Term 2 & 3

Recruitment and selection

Recruitment is the process of finding, selecting, and hiring suitable candidates for specific a job position within a company

Internal recruitment

When a vacancy is filled by an existing employee of the business.

Advantages and disadvantages of Internal recruitment

Pros - Saves time and money- no need for advertising and interviewing, knows business’ ways of working(Jargon), Motivating for other employees to see their colleagues being promoted- urging them to work hard

Cons - No new skills and ideas coming into the business, Jealousy among co-workers

External recruitment

a vacancy is filled by someone who is not an existing employee and will be new to the business.

Job description

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

Job specification

Outlines the requirements, qualifications, skills and expertise required by an employee

Advantages of part-time employment OR Disadvantages of full-time employment

• more flexible hours of work

• easier to ask employees just to work at busy times

• easier to extend business opening/operating hours by working evenings or at weekends

• works lesser hours so employee is willing to accept lower pay

Disadvantages of part-time employment OR Advantages of full-time employment

• less likely to be trained because the workers see the job as temporary

• takes longer to recruit two part-time workers than one full-time worker

• can be less committed to the business/ more likely to leave and go get another job

• less likely to be promoted because they will not have gained the skills and experience as full-time employees

• more difficult to communicate with part-time workers when they are not in work- all work at different times.

On the job training

A form of training that takes place in a real work place setting

Advantages and disadvantages of on the job training

Pros - Cost-effective, Immediate use of training, gain practical skills.

Cons - Quality of training depends on trainer, Training on the job might disrupt work

Off the job training

A form of training away from the workplace done by specialists.

Advantages and disadvantages of off the job training

Pros - Diverse learning methods, Less disruption at work.

Cons - Costly, Less practical application

Financial rewards

Salary, wages, bonus, commission, promotion.

Fringe benefits

Free holidays, free healthcare, pension, company vehicles

Job rotation

When an employee does several tasks within a working day

Job enrichment

Giving employees more responsibilities and tasks to motivate them.

Motivation

Desire to achieve a goal.

Organizational hierarchy

Levels of responsibility in an organization from lowest to highest.

Centralisation

When most decisions are decided by the upper levels of an organization.

Market research

The process of collecting, analyzing and interpreting data about a product.

Purposes of market research

To identify what the customer wants and needs.

To identify gaps in the market.

To reduce risks for a new product launch.

Market share

The proportion of sales held by one organization in an industry.

Market analysis

A quantitative and qualitative assessment of the market.

Market segmentation

Dividing the market into smaller groups of customers with same needs and preferences.

Mass marketing

A very large market where products with mass appeal are marketed.

Niche market

A smaller more specialized sector of large market.

Product-oriented business

Firms produce the product first and then tries to find a market for it.

Market-oriented business

Firms will conduct market research to see what consumers want and then produce products to satisfy them.

Primary research

Collection of original data. (Focus groups, Focus groups, Questionnaires)

Secondary research

Collecting data that already exists. (Books, Internet, reports)

Skimming

Setting a high price for a new unique product

Penetration

Setting a very low price to attract customers to buy the new product

Cost plus

Adding a fixed amount to the cost of production