, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Please note that the author of this document will not responsibility for any plagiarizing you
commit.
Having acquired sufficient knowledge and skills on entrepreneurship and small business management,
you must demonstrate practical competencies in managing small businesses. You should also be able
to identify deficiency in the small business management practices and be able to provide
recommendations for improvement.
Visit one small business in your area with an estimated annual turnover of R2 million. Have interview
with the owner. In your interview ask him how he manages the human resources and finances of his
business. You should also ask him to what extent he utilises technology to support customer
relationship management of his business.
Use the information that you have gathered through the interview and answer the following
questions:
1. Discuss how the owner of the small business you have visited, manages the business’s human
resources. Do you think is there a need for improvement? If yes, provide recommendations for
improvement.
XYZ Bakery, a small, family-owned bakery located in Cape Town, South Africa, has been operating
for over ten years. The bakery is well-known in the local community for its artisanal bread, pastries,
and cakes. Like many small businesses, the owner of XYZ Bakery, Mr. John Smith, is responsible
for managing the business's human resources. Given the bakery's small size, Mr. Smith handles most
of the HR functions personally, including recruitment, selection, training, and compensation. This
essay will explore how Mr. Smith manages the bakery's human resources, identify any deficiencies,
and provide recommendations for improvement.
HR Management at XYZ Bakery
Recruitment and Selection
At XYZ Bakery, recruitment is primarily conducted through word-of-mouth and referrals from
current employees. Mr. Smith prefers to hire individuals from the local community, as he believes
this fosters a sense of loyalty and helps build strong relationships with customers. Job advertisements
are rarely posted online or in local newspapers, as Mr. Smith finds these methods too costly and
time-consuming.
The selection process at the bakery is informal. Mr. Smith typically conducts short, in-person
interviews with prospective employees, focusing on whether they have prior experience in the
baking industry and their willingness to work flexible hours. Background checks and skill
assessments are not part of the selection process, as Mr. Smith believes he can gauge a candidate’s
suitability based on the interview alone.
While this informal recruitment and selection process has worked for XYZ Bakery to some extent, it
has also led to challenges. For instance, the bakery has experienced high employee turnover,
particularly among younger staff members who often leave after a few months. This suggests that the
bakery may not always be attracting the right candidates or providing sufficient support to new hires.
