business strand 1

Methods of Conflict resolution

Strategies used to resolve disputes, including negotiation, mediation, arbitration, and concilliation

Negotiation

A process in which two or more parties communicate to reach a mutually acceptable agreement or solution. This may involve a shop steward (union representative).EG. employee looking for a wage increase , this may involve going back and fourth with a hr manger to find a settlement that is acceptable for both parties

Mediation

A mediator is a person who brings disputing parties together and acts as a go-between to help stakeholders resolve their conflicts. When there is no go forward a mediator will suggest proposals and hope that parties will accept and agree to move forward

Arbitration

An arbitrator is impartial and independent , they make a recommendation on how a dispute should be resolved. Before arbitration begins both parties may agree that they will carry out the arbitrators recommendation making it legally binding. EG labour court can provide an arbitration service and hear appeals from the WRC about things such as unfair dismissal, the labour court will make a determination on the case .

Conciliation

A third party , agreed to by both parties , listens to both sides. Their main aim is to encourage both parties to listen to one another and to reach an agreement. A conciliators decision is not legally binding and they do not impose a decision on the parties. The WRC offers a conciliation service to employees and employers when industrial disputes occur.

Stakeholders

Stake holders are all the people or organisations that play a part in the business or are affected by its decisions. Stakeholders depend on each other to survive in the business world.

Stake holder relationships

These are either co operative or competitive . Different types are : Dynamic , Interdependent and Dependent .

Dynamic relationship

These are relationships that are constantly changing. EG consumers will co-operate when a business produces a product consumers want and consumers receive a good product but this could turn into a competitive relationship if consumers felt the product was over priced or of poor quality

Interdependent relationships

These are mutually beneficial. Stake holders work together to get what they want while also helping each other . They can accomplish more together.

Dependent relationships

This is when stakeholders are essential to each others survival . EG Businesses need the government to provide support when starting their business and the government needs entrepreneurs to set up businesses, create jobs and provide tax revenue.

Economic indicator

An economic indicator is a statistic or piece of data or information that measures some element of an economies performance. These measurements or statistics can tell us if an economy is performing well or can be an indicator that certain elements of the economy are concerning and require intervention.

Inflation

Inflation is a sustained increase in the level of selling prices over a sustained period. It reduces the buying power of each euro. It is measured by the consumer price index (CPI). The central statistics office also measures the price of a regular basket of goods that an average consumer would spend their money on ( The national basket of goods and services).

Employment

Full employment is when all those who are seeking work are employed at existing wage rates about 96-98% of the labour force is employed.

Labour force: everyone between the age of 16-65 who are working or available for work, it includes both unemployed people and those in the workforce.

Unemployment: When people who are available for work and of employment age are out of work.

Interest rates

Interest is the cost of borrowing money. The amount of interest charged by a bank or other financial institution for a loan is the price that the borrower has to pay for the use of the money. Interest is also the return for saving money. It is expressed as a percentage of the amount borrowed or saved.

Economic growth and development

Economic growth is an increase in gross national product (GNP) per head without any changes in the structure of society. In other words, an increase in the value of goods and services produced in an economy from one period to the next.

Economic development occurs when the standard of living (or GNP per person) in a country increases, together with a fundamental change in the structure of society.

Exchange rates

exchange rates is the price of one currency in terms of another currency this determines how much your currency is worth in another country. This impacts cost of exports, imports and competitivesness.

consumer confidence

is a statistical measure of consumers feelings about current and future economic conditions. It is used as an indicator of the overall state of the economy.