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

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

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

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

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

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

Give the three types of training with one drawback of each

Induction: introduces new staff

but is costly and may not cover everything.

On-the-job: cheap and practical

but mistakes and bad habits pass on

Off-the-job: fresh ideas and broader skills

but expensive and output is lost while staff are away.

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.

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.

Legal controls

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