Business Revision Unit 1-9 2 mark questions

Methods of written communication

· Letter · Email

Reasons why effective internal communication is important for a business

· Fewer mistakes / less waste (of resources) · Improve efficiency / better productivity / increase output

Methods of internal communication a large business could use to share important information with employees

· Meeting / briefing / video conference · Email

Factors to consider when selecting an appropriate method of internal communication

· Who the message is to be sent to · Where/location of the sender/receiver · How many people does the message need to be sent to? · Mediums available

Job description

Outlines the responsibilities and duties to be carried out by someone employed to do a specific job

Ways a business could advertise a new job vacancy

· Job Centre · Specialist/trade magazines

Stages of the recruitment process

· Job analysis · Job description

Advantages of using internal recruitment

· Already know how business operates · Saves time / money on recruitment process

Legal controls over employment

· (Unfair) dismissal · Discrimination/equal opportunities

Reasons why a business might offer training to its employees

· To introduce a new process/new equipment · Improve efficiency/productivity

On-the-job training

Training at the place of work, watching or following an experienced employee

Off-the-job training

Training that takes place away from the workplace usually by a specialist trainer(s)

Induction training

Introduction given to a new employee explaining the businesses activities and processes and allow them to meet other employees

Methods of training

· On-the-job · Off-the-job

Reasons why a business might downsize its workforce

· Economic crisis · Factory/shop/office closure

Dismissal

Termination by the employer because the employee has broken company rules or is not performing work to the required standard

Redundancy

Job position has gone and so the employee is no longer required

Span of control

Number of people who answer directly to one manager in a hierarchy

Delegation

Give a subordinate the authority to perform particular tasks/make decisions

Trade union

Group of workers who join together to ensure their interests are protected

Functions of management

· Communication · Coordinate

Autocratic leadership style

Managers expect to be in charge of business and expect their orders to be followed

Chain of command

Structure within an organisation through which orders are passed from senior management to the lower levels

Specialisation

When people/businesses/countries concentrate on what they are best at

Benefits to a business of specialisation

· Increases output · Quicker production / increases productivity / higher efficiency

Opportunity cost

The next best alternative foregone / given up

Added value

Difference between price of a finished product and the cost of the inputs involved in making it

Public sector

Government/state owned businesses

Private sector

When individuals own business activities

Primary sector

Extracts and uses the natural resources of the earth to produce raw materials used by other businesses

Examples of business activity in the primary sector

· Mining · Fishing

Secondary sector

Firms that process and manufacture goods from natural resources

People employed in secondary sector businesses in country Y

3 million OR 3000000

Tertiary sector

Business or industry which provides OR sells services to consumers OR other sectors of the economy

Examples of business activity in the tertiary sector

· Accountants · Retailer