assets√ e.g. vehicles/equipment/buildings need to be insured against damage and/or theft.√
- Business is protected against the loss of earnings√ e.g. strikes by employees result in losses worth millions of rands.√
- Protects the business against deeds of dishonesty√ by employees.√
- Insurance can be taken against the life of partners√ in a partnership.√
- Should the services of key personnel be lost due to accidents or death√, the proceeds of an insurance policy can be paid out to the business/beneficiaries.√
- Replacement costs for damaged machinery/equipment are very high√, therefore, insurance can reduce/cover these costs.√
- Protects the business against losses√ due to the death of a debtor.√
- Any other relevant answer related to the importance of insurance to businesses
Differences between compulsory and non-compulsory insurance
COMPULSORY INSURANCE NON-COMPULSORY INSURANCE
- Is required by Law/there are legal obligations√ for it to be taken out and paid for.√
- Is voluntary/the insured has a choice√ whether to enter into an insurance contract.√
- It is regulated by Government√ and does not require insurance contracts/brokers.√
- Insured will enter into a legal insurance contract with the insurer√, who may be represented by an insurance broker.√
- Payment is in the form of a levy/ contribution paid into a common fund√ from which benefits may be claimed under certain conditions.√
- Monthly/Annual payments/premiums that must be paid√ in order to enjoy cover for a nominated risk.√
- Any other relevant answer related to compulsory insurance.
- Any other relevant answer related to non-compulsory insurance. Submax (4) Submax (4)
- Examples: UIF√, RAF√, COIDA√
- Examples: Short term insurance√/Multi-peril insurance (theft, fire, etc.)√
- Long term insurance√/Life insurance√
- Any other relevant example of noncompulsory insurance.
Unit trusts√√
- It is a collection of investment options/methods√ made up of shares in different companies.√
- The investments of a number of investors are pooled together in a unit trust fund√, managed by a fund/portfolio manager/expert.√
- Can be bought directly√ from the accredited service providers.√
- Any other relevant answer related to a description of unit trusts. Risk
- Investment may be made in high and low risk shares√, which spread the risk throughout the fund and lowers the risk for all the investors/fund members.√
- Fund managers are able to manage the risk level of the fund√ on behalf of the investors.√
- Any other relevant answer related to level of risk of unit trusts.
Managed portfolio√√
- An investor instructs a financial institution/bank/financial advisor√ to manage his/her various investments/assets in one portfolio.√
- If the portfolio does not perform well/as expected√, the portfolio/parts thereof may be changed with/without informing the investor.√
- Any other relevant answer related to a description of a managed portfolio. Risk
- Risk is lower√ over a longer term/period.√
- Investments are made in various sectors/companies√, therefore the risk is spread and better managed by the portfolio manager.√
- Money is usually invested in the capital market√ and unforeseen circumstances may impact negatively on the value of the portfolio on the short term√/High risk√ over the short term.√
- Any other relevant answer related to level of risk of a managed portfolio
Shares√√
- Companies sell/issue portions of its ownership to shareholders in the form of shares on the open market√ to obtain capital/funds to operate its core business.√
- Shares give the holder one vote per share√ and the right to receive a dividend (portion of the profit).√
- Companies do not have to repay share capital√ and is therefore risk avoiding capital.√
- Shares of listed companies√ are traded on the JSE.√
- Shares can be bought/sold through stock/share brokers√ to whom a brokerage/ fee will be paid by the investor.√
Types of shares differ with respect to the claims to profits/dividends/voting rights/claims to assets√ should the company be liquidated.√
- Ordinary shares can be divided into different types√, e.g. blue chip/bonus/ growth/income/defensive shares.√
- Ordinary shares have no special rights or restrictions√ and may yield/earn higher dividends, but also have higher risk.√
- Types of preference shares√ are cumulative/non-cumulative/participating/nonparticipating/redeemable/non-redeemable/convertible/non-convertible shares.√
- Preference shareholders mostly receive a fixed dividend√ and are paid before other shareholders.√
- Any other relevant answer related to a description of shares. Risk
- Shares have low/medium risk√ over a long term/investment period.√
- Ordinary shares have the highest risk√ as the investor may lose the full or part of the investment when the company is dissolved/bankrupt/liquidated.√
- Preference shareholders' risk is lower√, as they have preferential claims on the assets of the liquidated company/may receive some compensation before ordinary shareholders.√
- Share prices are linked to factors that investors cannot control√, e.g. economic conditions, operational success of the company√, etc.
- Share prices are volatile/unstable/unpredictable/share values may increase/ decrease sharply within hours√ which contribute to the uncertainty of the value of an investment on the short term.√
- Any other relevant answer related to level of risk of shares.
Debentures√√
- It is issued to raise borrowed capital√ from the public.√
- The lender/debenture holder agrees to lend money to the company√ on certain conditions for a certain period.√
- Debenture holders are creditors√, as the company is liable to repay the amount of the debentures.√
- Most types of debentures√ can be traded on the JSE.√
- Debenture holders receive annual interest payments√ based on the terms/ amount of debentures held.√
- Any other relevant answer related to a description of debentures.
Risk
- Debentures have a low risk√ as they need to be paid pack.√
- Companies are liable to repay the amount of the debenture plus interest√, which decrease the risk for the investor.√
- Investors may earn a steady income in the form of interest√ while preserving their principal amount.√
- Any other relevant answer related to the level of risk of debentures.
RSA Retail Savings Bonds√√
- To encourage saving√, the SA Government offers SA citizens the opportunity to invest in saving bonds.√
- Two different types of bonds are available√, i.e. fixed rate/inflation linked retail savings bonds.√
- A market related interest rate is determined when investment is made√ and remains fixed for the whole term of the investment.√
- Interest is earned half-yearly on 31 March and 30 September√ and paid out into the bond holder's/investor's bank account.√
- It cannot be used as security to obtain loans√, so creditors cannot have any claim on it.√
- It can be inherited√ by a nominated beneficiary/when the investor dies.√
- Any other relevant answer related to a description of RSA Retail Savings Bonds. Risk
- Risk is very low√, as an investment is made in the government who cannot disappear/go bankrupt.√
- It is a safe investment√, as it cannot be sold on the open market/not exposed to market risks.√
- Any other relevant answer related to the level of risk of RSA Retail Savings Bonds.
Fixed Property√√
- Buying a house/piece of land√ is usually suitable as a long term investment only.√
- Large fees/taxes are payable on these transactions√, so property cannot be bought/sold every year.√
- Return on property is earned in the form of rental/sales/capital gains√ at a higher price than what it was bought for (including the transfer costs and taxes).√
- The location/size of the property√ may also influence the growth in value over time.√
- Any other relevant answer related to a description of fixed property. Risk
- Low risk√ over a long term.√
- Risk may be determined by economic conditions√ and may influence the value of property.√
- Any other relevant answer related to the level of risk of fixed property.
Mutual funds/Stokvels√√
- It is an informal savings scheme√ to which a relatively small group of people contribute.√
- Each member takes a turn to draw from the scheme/fund/stokvels√ for their own personal gain.√
- No/Small return on investment√, as contributions are distributed monthly to one of the members.√
- It encourages people to save each month√ for a specific reason.√
- Banking fees are shared by the members√, resulting in low cost of investment per member.√
- In times when it is hard to get bank loans√, stokvel pay-outs may come in handy.√
- A stokvel is usually managed by a trustworthy chairman/treasurer√, who will be responsible for keeping records and managing the bank account.√
- Members usually discuss how the money will be invested√ and agree on the risks they are willing to take.√
- Any other relevant answer related to a description of mutual funds/stokvels. Risk
- Schemers who claim to be running stokvels may actually be running illegal pyramid schemes√ and pay-outs may not be possible as cash has run out/ members may lose their savings.√
- Money in a savings account is a safe investment√, but with low interest rates/the returns are low.√
- Any other relevant answer related to the level of risk of mutual funds/stokvels.
Business Ventures/Venture capital√√
- Venture capital is given by an investor/businesses to start up/expand a business√ in return to have a share in the new/expanded business.√
- Investor(s) should know the type of business/market/economic conditions√ before a business is bought/started.√
- Buying a franchise/existing businesses will be successful√, if the investors has done proper research/understand exactly what he/she is investing in.√
- Any other relevant answer related to a description of business ventures/venture capital.
Risk
- High risk for the investor(s)√, if research is not properly done.√
- Inexperienced business owners that make wrong business decisions√ may experience big losses/closing down of an existing business.√
- Any other relevant answer related to the level of risk of business ventures/ venture capital.
Endowment/Life insurance policies/Retirement Annuities√√
- A monthly payment is paid to an insurance company√ with the expectancy of receiving a pre-determined amount on a date in the future.√
- To provide for a future expenses/give peace of mind√ to the dependants of the insured.√
- Any other relevant answer related to a description of endowment/life insurance policies/retirement annuities Risk
- Low risk√, as the insured amount will be paid out regardless of circumstances.√
- Only the closing down/bankruptcy of the insurance company√ may result in losing the monthly contributions made up to the close down date.√
- Any other relevant answer related to the level of risk of endowment/life insurance policies/retirement annuities.
Fixed deposit√√
- It is a very conservative method of investment√ at a fixed rate for a fixed period/at a financial institution/bank.√
- Money cannot be withdrawn/added√ during the period of the deposit.√
- Investors have to be certain√ that they will not access/need the money for the period of the deposit.√
- Any other relevant answer related to a description of fixed deposit. Risk
- Very low√ as the investor will receive what was promised.√
- As the interest rate is usually fixed√, the return will not be affected by market fluctuations.√
- Any other relevant answer related to the level of risk of fixed deposit day notice accounts/Call Deposits√√
- Money is invested at a fixed rate√, although withdrawals may be made provided the bank is given 32 days' notice of the withdrawal.√
- It earns more interest than a current/cheque/savings account√, but less interest than a fixed deposit.√
- Any other relevant answer related to a description of 32-day notice accounts/
call deposits
Risk
- Low risk√, as investment plus interest will be paid out on the maturity date of the investment.√
- Interest is calculated on the daily balance√, accelerating the value/return on the investment/lowering the risk.√
- Interest rate may fluctuate with market conditions√, increasing the risk.√
- Any other relevant answer related to the level of risk of 32-day notice accounts/call deposits.
CONCLUSION
- Investors should always ensure that they do thorough research about the form of investment they want to use, before they make the investment.√√
- All possible factors, advantages and disadvantages must be compared before choosing the best option that will suit the investors' needs.√√
- Any relevant conclusion related to insurance, forms of investments and risk involved.
Businesses employ workers from different cultural backgrounds and beliefs, which may lead to conflict in the workplace. Employees are also expected to work together in teams, which may intensify conflict.
Refer to the statement above and elaborate on the following issues in the workplace:
- Discuss the possible causes of conflict.
- Identify and explain the team development stage in which conflict is most likely to take place.
- Suggest ways in which businesses can deal with difficult people.
- Analyse the benefits of a diverse work force to businesses.
INTRODUCTION
- Conflict is a situation in which there are opposing ideas, opinions, feelings/ a situation in which it is difficult to choose.√
- Conflict cannot always be resolved/avoided/eliminated, therefore people need to learn how to manage conflict within a team so that they continue to work harmoniously.√
- Managers should be well conversant with the causes of conflict in order to develop relevant strategies on how to deal with conflict in the workplace.√
- It is important for every professional to develop the skills to manage and deal with difficult people.√
- It is important to employ people from various backgrounds to break down stereotypes and prejudice.√
- Any other relevant introduction related to conflict in the workplace.
Personal differences/Different personalities√√
- Conflict is inevitable when people from different backgrounds/cultures/values races/gender√ work in the same environment.√
- When employees fail to understand or accept the differences in each other's personalities√, problems arise in the workplace.√
- Humour and sarcasm may be perceived as insulting behaviour√ by employees of other cultures/backgrounds.√
- Different personality types within a group can cause conflicts√ because some employees' may be introverts while others are extroverts resulting in different perceptions.√
- Different opinions√ may make it difficult to reach agreements.√
- Any other relevant answer related to personal differences/different personalities as a possible cause of conflict.
Poor communication√√
- Poor communication can lead to all types of misunderstanding√ and can become very destructive.√
- If employees or management decide to sidestep each other's opinions√, team members may become unhappy.√
- Any other relevant answer related to poor communication as a possible cause of conflict.
Competition√√
- Although competition may be a good motivator,√ it can become negative if the focus is on competition only, as team members may lose their team spirit.√
- Team members who always loose when competing√, may feel incompetent/ demotivated and may not complete their tasks/reach deadlines.√
- Unhealthy workplace competition may spark conflict√ as it demoralises employees who cannot always meet targets.√
- When salary is linked to employee productivity√, a workplace may experience strong competition between employees.√
- Any other relevant answer related to competition as a possible cause of conflict.
Ignoring rules/procedures√√
- Employees who do not follow the rules/procedures√ can cause conflict as tasks may not be performed according to the business specification.√
- Team members who ignore/disobey rules/procedures√ may delay the completion of tasks.√
- Any other relevant answer related to ignoring rules/procedures as a possible cause of conflict.
Poor organisation/leadership/administrative procedures and systems√√
- Poor systems and procedures cause stress to workers√ and makes them frustrated√.
- If there are not enough guidelines for team members√, they will be unorganised/uncoordinated in their work.√
- Any other relevant answer related to poor organisation/leadership/administrative procedures and systems as a possible cause of conflict.
Workload and stress/Unrealistic expectation√√
- When employees are overloaded with work√, they become stressed/feel unappreciated/burnt-out.√
- Some employees may depend on their colleagues√ to help them to complete their work.√
- Any other relevant answer related to workload and stress/unrealistic expectation as a possible cause of conflict.
Confusion about scheduling and deadlines√√
- Individual deadlines and the team schedules that are not clearly communicated/are not easily available√ can cause confusion.√
- Employees working in a team may be available at different times/finding a suitable time when everyone is available√, which can be a challenge in reaching deadlines.√
- Any other relevant answer related to confusion about scheduling and deadlines as a possible cause of conflict.
Unclear responsibilities√√
- Employees who are not clear about their responsibilities√ are more likely to avoid and blame others for work not done.√
- They may not effectively perform√ their task as expected.√
- Any other relevant answer related to unclear responsibilities as a possible cause of conflict.
Distracted by personal objectives√√
- Some employees may pursue their own personal objectives√ and they will try to force their own desires onto the team.√
- They may lose focus of the task at hand√ and distract others from performing their tasks effectively.√
- Any other relevant answer related to being distracted by personal objectives as a possible cause of conflict.
Lack of/Insufficient resources√√
- Limited resources may cause conflict, because employees may all√ want to use the resources at the same time.√
- Team members may fight over the limited resources available√ to accomplish their/the team's tasks.√
- Any other relevant answer related to insufficient resources as a possible cause of conflict.
Constant changes√√
- Constant changes in a business may cause instability/lack of clarity√ regarding the roles and responsibilities of each employee/team member.√
- Staff of businesses that continuously change√, may experience 'change fatigue'.√
- People may have less patience√ and fail to understand the reasons for change.√
- Any other relevant answer related to constant changes as a possible cause of conflict.
Explanation of storming
- Teams go through a period of unease/conflict√ after formation.√
- Different ideas from team members√ will compete for consideration.√
- Team members open up to each other√ and confront each other's ideas/ perspectives.√
- Tension, struggle/arguments occur√ and upset the team members√/There may be power struggles√ for the position of the team leader.√
- In some instances storming can be resolved quickly√ and in others, the team never leaves this stage.√
- Many teams fail during this stage√ as they are not focused on their task.√
- This phase can become destructive to the team/will lower motivation√ if allowed to get out of control.√
- Some team members tolerate each other√ just to survive this stage.√
- Any other relevant answer related to storming as a team development stage
Dealing with difficult people
OPTION 1
- Get perspective from others who have experienced the same kind of situation to be able to understand the difficult employee.√√
- Act pro-actively if possible, as a staff/personnel problem is part of a manager's responsibilities.√√
- Regular meetings with supervisors/departmental heads should help to identify difficult/problem behaviour.√√
- Ask someone in authority for their input into the situation.√√
- Identify the type of personality which is creating the problem.√√
- Meet privately with difficult employees, so that there are no distractions from other employees/issues.√√
- Make your intentions/reasons for your actions known, so that they will feel at ease.√√
- Employees should be told what specific behaviours are acceptable by giving details about what is wrong/unacceptable and also an opportunity to explain their behaviour.√√
- A deadline should be set for improving bad/difficult behaviour.√√
- The deadline date should be discussed with the employee and his/her progress should be monitored/assessed prior to the deadline.√√
- Guidelines for improvement should be given.√√
- Do not judge the employee, but try to understand him/her/Understand the person's intentions and why they react in a certain way.√√
- Keep communication channels open and encourage employees to communicate their grievances to management.√√
- Build rapport/sound relations by re-establishing personal connection with colleagues, instead of relying on e-mails/messaging/social media.√√
- Help difficult employees to be realistic about the task at hand.√√
- Remain calm and in control of the situation to get the person(s) to collaborate.√
- Treat people with respect, irrespective of whether they are capable/competent or not.√√
- Sometimes it may be necessary to ignore but monitor a difficult person.√√
- Identify and provide an appropriate support program to address areas of weakness.√√
- Any other relevant answer related to dealing with difficult people.
Complainer√
- Listen to the complaints but do not acknowledge them.√
- Interrupt the situation and move to the problem-solving process as soon as possible.√
Indecisive√
- Guide them through alternatives.√
- Stay in control and emphasise the importance of making a decision.√
- Help them make the decision or solve the problem.√
Over agree√
- Be firm and do not let them make promises that they cannot keep.√
- Follow up on their actions.√
Negativity√
- Be firm with them and do not let them draw you into their negativity.√
- Listen to them but do not agree with them.√
Experts√
- Be firm and assertive.√
- Do not accuse them of being incorrect and do not get caught in their game.√
- Know your facts.√
Quiet√
- Do not fill their silence with words.√
- Wait for their response.√
- Prompt them through the process so that they give input.√
- Restrict the time of the discussion.√
Aggressive√
- Allow them time to speak and blow off.√
- Be firm, but do not attack them.√
- Do not allow them to be hostile towards others.√
Benefits of a diverse workforce
- Workforce diversity improves the ability of a business√ to solve problems/innovate/
cultivate diverse markets.√
- Employees value each other's diversity√ and learn to connect/communicate
across lines of difference.√
- Diversity in the workforce improves√ morale/motivation.√
- Employees demonstrate greater loyalty to the business√ because they feel
respected/accepted/understood.
- A diversified workforce can give businesses a competitive advantage√ as they
can render better services.√
- Being respectful of differences/demonstrating diversity√ makes good business
sense/improves profitability.√
- Diverse businesses ensure that its policies/practices√ empower every employee
to perform at his/her full potential.√
- Customers increasingly evaluate businesses√ on how they manage diversity
in the workplace.√
- Employees from different backgrounds√ can bring different perspectives to the
business.√
- A diversified workforce stimulates debate√ on new and improved ways of getting
things done.√
- Employees represent various groups√ and are therefore better able to recognise
customer needs and satisfy consumers.√
- Businesses with a diverse workforce are more likely to have a good public
image√ and attract more customers.√
- Any other relevant answer related to the benefits of a diverse work force
Conclusion
- Conflict is inevitable in a workplace and can either pose a challenge or
opportunity for the growth in a business.√√
- Businesses should immediately identify the causes of conflict and ensure that
conflict is resolved amicably in the workplace.√√
- It is important that business understand the stages of team development so that
they are able to manage conflict effectively.√√
- A diverse workforce enables employees to understand and tolerate each other's
backgrounds/cultures/values resulting in better work relations.√√
- Any other relevant conclusion related to conflict in the workplace.
A production manager at Lonin Mine (Pty) Ltd recently resigned from his position to join another company. Mr Amla, the human resources manager at Lonin Mine, has been tasked with appointing a new production manager. Refer to the scenario above and write an essay in which you include the following aspects:
- Explain the selection procedure that Mr Amla should follow to identify the most suitable candidate.
- Discuss the legal requirements of the employment contract that both Lonin Mine (Pty) Ltd and the new employee should agree on.
- Advise Mr Amla on reasons for terminating the employment contracts of employees.
- The human resources manager (HRM) is responsible for selecting and appointing competent and skilled employees.√
- It is important that the HRM follows correct/fair procedures in selecting and interviewing.√
- The HRM can appoint the best candidate if the selection and interviewing procedures are properly applied.√
- Mr Amla should be well informed about reasons for terminating an employment contract to avoid unfair dismissal.√
- Any other relevant introduction related to the selection procedure/legal requirements an employment contract/reasons for terminating employment.
- Applicants submit the application forms, curriculum vitae and certified copies of personal documents√, e.g.ID, proof of qualifications√, etc.
- Sort the applications received√ according to the criteria for the job.√
- Any other relevant answer related to documentation received during the selection procedure.
- Make a list of all applicants√ who qualify for a job√/Candidates who obviously meet the requirements are separated√ from those who do not.√
- Applicants are evaluated√ against pre-set criteria.√
- Applicants are ranked√ from the most suitable to less suitable candidates.√
- Candidates with the highest score√ are placed on a shortlist in ranked order.√
- The shortlist√ should contain between 3 and 5 candidates.√
- Any other relevant answer related to the evaluation of a CV/creating a shortlist/screening applicants during the selection procedure.
- The candidates' qualifications/employment history√ are checked and confirmed.√
- Referees are contacted√ to verify/testify to the person's character/abilities/ skills.√
- Check the criminal records√ and credit history of the applicant.√
- Any other relevant answer related to checking of CVs/references during the selection procedure.
- Preliminary interviews are conducted√ if many good applicants were received.√
- The main purpose is to sift out applicants who qualify for the job√ but who might not be suitable for a business environment.√
- Any other relevant answer related to preliminary interviews during the selection procedure.
- Various assessments may need to be completed√ before the best candidate is chosen.√
- Candidates who have applied for senior positions√ could be given personality/ interest/aptitude tests.√
- Some businesses require candidates√ to take medical screening/skills tests.√
- Any other relevant answer related to assessing candidates/testing applicants during the selection procedure
- Candidates whose names appear on the shortlist√ are invited to a personal interview, usually on the premises of the business.√
- Interview is a formal meeting√ between employer and candidate.√
- The interviewing team has a list of pre-set questions√ to be able to compare the candidates on equal criteria.√
- The meeting allows the employer to collect information about the candidates√ and to evaluate them further.√
- Candidates also have a chance to assess their possible new workplace√ and obtain more information about the post and the business.√
- Business may hold more than one round of interviews√, depending on the nature of the vacancy.√
- Any other relevant answer related to conducting interviews during the selection procedure.
- A written offer is made√ to the selected candidate.√
- The selected candidate must accept the offer√ in writing.√
- An employment contract will be negotiated and signed√ by the new employee and employer.√
- Unsuccessful candidates may be informed,√ unless stated otherwise in the job advertisement.√
- Any other relevant answer related to offering employment as the final stage of the selection procedure.
- Employment contract is an agreement between the Lonin Mine/Mr Amla (the employer) and the new production manager (the employee)√ and is legally binding.√
- Employer and employee must agree√ to any changes to the contract.√
- Aspects of the employment contract can be renegotiated√ during the course of
employment.√
- No party may unilaterally√ change aspects of the employment contract.√
- Lonin Mine/Mr Amla and the new production manager must both√ sign the contract.√
- The employment contract should include a code of conduct√ and code of ethics.√
- Mr Amla must explain the terms and conditions of the employment contract√ to the employee.√
- It may not contain any requirements that are in conflict√ with the BCEA.√
- Conditions of employment/duties/responsibilities of the employees√ must be stipulated clearly.√
- The remuneration package/including benefits√ must be clearly indicated.√
- All business policies, procedures and disciplinary codes/rules can form part√ of the employment contract.√
- The employer must allow the employee to thoroughly read through the contract√ before it is signed.√
- Any other relevant answer related to the legal requirements of the employment contract.
- Mr Amla may dismiss employees for valid reason(s), e.g. unsatisfactory job performance, misconduct√√, etc.
- Lonin Mine (employer) may no longer have work for redundant employees/ cannot fulfil the contract/is restructuring.√√
- Lonin Mine may retrench some employees due to insolvency/may not be able to pay the employees.√√
- Employees decided to leave and resign voluntarily.√√
- An employee may have reached the pre-determined age for retirement.√√
- Any other relevant answer related to the conditions for termination of an employment contract.
- The goals and objectives of businesses cannot be achieved without qualified and skilled employees.√√
- The employment conditions as set out in the BCEA legally binds the employer and the employee and both have legal rights/duties.√√
- Employees should clearly understand the reasons for terminating their employment contracts to avoid unnecessary legal actions.√√
- Any other relevant conclusion related to the selection procedure/legalities of the employment contract and the reasons for terminating it.
Introduction
Receive documentation√√
Evaluate CVs and create a shortlist/Screen applicants√√
Check information in the CVs/Contact references√√
Conduct preliminary interviews√√
Assess/Test candidates√√
Conduct interviews√√
Offer employment/Letter of appointment√√
Legal requirements of the employment contract
Reasons for terminating an employment contract
Conclusion
Susan is selling sandwiches from a small shop in a busy office block. Her sandwiches are very popular as she uses only fresh quality ingredients that are delivered daily. She wants to expand to other office blocks in the area, which are further away from her suppliers and closer to other fast food restaurants.
Analyse Susan's idea of expanding her business using the Porter's Five Forces model. Explain how Susan can apply the THREE intensive strategies to address challenges she may experience when expanding to other areas.
Introduction
- Porter's Five Forces model helps the business to understand both the strength of its current competitive position and the advantages of expanding.√
- Porter's Five Forces model is based on five important forces that determine competitive power in the market environment of a business.√
- Businesses need to conduct intensive strategic management in order to solve identified challenges.√
- A strategy is a plan of action to address an opportunity or to solve a problem.√
- Any other relevant introduction related to the Porter's Five Forces model and implementing intensive strategies.
Power of Suppliers√√
- Suppliers of Susan's business include the suppliers of bread and ingredients.√√
- Susan must assess the power of the suppliers in influencing prices.√√
- The more powerful the suppliers are, the less control Susan has over them.√√
- Suppliers that deliver quality ingredients daily may decide to increase delivery cost and thus may have power over Susan's business.√√
- The fewer the choice of suppliers, the greater the need for Susan to seek help as they could become more powerful.√√
- Susan should identify the kind of power her suppliers have in terms of the quality of their products or services, reliability and their ability to make prompt deliveries.√√
- Any other relevant answer related to the power of suppliers.
Power of Buyers (including Intermediaries)√√
- Buyers are the final users of the product/services.√√
- Susan must assess how easy it is for her buyers/customers to drive prices down.√√
- This will depend on the number of buyers, the importance of
each buyer to her business and the
cost of switching to someone else's products.√√
If Susan's business is dealing with a few powerful buyers, they are often able to dictate terms to the business.√√
- If Susan's customers can do without her products then they have more powers to determine the prices and terms of sales.√√
- Susan must conduct a market research so that she can get more information about her buyers.√√
- Any other relevant answer related to the power of buyers
Power of Competitors√√
- Competitors are businesses selling the same/similar products or rendering the same/similar services.√√
- Susan must find out how many competitors are there and how influential they are.√√
- If Susan's competitors/other fast food restaurants have a unique product or services, then they have greater strengths.√√
- If Susan has many competitors with similar products then her business has very little power in the fast food market.√√
- Susan must draw up a competitor's profile of each fast food restaurant in the area so that she can determine their strength.√√
- Some competitors have the necessary resources to start price wars and continue selling at a loss until other competitors leave the market.√√
- Any other relevant answer related to the power of competitors.
Threat of Substitution/Substitutes√√
- Substitute products or services are different products/services that at least partly satisfy the same needs of the consumers and can be used to replace one another.√√
- Susan must check the sellers of substitute products who have improved their products or sell lower quality goods at lower prices.√√
- If Susan's sandwiches can easily be substituted, this weakens the power of her business in the market.√√
- Substitute products can cause Susan's business to lose its market share completely.√√
- If Susan's products are unique then she will not be threatened by substitute products.√√
- Susan's business operates in an industry where the buyers tend to switch regularly between different products, so the threat of substitution is high.√√
- Susan should do a market research to assess if customers are using substitute products/services and reasons for using these alternatives.√√
- It is important that Susan changes or improves her sandwiches to remain competitive.√√
- Any other relevant answer related to the threat of substitution.
Threat/Barriers of New Entrants to the market√√
- New entrants are other businesses that are selling the same/similar products in the existing market for the first time.√√
- The power Susan's business has in the market will depend on how easy it is for new competitors to enter the market.√√
- If Susan's business is highly profitable, it will attract potential competitors that want to benefit from high profits.√√
- If the barriers to enter Susan's market are low, then it is easy for new businesses to enter the market/industry.√√
- New competitors can quickly and easily enter the market, if it takes little time or money to enter the market.√√
- If there are few suppliers of the product/service but many buyers then it is easy to enter the market.√√
- Any other relevant answer related to the threats/barriers of new entrants.
Market Penetration√√
- New products enter/penetrate an existing market at a low price, until it is well known to the customers and then the prices increases.√√
- It is a growth strategy where businesses focus on selling existing products to existing markets.√√
- Susan should do market research on existing clients to decide how to improve her marketing mix.√√
- Reduce prices to increase sales.√√
Market Development√√
- It is a growth strategy where businesses aim to sell its existing products in new markets.√√
- Susan should implement her idea of expanding/selling to other office blocks in the area.√√
- Find new ways of distributing her sandwiches to other office blocks, e.g. setting up sandwich stalls outside the other office blocks.√√
- Restructure pricing policies to cater for customers of all income levels.√√
- Any other relevant answer related to market development.
Product Development√√
- It is a growth strategy where businesses aim to introduce new products into existing markets.√√
- Susan should improve her product line by adding different types of sandwiches or related products.√√
- Conduct test marketing/market research to establish whether new products will be accepted by existing customers.√√
- Ensure that new products are different/of a higher quality/ reasonably priced than those of competitors.√√
- Any other relevant answer related to product development.
Conclusion
- With a clear understanding of where power lies, the business can take advantage from a position of strength, improve a situation of weakness and avoid taking any wrong steps.√√
- Porter's Five Forces is useful for analysing the power of the business to yield a favourable return on investment.√√
- This model makes it possible for businesses to analyse how to shift the power of the forces in their favour.√√
- Although implementing intensive strategies may be costly, it usually results in growth and continuous improvement.√√
- Any other relevant conclusion related to Porter's Five Forces and intensive strategies.
Accidents and disasters are part of life and if businesses are not insured, it could lead to financial losses. As an insurance broker, you have been invited by a group of business owners to advise them on insurance. You must include the following aspects in your presentation:
- The importance of insurance to a business
- Differentiation between insurance and assurance
- Description of any TWO principles of insurance
- Explanation on the difference between insurable and non-insurable risks. Provide TWO practical examples of each.
- Analysis of the benefits of the Unemployment Insurance Fund (UIF) and the Road Accident Fund (RAF) for businesses
Introduction
- Insurance is extremely beneficial to businesses as it provides financial relief in times of unforeseen financial losses.√
- Business owners should have a clear understanding of the financial impact of accidents and disasters on their business operations, so that they can make provision for that in advance.√
- Business owners should be aware of the benefits of contributing towards compulsory insurance, e.g. UIF and RAF.
- It is important for business owners to understand the difference between insurable and non-insurable risks.√
- Any other relevant introduction related to insurance.
Importance of insurance to businesses
- Transfers the risk from the business/insured to an insurance company/ insurer.√√
- The transfer of the risk is subject to the terms and conditions of the insurance contract.√√
- Protects the business against theft and loss of stock and/or damages caused by natural disasters such as floods, storm damage, etc.√√
- The business will be compensated for insurable losses, e.g. destruction of property through fire.√√
- Business assets, e.g. vehicles/equipment/buildings need to be insured against damage and/or theft.√√
- Business is protected against the loss of earnings e.g. strikes by employees result in losses worth millions of rands.√√
- Protects the business against deeds of dishonesty by employees.√√
- Insurance can be taken against the life of partners in a partnership.√√
- Should the services of key personnel be lost due to accidents or death, the proceeds of an insurance policy can be paid out to the business/ beneficiaries.√√
- Replacement costs for damaged machinery and equipment are very high, therefore, insurance can reduce/cover these costs.√√
- Any other relevant answer related to the importance of insurance to
businesses.
INSURANCE AND ASSURANCE
- Provides short term cover.√√ - Provides long term cover.√√
- Event may occur.√√ - Event will definitely occur.√√
- E.g. Insures a building against fire, storm damage etc.√√
- E.g. to provide for financial security after retirement or death, etc.√√
- Amount of compensation is determined by the extent of the damage and insured amount.√√
- Amount is pre-determined when agreement is drawn up.√√
- Compensation may/may not be paid out.√√
- Compensation will be paid out.√√
Principles of Insurance
- Applicable to short term insurance.√√
- Insured is restored to almost the same financial position as before the loss occurred.√√
- Neither the insurer nor the insured may profit from insurance.√√
- Principle of re-instatement may be applied if the item was over-insured.√√
- In the case of under-insurance only a portion of the loss will be refunded.√√
- Any other relevant answer related to the principle of indemnification/ indemnity.
- Applicable to long/short term insurance/life assurance.√√
- Insurer undertakes to pay out a pre-determined amount in the event of the death/reaching a certain age/personal injury of the insured.√√
- Aim is to provide financial security to the insured at retirement/the dependants of the deceased.√√
- Any other relevant answer related to the principle of security.
- Insured has to be honest in supplying details when entering into the insurance contract.√√
- Details/Information supplied when claiming should be accurate/true.√√
- Any other relevant answer related to the principle of utmost good faith.
- Insured will suffer a financial loss/liability as a result of an insurable risk.√√
- Insured must have a legal relationship with the object insured in the contract, e.g. a man is legally married to his wife, he can insure her life. √√
- Any other relevant answer related to the principle of insurable interest
- Businesses are compensated for losses arising from specified risks.√√
- These risks are not insured by insurance companies/It remains the responsibility of the business.√√
- Fire.√
- Theft and burglary.√
- Storm/Damage during natural
disasters.√
- Life insurance.√
- Vehicle insurance (includes theft, hi-jacking, accidents, etc.).√
- Public liability insurance.√
- Fidelity insurance.√
- Money-in-transit.√
- Unemployment insurance.√
- Any other relevant answer related to examples of insurable risks.
- Losses caused by war.√
- Most risks occurring in the period between placing orders and receiving goods.√
- Changes in fashion.√
- Shoplifting (recurrent expenditure/risk too high).√
- Losses caused by marketing malpractices on the part of the business.√
- Advancement in technology/new machinery invention.√
- Any other relevant answer related to examples of noninsurable risks.
- The UIF provides benefits (such as unemployment, maternity, etc.) to workers who have been working and become unemployed for various reasons, so the business is not solely responsible to make provision in this regard.√√
- Businesses only contribute 1% (of a total of 2%) towards UIF, therefore reducing the expenses of providing UIF benefits themselves.√√
- Affordable contributions may make it possible for businesses to appoint substitute workers in some instances.√√
- As the UIF also pays out to dependants of deceased contributors, the business cannot be held responsible in this regard.√√
- The RAF provides compulsory cover for all road users in South Africa, which include South African businesses.√√
- As drivers of business vehicles are indemnified against claims by persons injured in vehicle accidents/claims of dependants of people killed in vehicle accidents, the responsibility for these claims may be reduced.√√
- The next of kin of workers who are injured or killed in road accidents, may claim directly from RAF, so businesses cannot be held totally responsible in this regard.√√
- Any other relevant answer related to the relevance to businesses of contributions to the RAF.
- Insurance plays an important role in securing the future of businesses as it provides a guarantee of compensation for specified loss, damage, illness or death.√√
- Taking out comprehensive insurance on assets and other specified losses is regarded as sound business practice.√√
- Any other relevant conclusion related to insurance.
Indemnification/Indemnity√√
Security√√
Utmost good faith√√
Insurable interest√√
INSURABLE RISKS NON-INSURABLE RISKS
Any TWO examples:
Any TWO examples:
Unemployment Insurance Fund (UIF)
Road Accident Fund (RAF)
Conclusion
Chicky Fried Chicken sells takeaway chicken meals. Their largest supplier of fresh chicken closed down and they must urgently find a new supplier. Zama, the owner, decided to ask the financial manager, the marketing manager and the purchasing manager to form a team to solve the problem of finding the most suitable supplier. This should be done effectively without any conflict. Write a detailed report to the managers of Chicky Fried Chicken in which you include the following aspects:
- An explanation of the stages of team development
- A discussion on possible causes of conflict within the team
- A suggestion regarding the procedure that would be applied to overcome conflict that teams usually experience
- Recommendations on the criteria that team members may apply to assess their team's success
INTRODUCTION
- Team work refers to a number of people collaborating/working together effectively in order to reach a common goal.√
- Each team member should contribute towards the success of the team.√
- Successful teams go through different stages of team development in order to become successful/effective.√
- The success of a business depends on the successful collaboration within a team to contribute to the objectives of the business.√
- Diversity in teams may lead to better ideas/solutions, but may also cause conflict.√
- Conflict is a result of differences in values and attitudes.√
- Effective conflict management may have a positive influence on team performance.√
- Poor conflict management may lead to team failure or the dissolution of a team.√
- Any other relevant introduction to team work and conflict bearing in mind Chicky Fried Chicken.
Stages of team development
- Forming√√
- A team is formed consisting of different individuals, who will have to work together towards a common goal.√√
- Team members volunteer to work together.√√
- Formed to solve a problem/challenge.√√
- Individuals are driven by the desire to be accepted by the other team members.√√
- Team members gather information about each other/the objectives of the team.√√
- This is a good opportunity to see how each member performs as an individual and how he/she responds to pressure.√√
- Any other relevant answer related to the formation of a team.
Storming√√
- After the team has been formed, it goes through a period of uneasiness known as storming.√√
- Different ideas are stormed for consideration.√√
- Team members open up to each other and confront each other's ideas/perspectives.√√
- This stage is necessary/important for the growth of the team.√√
- Team members should be tolerant of/patient with each other to survive this stage.√√
- Any other relevant answer related to the storming stage of a team.
Norming√√
Team members:
- Agree on a mutual/common plan for the team.√√
- Consider their own ideas, but agree with others to make the team perform well.√√
- Take the responsibility/have the ambition to work towards the success of the team.√√
- May focus too much on preventing conflict that they become reluctant to share controversial ideas.√√
- Any other relevant answer related to the norming stage of a team.
Performing√√
Team members:
- Know each other and can function as a unit.√√
- Find ways to get the job done smoothly without conflict/external supervision.√√
- Are motivated/knowledgeable/competent/able to handle the decision making process in the team.√√
- Will make the most of necessary decisions to work towards a common goal.√√
- Will go through all four stages many times as they encounter changing circumstances.√√
- Any other relevant answer related to the performing stage of a team.
Adjourning/Mourning√√
- The focus is on the completion of the task/ending the project.√√
- Breaking up the team may be traumatic as team members may find it difficult to perform as individuals.√√
- Any other relevant answer related to the adjourning/mourning stage of a team.
Possible causes of conflict within a team
- Lack of proper communication between leaders and members.√√
- Ignoring rules/procedures may result in disagreements and conflict.√√
- Leaders and/or members may have different personalities/ backgrounds.√√
- Different values/levels of knowledge/skills/experience of team members.√√
- Little/no co-operation between internal and/or external parties/ stakeholders.√√
- Lack of recognition for good work, e.g. a leader may not show appreciation for extra hours worked to meet deadlines.√√
- Lack of member development may increase frustration levels as members may repeat errors due to a lack of knowledge/skills.√√
- Unfair disciplinary procedures, e.g. favouritism.√√
- Little/no support from management with regard to supplying the necessary resources.√√
- Leadership styles used, e.g. autocratic leaders may not consider members' inputs.√√
- Unrealistic deadlines and heavy workloads lead to stress resulting in conflict.√√
- Lack of agreement on mutual matters, e.g. remuneration/working hours.√√
- Unhealthy competition/Inter-team rivalry may cause members to lose focus on team targets.√√
- Lack of commitment which may lead to an inability to meet pre-set targets.√√
- Any other relevant answer related to the possible causes of conflict.
Conflict resolution procedure/steps
- Identify/Acknowledge that there is conflict.√√
- Analyse the cause(s) of conflict by breaking it down into different parts.√√
- Pre-negotiations may be arranged where members will be allowed to state their case/views separately.√√
- Arrange a meeting between conflicting team members.√√
- A time and place for discussion is arranged for negotiations where all members are present.√√
- Each member has the opportunity to express his/her own opinions/ feelings/Conflicting members may recognise that their views are different.√√
- Devise/Brainstorm possible ways of resolving the conflict.√√
- Conflicting members agree on criteria to evaluate the alternatives.√√
- The best possible solution(s) is/are selected and implemented.√√
- Evaluate/Follow up on the implementation of the solution(s).√√
- Monitor progress to ensure that the conflict has been resolved.√√
- Any other relevant answer related to a positive analysis of conflict resolution techniques.
Criteria for team's success
- Clearly defined and realistic goals are set, so that all the members know exactly what is to be accomplished.√√
- Commitment by members to the common goal.√√
- Agreement on methods/ways to get the job done effectively without wasting time on conflict resolution.√√
- A clear set of processes/procedures for team work, will ensure that every team member understands his/her role.√√
- The team to operate as a co-ordinated/organised unit.√√
- All members to take part in decision making.√√
- Ability to communicate well and make quick decisions.√√
Team leader should acknowledge/give credit to members for positive contributions.√√
- Team members to respect and trust each other.√√
- Passionate/Committed/Focused members will ensure positive results despite problems/distractions.√√
- Good/Sound interpersonal relationships will ensure job satisfaction and increased productivity of the team.√√
- Respect the knowledge and skills of other members.√√
- New skills acquired by members may contribute to the success/ effectiveness of the team.√√
- A balanced composition of skills, knowledge, experience and expertise will ensure that teams achieve their objectives.√√
- Continuous review of the team's progress will ensure that team members can rectify mistakes/act pro-actively to ensure that goals/targets are reached/met.√√
- Any other relevant answer related to the criteria for successful teams.
Conclusion
- Effective team work will contribute to achieving goals and improve productivity.√
- Continuous team assessment will ensure that teams remain focused on the tasks/targets.√
- Constructive/Positive conflict should be encouraged to promote creativity and effective problem solving.√
- Teams generally take longer to arrive at a decision.√
- The use of teams may have greater cost implications.√
- Any other relevant conclusion related to team performance and conflict management.
Ben is the human resources manager of Mangaliso Ltd. He is responsible for recruiting and interviewing prospective candidates for the post of a bookkeeper. Mangaliso Ltd has to make appointments within the confines of the Employment Equity Act (EEA), 1998 (Act 55 of 1998). Assist Ben with the recruitment procedure as referred to in the scenario above. You must include the following aspects in your answer:
- Critically evaluating the types of recruitment
- Explaining the purpose of interviewing and his role as an interviewer
- Discussing the impact of the EEA on Mangaliso Ltd when making new appointments
Introduction
- The objective of recruitment is to attract the best possible applicants with the required skills, qualifications and competency to fill vacancies in a business.√
- All recruitment procedures should be conducted within the framework of the Employment Equity Act (EEA) to ensure fairness.√
- Shortlisted applicants should be interviewed in order to evaluate their suitability for the job.√
- Any other relevant introduction related to recruitment, interviewing and the EEA.
Internal Recruitment√√
Positives
- The business recruits from existing employees through promotions/transfer from inside the business.√√
- Opportunities for promotion reward good work and motivate current employees.√√
- Staff morale and productivity increases if suitable staff members are promoted regularly.√√
- Current employees understand how the business operates.√√
- The business knows the candidate, his/her personality, strengths and weaknesses.√√
- Reliable/Key staff members are retained if they are promoted/ transferred within the business.√√
- Detailed, reliable information on candidates can be obtained from super-visors/employee records.√√
- Recruitment process is faster and less expensive if the candidates are known.√√
- Any other relevant answer related to positive aspects of internal recruitment.
Negatives
- Current employees may not bring new ideas into the business.√√
- Promoting a current employee may cause resentment amongst other employees.√√
- The number of applicants is limited to current staff only.√√
- Employees who do not really have the required skills for the new job may be promoted.√√
- Current employees may need to be trained/developed before they can be promoted, which can be expensive.√√
- Staff that is not promoted may feel demotivated which may hamper productivity.√√
- Any other relevant answer related to negative aspects of internal recruitment.
Purpose
- Obtains information about the strengths and weaknesses of each candidate.√√
- Helps the employer in choosing/making an informed decision about the most suitable candidate.√√
- Matches information provided by the applicant to the job requirements.√√
- Creates an opportunity where information about the business and applicant can be exchanged.√√
- Any other relevant answer related to the purpose of an interview.
Role of the Interviewer
- Develop a core set of questions based on the required skills, knowledge and ability required.√√
- Check the application and verify the CV for anything that may need to be explained.√√
- Book and prepare the venue for the interview.√√
- Set the interview date and ensure that all interviews take place on the same date, if possible.√√
- Inform all shortlisted candidates about the date/place of the interview.√√
- Notify all panel members conducting the interview about the date/place of the interview.√√
- Allocate the same amount of time to each candidate.√√
- Introduce members of the interviewing panel to each candidate/interviewee.√√
- Make the interviewee feel at ease.√√
- Explain the purpose of the interview to the panel and the interviewee.√√
- Do not misinform/mislead the interviewee.√√
- Avoid discriminatory/controversial types of questions, e.g. asking a female candidate about family planning/having children.√√
- Provide an opportunity for the interviewee to ask questions.√√
- Close the interview by thanking the interviewee for attending the interview.√√
- Any other relevant answer related to the role of the interviewer.
Impact of employment equity act (EEA) on businesses
Positives
- Discriminatory appointments are discouraged.√√
- Equal opportunities and fair treatment are promoted.√√
- Appointment process is clearly defined, so all parties are well informed.√√
- Certified psychometric tests may be used to assess applicants/ employees to ensure that suitable candidates are appointed.√√
- Outlines affirmative action measures to redress past injustices.√√
- Diversity/Inclusivity in the workplace can be achieved.√√
- Consultation between employer and employees are encouraged.√√
- Businesses are in a better position to negotiate contracts with the government.√√
- Impacts positively on BBBEE ratings for businesses.√√
- Any other relevant positive impact of EEA on making new appointments
Negatives
- Applying the employment equity quota may not always allow employers to make the most suitable appointment.√√
- Productivity may decrease, as inexperienced employees may be appointed into positions where they may not be able to cope.√√
- Other groups may not respect the knowledge, skills and experiences of an EEA appointee. They think the position was awarded based on race and not on skills.√√
- Skilled people from designated groups are in strong demand and may demand higher salaries/do job hopping, which may result in high staff turnover.√√
- Additional and costly administrative duties are required for implementing/ monitoring the Employment Equity Plan.√√
- The implementation of employment equity can be costly to businesses as it requires investment in training.√√
- Additional resources should be made available to execute the Employment Equity Plan, resulting in sufficient funds not being made available for profit opportunities.√√
- Diversity in the workplace may lead to conflict/unhappiness.√√
- Employers who want to apply for government tenders must apply for a compliance certificate with the Minister of Labour, resulting in increased expenses.√√
- Non-compliance with the administrative requirements of the EEA may result in the payment of heavy penalties.√√
- Position may remain unfilled, because there are no suitable EEA candidates.√√
- Any other relevant negative impact of EEA on making new appointments. Max
Conclusion
- Employees are the most important resource in any business and its success is strongly influenced by recruiting and appointing quality employees.√√
- A well prepared and organized interview process will result in identifying and appointing the most suitable and deserving candidate.√√
- The EEA not only promotes and regulates affirmative action, but also gives guidance in conducting a fair appointment process.√√
- Any other relevant conclusion related to recruitment, interviewing and EEA.
Subashnee has been a pharmacist for 15 years. She wants to establish her own pharmacy in Soweto. She is not familiar with the challenges of the macroenvironment for her new business. Subashnee seeks your advice regarding the challenges mentioned in the scenario above. Include the following aspects in your response:
- Apply the PESTLE model by identifying and discussing possible macroenvironmental challenges that Subashnee's new pharmacy may encounter.
- Recommend strategies that Subashnee can implement to respond to the challenges identified.
- Advise her on the steps that she should consider when evaluating strategies.
Introduction
- The external environment presents opportunities and threats.√
- Analysing the environment will help Subashnee to prepare adequately in order for her to compete in an ever-changing environment.√
- PESTLE is used to identify and evaluate the factors in the external environment that can influence the business.√
- It is used to give the business a better understanding of the external environment and the industry in which it competes.√
- Businesses must devise strategies to address the identified challenges.√
- Businesses must continuously evaluate the effectiveness of implemented strategies.√
- Any other relevant introduction related to applying the PESTLE analysis to identify macro environmental challenges and develop strategies.
PESTLE analysis
FACTORS CHALLENGES RECOMMENDATION
- Political√ - Subashnee will have to consider specific government policies√ e.g. will she be allowed to legally test her medicine on animals?√
- Research recent government policies regarding the testing of products on animals.√√
- Consumer rights organisations may prevent her from selling products√ if they do not meet certain requirements.√
- Network and lobby with the NGOs and all consumer rights organisations.√√
- Trade agreements may prevent her√ from importing some medicine/products.√
- Trade only with countries that have favourable trade agreements with the government.√√
- Any other relevant challenge related to political factors.
- Any other relevant recommendation related to political factors.
- Economic√ - Inflation/Interest rates may negatively impact on her business√, e.g. will her clients still afford her products if she increases her prices due to inflation?√
- Consider decreasing her profit margin rather than increasing her product prices.√√
- Loans may be expensive√ due to high interest rates.√
- Borrow money from financial institutions when interest rates are favourable.√√
- Fluctuations in foreign currency√ may restrict imports.√
- Consider exchange rates when trading with other countries.√√
- Her pharmacy may not qualify√ for certain tax exemptions/subsidies.√
- Provide essential medicines at low prices to qualify for tax rebates/ subsidies.√√
- Any other relevant challenge related to economic factors.
- Any other relevant recommendations related to economic factors.
Social√
-
- Customers may not be able to afford
products√ due to low income levels.√
- Sell substitute/generic products at lower prices.√√
- Some customers may prefer to use the services of traditional healers√, instead of modern/Western medicine.√
- Co-operate with traditional healers to learn more about traditional/alternative medicine.√√
- May not be conversant√ with the local language of her customers.√
- Learn local languages√√/Hire employees who are well conversant with the local language.√√
- Any other relevant challenge related to social factors.
- Any other relevant recommendations related to social factors.
- May not keep up with/be aware of√ the latest technology/new medical equipment.√
- Continuous research on the latest available technology/equipment in the market.√√
- Employees may not be skilled√ to operate/maintain new technology/ equipment.√
- She should train existing/appoint new employees to maintain/use new equipment.√√
- She may not be able to afford√ new technology.√
- Compare prices/Select suitable suppliers for new equipment at reasonable prices.√√
- May not be able to cater for/ afford√ online transactions/e-commerce.√
- Ensure that her business is geared for online trading/e-commerce.√√
- Any other relevant challenge related to technological factors.
- Any other relevant recommendations related to technological factors.
Legal√
- Consider certain Acts√ that may have a direct impact on her business, e.g. the CPA/BCEA√ etc.
- Comply with all relevant legislation that may impact on her business. √√
- Legal requirements for operating a pharmacy√ may be complicated/ time-consuming.√
- Comply with the legal requirements for operating a pharmacy, e.g. licence/trade mark registration/patents. √√
- High legal costs involved in obtaining a licence/trade mark/patent√ may prevent her from establishing the pharmacy.√
- Budget for high legal establishment costs. √√
- Legalities of business contracts√ may limit business operations.√
- She must know the legalities of business contracts so that she complies with all the requirements.√√
- Any other relevant challenge related to legal factors.
- Any other relevant recommendation related to legal factors.
Environ- mental√
- Chemicals/Ingredients in her products√ may be harmful to customers.√
- Chemicals/Ingredients should be clearly indicated on labels/packaging to inform customers about possible side effects/correct use of products. √√
- Measures to dispose of medical waste√ may be expensive.√
- Implement cost effective measures to dispose of medical waste.√√
- Packaging of some products√ may not be environmentally friendly/may not be recyclable.√
- Implement recycling measures to prevent pollution of the environment/Use packaging that is re-usable/recyclable.√√
- Any other relevant challenge related to environmental factors.
- Any other relevant recommendations related to environmental factors.
Steps in evaluating strategies
- Examine the underlying basis of a business strategy.√√
- Formulate strategies to meet objectives favourably.√√
- Implement strategies using action plans√√, etc.
- Look forward and backwards into the implementation process.√√
- Compare the expected performance with the actual performance.√√
- Measure business performance in order to determine the reasons for deviations and analyse these reasons.√√
- Take corrective action so that deviations may be corrected.√√
- Set specific dates for control and follow up.√√
- Draw up a table of the advantages and disadvantages of a strategy.√√
- Decide on the desired outcome.√√
- Consider the impact of the strategic implementation in the internal and external environments of the business.√√
- Any other relevant answer related to the steps in strategy evaluation.
Conclusion
- Businesses have to analyse the opportunities and threats in order to formulate new strategies or change their current strategies.√√
- PESTLE analysis enables businesses to identify the challenges of the external environment and devise relevant strategies to overcome the identified challenges.√√
- Businesses that apply the PESTLE analysis are able to respond quickly to the external pressures and adapt to them.√√
- Any other relevant conclusion related to applying the PESTLE analysis/ recommendation of strategies/steps in evaluating strategies.
INZINC LTD (IZ)
Robyn is a jewellery designer and wants to sell her new range of costume jewellery to teenagers and students. InZinc Ltd targets the teenage clothing market. Robyn has to make a sales presentation to the directors of IZ Ltd. They agreed to give her the opportunity to present her plan at their next board meeting. She decided that a verbal presentation supported by visual aids would be most suitable. As an expert, assist Robyn to prepare a successful presentation so that she will get the contract to supply IZ Ltd. Your advice must include the following:
- Explain the factors that Robyn should consider when preparing for the presentation.
- Evaluate any FOUR suitable types of visual aids that may support her presentation.
- Propose ways in which Robyn may respond to feedback in a professional manner.
- Advise Robyn on how she can improve her next presentation.
Introduction
- A verbal presentation will focus on an oral/spoken presentation to the directors.√
- The purpose of a verbal presentation is to exchange information as it involves speaking and listening for both the presenter and the audience/directors.√
- Visual aids combine pictures and sound that will enhance the quality of the presentation.√
- Visual aids can help to convey a large amount of facts in a short time.√
- Choosing the most effective visual aids should capture the attention of the directors and support the logical flow of the presentation.√
- When responding to the directors' questions/remarks, the presenter should not be aggressive/defensive.√
- Any other introduction relevant to a verbal presentation supported by visual aids.
Factors to be considered when preparing for a presentation
- Clear purpose/intentions/objectives√ and main points of the presentation.√
- Main aims√ captured in the introduction/opening statement of the presentation.√
- Information presented√ should be relevant and accurate.√
- Fully conversant√ with the content/objectives of the presentation.√
- Background/diversity/size/pre-knowledge of the audience√ to determine the appropriate visual aids.√
- Prepare a rough draft of the presentation√ with a logical structure/format with an introduction, body and conclusion.√
- The conclusion must summarise the key facts√ and how it relates to the objectives/shows that all aspects have been addressed.√
- Create visual aids/graphics√ that will consolidate the information/facts to be conveyed to the board of directors.√
- Find out about the venue for the presentation√, e.g. what equipment is available/appropriate/availability of generators as backup to load shedding.√
- Consider the time frame√ for presentation, e.g. fifteen minutes allowed.√
- Rehearse√ to ensure a confident presentation/effective use of time management.√
- Prepare for the feedback session√, by anticipating possible questions/ comments.√
- Any other relevant answer related to the factors that must be considered when preparing for the presentation.
Data projector/PowerPoint√√
Positives
- Graphic programmes have the capacity to convey ideas√ and support what the presenter says.√
- Easy to combine√ with sound/video clips.√
- Simple/Less cluttered slides√ may capture the interest of the audience.√
- Video clips can provide variety√ and capture the attention of the audience.√
- Variation of colour/background/sound immediately captures the attention of the audience√ and retain their interest throughout the presentation.√
- Slides should only be used√ where they can enhance the facts or summarise information.√
- Any other relevant answer related to the positive evaluation of a data projector/PowerPoint presentation. AND/OR
Negatives
- Unprofessional handling of the data projector/PowerPoint presentation material√
- May lead to irritation/may result in the audience losing interest.√
- Less effective√ to people with visual impairments.√
- Simply reading off the slides√ makes a presentation boring/meaningless.√
- Unable to show slides√ without electricity/data projector.√
- Any other relevant answer related to the negative evaluation of a data projector/PowerPoint presentation.
Overhead projector√√
Positives
- Summaries/Simple graphics/Diagrams/Processes√ may be explained easily on transparencies.√
- It can be prepared manually (OHP pens)√ or electronically on computer/ copier.√
- A useful replacement/back-up√ if computer/electronic equipment fail or are not available.√
- Effective transparencies/projections should be clear and visible√, e.g. large print, few words/lines.√
- Any other relevant answer related to the positive evaluation of an overhead projector.
AND/OR
Negatives
- Transparencies that are not well ordered/organised√, may convey an unprofessional image.√
- It can be easily replaced√ by a PowerPoint presentation.√
- Not easy to combine√ with sound/audio.√
- Used most effectively when lights are dimmed/switched off√ which make it difficult for the audience to make their own notes.√
- Any other relevant answer related to the negative evaluation of an overhead projector.
Interactive whiteboard/Smart boards√√
Positives
- Images can be projected directly from a computer√, so no external projector/devices necessary.√
- Special pens allow the presenter to write on the board√ while prepared images are displayed.√
- Additional notes that was added during the presentation√ can be captured on computer after the presentation.√
- It can be controlled by the touch of a finger√, so the presenter can move away from the computer during the presentation.√
- Easy to combine√ with sound/other visual aids.√
- Useful to capture feedback√ and new ideas.√
- Any other relevant answer related to the positive evaluation of an
AND/OR
interactive whiteboard/Smart board.
Negatives
- Should only be used by a presenter who knows√ the unique features of the interactive whiteboard/who can use it to its full potential.√
- Cannot be connected to any computer√ as special, licensed software is needed to be able to use it.√
- Technical challenges may render it ineffective√, e.g. loss of signal while using it.√
- Any other relevant answer related to the negative evaluation of an interactive whiteboard/Smart board.
Hand-outs/Flyers/Brochures√√
Positives
- It can be handed out at the end of a presentation√ as a reminder of the key facts of the presentation.√
- Meaningful hand-outs may be handed out√ at the start of the presentation to attract attention.√
- Extra/Useful information may be handed out√, e.g. contact details/price lists/feedback questionnaires.√
- Any other relevant answer related to the positive evaluation of
AND/OR
hand-outs/flyers/brochures.
Negatives
- Hand-outs cannot be combined with audio material√, so it only focuses on the visual aspects of support material.√
- Handing out material at the start of the presentation√ may distract the audience.√
- As it only summarises key information√, some details might be lost/omitted.√
- Any other relevant answer related to the negative evaluation of handouts/flyers/brochures.
Posters/Signs/Banners/Portable advertising stands/Flags√√
Positives
- Useful in promoting√ the logo/vision of the business.√
- It should be colourful/eye-catching/creative√ to support the core message of the presentation.√
- May contain large illustrations/pictures/features of the products/key concepts√ to emphasise detail, e.g. creative jewellery/unique features of the jewellery.√
- Can make impact√ when placed strategically in/outside the venue.√
- Any other relevant answer related to the positive evaluation of
AND/OR
posters/signs/ banners/portable advertising stands/flags.
Negatives
- May overpower/draw attention away from the presentation√ if it is too big/not placed correctly.√
- May not always be useful in a small venue/audience√ as it can create a 'crowded' atmosphere.√
- Only focuses on visual aspects√ as it cannot always be combined with sound/audio.√
- Any other relevant answer related to the negative evaluation of posters/signs/banners/portable advertising stands/flags.Posters/Signs/Banners/Portable advertising stands/Flags√√
Positives
- Useful in promoting√ the logo/vision of the business.√
- It should be colourful/eye-catching/creative√ to support the core message of the presentation.√
- May contain large illustrations/pictures/features of the products/key concepts√ to emphasise detail, e.g. creative jewellery/unique features of the jewellery.√
- Can make impact√ when placed strategically in/outside the venue.√
- Any other relevant answer related to the positive evaluation of
AND/OR
posters/signs/ banners/portable advertising stands/flags.
Negatives
- May overpower/draw attention away from the presentation√ if it is too big/not placed correctly.√
- May not always be useful in a small venue/audience√ as it can create a 'crowded' atmosphere.√
- Only focuses on visual aspects√ as it cannot always be combined with sound/audio.√
- Any other relevant answer related to the negative evaluation of posters/signs/banners/portable advertising stands/flags.
Flip charts/White boards√√
Positives
- Mainly used for a small audience√ to note down short notes/ideas.√
- Very effective in brain storming sessions√ as suggestions are summarised or listed.√
- In a sales pitch it may be useful during the feedback session√ to summarise main facts/aspects that the presenter needs to follow up.√
- Any other relevant answer related to the positive evaluation of flip
AND/OR
charts/white boards.
Negatives
- There may not be enough time during the presentation to make written notes√, so some ideas may not be listed.√
- Handwriting may be illegible/untidy√ which may not contribute to a professional image/presentation.√
- It may not always be possible to prepare flip charts before the presentation√, so it can become cluttered/chaotic.√
- - Any other relevant answer related to the negative evaluation of flip charts/white boards.
Ways to respond to feedback in a professional manner
- Robyn should stand up throughout the feedback session.√√
- She should be polite/confident/courteous.√√
- Robyn should ensure that she understands each question/comment before responding.√√
- Listen and then respond.√√
- Provide feedback as soon as possible after the observed event.√√
- She should be direct/honest/sincere.√√
- Use simple language/support what she say with an example/Keep answers short and to the point.√√
- Robyn must encourage questions from the board of directors.√√
- She should always address questions and not the person.√√
- Acknowledge good questions.√√
- Rephrase questions if uncertain.√√
- Do not get involved in a debate.√√
- Robyn should not avoid the question if she does not know the answer; but rather refer it to the board of directors.√√
- She should address the full board of directors and not only the person asking the question.√√
- Any other relevant answer related to ways to consider when responding to feedback.
Recommendation for improvement of next presentation
- Robyn should revise objectives that were not achieved.√√
- Use humour appropriately.√√
- She should always be prepared to update/keep her information relevant.√√
- Reflect on any problem/criticism and avoid it in future presentations.√√
- Any information that Robyn receives as feedback from a presentation should be analysed and where relevant, incorporated/used to update/amend her presentation.√√
- Reflect on the time/length of the presentation to add/remove content.√√
- Increase/Decrease the use of visual aids or replace/remove aids that did not work well.√√
- Reflect on the logical flow of the format/slides/application of visual aids.√√
- Any other recommendation related to how Robyn can improve on her next presentation.
Conclusion
- A well-prepared presentation creates a good impression and will attract potential investors.√√
- A good presentation promotes the image of the business/owner/ management.√√
- Being professional during a verbal presentation and feedback/questions session should contribute to the success of the sales pitch and Robyn may get the contract.√√
- Any other relevant conclusion related to presenting information
Clean Team Ltd is a newly established company rendering general cleaning services to large office blocks. CTL wants to develop business policies that address human rights, inclusivity and environmental issues in the workplace. Write an essay on how CTL can address human rights, inclusivity and environmental issues. Your essay should include the following aspects:
- An explanation of how CTL policies can address any FIVE human rights issues in the workplace
- A discussion on the positive impact/benefits of a diverse workforce
- Advise on ways to address gender and poverty issues in the workplace
- Recommendations on how CTL can protect the environment and promote human health
Introduction
- Diversity refers to the variety of people employed based on age/race/ gender/ethnic groups/people with disabilities/material wealth/ personalities/ how employees see themselves and others.√
- People are important within the business environment.√
- Businesses need to uphold the key human rights listed in the Constitution.√
- Businesses must consider the impact of their actions on the environment.√
- The protection of human health from the harmful effects of an unsuitable environment is one of the fundamental human rights contained in the Bill of Rights.√
- Businesses should put systems in place to support human rights, inclusivity and environmental issues.√
- Any other relevant introduction related to human rights, diversity and environmental issues in the workplace.
Human rights in the workplace
- Privacy√√
- CTL may not violate the rights√ of the employees and clients.√
- They should not provide personal information√ about employees to anyone else.√
- Information on employees who have disclosed their HIV/Aids status or any chronic illness√ must be kept confidential.√
- It is illegal to read other people's emails/record conversations√ unless stated clearly and upfront.√
- Any other relevant answer related to privacy.
Respect/Dignity√√
- CTL must treat all employees with respect/dignity√ regardless of their socio-economic status.√
- They should not force workers√ to do embarrassing or degrading work.√
- Any other relevant answer related to respect/dignity
Equity√√
- CTL must give equal opportunities/not discriminate against their employees√ on the basis of gender/race/religion/sexual orientation√, etc.
- Equal pay√ for work of equal value.√
- They should apply relevant legislation√ fairly on all levels.√
- Managers should ensure that no employee suffers√ because of discrimination.√
- Any other relevant answer related to the right to equity.
Freedom of speech and expression√√
- CTL should allow open communication channels√ between management and employees.√
- They should give employees a platform to raise their grievance√ without any victimisation.√
- An employee should not be punished/discriminated against√ for voicing their opinion.√
- Any other relevant answer related to the right to freedom of speech and expression.
Information√√
- Workers should have access to information,√ including all information held by the government, e.g. policies/work schedules/employment contracts/ labour laws such as BCEA/EEA/SDA√, etc.
- CTL needs to be transparent√ in their financial statements√/Employees may request to see these statements√ with motivation.√
- Employees should be updated√ as new information becomes available.√
- Any other relevant answer related to the right to information.
Freedom of association√√
- An employer may not refuse√ employees to join the trade union of their choice.√
- Any other relevant answer related to the right to freedom of association.
Free choice of a trade, occupation or profession√√
- Every employee has the right to receive suitable training√ for positions at their place of work.√
- Any other relevant answer related to the right to a free choice of trade, occupation or profession.
Labour rights/Freedom of assembly/Right to protest√√
- CTL may not discriminate against any employee√ who opts to follow the correct process to strike/withhold labour.√
- CTL should respect employees' membership to unions/taking part in legal strikes√ as long as the industrial action is within the law.√
- Any other relevant answer related to the right to freedom of assembly/the right to protest.
Freedom of thought and religion√√
- CLT may not prevent an employee√ from practising his or her religion.√
- Employees should be allowed to observe√ their religious holidays/given time off.√
- Employees should be allowed to practise their religion√ without any fear.√
- Any other relevant answer related to the right to freedom of thought and religion.
Health care/food/water and social assistance√√
- Employees should have access√ to clean water and sanitation at the workplace.√
- Some employers subsidise√ healthy meals/arrange for primary health care services to be available on site.√
- CTL must promote the basic human rights√, e.g. support workers living with HIV/Aids/those affected by occupationally related illnesses.√
- Any other relevant answer related to the right to health care/food/water and social assistance.
Fair labour practices√√
- CTL should pay√ fair salaries and wages.√
- They must adhere to the terms and conditions√ of BCEA.√
- Any other relevant answer related to the right to fair labour practices
Education and training/universal right to basic education√√
- Employees should be sent√ for skills development training programmes.√
- Coaching/Mentoring√ to prepare employees for managerial positions.√
- Every employee has the right to training√, including ABET training for employees who have little formal education.√
- Any other relevant answer related to the right to education and training/universal right to basic education.
Safety/Security and Protection/Life√√
- Employees must work in a safe working environment√ free from hazardous areas/products.√
- CTL should provide workers with protective clothing√ e.g. gloves and footwear.√
- They should comply to legislation√ such as the OHSA/COIDA, etc.√
- CTL should take precautionary measures√ to ensure employees and their belongings are safe in the workplace.√
- Any other relevant answer related to the right to safety and protection/life.
Freedom of slavery, servitude or forced labour√√
- CTL should comply with legislation√ such as BCEA/Labour Relations Act.√
- No business should threaten/apply pressure on/intimidate an employee,√ to perform a specific act.√
- Any other relevant answer related to the right to freedom of slavery, servitude or forced labour.
Vote√√
- CTL should ensure that their employees have time available√ to vote in general elections.√
- Any other relevant answer related to the right to vote.
Freedom of movement√√
- CTL may not prevent an employee from applying√ for any suitable position at another office of the employer/at any other business.√
- Any other relevant answer related to the right to freedom of movement.
Children's rights√√
- CTL may not employ children√ of 15 years and younger.√
- Any other relevant answer related to children's rights.
Freedom to choose your own language/participate in own cultural life√√
- CTL may not discriminate√ against any employee's cultural/language choice.√
- They must ensure that all employees√ are treated equally.√
- CTL should have a detailed policy√ dealing with diversity in the workplace.√
- Any other relevant answer related to the right of employees to choose their own language/participate in own cultural life.
Access to Labour institutions/Court√√
- Employees have the right to apply to the CCMA/Labour Court for assistance√, if discussions with CTL did not resolve any labour disputes.√
- Any other relevant answer related to the right to access Labour institutions/Court.
Positive impact/benefits of a diverse workforce
- Workforce diversity improves the ability of a business√ to solve problems/ innovate/cultivate diverse markets.√
- Employees value each other's diversity√ and learn to connect and communicate across lines of difference.√
- Diversity in the workforce improves√ morale and motivation.√
- Employees demonstrate greater loyalty to the business√ because they feel respected/accepted/understood.√
- A diversified workforce can give businesses a competitive advantage√ as they can render better services.√
- Being respectful of differences/demonstrating diversity√ makes good business sense/improves profitability.√
- Diverse businesses ensure that its policies/practices√ empower every employee to perform at his/her full potential.√
- Customers increasingly evaluate businesses√ on how they manage diversity in the workplace.√
- Employees from different backgrounds√ can bring different perspectives to the business.√
- A diversified workforce stimulates debate√ on new and improved ways of getting things done.√
- Employees represent various groups√ and are therefore better able to recognise customer needs/satisfy consumers.√
- Businesses with a diverse workforce are more likely to have a good public image√ and attract more customers.√
- Any other relevant answer related to value of diversity in the workplace.
Dealing with gender and poverty in the workplace
Gender
- CTL should employ both males and females.√√
- Males and females are entitled to equal treatment in the workplace.√√
- CTL directors should promote both men and women.√√
- The Employment Equity Act forbids gender discrimination and states that men and women should receive equal treatment/have access to equal opportunities in the workplace.√√
- BBBEE promotes the economic empowerment of women.√√
- Promotion should be based on skills and ability.√√
- Introduce affirmative action by offering female employees a fair chance in the workplace with regard to remuneration/promotion/other employment opportunities.√√
- Effectively deal with sexual harassment incidences.√√
- Any other relevant answer related to gender as a diversity issue in the workplace.
Poverty
- CTL should employ people from different socio-economic backgrounds/ status.√√
- Give previously disadvantaged individuals a chance to be educated by incorporating Adult Basic Education and Training (ABET) into training programmes of the business.√√
- Train all employees so that they can be able to deal with retrenchment.√√
- Reward employees for services well-rendered.√√
- Ensure that the prices of products are affordable for the identified consumer market.√√
- Sponsor learnerships for unemployed people/use grants received from SETAs to train more unemployed people from local communities.√√
- Train some unemployed people from local communities as part of a business's CSI projects.√√
- Offer subsidised meals/canteen facilities on the premises.√√
- Supply free uniforms to employees for safety purposes.√√
- Any other relevant answer related to poverty as a diversity issue in the workplace.
Ways to protect the environment and promote human health
- Laws and regulations should be adhered to so that profits are not generated at the expense of the environment.√√
- Pollution and other environmental issues should always be considered in all business activities, e.g. safe disposal of waste/dumping of toxic waste√√, etc.
- Become involved in environmental awareness programs.√√
- The environment can be protected by altering production techniques in favour of cleaner and greener technologies.√√
- Water for human consumption should be tested before it is used.√√
- Promote nature conservation by looking after natural resources.√√
- Minimise pollution, by re-using, reducing and recycling.√√
- Reduce consumption of goods/services which are environmentally unfriendly.√√
- Register/Engage with recognised institutions/bodies that promote green peace. √√
- Physical working conditions should always be worker friendly, safe and promote occupational health.√√
- Physical working conditions, e.g. adequate lighting/ventilation should be available and functional.√√
- Machines must be serviced/maintained regularly.√√
- Educate people about hygiene issues.√√
- Encourage employees to do regular health checks.√√
- Any other relevant answer related to ways that CTL can implement to protect the environment and promote human health.
Conclusion
- Businesses should effectively deal with diversity to avoid bias/racism/ stereotypes in the workplace.√√
- Businesses can achieve inclusivity by promoting equality, respect and dignity in the workplace.√√
- Businesses should assess, control and address all the physical, chemical and biological factors in the environment.√√
- Any other relevant conclusion related to human rights/diversity and environmental issues in the workplace.
Grand Cellular Ltd is a large company selling cellphones, iPhones, tablets and printers to the public and businesses. The company believes that Total Quality Management (TQM) is important to get things right 'the first time, every time'. Keep the scenario on Grand Cellular Ltd in mind and write an essay on TQM, covering the following aspects:
- Total client/customer satisfaction
- Continuous improvement of systems and processes
- Continuous skills development/education and training
- Explain the benefits GC will gain by implementing a good quality management system.
- Suggest FIVE ways in which the quality of performance of the marketing function can contribute to the success of Grand Cellular Ltd.
Introduction
- Total quality relates to products that totally satisfy customers' needs and expectations in every respect on a continuous basis.√
- Quality is often monitored/promoted by quality circles.√
- Business functions and employees' activities must be properly managed to ensure quality goods and services.√
- Quality management should not just be an inspection process, but become part of the culture of the business.√
- TQM is an integrated system and methodology applied throughout the business. Helps to design, produce and provide quality products/quality service to customers.√
- Any other relevant introduction related to total quality management (TQM) and quality circles.
Total client/customer satisfaction
Positives/Advantages
- Large businesses use market research/customer surveys√ to measure/ monitor customer satisfaction/analyse customers' needs.√
- Continuously promote√ a positive company image.√
- May achieve a state of total customer satisfaction, if businesses follow sound business practices√ that incorporate all stakeholders.√
- Strive to understand and fulfil customer expectations√ by aligning crossfunctional teams across critical processes.√
- Ensures that cross-functional teams understand its core competencies√ and develop/strengthen it.√
- May lead to higher customer retention/loyalty√ and businesses may be able to charge higher prices.√
- Businesses may be able to gain access√ to the global market.√
- May lead to increased√ competitiveness/profitability.√
- Any other relevant answer related to the positives/advantages of total client/customer satisfaction.
Negatives/Disadvantages
- Employees who seldom come into contact with customers√ often do not have a clear idea of what will satisfy their needs.√
- Monopolistic companies have an increased bargaining power√ so they do not necessarily have to please customers.√
- Not all employees√ may be involved/committed to total client satisfaction.√
- Any other relevant answer related to the negatives/disadvantages of total client/customer satisfaction.
Continuous improvements to systems and processes
Positives/Advantages
- Large businesses have more resources√ to check on quality performance in each unit.√
- Enough capital resources are available√ for new equipment required for systems and processes.√
- Large businesses have a person dedicated√ to the improvement of systems and processes.√
- Willing to take risk on/try new processes and systems√ because they are able to absorb the impact of losing money.√
- They can afford to use the services of the quality circles√ to stay ahead of their competitors.√
- Any other relevant answer related to the positives/advantages of continuous improvement to systems and processes.
Negatives/Disadvantages
- Large scale manufacturing√ can complicate quality control.√
- Systems and processes take time and effort to implement in a large business√ as communication/buy-in may delay the process.√
- Risk of changing parts of the business√ that are actually working well.√
- Not all negative feedback from employees and customers is going to be accurate√, which may result in incorrect/unnecessary changes to systems and processes.√
- Any other relevant answer related to the negatives/disadvantages of continuous improvement to systems and processes.
Continuous skills development/Education and Training
Positives/Advantages
- Large businesses have a human resources department√ dedicated to skills training and development.√
- Human resources experts√ ensure that training programmes are relevant to increased customer satisfaction.√
- Ability to afford√ specialised/skilled employees.√
- May be able to conduct skills audits√ to establish the competency/ education levels of staff performing work which could affect the quality of products/processes.√
- May be able to hire qualified trainers√ to train employees on a regular basis.√
- Any other relevant answer related to the positives/advantages of continuous skills development.
Negatives/Disadvantages
- Poor communication system√ may prevent effective training from taking place.√
- Trained employees may leave for better jobs√ after they gained more skills.√
- De-motivates employees√, if they do not receive recognition for training.√
- Employees who specialise in narrowly defined jobs√ may become frustrated/demotivated.√
- Employees may not be aware of the level of competency they should meet√ in order to achieve their targets.√
- It may be difficult to monitor/evaluate√ the effectiveness of training.√
- Any other relevant answer related to the negatives/disadvantages of continuous skills development.
Benefits to GC of a good quality management system
- Effective customer services are rendered√, resulting in increased customer satisfaction.√
- Time and resources√ are used efficiently.√
- Productivity increase√ through proper time management/using high quality resources.√
- Products and services are constantly improved√ resulting in increased levels of customer satisfaction.√
- Vision/Mission/Business goals√ may be achieved.√
- Business has a competitive advantage√ over its competitors.√
- Regular training√ will continuously improve the quality of employees' skills and knowledge.√
- Employers and employees will have a healthy working relationship√ resulting in happy/productive workers.√
- Increased market share√ and profitability.√
- Any other relevant answer related to the benefits of a good quality management system.
Contribution of quality of performance of the marketing function to the success of GC
- Acquire a greater market share through good customer service.√√
- Win customers loyalty by satisfying their needs/wants and building positive relationships.√√
- Adhere to ethical advertising practices when promoting products/services.√√
- Identify competitive edge by conducting regular market research.√√
- Differentiate products to increase the target market and profitability.√√
- Constant review of value issues.√√
- Communicate effectively with customers to get feedback about their experiences of the products and services sold.√√
- Co-ordinate distribution with the production/advertising strategies.√√
- Use pricing techniques to ensure a competitive advantage.√√
- Measure the gaps between customer expectations and their actual experiences so that problems regarding quality of products/services can be diagnosed and addressed.√√
- Make adjustments and changes to products/services based on feedback received from customers.√√
- Use aggressive advertising campaigns to sustain the market share.√√
- Any other relevant answer related to the contribution of the quality of performance of the marketing function to the success of the business
Conclusion
- Although quality is important in both small and large businesses, large businesses are more likely to have a formal quality control/management systems that functions well.√√
- It is important that large businesses have proper systems for managing quality, e.g. TQM, quality circles√√, etc.
- Any other relevant conclusion related to total quality management, quality circles and marketing function.
The Consumer Protection Act, 2008 (Act 68 of 2008) implemented in 2011, was introduced to give consumers rights and protection for any business transaction. Businesses should familiarise themselves with the implications of this Act and change the ways in which they conduct business. As a legal adviser, provide a detailed analysis of the Consumer Protection Act (CPA) to the local business forum. You must include the following aspects in your analysis:
- Discuss any FOUR consumer rights as stipulated in the CPA
- Critically evaluate this Act's impact on businesses and consumers
- Recommend practical ways/procedures that businesses should implement to comply with this Act
Introduction
- The CPA was passed to redress the economic inequalities of the past.√
- It applies to the supply of goods and services in South Africa.√
- It promotes and advances the social and economic welfare of consumers in South Africa.√
- Any other relevant introduction related to the Consumer Protection Act.
Right to choose√√
Consumers have the right to:
- choose suppliers and goods.√√
- shop around for the best prices.√√
- return goods that are unsafe/defective for a full refund.√√
- reject goods that are not the same as the sample marketed.√√
- cancel/renew fixed term agreements.√√
- request written quotations and cost estimates.√√
- Any other relevant answer related to the consumers' right to choose
Right to privacy and confidentiality√√
- Consumers have the right to stop/restrict unwanted direct marketing.√√
- They can object to unwanted promotional e-mails and telesales.√√
- They have the right to stop/lodge complaints about the sharing of their personal details.√√
- Any other relevant answer related to the consumers' right to privacy and confidentiality.
Right to fair and honest dealings√√
- Suppliers may not use physical force or harass customers.√√
- Suppliers may not give misleading or false information.√√
- Businesses may not promote pyramid schemes and chain-letter schemes.√√
- Businesses may not overbook/oversell goods/services and then not honour the agreement.√√
- Any other relevant answer related to the consumers' right to fair and honest dealings.
Right to information about products and agreements/Right to disclosure and information√√
- Contracts and agreements should be in plain language and easy to understand.√√
- Businesses should display prices which are fully inclusive disclosing all costs.√√
- Consumers may request the unit and bulk price of the same product.√√
- If two prices for the same product are displayed, consumers should pay the lower price.√√
- Businesses should label products and trade descriptions correctly.√√
- Any other relevant answer related to the consumers' right to information.
Right to fair/responsible marketing/promotion √√
- Businesses should not mislead consumers on pricing, benefits/uses of goods.√√
- Consumers may cancel purchases made through direct marketing within five working days/cooling off-period.√√
- All information related to the country of origin/expiry dates/ingredients of the products should be disclosed.√√
- Any other relevant answer related to the consumers' right to fair marketing/promotion.
Right to fair value/good quality and safety√√
- Consumers have the right to demand quality service or goods.√√
- They have the right to return faulty items if the fault occurs within six months after purchasing the item.√√
- Consumers may receive an implied warranty or a written warranty.√√
- Any other relevant answer related to the consumers' right to fair value, good quality and safety.
Right to accountability from suppliers√√
- Consumers have the right to be protected in lay-bye agreements.√√
- Businesses should honour credit vouchers and prepaid services.√√
- Any other relevant answer related to the consumers' right to accountability from suppliers.
Right to fair, just and reasonable terms and conditions√√
- Businesses should provide consumers with written notices of clauses that may limit consumer rights.√√
- Businesses may not market or sell goods at unfair prices.√√
- Any other relevant answer related to the consumers' right to fair, just and reasonable terms and conditions.
Right to equality in the consumer market place√√
- Businesses should not limit access to goods and services.√√
- Businesses may not vary the quality of their goods to different consumers.√√
- Businesses may not charge different prices for the same goods/services.√√
- Businesses should not discriminate when marketing their products and services in different areas/places.√√
- Any other relevant answer related to the consumers' right to equality in the consumer market place.
Impact of Consumer Protection Act (CPA) on businesses
Positives
- Enables businesses to resolve disputes fairly through the National Consumer Commission/Consumer Court/Industrial ombudsmen.√√
- Any other relevant answer related to the positives of the CPA for businesses.
AND/OR
Negatives
- Faulty items may be replaced/repaired/money refunded if the fault occurs within six months after purchase.√√
- Businesses must disclose more information about their products and processes/services.√√
- Consumers can take advantage of businesses and return goods when it is not necessary to do so.√√
- Processes and procedures required of businesses can be expensive and time consuming.√√
- Some businesses feel unnecessarily burdened by the required processes.√√
- Penalties for non-compliance may be very high.√√
- Businesses need to train staff and consult legal experts, which can be expensive for smaller businesses.√√
- Consumers have a right to receive contracts in simple and understandable language, therefore many business documents need to be simplified.√√
- Legal contracts must be worded in plain language and pitched at the level of the consumer who is being targeted.√√
- Prohibits discriminatory marketing and deals extensively with general marketing standards.√√
- Provisions in the Act increase the risks for insurance companies in protecting businesses against unforeseen claims and lawsuits.√√
- Supply chain management in stock levels will have to be managed differently as defective goods have to be replaced within six months at the request of the customer.√√
- Information technology systems need to be improved as the retailer must keep more detailed records of interactions with consumers and be able to report to the National Consumer Commission.√√
- Any other relevant answer related to the negatives of CPA for businesses.
Impact of Consumer Protection Act (CPA) on consumers
Positives
- There is now only one law for protecting consumers and this makes it easier to enforce and apply the law.√√
- Protects the consumers from unfair, exploitative and aggressive business and marketing activities.√√
- Promotes consumer rights and ensures that businesses do not violate these rights.√√
- Allows all consumers fair access to the market for goods and services.√√
- Educates consumers about how to participate responsibly in the goods and services market.√√
- Ensures that consumers do not buy goods of poor quality which do not meet quality standards.√√
- Provide consumers with information and thereby promote consumer education.√√
- Consumers are forced to make responsible and informed decisions.√√
- Consumers have a cooling-off period of five working days after purchasing a product.√√
- Protect consumers from hazardous products or poor workmanship in terms of service rendered.√√
- Encourages consumers to complain.√√
- Any other relevant answer related to the positives of the CPA for consumers.
Negatives
- Consumers may not be aware of the CPA/their consumer rights.√√
- Consumers may be unaware of mechanisms in place to lodge disputes.√√
- Serious implementation problems with regard to handling consumer complaints.√√
- Any other relevant answer related to the negatives of the CPA for consumers.
Practical ways to comply with the CPA
- Disclose prices of all products on sale.√√
- Ensure that goods/services offered are standardised/of the same quality.√√
- Comply with the requirements regarding promotional competitions.√√
- Display the name of the business on all business documents, e.g. letterheads/invoices/contracts.√√
- All agreements must provide for a five-day cooling off period.√√
- Comply with requirements regarding the display of information on labels/ packaging, e.g. smoking is hazardous for pregnant woman.√√
- Bundling of goods/services should benefit consumers, e.g. offering a cell phone and a tablet at a special price.√√
- Provide adequate training to staff on the CPA.√√
- Implement measures that will facilitate complaints, e.g. suggestion boxes.√√
- Any other practical way that business should implement to comply with the CPA.
Conclusion
- The CPA forces both businesses and consumers to act responsibly when doing business.√√
- Non-compliance by businesses may result in penalties/legal action.√√
- Any other relevant conclusion related to the CPA.
Nhlanzeko and Mfundo are qualified lawyers who completed their studies last year. They wish to start their own business practice. They are considering either a partnership or a personal-liability company as a possible form of ownership and need your advice.
Write a detailed report comparing these TWO forms of ownership. Also explain how capital, management and legislation can contribute to the success or failure of a personal-liability company.
Introduction
- It is important for prospective entrepreneurs to choose appropriate forms of ownership that will suit their needs.√
- Choosing a form of ownership depends on a number of factors such as capital/capacity/taxation/division of profits/management/legislation.√
- A Personal Liability Company is a voluntary association of 1 or more persons, governed by the Companies Act (Act 71 of 2008) and incorporated in terms of the Memorandum of Incorporation.√
- Any other relevant introduction related to the forms of ownership/Personal Liability Companies/Partnerships
Comparison between Partnership and Personal Liability Company (PLC)
- Name - No specific requirements.√√
- Ends with Inc.√√ Minimum number of owners
- At least two partners.√√ - At least one shareholder/ promoter/founder.√√ Maximum number of owners
- Unlimited number of partners.√√
- No maximum of shareholders.√√ Owners are known as
- Partners.√√ - Shareholders.√√ How capital can be raised
- Partners can contribute skills/assets or capital.√√
- Shares issued to the founders/promoters.√√ Profit/losses belong to
- Partners.√√ - Shareholders.√√ Profit sharing
- Partners share profits according to the partnership agreement.√√
- Profits paid in dividends according to number of shares owned.√√ Formation - Legal agreement between partners and usually a partnership agreement/ partnership article is signed.√√
- File Memorandum of Incorporation (MOI) with the Companies and Intellectual Property Commission (CIPC).√√ Managed by - Partners are usually involved in the management of the business.√√
- The business is managed by a Board of Directors who may be professionals in their fields.√√ At least one director.√√ Assets are owned by
- Partners.√√ - The company.√√ Legal person - Partnership does not have a separate legal personality.√√
- Liability for debts
- Partners have unlimited liability/Partners are jointly and severally liable for the debts of the business.√√
- Shareholders have a limited liability.√√ The PLC and its directors, past and present, are jointly liable for any debts and liabilities incurred.√√ Continuity - No continuity/If one partner dies or retires, the remaining partners need to draw up a new agreement.√√
- Continuity – if one shareholder dies/retires, the company will still continue to exists.√√ Taxation - Partners pay tax in their personal capacity.√√
- Subjected to double taxation/Companies and shareholders are taxed separately.√√
Factors that may contribute to the success/failure of a PLC
- A large amount of capital can be raised since there is no limit on the number of shareholders.√√
- Large amount of capital enhances growth and advancement in technology for the PLC.√√
- The company can access long term capital and therefore has good long term growth opportunities.√√
- Any other relevant answer related to how capital can contribute to the success of a PLC.
- Shares are not freely transferable, so less capital can be raised/Prohibited by its Memorandum of Incorporation (MOI) from offering its shares to the public, which limits the amount of capital that can be raised for expansion.√√
- Restrictions on transferability of shares may discourage people from joining the company.√√
- If the company fails to attract financially strong shareholders, it may hamper its growth opportunities.√√
- Any other relevant answer related to how capital can contribute to the failure of a PLC.
Capital
Success factors
Failure factors
Management
- Management is in the capable hands of a board of directors who have skills, knowledge and abilities.√√
- Shareholders can vote for/appoint the most capable directors to manage their company.√√
- Directors are jointly and severally liable for all company's debts and liabilities incurred. This forces them to act responsibly and work harder towards the success of a company.√√
- One director may be able to make quick decisions.√√
- Any other relevant answer related to how management can contribute to the success of a PLC.
- Directors may not have a direct interest in the company, which can hamper growth and profit maximization.√√
- PLC and its shareholders are compelled to budget a larger amount for directors' remuneration to attract the best directors.√√
- Directors' fees increase the company's expenses which reduces net profit.√√
- Any other relevant answer related to how management can contribute to the failure of a personal liability company.
- The company and its owners (shareholders) are separate entities, which may encourage more people to join the company.√√
- Directors are forced (by the Act) to act responsibly and work harder towards the success of the company to protect their personal assets.√√
- Directors sign performance contracts which will motivate them to perform professionally and ethically.√√
- Rights and duties of shareholders are stipulated in the Companies Act, which minimises unethical and corrupt behaviour.√√
- May obtain government tenders as the PLC is properly registered in compliance with the Companies Act.√√
- Any other relevant answer related to how management can contribute to the success of a PLC.
- Lengthy registration requirements may delay the actual operation of the business and shareholders can loose on profitable opportunities.√√
- It is expensive to register this form of ownership which increases business expenses hence reducing profit.√√
- The drafting of directors' performance contracts may be time consuming, expensive and increase costs.√√
- Auditing is required only if the PLC meets the requisite tests for solvency and liquidity, which leads to extra auditing costs.√√
- Any other relevant answer related to how legislation can contribute to the failure of a personal liability company.
- Operating as a PLC can be challenging because of legal requirements.√√
- This form of ownership is most suitable for professional people, e.g. lawyers, because of limited liabilities of the owners.√√
- Any other relevant conclusion related to the forms of ownership/Personal Liability Companies/Partnerships.
Success factor
Failure factors
Success factors
Failure factors
Conclusion
'There's more to KFC than great food. We promote education, diversity and animal welfare in a number of positive ways.' KFC runs a number of programmes as part of their social responsibility. - www.kfc.com You have been approached by the board of directors of KFC (Kentucky Fried Chicken) to act as a consultant to assist them with their corporate social responsibility (CSR) and corporate social investment (CSI) challenges. Write a report to the board of directors of KFC in which you include the following aspects:
INTRODUCTION
- Businesses and their communities are interdependent and the one cannot do without the other.√
- The interdependence can be improved if businesses and communities recognize their social responsibility.√
- A responsible business should contribute towards the upliftment of the community.√
- CSR is a business's obligation to protect/promote the welfare of all stakeholders, who have an interest in or that will be affected by a business.√
- Through their CSR programmes businesses can focus on the triple bottom line, which is making profits, uplifting/supporting the people and their communities, and caring for the environment/planet.√
- Any other relevant introduction related to CSR/CSI.
Description of CSR
- An obligation by a business to pursue sound long term goals for society.√√
- Long term commitment by businesses to always act ethically/to contribute to economic development in order to improve the quality of life of their employees, their families, their local communities and society in general.√√
- The way companies manage their business resources/processes to impact positively on society.√√
- When a business is accountable to their employees/community/government for its actions/behaviour/methods of doing business.√√
- An ethical way of doing business in the interest of both the business and the wider community.√√
- A willingness to act in accordance with legislation that requires community upliftment/employee development.√√
- Businesses recognise the need to give back to society in a sustainable manner.√√
- Refers to strategies used by business to take responsibility for their impact on society and the environment.√√
- It is not a single action, but rather an approach to doing business that guides all decision-making in the firm.√√
- Companies manage their business operations in such a way that it does not negatively affect stakeholders.√√
- CSR focuses on the idea that businesses can no longer act in isolation from the broader society.√√
- Any other relevant answer related to the description/definition of CSR.
Positives for the business
- Can serve as a marketing strategy and promote the image of the business.√√
- A company may have a competitive advantage, as it leads to good publicity and an improved reputation.√√
- May attract experienced employees/increase the pool of skilled labour which could increase productivity.√√
- It helps to attract and retain staff/Lower staff turnover as employees' health and safety are considered/Improve the health of its employees.√√
- The business enjoys the goodwill and support of communities.√√
- CSR helps to attract investors.√√
- If CSR is aligned with company policies/vision/mission statement, it shows accountability towards all stakeholders.√√
- Businesses that support CSR through various programmes, encourages and rewards employees if they get involved in CSI programmes.√√
- CSI programmes have a better success rate if it is fully supported by top management.√√
- Sustained environmental conservation programmes may lead to reducing costs, which can make funds available for other business operations.√√
- If the corporate sector gets involved voluntarily in CSR, it is less likely that Government will enforce the issue through legislation.√√
- Businesses may enjoy tax rebates from SARS.√√
- Any other relevant answer related to a positive evaluation/assessment of
the role of CSR in the business.
Negatives for the business
- The community may not support the enterprise, i.e. may not buy the products of the enterprise.√√
- Difficulty in adherence to legislation governing CSR.√√
- Small and medium enterprises find it difficult to implement CSI programmes.√√
- CSI activities can distract businesses from their core business functions.√√
- Social involvement is paid from a company's profit that could have been used to lower prices to the benefit of customers.√√
- Detailed reports must be drawn up, which can be time consuming.√√
- Social spending reduces a company's economic efficiency and makes it less competitive.√√
- It can increase financial risk, as programmes cost money and may impact negatively on profits.√√
- Company directors are accountable to shareholders, not to the communities.√√
- It is difficult to accurately measure the effectiveness of social investment.√√ It is difficult to determine the exact needs of the communities.√√
- Most managers are not trained and lack experience to handle social programmes.√√
- Some shareholders/stakeholders might withdraw their support from the company as they feel that social issues should be the government's responsibility.√√
- Providing goods and services that meet the needs of consumers is, according to some stakeholders, already socially responsible.√√
- Some CSI programmes will be regarded as a public relations stunt, as these programmes improve the business's image without having a sustainable/long term effect.√√
- Shareholders, as the only real stakeholders, may suffer as their profits are spent on CSR.√√
- Employees may spend more time working on CSI programmes instead of focusing on their core duties.√√
- Any other relevant answer related to a negative evaluation/assessment of
the role of CSR in the business.
Positives for the community
- Supports the business by purchasing its products and thereby contributing to business profitability.√√
- Provides labour, customers and are suppliers to the business.√√
- Provision of bursaries.√√
- Improves the welfare of society.√√
- The standard of living of the community is uplifted/quality of life of communities is improved.√√
- Involves employees in community projects.√√
- Better educational facilities are established in poor communities.√√
- Any other relevant answer related to a positive evaluation/assessment of
AND/OR
the role of CSR in the community.
Negatives for the community
- Distribution of scarce CSR resources to selected beneficiaries in the community may cause problems such as discrimination.√√
- The benefits of the programmes may not filter to the intended persons within the community.√√
- Programmes that do not satisfy all the needs of the community may be rejected.√√
- Hand-out programmes discourage locals from taking their own initiative by making them dependent on social investment programmes.√√
- Sustaining projects after businesses withdraw their assistance are often difficult without the right expertise.√√ Spending money on CSR means the business has to recover it somehow and this will lead to higher prices and inflation which has a negative impact on the economy.√√
- Any other relevant answer related to a negative evaluation/assessment of
the role of CSR in the community.
Possible CSI programmes
- Build schools in communities.√√
- Offer bursaries to needy students.√√
- Protect the environment, e.g. use paper-based recyclable packaging/reduce water and electricity usage/recycling and waste recovery.√√
- Support youth programmes.√√
- Sponsor sporting activities and sport development programmes.√√
- Businesses can donate their old computers to under privileged schools.√√
- Teach entrepreneurial skills and offer support to individuals starting new ventures.√√
- Provide/Support adult education and training in local communities.√√
- Sponsor art and cultural programmes.√√
- Establish programmes to promote early childhood development.√√
- Conduct job creation programmes.√√
- Any other relevant answer related to examples of CSI programmes.
Recommendation on how KFC's CSI programmes can satisfy stakeholders.
Consumers√
- Ingredients and other information that might affect consumers' safety should be displayed on product labels when sponsoring feeding scheme programmes.√√
- Product should be tested for safety and bare the SABS mark of approval where applicable.√√
- Any other relevant answer related to ways in which KFC's CSI programmes can satisfy consumer needs.
Employees√
- Business should create equal opportunities and cater for diversity through CSI programmes.√√
- Implement CSI programmes that address issues of sexual harassment/ HIV/AIDS and/or TB.√√
- Provide better education and training facilities in the business and the community.√√
- Skills improvement programmes may reduce unemployment levels.√√
- Any other relevant answer related to ways in which KFC's CSI programmes can satisfy employee needs.
Government√
- Business should promote the implementation of legislation/government policies, e.g. skills development.√√
- Business should support government initiatives, e.g. by co-operating with local government in supplying housing.√√
- By creating job opportunities in communities, the pressure on government to address unemployment, is reduced.√√
- Any other relevant answer related to ways in which KFC's CSI programmes can satisfy government needs.
Conclusion
- Despite challenges, most businesses do take their social responsibility very seriously and contribute positively to communities/society.√√
- Successful CSI programmes will improve the general standard of living.√√
- CSI programmes will contribute positively if they are strategically planned and not just be given hand-outs/contributions randomly.√√
- Any other relevant conclusion related to CSR/CSI.
The South African government has an obligation to stimulate economic growth in the country. One way of doing this is to control how credit should be granted by business and financial institutions.
Analyse the above statement. Describe the purpose and evaluate the impact of the National Credit Act, 2005 (Act 34 of 2005) on both business and customers. Explain the rights of consumers in terms of this Act.
Introduction
- Many consumers overspend when buying on credit.√
- The National Credit Act was put in place to improve the debt of both businesses and consumers.√
- The Act ensures that credit is used in a way that adds value to customers' lives.√
- If consumers/customers are not using credit carefully, they may become overindebted.√
- Any relevant introduction related to the National Credit Act.
Analysis of statement
- Government controls credit to prevent businesses from closing down prematurely and to protect customers from spending unnecessarily.√
- Economic stability and growth is maintained when government encourages businesses and consumers to be prudent when buying on credit.√
- Businesses that have financial stability may attract local and foreign investment in South Africa.√
- Any other relevant analysis of the statement related to the National Credit Act.
Purpose of the National Credit Act
- Protects the consumer against unfair credit agreements,√ e.g. charging interest rates well above the maximum stipulated by law.√
- Introduces a single functional system of regulations√ that will apply to all credit activities.√
- Ensures that all credit providers and credit consumers√ are treated equally.√
- Encourages responsible√ borrowing.√
- Justifies rights and responsibilities√ for consumers and credit providers.√
- Discourages careless granting of credit by service providers√ to unsuspecting consumers.√
- Regulates the interest rate to be charged by service providers√ to consumers.√
- Makes provision for the establishment√ of the National Credit Regulator (NCR).√
- Makes provision for the establishment√ of a credit register (database).√
- Any other relevant answer related to the aims/purpose of the Act (NCA).
Impact of NCA on business/service providers
Advantages (Positives)
- Encourages more prudent buying from suppliers.√√
- The whole credit process is transparent.√√
- Lower bad debts as credit is granted after proper credit checking.√√
- Better cash flow, because there is control over debtors.√√
- Increases cash sales as more customers tend to buy for cash.√√
- Gains goodwill and loyalty from the consumers.√√
- Any other relevant answer related to the advantages/positives of the
National Credit Act to business/services providers.
Disadvantages (Negatives)
- Decrease in credit sales due to customer loss/economic decline (downturn).√√
- May not easily be granted overdraft/credit facilities.√√
- Creditors may not pester customers to agree to a credit agreement telephonically or through visits at home.√√
- More working capital is needed due to higher administrative costs.√√
- Businesses profit could decline, because they can no longer depend on customers who had easy access to credit.√√
- Misinterpretation of the Act may lead to huge losses, e.g. increased bad debts.√√
- Failure to abide by all the provisions of the Act might result in a lawsuit, e.g. granting credit to a customer whose name is under review.√√
- Paperwork and administrative processes are costly and time consuming.√√
- Any other relevant answer related to disadvantages/negatives of the NCA to businesses/service providers.
Impact of NCA on customers/clients
Advantages (Positives)
- Protects customers against unfair credit practices.√√
- Ensures that customers have a better understanding of credit agreements.√√
- Protects customers from receiving credit that they are not able to repay.√√
- Supports customers who do not understand the risk of becoming overindebted.√√
- Protects customers by restricting trading hours for direct sales.√√
- Provides for debt counselling to help customers restructure their debts.√√
- Any other relevant answer related to the advantages/positives of NCA to customers
Disadvantages (Negatives)
- Customers who are blacklisted cannot access credit.√√
- May lead to a drop in the standard of living, because credit is refused.√√
- Over-indebted customers may have to pay extra for the services of debt counsellors.√√
- Over-indebted customers may be exploited by micro lenders.√√
- Any other relevant answer related to the disadvantages/negatives of the NCA to customers.
Consumer rights in terms of the National Credit Act The right to:
- Apply for credit√ and to be free from discrimination.√
- Obtain reasons√ for credit being refused.√
- Receive pre-agreement documentation√ before concluding any credit transaction.√
- Fair√ and responsible marketing. √
- Choose which goods they will buy√ and return such goods if they are not satisfied. √
- Receive Information√ in plain and understandable language.√
- Receive documents√ as required by the Act.√
- Access and challenge√ credit records and information.√
- Any other relevant answer related to consumer rights. (Max) (8) Conclusion
- Customers have the responsibility to take ownership of credit by honouring the payment.√√
- This Act allows and enables responsible lending and eliminates reckless borrowing.√√
- Any other relevant conclusion related to NCA.
Labour legislation in South Africa provides for the formation of trade unions. They play a very important part in issues affecting labour and employees.
Explain the provisions of the Labour Relations Act, 1995 (Act 66 of 1995) and discuss the role/functions of trade unions. Evaluate the impact of this Act with particular reference to labour/industrial relations of businesses operating in South Africa.
Introduction
- Trade Unions are established with the aim of regulating employer- employee relations through collective bargaining.√
- Workers have more power when they are a unified force.√
- Workers use trade unions as a tool for collective bargaining and negotiating better working conditions.√
- Any other relevant introduction related to the Labour Relations Act and trade unions.
Provisions of the Labour Relations Act:
- Registration of trade unions and employers' organisations√ to give structure to labour relations.√
- Procedures of collective bargaining and collective agreements√ to regulate industrial relations.√
- Establishment of the Commission for Conciliation, Mediation and Arbitration (CCMA)√ to resolve labour disputes.√
- Establishment of grievance procedures√ through conciliation, arbitration, adjudication or industrial action.√
- Provision for the establishment of workplace forums in the workplace√ to promote employee participation in decision making.√
- Allocation of specific rights to registered trade unions√, e.g. allowing the trade unions to practice their rights in the work place.√
- Provide for employees' rights√, such as freedom of association.√
- Any other relevant explanation of the provisions of the Labour Relations
Roles and/or functions of trade unions
Role of trade unions
- Monitor the fair treatment of workers√ at the workplace.√
- Improve the social security of workers√ e.g. negotiate for better working conditions and terms of employment.√
- Resolve employee grievances and disputes√ by representing employees during hearings.√
- Improve working relationship√ between employers and employees.√
- Prevent the retrenchment of workers,√ by participating in decisionmaking on restructuring.√
- Ensure that workers share in the profits of the business√ in the form of salary increases and bonuses etc.√
- Strengthen union power√ by increasing membership.√
- Any other relevant answer related to the role of trade unions.
Functions of trade unions
- Ensure that there is equal treatment,√ e.g. gender equality in the work place.√
- Participate in collective bargaining processes,√ e.g. engage in bilateral negotiations with employer organisations.√
- Negotiate for better working conditions√ e.g. fair salaries, wages and benefits.√
- Ensure that members have fringe benefits/perks√ e.g. pension/ provident fund.√
- Ensure that employees belong to a medical aid scheme√ and that employers contribute towards it.√
- Negotiate with government and other stakeholders√ to ensure the best possible deal for workers.√
- Ensure protection of members' rights in the workplace√ e.g. the right to freedom of association/movement/speech.√
- Any other relevant answer related to the function of trade unions.
Impact of the LRA on labour relations in business
Advantages (Positives)
- Regulates the organisational rights of trade unions as seen by the number of protected strikes.√√
- Promotes and facilitates collective bargaining at the workplace.√√
- Promotes employee participation in decision-making through workplace forums.√√
- Supports and regulates the constitutional right of employees to strike, within reasonable limitations/also regulates lockouts in a similar manner.√√
- Establishes the Labour Court and Labour Appeal Court as superior courts.√√
- Provides a clear framework for collective and dispute resolution with the CCMA.√√
- Brings order and predictability to negotiations with employees.√√
- Protects the employee's rights to engage in trade unions.√√
- Protects employees against unfair dismissal.√√
Disadvantages (Negatives)
- Businesses must follow lengthy legal procedures before dismissing employees.√√
- This act gives more powers to employees through trade unions.√√
- It can lead to lower productivity and profitability.√√
- Unrealistic demands could lead to indefinite strikes.√√
- Prolonged strikes in the business could eventually lead to bankruptcy.√√
- Any other relevant answer related to the impact of the LRA on labour/industrial relations in business.
Conclusion:
- Trade unions play an effective role in the well-being of employees.√√
- Membership of trade unions is vital for all employees in order to be protected in terms of human rights/inclusivity/fair labour practice.√√
- Any other relevant conclusion related to the Labour Relations Act and trade unions.