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O Level · Business 0450

2.3 Recruitment, Selection & Training

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2.3 Recruitment, Selection & Training

Cambridge IGCSE Business

Big Idea: Businesses recruit employees (internally or externally), select the best candidates through interviews and tests, provide different types of training, and must follow employment laws to ensure fair treatment.

Chapter Summary

  • Recruitment vs Selection: Recruitment is attracting candidates; selection is choosing the best one.
  • Internal vs External: Internal recruitment promotes existing staff (cheaper, quick); external brings in new ideas but takes longer and costs more.
  • The 5-Step Recruitment Process: Define the role → Identify source → Advertise → Receive applications → Selection (interviews & tests) → Recommend best candidate.
  • Job Description vs Job Specification: Job description = duties & responsibilities; job specification = personal qualities & skills needed.
  • Selection Methods: Interviews, skills tests, aptitude tests, intelligence tests, personality tests.
  • Part-Time vs Full-Time: Part-time (1–30 hours/week) offers flexibility but may reduce commitment; full-time (35+ hours/week) builds loyalty but is expensive.
  • Three Types of Training: Induction (for new employees), on-the-job (learning while working), off-the-job (external workshops/courses).
  • Downsizing: Dismissal (breach of contract/poor performance) vs redundancy (job no longer needed). Selection based on productivity, attendance, skills, length of service.
  • Employment Laws: Minimum wage, employment contracts, health & safety, discrimination laws, unfair dismissal protections.

Recruitment Methods

What is Recruitment? What is Selection?

These two terms are related but different — and examiners love testing whether you know the distinction.

Recruitment is the process of attracting and identifying potential job candidates who are suitable for a role. The goal is to create a pool of qualified candidates to choose from.
Selection is the process of choosing the best candidate from applications received. The goal is to hire the most suitable candidate for the job.

Think of it this way: Recruitment is casting a net to find people. Selection is picking the best fish from that net.

Why Do Vacancies Arise?

A vacancy is an unfilled job position. Businesses recruit when vacancies occur for four main reasons:

  • Business Growth: The business is expanding, so it needs more employees to handle increased operations.
  • Employees Leave: Staff resign, retire, or move to other jobs. Their positions need to be filled.
  • Reorganisation: The business restructures its departments or roles, creating new positions or different role requirements.
  • New Business Start-Up: A brand new business needs to recruit its entire workforce from scratch.

Using a Recruitment Agency

Instead of recruiting themselves, many businesses hire a recruitment agency to do the job for them.

Advantage Disadvantage
New employees can be found quickly from the agency's pool of available talent. The agency charges a finding fee for their specialist services.
Saves management time during the recruitment process.
💡 Tip:

Internal vs External Recruitment

Internal Recruitment
External Recruitment

Types of Training

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Also in the full note
  • Choosing the Right Employee
  • Part-Time Versus Full-Time
  • Downsizing the Workforce
  • The Impact of Legislation on Employment
  • What to Memorise
  • Concepts Checklist
  • Exam Tips & Common Mistakes
  • The 5-Step Recruitment & Selection Process
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