People in business-Topic 2

Distinguish a job description from a person specification

Job description = the ROLE: Tasks, duties, responsibilities, hours, place of work

Person specification = the PERSON: Qualifications, skills, experience, qualities needed

Stages of recruitment process

Define role

Determine the source

Advertise

Definition job specification

Outlines qualifications, skills, experience and personal qualities required from a candidate for a specific job

example: problem solver, good communicator, able to code…

Definition job description

Outlines the duties, responsibilities and requirements of a particular job

example: duties, hours and location, pay and conditions

Examples of internal advertsisment

• Email to employees

• Noticeboard

• Company intranet

Examples of external advertsisment

• Job websites

• Newspapers

• Social media

• Recruitment agencies

Compare internal and external recruitment

Internal: Cheaper, faster, ability already known, motivates staff

but no fresh ideas and creates another vacancy

External: New skills and a bigger applicant pool

but costly, slower, and the candidate is unproven

Application form

What is it?
A form completed by a job applicant giving information such as education, qualifications, skills and experience.

Advantages:

• Easy to compare applicants because everyone gives similar information.

• Helps the business shortlist suitable candidates.

Disadvantages:

• Takes time for applicants to complete.

• May not give enough detailed information about the applicant.

CV(Curriculum Vitae)

What is it?
A document that gives detailed information about an applicant's education, qualifications, skills, experience and achievements.

Advantages:

• Gives the employer lots of information about the applicant.

• Shows the applicant's skills and experience clearly.

Disadvantages:

• Applicants can exaggerate or lie about their achievements.

• CVs can be different formats, making applicants harder to compare

Covering letter

What is it?
A short letter sent with a CV explaining why the applicant wants the job and why they are suitable.

Advantages:

• Allows applicants to show their personality and enthusiasm.

• Explains why they are suitable for the specific job.

Disadvantages:

• Can be subjective, so the employer may judge applicants based on writing style.

• Takes extra time for applicants to write and employers to read.

Name four selection methods and say what each tests

Interviews (communication and fit, but interview skill isn't job skill)

Selection tests (actual ability)

Assessment centres (teamwork and problem-solving under observation)

References (honesty about past performance)

When is an assessment centre worth the cost?

For senior or high-stakes roles, where a range of skills matters and a wrong hire is expensive.

It observes candidates completing real tasks rather than just describing themselves

Choosing who to employ

-Can the business fulfil the applicant’s pay and conditions demands

-Can appropriate fringe benefits be offered

-are attractive development opportunities available to the applicant

Factors used to select best applicant

Experience:
-Which applicant has the most relevant work experience

-How might broader experiences help an applicant succeed in a specific role

Qualification:

-Are formal qualifications essential for filling the post

example: a teacher with a degree in their subject

Internal or External candidate:
-How important is that the applicant already has a good understanding of how the business operates

-Time may be saved on induction training and productivity may reach expected levels sooner than wiht an external candidate

-How important is skills and experience gained from outside

Gut feeling:

Will the worker fit in with the business’s culture and values

What goes in an employment contract, and what types exist?

Names, start date, hours, pay, holiday, duties, place of work, sick pay, parental leave, notice period.

Types: full-time, part-time, job share, zero hours.

It protects both sides clarity for the employer, security for the employee

Employment contract

Definition: A legal agreement between an employer and employee that sets out the terms and conditions of employment.

Benefits for the employer

• Clear expectations – states the employee's duties and responsibilities.

• Protects the business – gives evidence of agreed terms if there is a dispute.

• Sets working conditions – can state working hours, pay, holidays and notice periods.

• Helps manage employees – employees know what is expected of them.

Benefits for the employee

• Job security – gives written evidence of their employment.

• Clear pay and hours – states salary/wage, working hours and holidays.

• Protects their rights – the employer must follow the agreed terms.

• Reduces disputes – both sides know what they agreed to.

Definition dismissal

Dismissal that takes place when an employer ends an employee’s contract of employment with the business

When is dismissal fair, and what counts as unfair dismissal?

Fair: redundancy, inability to do the job, long-term illness,

gross misconduct such as theft or violence.

Unfair: no valid reason, discrimination, or avoiding redundancy pay.

The worker can go to an industrial tribunal and may win compensation and reinstatement

Reputational damage may result if guilty

Definition Health and Safety legislation

Require businesses to operate in a way that protects the physical and mental well-being of its employees, contractors and customers

Examples of health and Safety legislation for customer

Customers

• Safe products

• Safe premises, e.g. no dangerous floors or obstacles

• Clear safety warnings/instructions

• Products must not cause injury when used correctly

Examples of health and Safety legislation for employee

Employees

• Safe working conditions

• Safety training

• Protective equipment

• Safe machinery

• Risk assessments

Forms of discrimination

-Age

-Gender

-Race

-Religion

-Disability

Employment legislation

-Minimum wage level

-Employment contracts

-Health & Safety

-Discrimination

-UNfair dismissal

Explain the effect of a legal minimum wage on employers and employees

Employers: higher variable costs, more incentive to train unskilled staff, and skilled workers demanding rises to restore differentials

Employees: higher earnings, better living standards, less exploitation, stronger incentive to work

Effect of legal controls over employment on employee

Advantages:

• Protects employees' rights → they cannot legally be treated unfairly.

• Safer working conditions → reduces the risk of accidents.

• Fair pay → minimum wage laws prevent extremely low wages.

• Protection from discrimination → employees should have equal opportunities.

Disadvantages:

• Some businesses may offer fewer jobs because employment becomes more expensive.

• Businesses may reduce working hours to control costs.

Effect of legal controls over employment on employer

Advantages:

• Clear rules make it easier to know what the business must do.

• Fair treatment can improve employee motivation and loyalty.

• Safer workplaces can reduce accidents and absenteeism.

Disadvantages:

• Higher costs from wages, training, safety equipment and benefits.

• More administration and paperwork.

• Businesses have less flexibility when hiring, managing or dismissing employees.

Examples on the job training

• Job rotation – employee learns different jobs.

• Coaching – manager teaches the employee.

• Shadowing – employee watches an experienced work

Examples off the job training

• College course

• Training centre

• Online course

• Conference/workshop

Examples induction training

• Workplace tour

• Meeting colleagues

• Health & safety training

• Learning company rules

• Learning how to use equipment

Evaluate on the job training

Advantages:

• Cheaper

• Employees learn by doing

• Training is relevant to the actual job

Disadvantages:

• Mistakes could affect customers/products

• Trainer may be less productive

• Employees may learn bad habits

Evaluate off the job training

Advantages:

• Specialist trainers

• Employees can focus fully on training

• Can learn new skills and ideas

Disadvantages:

• More expensive

• Employees are away from work

• Training may not be specific to the business

Evaluate induction training

Advantages:

• Employees settle in quickly.

• Fewer mistakes.

• Improves safety.

• Increases confidence and productivity.

Disadvantages:

• Costs money.

• Takes time.

• Employees are less productive during training.

• Training may not be effective.

Name the four functional areas and what each does

Operations (makes the product or delivers the service)

Marketing (identifies and meets customer needs)

Finance (manages money, budgets, accounts),

Human Resources (manages the workforce).

What is the relationship between chain of command and span of control?

The chain of command is the line of authority from top to bottom

The span of control is how many people one manager supervises

A long chain usually means a narrow span; a short chain means a wide span

Compare tall and flat structures

Tall: Many levels, long chain, narrow span

clear authority and specialisation,

but slow decisions and communication barriers.

Flat: Few levels, short chain, wide span

fast decisions and open communication,

but unclear hierarchy and staff stretched across roles.

Evaluate flexible working for a business

Pros: Higher motivation and productivity, lower absenteeism and turnover, attracts a wider talent pool, smaller premises needed.

Cons: Harder to arrange meetings and supervise staff, staff may feel isolated, and it doesn't suit customer-facing roles.

Name the five functions of management

Planning (set targets and budget resources),

Organising (arrange resources),

Coordinating (align teams to a shared goal),

Commanding (guide and supervise staff),

Controlling (evaluate performance and correct problems).

Pros and Cons of delegation?

Pros:

Reduces the manager’s workload.

Employees feel trusted and motivated.

Develops employees’ skills.

Can lead to faster decisions.

Cons:

Employees may make mistakes.

Manager has less control.

Work may be done incorrectly or slowly.

Can increase training costs.

Describe and evaluate the three leadership styles

Autocratic: decides alone, one-way communication

fast and vital in a crisis, but demotivating and stifles ideas.

Democratic: consults but has final say

high engagement and innovation, but slow.

Laissez-faire: minimal guidance

creative and empowering, but risks poor coordination and falling productivity.

Definition autocratic

A manager makes decisions alone without asking employees.

Its a one way communication

Which leadership style suits which situation?

Unskilled workforce in a crisis → autocratic.

Skilled workforce in a stable environment → laissez-faire.

Most situations in between → democratic.

Never argue that one style is always best.

Why do businesses downsize, and how is redundancy decided?

Downsize:

Falling demand, duplicated roles after a merger, cost-cutting, closure, automation, retrenchment, relocation.

Redundancy:

Selection uses productivity, attendance records, length of service, and whether the worker has skills transferable elsewhere.

What does trade union do?

It protects employee rights, negotiates pay and conditions, supports members in disputes, gives legal advice, provides training and pushes for better health and safety.

Evaluate trade union membership for employees

Pros: Collective bargaining means they don't negotiate alone, typically higher pay and better conditions, free legal advice and training.

Cons: Union decisions may not reflect every member's view, fees reduce take-home pay, strikes are unpaid, and non-strikers may face pressure from colleagues.

Describe the communication process and why feedback matters

A sender transmits a message through a medium to a receiver, who gives feedback. Without feedback the sender cannot know the message was understood

this is the difference between one-way and two-way communication.

What decides which communication method to use?

The number of receivers, how technical or detailed the message is, whether a permanent record is needed, whether feedback is required, and cost and speed.

Example: A group email reaches 300 staff at once; a meeting suits detailed discussion.

Give the benefits of effective communication

Faster and better decisions, fewer mistakes, higher motivation because staff feel informed, better customer relationships, and clearer coordination between departments.

Name the main barriers to communication

Jargon or complex language, poor timing, information overload, noise and distractions, technology failures, no feedback, and choosing the wrong method for the audience.

How can each communication barrier be removed?

Jargon → plain language.

Poor timing → send when people can focus.

Overload → break it into parts and prioritise.

Noise → choose a quiet setting or repeat key points.

Technology failure → have a backup and test in advance.

No feedback → ask questions and confirm receipt.

Wrong method → match method to message and audience.

What does a motivated workforce give the business?

Higher productivity, better quality with fewer mistakes, lower absenteeism, lower labour turnover (saving recruitment and training costs), and greater reliability.

Always name a specific benefit — never just "it's good for the business".

Explain and evaluate Taylor's theory

Workers are motivated by money

break jobs into simple timed tasks and pay piece rate.

Strength: raises output and suits repetitive production work.

Weakness: ignores social and psychological needs and makes work boring, raising turnover.

Explain Maslow's hierarchy and apply it to a workplace

Physiological → safety → social → esteem → self-actualisation, each met before the next motivates.

Applied: pay meets physiological, a permanent contract meets safety, teamworking meets social, promotion and recognition meet esteem, challenging projects meet self-actualisation.

Explain Herzberg's two-factor theory and what it means for managers

Hygiene factors (pay, conditions, supervision, job security) only prevent dissatisfaction. Motivators (achievement, recognition, responsibility, advancement) create real satisfaction.

So fixing pay alone stops complaints but doesn't motivate — job enrichment does.

Name the financial and non-financial methods of motivation

Financial: time-based wage or salary, piece rate, commission, bonus, profit sharing, fringe benefits.

Non-financial: praise and recognition schemes, job enrichment, job rotation, teamworking, training, promotion opportunities.

Definition Internal recruitment

Recruiting an existing employee to fill a vacancy within the business.

Definition Structures (Tall and Flat)

Tall structure: Many levels of management and a small span of control.

Flat structure: Few levels of management and a large span of control.

Definition External recruitment

Hiring an employee from outside the business.

Theories of Motivation

1. Taylor — Money motivates

Workers are mainly motivated by money.

Businesses should use piece-rate pay (paid for each item produced).

More output → more pay → higher motivation.

2. Maslow — Hierarchy of needs

Employees have different needs:

1. Physiological → wages, breaks

2. Safety → job security

3. Social → friendships, teamwork

4. Esteem → recognition, promotion

5. Self-actualisation → achieving potential

Idea: Businesses should meet employees' needs to motivate them.

3. Herzberg — Two-factor theory

Two types of factors:

• Hygiene factors: pay, working conditions, job security → prevent dissatisfaction.

• Motivators: achievement, recognition, responsibility, promotion → create motivation.

Definition Communication process

The way a message is sent from a sender to a receiver.

Definition Trade union

An organisation that represents employees and protects their rights and interests.

Definition Redundancy

When an employee loses their job because their role is no longer needed.

Delegation — Pros & Cons

Pros:

• Reduces the manager’s workload.

• Employees feel trusted and motivated.

• Develops employees’ skills.

• Can lead to faster decisions.

Cons:

• Employees may make mistakes.

• Manager has less control.

• Work may be done incorrectly or slowly.

• Can increase training costs.

Definition Delegation

When a manager passes a task and responsibility to an employee.

Definition flextime

A working arrangement where employees can choose their start and finish times within set limits.

Definition compressed week

Employees work their full hours over fewer days.

Definition home working

Employees work from home instead of at the workplace.

Definition Legal controls

Laws, regulations, and legal requirements that govern how individuals, businesses, and organizations must behave

Benefits of being full time employee

• Regular income → Usually receives a stable salary.

• Job security → Often has more stable employment.

• Paid holidays → May receive paid annual leave.

• Sick pay → May receive pay when unable to work due to illness.

• Employee benefits → May receive pensions, healthcare or other benefits.

• Training and promotion → More opportunities to develop skills and progress.

Definition recruitment

Process of attracting and identifying potential job candidates who are suitable for a vacant role

Why vacancies arise

-Business grow

-Employees leave (turnover)

-Business structure is reorganised

-Employees required when business start operating

Definition legal minimum wage

A national minimum wage (NMW) is a legally imposed wage level that employer must pay their workers

-It is set above the market rate of pay

-The minimal wage varies by age (in some countries)

-A minimum wage makes it illegal for an employer to pay an hourly rate below the minimum wage set

Definition training

Process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively

Definition Induction training

Introduces employees to organisation, its culture, policies, procedures and their ob roles and responsibilities

Examples of induction training

• Introduction to the business – its history, aims and structure.

• Tour of the workplace – showing them where everything is.

• Meeting other employees – introducing them to colleagues and managers.

• Job duties – explaining their responsibilities and tasks.

• Health and safety – explaining workplace safety rules and procedures.

• Company rules – explaining working hours, dress code and other policies.

• Terms and conditions – explaining pay, holidays and working arrangements.

• Training on equipment/systems – showing them how to use the tools they need.

Definition off-the-job training

Training that takes place away from the employee’s normal workplace, usually provided by an external trainer or an organisation.

Functional area

A group of workers with similar skills and expertise who carries out a specific organisational role

4 most common functional areas

Human ressources, finance, marketing and production

-Improve efficiency with specialists capable of working at a high standard on specific task

Outsourcing

When a business hires an external company or specialist to carry out tasks or services instead of doing them internally

Outsourced business

Reduce costs and ensure access to advice from specialists who may be expensive to employ directly

Operation

The activities and processes involved in producing goods or delivering services within a business

Operations include

-Ensuring quality of output

-Sourcing and purchasing raw materials and components

-Managing the design and testing of new products

-Inventory management

Marketing

Marketing focuses on understanding the needs and wants of both existing and potential customers

Marketing include

-Researching the market to plan products that meet consumer demand

-Organising their distribution

-Persuading customers to purchase a company’s goods or services

-Determining pricing tactics that attracts and retain customers

Finance

The finance department is tasked with managing the organisation’s money

Finance include

-Recording all incoming and outgoing financial transactions

-Collecting debts owed to the business

-Ensuring that bills and salaries are paid on time

-Setting and maintaining budgets

-Conducting financial forecasting

-Managing banking operations

-Preparing the annual financial report

Human resources

HR function is responsible for managing the workforce within an organisation and ensuring employee welfare

Human ressources include

-Recruitment and selection

-Trainning and development

-Maintaining healthy industrial relations

-Ensuring compliance with health and safety regulations

Organisational charts

Visual representation of the reporting relationships , roles and responsibillties of employees in an organisation

Chain of command

Formal line of authority that flows downward from top (management to lower-level employees)

The line of authority in a business that shows who reports to whom and who is responsible for making decisions.

Span of control

The number of employees a manager or supervisor effectively manage

-A narrow span of control means that there are more layers of management

-A wider span of control means that there are fewer layers of management

Tall organisational structure

Long chain of command that results in a narrow span of control

Flat organisational structure

Short chain of command that results in a wide span of control

Characteristics of tall structures

-Multiple levels of management

-A long chain of command and narrow span of control

-Common in large organisations with complex operations

example: government agencies, universties

Evaluating tall structures

Advantages:

Provides a clear hierarchy of authority and defined roles and responsibilities

-Promotes specialisation and expertise within each department or function

Disadvantages:

-Can create communication barriers between upper and lower levels of the hierarchy

-Decision making can be slow as infos must pass through multiple layers of management

Characteristics of flat structures

-Fewer levels of management

-A short chain of command and wide span of control

-Common in small organisations or start-ups

example: technology start-ups and small businesses

Evaluating flat structures

Advantages:

-Promotes a and open communication

-Decision-making can be faster and more efficient

Disadvanatges:

-Can lead to a lack of clear hierarchy

-May require employees to take on multiple roles and responsibilities leading to burnout and feeling overwhelmed