Edexcel IGCSE Business: people in business

Internal and external communication examples?

Internal - ie. board meeting

External - ie. with customers

Formal and informal communication examples?

Formal - recognised comms channels.(emails, letters)

Informal - on texting apps, rumours, gossip

The importance of good communication

-Avoids mistakes, waste + confusion, may cause extra costs.

-Affects motivation.

-Slows decision making

-Poor external comms = bad for image ie. too low price on website.

Methods of communication, and give pros and cons?

Face-to-face - interviews, training, customer service etc.

Pros - immediate feedback, saves time, new ideas.

Cons - no records, limited audience, waffle, no prep.

Written - letter, reports, memorandums, forms, notices.

Pros - Can be clear (detailed), records kept

Cons - Time consuming, inflexible

Electronic communication(pros and cons)

Electronic communication - email, internet, mobile phones, social media, intranets (internal business network), videoconferencing and teleconferencing, public address systems, electronic noticeboards.

Pros - Inexpensive, immediate, wide reach, very direct to customers, can be analysed.

Cons - can be ignored, mistakes amplified due to reach + speed, open to fraud + misuse, tech dependent - glitches, viruses, hackers etc.

The problems of ineffective communications in business

Absences

Poor customer service

Breakdowns in supply chain

Time wasted

Demotivation

Mistakes/injuries

Removing barriers to communication

Recruitment - get good communicators i.e. by testing comm skills

Training - training in comms skills

Written comms - templates, standard letters + forms.

Tech - train workers in use of IT

Chain of command - simplify command chain (flatter = better comms)

Organise social events - improve bonding + relations between workers

Culture change - remove physical barriers (partitions etc.), open door policy, introduce formal comms systems.

Chapter 18

Recruitment and selection

Types of employment

Full-time - usually 5 days P/W, in EU, <48h P/W. Usually gets benefits (health insurance, overtime pay etc.)

Part-time - typically <30h P/W. Allow bus flexibility i.e. for busy times/ extended hours. May suit students.

Job share - may suit workers wanting more family time. Two minds rather than one, less stressed as less hours.

Casual - often on-call, so very flexible for bus, often in hospitality.

Seasonal - may be full-time, but short lived. I.e Christmas postal worker. May suit those liking to travel.

Temporary - I.e to cover for paternity leave or sickness. May be a doorway into permanent position.

Stages in recruitment

1. Decide what staff needed.

2. Job description/person spec created

3. Targeted advertising

4. Job application form completed + CV

5. Short list then interviews

6. Job offer.

Important to get this right due to expense of recruitment, induction + training.

Recruitment documents

Job description - clear expectations of role.

Person spec - quals, exp, skills, attitudes required.

Application form - standardises info collection.

CV - similar info to application form but personalised.

Internal and external recruitment

Internal - recruiting within bus (promotion etc):

-Cheaper; employees familiar with bus procedures

-Staff motivated by chance of promotion

-Candidate's qualities are known.

External - recruiting outside bus:

-Larger pool

-Fresh ideas into bus

Methods of attracting applicants

-Adverts (including all relevant info + different ads for different types of role + levels of work)

-Headhunting (bus approaches high level employees from outside bus.)

-Job centre

-Direct applicants (bus keeps speculative applications)

-Word of mouth

-Employment agencies

Interviewing

-Interview can clarify info on CV + assess personalities + challenge candidates by using problem solving questions + open questions.

Chapter 19

Legal controls over employment

What are equal opportunities

Discrimination illegal most countries on gender, race, disability, sexuality, religion or age. Skill = only legit criteria.

Why business should avoid discrimination

-To avoid legal battles

-Might miss best candidate

-Brand reputation issues

Minimum wage laws

Laws specify lowest wage firm can legally pay employee. Gov sets minimum wages to:

-Benefit disadvantaged workers (I.e women)

-Reduce poverty

-Help bus

-Promotes equality + fairness so reduces staff turnover + absences

-More motivation

-Less need to pay benefits to poor

Benefits of minimum wage to businesses

-Motivated workforce

-More disposable income = more demand

-Staff more reliable + committed

The importance of training?

-Increases worker's knowledge + skills

-new skills + improves existing ones

-Improves motivation, so prod better

-Safety

Induction training

Given to new employees when they first start job. Helps recruits become familiar + settle in. It involves:

-Complete tour of workplace

-Health + safety training

-Company policies i.e dress code, holidays etc.

-Company history, aims + objectives

-Introduction to senior staff

-Introduction to job + colleagues

On-the-job training

Recruits trained in workplace while doing the job:

-Watching another worker. good if staff committed teacher, if not, quality poor.

-Mentoring. Recruit given advice + guidance by employee.

-Job rotation. Recruit spends time in many different parts of bus.

Advantages + disadvantages of on-the-job training

Advantages:

-Output produced

-Trainees learn by doing job

-Cheaper

-Easy to organise

Disadvantages:

-Output can be lost through mistakes + time

-Stressful for worker

-Staff frustrated if are 'unpaid' trainers

-Danger to others (surgeon/train driver)

Off-the-job training

Training away from work area.

-Workers going to college once a week

-Managers travelling overseas to learn new techniques

Advantages + disadvantages of off-the-job training

Advantages:

-Output not affected by mistakes

-Learning not distracted by work

-Training can happen outside of work hours

-Customers + others not at risk

Disadvantages:

-No output

-Expensive if provided by specialists

-Some aspects cannot be taught

-May take time to organise

Training in health and safety

May be taught in:

-Using + maintaining safety equip + protective clothing

-Importance of hygienic envir

-Dangers from hazardous substances

-Protection needed from violence, bullying + threats in workplace

Benefits of training

-Keeping workers up to date

-Improve labour flexibility

-Improve job satis + motivation

-New jobs in bus

-Training for promotion, needed when workers promoted

Limitations of training

-High training + resource costs

-Learning by doing, some jobs cannot be simulated

-Loss of output

-Employees leaving, may join rival once trained.

Chapter 21

Methods of motivation at work

Renumeration - Time rates and piece rates

Time rates - paid to time spent at work. Paid in hours/weeks. Overtime = higher hourly rate for extra hours. Salary = annual terms + paid monthly.

Piece rates - according to prod. Rewards productive workers, lazy/slow earn less. motivates + bus gets more from staff. Problems:

-Cannot be used if work cannot be measured.

-Output quality suffers if people work too fast.

-Staff use dangerous practices working too fast.

Renumeration - Performance-related pay

Motivates non-manual workers. Rewards workers whose output difficult to measure. Best with appraisal system showing staff prod.

Targets met/exceeded, pay higher. Problems:

-Unfair - inconsistent (rewards for favourites)

-Financial incentives may not be high enough

-May feel performance targets too demanding

-May blame other factors if targets missed.

Renumeration - Bonus payments and commission

Bonuses - in addition to wage/salary. Paid if targets met. Can be paid to groups.

-Bonuses only paid if targets met.

-May motivate as staff work hard to reach bonus.

Commission - Payment for reaching target. Often to reward sales staff. Motivates

Promotion

Bus rewards staff if clear route to top. Motivates workers, as promo = higher pay. Bus must internally recruit if promo to motivate

Fringe benefits

Job 'Perks'. Reasons:

-Cheaper than cash. Less tax for staff

-Prod bettter - less staff abs. Healthier as priv healthcare, company gym etc.

-Attracts + retains better-qualified staff

-Staff protec + security, worker satis (i.e priv health in countries no free health)

-Motivates as some perks performance related.

Non-financial rewards

-Some people not motivated by cash

-May attach more imp to non-financial rewards

-If team work = indiv financial rwrds not right.

-Motivational theories (Maslow + Herzberg) = non-financial rwrds motivate

Job Rotation

Job enrichment moving employees from job to job.variety + reduces boredom.

Advantages:

-Can motivate workers

-Gives bus more flexibility

Disadvantages:

-Training costs will rise

-Benefits of specialisation lost.

Job enrichment

Jobs more challenging + rewarding. Staff given more responsibility + challenge to motivate.

-Can develop unused skills

-Makes work more interesting.

-May aim for promo + feel more valued

*if more work without resources/training, displeased.

Autonomy

Improves motiv - given auth to make choices + decisions about way they work. Goal set by management, staff decide how to reach it:

-Workers control + shows can be trusted

-emp self-confidence + recognises ach

-Prod higher + reduces manag + superv

BUT:

-If no extra pay, negative response

-May think way to rid managers + 'squeeze' staff

-May not be confident with more responsibility

Chapter 23

Organisation structure and employees

Organisational charts

Internal structure bus = formal organisation, shown as organisation chart showing:

-How bus split into func + departments

-Staff roles + job titles

-Who has responsibility

-To whom people accountable

-Comms channels

-Relationship between positions in bus

Features of organisational structures

Flat and hierarchical (tall) structures

Flat = fewer layers in hierarchy, chain of command short but span of control wide:

-Comms better - chain of command short

-Management costs lower - fewer layers

-Control friendly, more direct contact

Hierarchical:

-Comms poor as long chain of command

-Management costs higher

-Clear route for promo to motivate staff

-Control more formal + less friendly

Features of organisational structures

Delegation

Manager may give complex task to subor Manager still has responsibility of task:

-Time saved if subordinate completes task

-Can motivate - trusted with responsibility

-'extra' work given without reward

Centralisation and decentralisation

Centralisation

Centralised = employees no authority.

Centralised advantages:

-Senior manag has complete resource control

-Senior manag trained + exp in decision making

-Prevents part of bus acting independently

-Coordination + control easier

Centralised disadvantages:

-Staff demotivated without authority

-Brings less creativity + fewer ideas

-Procedures needed for decision making

-Top staff out of touch with customers

Centralisation and decentralisation

Decentralisation

Decentralised = staff make decisions.

Decentralised advantages:

-Autonomy + better motivated

-Speeds decision making

-Pressure off managers by reducing work

-Chance to be creative + share ideas

-promo opportunities at different levels

Decentralised disadvantages:

-Managers lose control of resources

-Costs rise - less standardised decisions

-Some staff cannot make decisions

-May not welcome extra responsibility

Human resources (HR) department

Responsible for staff welfare. Involves:

Workforce planning - calc number + types needed

Recruitment + selection - plans staff, job ads etc.

Training - organise induction + training

Health + safety - must comply + ensure staff trained.

Staff welfare - must meet staff needs.

Employment issues - must draw up contracts of emp

Ind relations - maintain good comms with trade uni

Disciplinary + grievance procedures - must resolve.

Dismissal - gives formal warnings + lays off staff

Redundancy - formal procedure followed if sacked

Finance department

Must administer + monitor bus transactions. Involves:

Recording transactions - details every purchase + sale

Wages + salaries - processes wages/salaries for staff

Credit control - Monitors money owed by customers

Cash flow forecasting + budgets - controls bus money

Accounts - produces bus accounts, financ statements

Marketing department

Must market + sell products. Involves:

Market research - gathers, processes, presents data

Product planning - decides products to be marketed

Pricing - must decide prices for products

Sales promotion - develop effective promo methods

Advertising - create innovative + effective ads.

Customer service - quality

Public relations - comms between bus + stakeholders

Packaging - design of packaging

Distribution - products to cust right place, right time.

Production department

Makes goods + provides services. Involves:

Design - can design prods for individual cust

Purchasing - buying resources needed by bus

Stock control - storing, controlling etc resources

Maintenance - of machines + property

Research + dev - investig + discover mat, proc + prod

Taylors theory?

• Workers are motivated mainly by pay

• They need tightly-defined tasks and close supervision

Maslow's Hierarchy of Needs

• People move through levels of needs that motivate them

• Once a need is met, it no longer serves to motivate

Herzberg's Two Factor Theory

Money is not a motivator but a lack of money leads to dissatisfaction

Workers are motivated by factors such as the opportunity to develop their skills

Maslow’s hierachy of needs?