Higher business - management of finance, motivation and leader ship and employee relations

Employee relations definition

Relation ship between management and employees

Positive employee relations

They can discuss changes so work feels happier and secure, disputes less likely since workers understand changes necessary, workforce committed for objective, easier to introduce change, staff more flexible, good image, customers and investors and potential employees attracted

Negative employee relations

Poor performance due to low morale, staff turnover, absenteeism, less cooperation, increase grievance and discipline problems, industrial action

Strike

Work stops

Go slow

Reduce productivity cuz slow rate

Work to rule

Only work contract

Grievances def

Problems raised by employee, ie working conditions and staff and change, raise with manager or HR or trade union or ACAS

How to best deal with grievances

Solve early, stop escalation, managers trained to deal, employees encourages to be open and honest, managers no judge or blame and should listen

Discipline def

Orgs company policies, used to deal with bad employees, covers absenteeism, conduct and internet

Discipline procedure

If minor then quiet word, dealt promptly and fairly and consistently, if formal then investigation carried out to set facts, employees are given facts and can out response forward, employees right to be accompanied, and can appeal against case, if serious then dismissal

Dismissal

Employer terminates employee contract, employer give account of broken policies, fair and consistent procedure, can't be unfair, employers can contact ACAS for advice

Redundancy

When employer no longer need worker, can cut costs, brings neg image, has to set notice and redundancy payment

Trade union

Represents group of employees, members collective bargain, gives stronger voice, benefits in matters that are taken in court

ACAS def

When trade union and employer no agree, gov funded, tries to solve dispute, Advisory Conciliation Arbitration Service

ACAS advisory

Experts on HR, provides advice and training to orgs

ACAS conciliation

Referee, help better understanding of each other position,

ACAS arbitration

Final decider, avoid court which is costly and time consuming and stressful

Employee participation. Examples

Worker director, work councils, consultative committees, quality circles

Employee participation worker director

Low level employee is in board of directors, present their views, no voting

Employee participation Work councils

Equal employee and manager number, discuss major suggestions, joint decisions, reduces resistance to change

Employee participation- consultative committees

Members of public discuss issues

Employee participation- quality circles

Employees consulted on how to improve standard

maslows hierarchy order 1-5

physiological needs(basic), safety, love and belonging, self esteem(job title ,recognition), self actualisation(realise potential and status)

hygiene factors

if not met, lowers motivation- payed, safety,

role of managers in motivating

provide motivators and hygiene factors

basic motivation methods

fair pay, payment methods9commision, performance bonus, piece rate,ovetime), contracts, safety

advanced motivation methods in higher business

Employee Empowerment: Granting decision-making authority and involving employees in decision-making processes.!!!! Recognition and Rewards: Acknowledging and appreciating employees' contributions and successes.!!! Continuous Learning Opportunities: Providing ongoing training and development programs to enhance skills and knowledge to improve status!!! appraisals

autocratic

control retained in leader, clear expectations, quick decisions, works when manager most skilled, no delegation or empowerment or creativity

democratic

managers and employees work together, motivated and creative,solve problemsbest, mistakes, less productive

laissez fair

let them be, empowering, relaxed, objectives not met, only for high professionals

scenarios affecting leadership style higher business

task complexity, time, skills of staff, personality, group size, corporate culture, financ

Finance source

Owners personal finance, retained profits, sale of assets, sell and lease back, share issue, debentures, bank overdraft, trade credit, debt factoring, grants, bank loan, hire purchase, mortgage, venture capitalists, crowd funding

Owners personal finance

Keep control, reduced borrowing, difficult to withdraw, risk of losing savings

Retained profits

Profits that were previously held back, used for larger purchases, no debt, difficult to grow if regular used

Sale of assets

Selling part org no longer needs, boosts cash flow, no repay, if urgent then sold for less than its worth

purcpose of budgeting

predict cash flow problems alike surplus or deficit, investement to be planned, when to take action, compare figures

solutions to cash flow problems

too much money in inventory- sell excess,jit. credit sales-offer cash discounts.switch suppliers with interest free, sell online, adapt marketing mix, sell debt to debt factories

opening balance definition

Cash available at the start.

closing balance

Cash available less total payments. cash available at end of month

reciepts

all the money coming into the business such as sales or rent received

cash available

available to spend- opening balance + total receipts

non current assests

items of value kept for more than one year0 show current value of major purchases that help run org

difference between less and non current liabilities

less short term, less long

net assessts

value of org when liabilities taken from assets

equity and reserve

how much investment and any profit kept

liquidity

Refers to the cash-flow situation in an organisation

income statement

A financial statement which shows the Gross Profit and Profit for the Year.

sa

Income Statement

A financial statement which shows the Gross Profit and Profit for the Year.

Sales revenue

The amount of money made from selling goods/services

Cost of Sales

The amount of money spent on selling goods

Gross profit

The profit made from buying and selling- improved by increase revenue and decrease costs

Expenses

The running costs incurred throughout the year

Profit for the year

The profit made after expenses are deducted- increased by reducing payments

Cash budget

Helps organisations remain liquid

Opening balance

amount of cash at the beginning of the month

Total receipts

The total cash received during the month

Cash available

The amount of cash available to spend - calculated by opening balance + total receipts

Total payments

the total amount of cash spend during the month

Closing balance

the amount of cash available at the end of the month, calculated by cash available - total payments

Problem: Cash sales are falling

Solution: the business should engage in marketing to boost sales

Problem: Purchases are increasing

Solution: Use JIT to avoid tying too much money up in stock

Problem: expenses are increasing

Solution: Negotiate a better deal with your suppliers

Problem: Negative closing balance

Solution: arrange short term sources of finance such as an overdraft

Statement of Financial Position

A financial statement that shows the items a business owns (assets) and items they owe (liabilities) and the overall value of the business.

Assets

Items owned by a business

Liabilities

Items owed by a business

Current Liabilities

Items owed for a period of less than one year

Non-current assets

Items owned for a period of more than one year

Current assets

items owned for a period of less than one year

Working equity

the ability to pay short term debts, calculated by current assets - current liabilities

Net assets employed

The value of non-current assets added to the working equity

Non-current labilities

items owed by the business for a period of more than 1 year

Net assets

The overall worth of the business, calculated by net assets employed - non-current liabilities

Equity

This shows how the business has been financed

users and purposes of finalcial statements

owners-asses profits to make decisions, employees- job secure check, hmrc-ensure correct tax, trade unions-if due oay rise, competitors-measure success, investors-potential, lenders-to give or not give loa

purcpose of budgeting

predict cash flow problems alike surplus or deficit, investement to be planned, when to take action, compare figures

solutions to cash flow problems

too much money in inventory- sell excess,jit. credit sales-offer cash discounts.switch suppliers with interest free, sell online, adapt marketing mix, sell debt to debt factories

opening balance definition

Cash available at the start.

closing balance

Cash available less total payments. cash available at end of month

reciepts

all the money coming into the business such as sales or rent received

cash available

available to spend- opening balance + total receipts

non current assests

items of value kept for more than one year0 show current value of major purchases that help run org

difference between less and non current liabilities

less short term, less long

net assessts

value of org when liabilities taken from assets

equity and reserve

how much investment and any profit kept

liquidity

Refers to the cash-flow situation in an organisation

income statement

A financial statement which shows the Gross Profit and Profit for the Year.

sa

Income Statement

A financial statement which shows the Gross Profit and Profit for the Year.

Sales revenue

The amount of money made from selling goods/services

Cost of Sales

The amount of money spent on selling goods

Gross profit

The profit made from buying and selling- improved by increase revenue and decrease costs

Expenses

The running costs incurred throughout the year

Profit for the year

The profit made after expenses are deducted- increased by reducing payments

Cash budget

Helps organisations remain liquid

Opening balance

amount of cash at the beginning of the month

Total receipts

The total cash received during the month

Cash available

The amount of cash available to spend - calculated by opening balance + total receipts

Total payments

the total amount of cash spend during the month