BUSINESS TEST UNIT 2 Flashcards

1
Q

What is communcication?

A

● Communication is, in essence, the process of sending and receiving
information.

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2
Q

What is a sender and reciever?

A

The sender is an applicant for a job. The message being sent is a job application form.
The receiver is the personal manager. The feedback is a letter inviting the applicant for a job interview.

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3
Q

How does communication take place?

A

Inside a business, messages can be passed vertically (upwards /
downwards) and horizontally (from side to side).
● These routes are called communication channels.

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4
Q

what is downward communication?

A

Downward communication usually
involves managers giving information or
instructions to their subordinates.
● It is important because:
○ Subordinates look to their managers for leadership
and guidance.
○ It allows decision made by management to be
carried out by employees.
○ It allows managers to command, control and
organise.

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5
Q

What is upward communication?

A

Upward communication often involves
giving feedback to managers. However, it
might also involve requests by workers.
● It is important because:
○ Helps managers to understand the needs and views
of their subordinates
○ May make managers aware of problems
○ Helps staff to feel they are valued
○ Provides managers with information to help make
decisions

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6
Q

What is horizontal communication?

A

Horizontal communication occurs when workers on the same level in
the organization exchange information.
● It is common within a department. For example, operatives are likely to
discuss their work with each other.

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7
Q

What is internal communication?

A

Internal communication takes place inside a business an example would be a manager giving a warning to a subordinate.

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8
Q

What is external communication?

A

External communication occurs when businesses exchange information
with people and organisations outside the business.
Examples include:
● A press release given by the company CEO to a news channel
● An article posted by the company to the public in the company website
● A company’s Instagram account (directed to the public)

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9
Q

What is formal and informal communication?

A

Formal communication takes place when people used recognised channels
when communicating.
Informal communication is through non-approved channels.

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10
Q

What are formal and informal groups?

A

Formal groups are those set up by the business.
○ Example: Marketing Department, Legal Department
● Informal groups are groups not officially established by the business.
○ Example: Employees who meet outside work for coffee, groups of workers that train
together during the afternoon, close friends who work in different departments

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11
Q

What is formal and informal communication?

A

When formal communication channels and informal communication
channels give different messages, problems can arise.

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12
Q

What are some methods of communication?

A

● Face-to-face
● Written
● Electronic

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13
Q

What are some barriers to communication?

A

Communication is only effective if the receiver understand the message
sent. Things that get in the way of good communication are called
communication barriers. Some examples are:
○ Lack of clarity
○ Technological breakdown
○ Poor communication skills
○ Jargon
○ Distractions
○ Business culture
○ Long chain of command
○ Using the wrong medium
○ Different countries, languages and cultures

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14
Q

What is Jargon?

A

Some people use jargon when communicating, or vocabulary that is used
and understood by people in a specific group - but might be meaningless
outside that group.

● Example: An employee using extremely technical words when asked for
help by a customer…

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15
Q

What are the potential problems with a long chain of command?

A

If there are too many levels of management, the chain of command will
be longer. This means messages might take longer to pass through the
chain and may become unclear or inaccurate on the way.

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16
Q

What problems could arise from using the wrong medium?

A

Senders must choose the most appropriate and cost-effective methods
to communicate.

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17
Q

What are some problems with using ineffective communication?

A

Problems of ineffective communication in business
● Ineffective communication in business can result in expensive problems.
○ Higher staff turnover
○ More staff absences
○ Poor customer service
○ More work-related injuries
○ Difficulties making changes
○ Higher legal costs
○ Lower profits

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18
Q

What are some dangers of ineffective external communication?

A

Can damage relationships with customers
○ With customers, poor communication may result in misunderstandings,
misinformation and poor-quality customer service.
○ If communication problems cannot be solved, customers may find alternative
shops or suppliers, which will result in lost revenues and lower profits.

● Can damage relationships with suppliers
○ Production might be affected

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19
Q

What are some dangers of ineffective internal communication?

A

● Ineffective internal communication results in low motivation, disengaged
workers, conflict, mistakes and injuries.

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20
Q

How can barriers to communication be removed?

A

Barriers to communication may be removed, or reduced, by:
○ Recruitment
○ Training
○ Written communication
○ Technology
○ Chain of command
○ Social events
○ Culture change

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21
Q

What are some types of employment?

A

When a business takes on workers it can choose between different types
of employment:
○ Full-time employment
○ Part-time employment
○ Job Share
○ Other types of employment:
■ Casual employment
■ Seasonal employment
■ Temporary employment

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22
Q

What are the schedules of some types of employment?

A

Full time
○ Employee is expected to work the full
working week (usually Mon - Fri)
○ Usually, workers have certain
additional benefits like health
insurance, overtime pay, etc.

● Part time
○ Employees work less than full-time
colleagues, previously arranged with
business (ex. 30 hours a week)
○ Gives business and employee
flexibility

● Job sharing
○ Minority of businesses provide this
employment scheme
○ Two part time workers share the work
and pay of a single full-time post.bb

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23
Q

What are some types of employment in more depth?

A

Casual employment
○ No work guarantee from employer
○ Hours of work are variable and
uncertain
○ Work can be asked for on short notice

● Seasonal employment
○ Regular and full time job for a limited
period of time (or season)
○ Usually full time, provides businesses
with flexibility since seasonal
employers are laid off when the
season ends.

● Temporary employment
○ Regular and full time job for a limited
period of time
○ Examples are covering for a maternity
leave or long-term sickness

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24
Q

What is recruitment?

A

In a large business, the HR department is responsible for employing staff.
A business may need new staff because:
○ the business is expanding and more labour is needed
○ an employee is leaving and needs to be replaced
○ vacant positions due to promotions
○ people are required for a temporary period to cover staff absence - due to a maternity
leave, for example

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25
Q

What is internal recruitment?

A

Internal recruitment is the hiring of someone who already works for the company. A business might do this by advertising the post internally or appointing someone who is thought to be suitable. one major advantage Is that it is obviously cheaper.

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26
Q

what is external recruitment?

A

external recruitment is recruiting someone from outside the business.

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27
Q

What are job advertisements?

A

Important pieces of information that are likely to be included in a job advert
are:
● Job title
● Name, address, email and telephone number of employer
● Brief details of the job description
● Skills, qualifications and work experience required for the job
● Salary and other benefits
● Method of application

A business has to choose which media to use when placing the advert.
● The choice will depend on the area the business plans to target and the
type of worker needed.

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28
Q

What is shortlisting?

A

● Selecting a small group of candidates suitable for interviewing - this is
called shortlisting.
● It involves sorting through all the application forms or CVs and choosing
those applicants that best match the person specification.
● This can be a time consuming task - application forms can make this job a
bit easier/faster.

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29
Q

What are the legal controls over employment?

A

● Governments often pass legislation to protect people at work.
● Without such protection, some businesses might exploit their workers, in
ways such as:
○ Low wages, working long hours, denial of employment rights, exposure to danger,
discrimination against certain groups, etc.

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30
Q

What are equal opportunities in business?

A

Businesses have to make a choice when recruiting staff or selecting
employees for promotion or training.
● If a business chooses a person because they are more skilled or better
qualified than another, this would be legal.
● However, choosing one person rather than another based on
characteristics is known as discrimination. It is illegal (in most countries)
to discriminate on the grounds of gender, race, disability, sexual
preference, religion or age.

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31
Q

How does gender play a role?

A

Gender discrimination (sometimes reffered to as sex discrimination) occurs
when a person in the workplace does not receive the same treatment or pay
because of gender.

32
Q

How does race and religion play a role?

A

Businesses must ensure that they do not discriminate on grounds of colour,
race, ethnic origin, religion or nationality.

33
Q

what if you have a disability?

A

Employers are obliged to make reasonable adjustments to their working
practices and work environment to help accommodate employees with special
abilities.

34
Q

What role does your sexual performance play?

A

Discrimination against people on grounds of their sexual preference is illegal
in some countries.

35
Q

What about your age?

A

Age discrimination occurs when a business decision is made on the grounds
of a person’s age.
Many countries do not have specific age discrimination legislation but
protection is still provided under laws that make discrimination of all types
illegal.

36
Q

what are some consequences of workplace discrimination?

A

● Fail to recruit or promote the best staff for the post
● Demotivate certain sectors of the workforce
● Create unnecessary tension and conflict between employees
● Expensive legal battles

37
Q

How does minimum wage fit in?

A

● Generally, owners are free to set levels of pay in their business. However,
in some countries governments have introduced a legal minimum wage.
● No employer is allowed to pay the workers an hourly rate below the limit
set.
● Employers face penalties if they pay less than the legal minimum wage.
● Minority of workers that might be excluded from the minimum wage:
workers hired in an apprenticeship scheme, for example.

Three important reasons why governments set legal minimum wages:
● To benefit disadvantaged workers
● To reduce poverty
● To help businesses

38
Q

What are the effects of minimum wage law on business?

A

● Most governments increase the minimum wage every year, therefore
businesses employing people on minimum wage will have to match this
increase.
● Some people argue that introducing minimum wage results in job losses -
in theory, if the price of labour rises, demand for it will fall. However, this
is not always the case.
● If a business is doing well, even when wages go up, they are not likely to
lay people off if they are needed to meet rising consumer demand.
● It is also suggested that higher wages encourage businesses to replace
labour with capital and outsource production to countries where labour is
cheaper. However, this is not possible for many sorts of businesses.

39
Q

What are some benefits of minimum wage?

A

Some benefits of minimum wages to businesses are:
● People on low pay may be better motivated and more productive (due to
a pay rise from minimum wage)
● Low wage earners will have more disposable income so demand for
goods/services will likely rise. This will help drive up sales and profit for
some businesses.
● Lower rates of staff absence and better reliability.

40
Q

What is the importance of training?

A

● Training involves increasing the knowledge and skills of a worker to
enable them to do their job more effectively.
● Training is important because it allows employees to acquire new skills,
improve existing ones, perform better, increase productivity and be
better leaders.

● Training improves employee motivation - which can make productivity
higher.
● Involves teaching new recruits how to work safely in their new
environment.

41
Q

What are some consequences of training?

A

● Training can be expensive and in some cases the cost discourages
investment in training.
● This may result in lower productivity and a loss of competitiveness.
● A lack of training might also endanger workers.

42
Q

What are the different types of training?

A

● Induction training
○ Given to employees when they first start a job
● On-the-job training
○ Takes place while doing the job
● Off-the-job training
○ Takes place away from the workplace

43
Q

What is mentoring?

A

● The trainee is paired with an experienced member of the staff for a given
period.
● The trainee is put to work on their own without direct supervision.
● Employees can call on the mentor for advice and guidance.

44
Q

What is job rotation?

A

● New recruit spending a period of time in several different departments at
a business.
● The employee learns different skills required and will grain a broad
knowledge of how the business works.
● This approach improves the flexibility of the business.

45
Q

What is training in health and safety?

A

● Governments aim to protect their workers with legislation that forces
businesses to provide a safe and healthy workplace.
● Examples are:
○ Using and maintaining safety equipment and protective clothing
○ The importance of a hygienic environment
○ Dangers of hazardous substances
○ Protection needed from violence, bullying, threats and stress in the workplace

46
Q

What is training in health and safety?

A

Training in health and safety
● Governments aim to protect their workers with legislation that forces
businesses to provide a safe and healthy workplace.
● Examples are:
○ Using and maintaining safety equipment and protective clothing
○ The importance of a hygienic environment
○ Dangers of hazardous substances
○ Protection needed from violence, bullying, threats and stress in the workplace

47
Q

Why is motivation important in the workplace?

A

● A well motivated workforce will perform better.
● If people are happier at work, there is a more positive work
environment and labour productivity will be higher.
● Business profits are likely to be higher.

If employees are motivated:
● Easier to attract employees
● Easier to retain employees
● Higher labour productivity

48
Q

What are some motivators in the workplace?

A

Remuneration

● The money paid to employees for their work to an organisation.
● There are different methods of remuneration, each of them with
advantages and disadvantages.

49
Q

What are time rates?

A

● Workers get paid according to the amount of time they spend at work.
● It is a common system that involves paying workers a fixed amount per
hour, or per week.

example 20 hourly rate dollars x 37 hours worked = 740 dollars weekly pay

50
Q

What is a salary?

A

● Some employees are paid a salary, which is expressed in anual terms and
paid monthly.
● Usually paid to non-manual workers.
● Salaried workers are not always paid overtime.

51
Q

What are piece rates?

A

● Workers are paid according to how much they produce.
○ Example: An employee picking grapes and being paid US$0.50 per kilogram.
● Advantage
○ It rewards productive workers, so businesses are likely to get more output from
employees
● Disadvantages:
○ Cannot be used if work cannot be measured
○ Quality of output may be affected if people work too fast (quantity compromising quality)

52
Q

What is performance realted pay (prp)

A

● Payment system designed for non-manual workers where pay increases
are given if performance targets are met
● Used to motivate non-manual workers
● Works better if businesses use appraisal systems to evaluate staff
performance, which involves meeting workers every year to:
○ Discuss progress at work
○ Assess whether targets have been met
○ Set new targets for the next year

53
Q

What are the advantages and dissadvantages of prp?

A

● Advantages
○ Links pay to performance
○ Only workers who perform will bee paid more
Disadvantages
○ Appraisers may be inconsistent
○ Financial incentives may not be high enough to motivate workers to improve their
performance
○ Some workers may feel performance targets are too demanding or affected by other
factors

54
Q

What are bonus payments?

A

● Paid in addition to the basic wage or salary
● Usually paid if targets are met
● Only paid if targets are met - money is only paid if it has been earned
● May help to motivate workers as they work hard to reach a target

55
Q

What is a commission?

A

● Payment that an employee makes based on a sale
● Often used to pay sales staff
○ May be the entire salary of a salesperson (example: real estate agents)
○ Pay a low basic salary and top it up with commission payments

56
Q

What is a promotion in business?

A

● Motivating employees by the change of promotion
● Promotion nearly always comes with higher pay and bigger
responsibilities

57
Q

What are fringe benefits?

A

● Described as “perks” of the job, additional to the wage or salary
● They can be translated into money

● Advantages
○ May be cheaper to use fringe benefits than to give cash
○ Employees may also pay less taxes by getting fringe benefits instead of cash
○ Productivity may improve - less staff absences due to a better overall health coming from
private healthcare, counselling services, sports facilities, etc.
○ Provide protection and security for workers and their families - improving jobb
satisfaction

58
Q

What are non financial awards?

A

Non-financial rewards
Businesses use non-financial rewards because:
● Some employees are not motivated by money
● Some workers attach more importance to non-financial rewards
● Non-financial rewards can be important motivators (Maslow, Herzberg,
etc.)

59
Q

What is job rotation?

A

● Employees can change jobs from time to time. Workers have more work
variety and avoid boredom.
● Should help motivate workers and provide a business with more
flexibility.

● A possible disadvantage is that training costs may rise, another is that the
benefits of specialisation may be lost.

60
Q

What is job enrichment?

A

● Jobs being made more challenging and rewarding.
● Workers are given tasks that require more responsibility and creativity if a
business wants to motivate them.
● Gives employees the opportunity to develop unused skills.
● Herzberg identified this as a possible motivator in his two-factor theory.

61
Q

What are employees roles and responsibilities within a business?

A

The roles played by employees vary depending on the size and type of
business. Some common roles include:
● Directors
● Managers
● Supervisors
● Operatives
● General staff
● Professional staff

62
Q

Who are directors?

A

● Are appointed by the owners to run the business.
● They form the board of directors with the chairperson and make most of
the important decisions in the business.

63
Q

Who are Mangers?

A

● Their overall role is to achieve the objectives of the owners
● They are employed to “get things done” using the resources of the
business as effectively as possible

64
Q

Who are supervisors?

A

● Monitor the work in their particular area.
● They have authority over operatives and general workers. They carry out
managerial duties, but at a lower level.

65
Q

Who are the general staff?

A

● Staff that can perform a variety of tasks and gain promotion to other
positions
● Do not have authority

66
Q

Who are the professional staff?

A

● Staff that are skilled and highly trained.
● Examples include lawyers, accountants, doctors, pilots and dentists.
● In places where lots of professionals are employed, organisation charts
may be different.

67
Q

What is a chain of command?

A

● The route through which orders are passed down in the hierarchy.

68
Q

What are some problems with a long chain of command ?

A

If the chain is too long:
○ Messages might get lost or confused
○ Changes might not be accepted lower down the chain

69
Q

What is a span of control?

A

● The number of people, or subordinates, a person directly controls in a
business
● Wide span of control: a person controls relatively more subordinates
● Narrow span of control: controls fewer subordinates

70
Q

What is a flat hierarchial business structure?

A

● Communication is better because the
chain of command is short.
● Management costs are lower because
there are a fewer layers of management.
● Control may be friendly and less formal
because there is more direct contact
between layers

71
Q

What is a tall organisational structure?

A

● Communication can be poor because
there is a long chain of command.
● Management costs will be higher
● Cear route for promotion that might
help motivate staff
● Control tends to
be more formal
and less friendly
because of all the
layers in the
hierarchy

72
Q

What are the jobs of the HR department?

A

● Responsible for the welfare of employees. The main tasks completed by
the department include:
○ Workforce planning
○ Recruitment and selection
○ Training
○ Health and safety
○ Staff welfare
○ Employment issues
○ Industrial relations
○ Disciplinary and grievance procedures
○ Dismissal
○ Redundancy

73
Q

What are the responsibilities of the finance department?

A

Finance Department
● Responsible for administering and monitoring all financial transactions
carried out by the business. In a large business, the main tasks completed
by the department include:
○ Recording transactions
○ Wages and salaries
○ Credit control
○ Cash flow forecasting and budgets
○ Accounts

74
Q

What are the responsibilities of the marketing department?

A

Responsible for selling products in accordance to the market. Some of the
activities in the department are:
○ Market research
○ Product planning
○ Pricing
○ Sales promotion
○ Advertising
○ Customer service
○ Public relations
○ Packaging
○ Distribution

75
Q

What are the responsibilities of the production department?

A

● Involves making goods and providing services, turning inputs into
outputs. Some of the activities in the department are:
○ Design
○ Purchasing
○ Stock control
○ Maintenance
○ Research and development (R&D)

76
Q

What is the relationship between departments?

A

● Departments are interdependent - they should work together since they
rely on each other for their success
● There must be good communication between departments to ensure
businesses run effectively