BUSINESS UNIT 1 Flashcards
(171 cards)
1
Q
Business resources
A
capital - money tools machinery equipment
land - production of good and services includes natural resources renewable and non renewable
labour - the workforce includes manuel skilled and management
enterprise - skills needs to take a risk when setting up, developing and organise a business
2
Q
entrpenueleral characteristics
A
vision
risk taker
clear objectives
innovative
judgement
determination
self motivation
perserverance
communitvation skills
3
Q
motives for being an entrpeneur
A
control over hours and working life
create a job
money
spotted a gap in the market
take advantage of an opportuinity
building experience
made redundant
unable to find employment
4
Q
risks of becoming an entrpeneur
A
financial
lack of secuirty - no PTO, sick days, irregular hours
business failure - 1/2 fail in 5 years
health issues - due to stress/ long hours
5
Q
rewards of becoming an entrepenur
A
profit
success
contribution to society
independence
capital growth
dividends payment
6
Q
risks of a start up
A
high rate of failure
difficult to test without trading
easy to be over optimistic
aggressive competitors
underestimate persistace and effort
7
Q
main reasons for start ups failing
A
customer deamnd - poor market research, unrealistic, competitors eg price cuts
poor execution - wrong employees, poor management, growth too quick/slow, failure to manage cashflow
external shocks - economic change, legal/social/tech change
8
Q
example of startup failing
A
silver jet airlines - 25th jan 2007 - 30th may 2008
9
Q
def of calculated risk
A
riak that has been given thoughtful consideration. potential losses/costs/benefits have been weighed and considered
10
Q
why do the government encourage enterprise
A
creates employment - less benefits
stimulates economic dev
increase country reputation
increased comp
compete internationally bringing in more money
11
Q
def of central business activity
A
to provide customers with goods and services that meet their needs and wants by providing similar goods/services for the marketplace. must compete with its competitors to make profits and survive to do this a business must add value and be competitive
12
Q
def of service
A
intangable which cannot be touched or stored. paying for a skill
13
Q
def of added value
A
a business makes a product/service more desirable to consumers. differences between selling price and cost of production
14
Q
value added equation
A
value added = sales revenue - the cost of bought in good and services
15
Q
how is a product made more desirable
A
quality
originality
customer service
additional features
builiding a brand
convenience
delivery options
16
Q
def of competitive advantage
A
advantage a firm has over its competitors which allows it to attract and retain more customers and generate greater sales/profits
17
Q
def of cost advantage
A
ability of a firm to produce an good/service at a lower cost if a firm has CA itll be able to sell its output at a lower price than competitor allowing it to gain a larger market share
18
Q
methods of cost advantage
A
economies of scale - increased size lowers cost
economies of experience - accumulated experience built over time, producing goods more efficentley, specialists
superior tech - using more up to date machinery/products allows them to produce more efficently and often cheaper eg audi
19
Q
def of differientation advantage
A
firms ability to separate itself and its products from thst of its main competitors making it more attractive
20
Q
methods of differientation
A
unqiue selling point USP - originality eg free gifts, improves quality, limite editions, aftercare, loyalty cards, one off product
create a brand - unique design of symbols, words or a combination to create an image that identifies the product from its competitors
21
Q
advantages of having a USP - differientation
A
charge higher price
increase market share
increase demand
lowers advertising costs
stands out against comp
- examples - nike (celebs in ads), amazon (convenience), dyson (bagless)
22
Q
advantages of create a brand - differientation
A
charge premium prices
customer loyalty
save money on advertising
23
Q
advantages of having cost advantage
A
gained through EOS increasing profit margin per unit
popular with consumers on low income
popular when economy goes into recession
smaller/less comp meaning can be eliminated easier
gain wider share of market
works for price sensitive products
24
Q
disadvantages of having cost advantage
A
tends to reduce overheads through automisation so products are standardised
to remain comp prices may need reduced meaning lower profit margin
increased comp
may compromised quality
25
advantages of differientation
charge premium prices
useful in new markets where the consumers are unaware of other brands
suits those with strong brand image
difficult for a comp to do
26
disadvantage of differientation
extra costs may overweigh prices charged
contintious ad money needed
continious r&d money needed
can result in higher selling prices putting consumers off
27
def of sustainable comp ad
when a firm sustains a comp ad over a prolonged peroid of time over its rivals which cannot be copied or eroded
28
def of a body corporate
a company with a legal existence separate to its owners eg soletrader/partnership is NOT one
29
def of a legal entity
a body corporate
30
def of continuity of existence
if an owner or shareholder died then the shares are spread out amongst the company and business continues eg a soletrader/partnership do NOT have this
31
ad of sole trader
easy set up with little formalities
keep all profits
accounts private - comp ad
personal sat
freedom
grow at own pace
freedom from gov regulations
32
dis of sole trader
limited finance
limited ops for EOS
unlimited liability
not a body corp
no continuitity of existence
occupied full time
no fresh ideas
33
def of partnership
between 2-20 people with similar ideas or skills
34
def of general partnership act 1890
take on equal responsibility, with limited liability
35
def of sleeping partner
invest and take profits without taking a part in running the business
36
def of deed of partnership
states responsiblities, clarifies losses/profits spilit as well as assets, includes - trading name, function, capital invests, profit ratio, control, rules on admitting new partners, rules on ending
37
ad of partnership
own boss
easy set up
accounts kept private - comp ad
increased specialisation
increase finance availability
shared responsibility
people to help pay debts
38
dis of partnership
unlimited liability
actions of one affect all
disputes
not a legal entity
no continuetity of existence
finance difficulties
39
characteristics of limited companies
body corporate
limited liability
own legal identity
must be registared in UK company house by delivering the documents with fees in which they will then receive the certificate of incorporation
public - plc after its name, min of 50k share capital
private - limited after its name, max 50k share capital
40
def of memorandum of association
gives the
name,
public/private
basic structure
objectives
authorised share capital
profit divides
41
def of the articles of association
refers to the internal management of the company
gives rights of shareholders
role of directors
issuing dividends
holding of meetings
42
def of the companies act 2006
changes that had to be made to articles of association, the memorandum of association, form 10 and form 12 had to be changed by 2008
43
def of form 10 and 12
10 - records details of the directors
12 - directors declare their compliance with all legal requirements
44
ad of company status
shareholders have limited liability
no limit on shareholders - opportuinity to raise capital
easier to borrow money
continuitity of existence
body corp
more status than other business meaning others are more prepared to deal making trade credit easier to get
45
dis of company status
costly
timely
accounts open to public
strict legal requirements on the running
original owners have less influence
always under pressure to return profit
vunerable to take overs (public)
46
ad of plc
raise more capital
extra capital is critical for r&d
easier to borrow money
improve corp image
47
dis of plc
costly
time consuming
accounts public - loss of comp ad
have to concentrate of keeping shareholders happy
long term research may suffer due to paying yearly dividends
subject to take overs
loss of control
48
ad of ltd
easier to raise capital than partnership/soletrader
no limit on number of shareholders
shareholders have limited liability - risktaking
no outsiders can purchase shares - no takeovers
body corp
continueity of existence
49
dis of ltd
accounts open to public - loss of comp ad
limitations on capital
shared profits
50
def of franchsing
an entrepeneur develops a business who will then sell the rights to a franchisee and allow them to sell under that name in an area
51
def of trade name
less common - franchsior provides trademarks and logos, ad campaigns and products but not a complete business system. franchisee pays upfront fee but no adittional royalties eg soda
52
def of business format
most common - franchisor offers a complete system of doing business and use of trademarks/logos in return they pay an upfront fee and ongoing royalties eg subway
53
ad of franchisee
prebuilt customer base
prebuilt reputation
training arrangements - cheaper
pre sorted area and equipment
provided assistance
easier to loan money
ads done large scale - money saving
franchisor sells stock - EOS
r&d done for you
higher sucess rate
54
dis of franchisee
loss of control
no control over reputation
franchsior mistakes affect you
have to pay royalties reducing profits
55
ad of franchsior
expand without risking own capital
less work
56
dis of franchsior
reputation ruined easy
diseconomies of scale
57
def of social enterprise
works to deliver goods/services to make a profit/breakeven they are driven by social/enviromental purposes. set up to fufill social needs eg unemployment any profit made is reinvested to the purpose
58
qualities to be a social enterprise
primaraliy social objectives/aims and ethical values
profits reinvested into business or community
directly involved in producing goods/services
self sustaining
doesn't rely on donations
59
examples of social enterprises
divine choclate
jamie olivers 15 restaurants
the big issue
bryson house
60
ad of social enterprise
profits to change
donations for change
revenue for change
61
dis of social enterprise
depends on funds
big risk
62
def of stakeholders
groups affected by or have an interest in the operations/objectives of the business
63
examples of internal, connected and external stakeholders
internal - directors, managers, employees
connected - shareholders, customers, suppliers, consultants, competitors, advisors
external - government, locals, media, pressure groups
64
examples of how business can use social media
podcasts
media compaigns
celeb giveaways
65
task of the owners, staff, customers use of social media
owners - maintain positive profile
staff - build customer network, monitor brand preformance, max website visits, generate sales, respond to customers, establish the business
customers - provide feedback
66
task of creditors, pressure groups and locals of social media
creditors - communicate reguarding price changes, discounts, special offers, however they may not request payment
pressure groups - publise business activity
locals - promote corporate soical responsibility, free publicity
67
ad of using social media
boost links to website
cheaper
increase brand awareness
improve customer service
can be found through more links generating more sales
68
dis of social media
commit to the resources managing - expensive
ineffective use
user resistance
failing to respond to negative feedback
69
def of quality management
the ability of a product to meet consumer expectations reguarding its use aswell as the actual build quality of the product itself
OR
a measure of the excellence or extent to which something is fit for its purpose and includes aspects such as reliability, safety, durability, usability, after sales service and customer care
70
why is quality management important
performance
charge premium prices
adds value
cost effectiveness - low level defects, less returns
reliability - good reviews
retaining customers - encourages repeat buying
improves brand image
attracts good staff
71
implications of quality management
costs - refunds, reductions, returns
damaged rep - complaints, dissatisfied, product recall,
loss of sales - market share, loyalty
legal issues - fines, sued, dangerous products
decreased prod - employee demot, increased costs, health and safety issues
72
def of quality
Subjective, not all tangible no firm can afford to stand still on quality due to constant evolving
73
Define the quality measurements - PRICE
Performance - compared to comp
Reliability - fewer complaints/reviews less staff needed to deal
Implementation of quality models - ISO9000, EFQM
Customer satisfaction
Effectiveness - will it cost more to manufacture yet more durable incurring lower overall costs
74
Def of quality management + examples
Combination of policies and procedures ensuring output is fit for purpose
Eg. Built in quality to initial design, empowerment of staff, suitable raw materials
75
Def of quality control to improve quality
Set of processes designed to detect and remove components/products which fall below predetermined targets, conducted by specialist staff
76
Ad and dis of quality control to improve quality
AD
Guarantee no defects leave
Little staff training required
Carried out by inspector - fast and cost effective
DIS
May be built into the product
Only trustworthy when 100% of the products is tested
No guarantee it wont reach the consumer
Expensive mistakes - wastage
77
Ad and dis of quality assurance
AD
-waste = -costs
System for every stage - through
Records kept to reassure consumers = premium prices
Works have more responsibility = +mot
DIS
No guarantee on quality
Encourage compliance whereas quality should always be rising
Slower process = -output
78
Def of quality assurance to improve quality
Attempting to stop faults happening in the first place by analysing and planning every process
79
Ad and dis of quality assurance
AD
-waste = -costs
Quality systems for every stage
Records kept to reassure customers = premium prices
Workers + responsibility =+mot
DIS
Doesn’t guarantee quality
Encourages compliance whereas quality should always be rising
Slower process = -output
80
Difference between quality assurance and quality control
ASSURANCE
Med/long term
Focus on processes
Achieved by improving processes
Targets all of org
Emphasis on customer
Quality built in
CONTROL
Short term
Focus on output
Achieved via inspection
Target at prod aspect
Emphasis on required standards
Big wastage
81
Def total quality management TQM
Attitude where everyone is committed to achieving quality aiming to develop a quality culture, consists of quality chains by which each team treats the receiver as a customer. 2 main aims - 0 defects and total customer satisfaction
82
Ad and dis of TQM
AD
+ rep
+ morale
-costs
DIS
Initial introduction costs
Benefits take years to show
Resistant to change
82
Def of ISO9000
Must have a clear quality policy implemented at all levels covering a range of issues and certified by the ISP indicates consistent quality
83
Ad and dis of ISO9000
AD
Justify prices
Some retailers exclusively only deal with businesses with ISO
CA
Saving in prod
+rep
+mot
DIS
Costly
Involves quantitive analysis = -mot
Slows prod
+administration = -mot
84
def of quality policy + reasons
doc dev by management to express the directive of top management with respect to quality
enhance comms
required from suppliers/contracts
provides ops for repeat customers, reliability of supply, prof
85
ad and dis of quality policy
AD
+brand image
justify prices
reduces returns cost
avoid complaints
mot
+confidence in product
USP
added value
customer loyalty
CA
DIS
timely
costly
pressure for workers
resources to manage
takes focus away from day to day running
time taken to ensure stakeholders are aware of the expected quality
86
marketing costs and business costs of poor quality
MARKETING
loss of sales
bad rep
discount prices
impacts other prod
retailers unwilling to stock brand/prod
BUSINESS
scrapping
reworking
lower prices
handling complaints
warranty claims
loss of repeat purchases
87
def of process of production
taking a range of resources and processing them to produce an output which can then be sold at a profit
88
difference between transforming resources and transformed resources
transforming - equipment, building, workers
transformed - raw materials, components
89
job production def and examples
producing a one off prod, least productive, labour intensive
eg. birthday cakes, wedding dresses, rings
90
job production ad and dis
AD
high quality
high added value
good customer service = repeat sales
setup costs low
faster ops
high prof margins
brand image as luxury
DIS
exp labour
no EOS
timely
no impulse purchases
low capacity
utilisation of equipment limits growth
CDIS
+prod costs
91
def and examples of batch production
several identical products made at regular intervals and sold to several customers
eg. loaves, clothing
most flexible
92
ad and dis of batch production
AD
low unit costs than job
EOS
output high than job
CA
flexible
lots of components made with one machine saving costs
high prof margin
DIS
higher unit costs than flow
time to retool machines
careful planning and coord needed - timely
higher storage costs than flow as more items on the production line at one time
93
def and examples of flow production
continious process produced along an assesmbly line with components added at each stage aka mass production
capital intensive, lower quality, least flexible, most prod
eg. coke, heinz, tesla
94
ad and dis of flow production
AD
low unit costs than batch due to EOS
fast/efficent
reduce human error
lower levels of work in progress than batch - less storage costs
high prof margins
DIS
high startup costs
risky
needs constant/predictable demand
mistakes = costly
careful planning needed to avoid hold ups
no custimisation = no premium prices
95
def and examples of cell production
groups of workers into skilled cells each cell has the responsibility to produce a prod/component. responsible for quality control, health/safety,
eg. medical devices, electronics
96
ad and dis of cell production
AD
floor space released
flexible workers
safer
teamwork
less work in progress = reduces storage costs
movement of resources cut
lead times cut
DIS
company culture must be trust
recruitment and training must support this
allocation of work mjst be effiecent
may not allow intensive machinery work
investment in new tech
97
def and examples of lean production
attempts to produce goods while stripping out waste more work with less labour, time, space, inventory resulting in lower cost
eg. toyota, intel, johndeer
98
ad and dis of lean production
AD
high levels of labour prod = less labour
less factory space
cost ad
marketing ad
improve quality
reliability
DIS
struggle to meet orders if a delivery fails
no EOS
bufferstock is minimal
may have to reject orders
99
def of international competiveness
ability of a business yo compete in its home market against imports and forgein markets its exploring intofa
100
factors affecting productivity
finance
tach
equip
prod plan
human resources
workforce training
market strats
management
organisational structure
loco
gov/legislation
101
reasons why to improve productivity
up to date equip
best practice
reduce labour costs
+mot
EOS
CA
+profitability
102
def of innovation and reasons why
process of inventing/producing something new
ensure rnage is relevant and meets needs
ensure efficent production with best methods
improve knowledge of business procedures to max investment return
103
def of R+D and why
range of activities to gather knowledge to improve processes, prod, serv, or dev a new one
leads to tech innovation
secure the fututre of the business
aim to meet objectives
build brand recog
percieve themselves as innovative
104
internal and external factors affecting R+D and innovation
INTERNAL
culture
objectives
financial
workforce
operational issues
lvel of freedom
level of challenge
resources
EXTERNAL
economy
comp
market dynamics
social/political change
tech change
105
Def of quality policy and why it exists
Doc dev by management to express the directive of top management with respect to quality
Provides assurance, enhanced communication, required by suppliers/contracts, ops for repeat customers, reliability of supply, profit
106
Def of labour productivity and ways to improve
The amount (volume) of output that’s obtained from each employee
improving- skills of workers eg training, recruitment, appraisal
motivate workers eg financial, treatment
107
Def of capital productivity
output per unit of value of fitted production assets eg machinery
108
factors affecting productivity
need to use
customer confidence
improve training
desire to increase market share
109
def of
1. market
2. trade consumers
3. capital goods market
4. labour market
5. labour force
6. unemployment
1. place where buyers and sellers come together to exchange goods
2. someone to buys a product to sell it on
3. goods that can be used to produce other goods
4. brings together buyers and sellers of labour
5. those in employment or actively seeking jobs (33.3 mil)
6. those registered, able and willing to work in a suitable job with the ongoing wage rate and cannot find employment
110
def of organisational design and ways of organising
the way in which a business has organised itself in terms of hierarchy and roles refers to the process of aligning the structure of a business
ways- chain of command, delegation, size, span of control, policies, relationships, communication skills, authority, networks
111
how is an organisational chart useful
highlighting potential communication issues
show where each person fits and who they are responsible for/to
how departments relate to eachother
if specialist staff are required
112
def of
1. hierarchy
2. chain of command
3. delegation
4. span of control
1. order and levels of management
2. reporting mechanism between superiors and subordinates
3. authority passed down from superiors to subordinates
4. number of subordinates working under a superior with flow of communication
113
ad and dis of narrow and wide span of control
narrow - control, quicker communication, promotion DIS - less freedom, less motivation, increased costs
wide- AD - more delegation/responsibility, empowering, increased motivation DIS - skilled manager, decreased control, decreased promotion
114
what does span of control depend on
nature of task
subordinates
ability/experience
communication skills
115
def and ad and dis of tall organisational structure
more than three layers of management narrow span of control
AD - clear defined roles, responsibilities, authority, encourages specialisation, increased opportunities for promotion
DIS - communication/decision is slow, response to market change is slow, bad communication = unmotivated, costly, micro managing = resentment, less opportunities to use initiative
116
def and ad and dis of flat organisational structure
three or less layers of management wide span of control
AD - reduce costs, quicker decisions, quick reactions, less bureaucracy better communication effective delegation subordinates have greater responsibility shorter chain of command
DIS - overstretching causing stress less opportunity for promotion higher slacking off as less supervision, higher span of control for superiors affecting efficiency
117
ways to structure a business
Function, product, geographical or regional area, customer needs, stages of production, matrix,
118
Factors to consider between centralisation and decentralisation
Cost, uniformity, size, history, quality of junior management
119
def and ad/dis of centralised structure
Decisions, authority, responsibility is held within a few senior managers. Decisions are from head office with little delegation.
AD - control retained =less mistakes/increased output, EOS = CA, increased profit margins, minimise conflict, experience decision decisions, uniformity= fairness, avoid duplication of effort = reduce wastage, reduced costs
DIS - lower levels do not gain experience, decreased opportunities for promotion, increased staff turnover, increased workload = absenteeism/stress/increase mistakes, decreased motivation = increased staff turnover, slow decisions = missed opportunities, less focus on local needs, communication difficulties, abuse of power
120
def and ad and dis of decentralised structure
Decisions, authority, power is delegated through throughout each department or branch makes their own decisions
AD - motivation = increased output, valued, happy employees, workload shared = decrease stress, subordinates may be in a better position to make decisions as they deal with it face-to-face, faster decisions = CA, junior managers gain experience = decreased turnover and decreased costs
DIS - no expertise = increased risk, costly mistakes, missed opportunities, difficult to control finances, lack of coordination, loss of uniformity, loss of EOS
121
def of outsourcing and factors to consider before outsourcing
One business uses services/expertise of another to undertake business functions saves hiring reducing costs and increasing flexibility
factors = ability of current business to complete the activities, flexibility, cost comparison, agreement of target, quality of outsourcing, ability to meet contract requirements, speed method location and delivery must support business objectives, ability to refine product/service and dispute resolution
122
ad and dis of outsourcing
AD - cost savings, focus on core business, high-quality specialists, improved quality, customer satisfaction, increased reputation, minimise risk, cancel any time/flexibility,
DIS - lack of control, quality issues, communication issues, redundancies, bad reviews, decreased morale
123
def of PIP people investment planning
Ensure the business has the correct staff to perform effectively in the future by careful planning recognises that staff are a key resource
124
factors determining people investment planning
Succession planning - identify a trans selected staff to undertake key rules in the future
Skills audit - review all skills, experience, qualifications of staff to an anticipated needs strengths/weaknesses
training
Future needs - anticipate gaps of skills, identify how staff training requirements can be achieved
125
ad and dis of people investment planning
AD - plan for future, meet changes easier, avoid mismatch of skills, sets clear budgets, identify shortages, routines and motivates employees, operate with minimal disruption,
DIS - doesn’t account for changing external factors, hard to determine when staff will leave, increase costs, time-consuming, strategies must be implemented not just a plan, downsizing causing decreased motivation
126
def of recruitment
Process of attracting applications for a post involves job analysis, description, personal specification, and placement of job advertisement
127
def, contents of job analysis
Study of what the job entails such as skills tasks and performance expected
contents - job purpose, job content, account abilities, performance criteria, resource requirements,
carried out through- research of business documents, managerial input, interview of existing job holder, observation,
128
def and contents of job description
General of duty reporting relationships references provides information to determine the correct person shows the purpose and where it fits into the organisation
CONTENTS - job title, reporting responsibilities, subordinates, purpose, main tasks, account abilities, employment conditions
129
def and contents of person specification
List of all qualifications, skills, qualities and experience required
contents - physical attributes, attainment, experience, aptitude, interest, personal circumstances
130
ad and dis of internal recruitment
AD - motivation= decrease turnover, decrease training cost, quicker, cheaper, familiar with business, familiar with employees reducing conflict
DIS - leaves previous position vacant, unable to bring fresh ideas, resentment, ignores better external employees, number of applicants is limited
131
methods of external recruitment
newspaper/magazine
Training and employment agency
Private employment agencies
Head hunting
Visiting universities
Internet
132
ad and dis of external recruitment
AD - wider poo, new fresh ideas, may not be anyone internally,
DIS - costly, time-consuming, no idea how they will perform, time to settle in, current employees may become discontent
133
factors affecting method of recruitment
Money
Size
Location
How many employees needed
how, quickly needed
Culture, history, tradition
Type of worker
134
def of
1. application forms
2. letters of application
3. CV
4. Shortlisting
5. testing
6. psychometric tests
7. interviews
1. summarising personal professional and other details such as name address nationality education experience.
2. Uncommon as they are hard to compare often bias and contain insufficient information.
3. Summarising the personal/professional details evil to fight negative issues add individuality.
4 who says of insurance applications are reviewed against selection criteria applicants with the highest score are invited to an interview
5. Evil the task specific skills they said they had on their CV.
6. Used to suitability of an applicant for higher positions.
7. Formal meeting between applicant and interview to assess suitability
135
ad and dis of interviews
AD - equal considerations, gather information on feelings views and opinions, explanation of application form clarify details, assess communication skills, assess how they act under pressure
DIS - proper training of interview, time consuming, costly, doesn’t show how they’ll perform, biased due to misconceptions,
136
ad and dis of online recruitment
AD - lower advertising costs, time saving, 24 seven access for applications, automated to find correctly skilled people, efficient, increased pool of applicants, easy to use,
DIS - screening is time-consuming, volume of responses may be too much, too impersonal, some may not have access to online, security issues, fraudulent applications
137
methods of training and importance
methods - induction, on the job, of the job, CPD
importance- decrease turnover decrease absence, increase quality, reach performance level, decrease recruitment costs, less mistakes/wastage, motivation, competitiveness
138
def and ad and dis of on the job
Learning skills through experience via shadowing, coaching, monitor
AD - gain familiarity without disruption, build morale through relationships, inexpensive, tailored to business, trained on own equipment, learn values, increase job satisfaction, increase motivation for those delivering training
DIS - difficult to understand key features, decrease productivity, only as good as a person training them, too noisy/stressful, equipment may be out of date, may not be taken seriously, may be viewed as unnecessary, neglect own job while training
139
def and ad and dis of off the job training
education related to the job is carried out away from the workplace
AD - easy to budget for, gain a formal qualification, done by professionals, motivational as further in their career, learn at own pace, no loss of productivity, enhances image
DIS - expensive, maybe learning on different equipment,
140
def and dis and ad of induction training
undergo a training to welcome and help them settle into the business e.g. rules regulations, health and safety
AD - helps adjust, meets other employees, avoid mistakes, inexpensive, increases confidence, reduces financial mistakes, increased health and safety awareness, increase customer satisfaction
DIS - requires absence lowering productivity short term
141
Types of training
shadowing
Individual reading
Demonstration
Self study
Group discussion
Job rotation
Role-plays
day release
142
def and ad and dis of continuing professional development CPD
process of tracking and recording the knowledge, skills and experience gained by an employee
Usually a physical folder or portfolio to help you reflect, learn and review knowledge/skills
AD - learning from positive and negative experiences, encourages reflective learning, defines personal goals, encourages loyalty reducing turnover, direct your career, uncovered gaps, shows overview of professional life
DIS - time consuming reducing productivity, expensive, mandatory which is Demotivational
143
Def and ad and dis of appraisal
process used to examine/evaluate employee performance against presets standards used identify training needs mass job performance unresolved difficulties
key elements- set objectives, manage performance, carry out the appraisal, provide rewards/remedies
AD - physical document conversational structure, area to discuss and give feedback, opportunity given to allow them to progress, provide coaching and support, build individual performance plans, motivational
DIS - tense/uncomfortable, carried out annually, bias, may not see the benefits, done too late missing opportunities, some are not good at interviews, create stress ruining the relationship
144
methods of appraisal
observation,
Interview
Self appraisal
145
def and ad and dis of mass market
abroad non-targeted market firms will generally produce large quantity of goods for consumption by many consumers
AD - higher Brand awareness, EOS, no shortages, less advertisement, quicker manufacture, standardisation lower costs, increased sales, regular cash flow,
DIS - losses if demand is low, high competition, difficult to spot changes in consumer needs, increased start-up costs, communication difficulties, lower morale,
146
def and ad and dis of niche market
A small narrow and focused subset of a market sector produces a product that is focused on demands of a specific group of consumers
AD - last competition, high disposable incomes, enhance Brown image, target marketing
DIS - risky, specialisation makes the firm vulnerable to market changes, high promotional costs, large competitors may enter with cheaper products, expensive market research
147
features of markets
market size,
Market share
Location
Differentiation of product
148
demand interms of price and quantity
quantity demanded increase when price decreases
Price increase = decreased demand
Decreased price = increased demand
Downward slope - price = y axis
quantity = x axis
149
supply interms of price and quantity
positive relationship
Increased price = increased supply
Decreased price = decrease supply
upward slope
price = y axis
quantity = x axis
150
equilibrium/market clearing price
Price were quantity demanded = quantity supplied
151
disequilibrium
Occurs when there is an excess or under demand
152
factors that influence demand
population
Legislation
Advert
Compliment and substitute
tastes, trends and fashions
Income
Expected price changes
153
factors that influence supply
indirect taxes
Number of firms
Productivity factors
Cost of production
Tech advance
External shocks
154
def and ad of motivation
process of encouraging to want to achieve objectives by management
ad - committed, easier to implement change without resentment, increased labour productivity, better image, less absenteeism, decreased turnover
155
FN TAYLOR theory ad and dis
division of labour one task all day, full manager control, per piece rates, standard ism, efficiency, discipline,
AD - assumes all productivity levels would increase, assumes workers are motivated by money only, long lost in contribution to businesses, adopted by many important figures, encourage use of mass production, lowered unit cost
DIS - not based on employees welfare, assume they only work for money, assume there’s only one way to correct, hostility, firms laid off people leading to strikes, ignored social dimension of employment
156
A Maslow theory and pyramid
based on classification of needs and their relationship must satisfied lower needs first
Self actualisation - persons need to do what they were born to do e.g. opportunities/promotions
Esteem - recognition of good work rewards scheme job title
Love/belonging - environment to support/work with others
Safety - safe working condition conditions job security pension
Psychological - basic needs e.g. enough money to pay bills
157
ad and dis of maslow theory
AD - identify range of needs, practical implications, workers treated as individuals, highlights they are not motivated by money, managers can meet and discuss needs
DIS - pay maybe the most motivating factor, may not pass through in order, require expertise to implement, once a need is filled it doesn’t motivate may be untrue, difficult to consider safety/psychological, difficult to know when satisfied, some levels don’t appear for individuals, not designed specifically for businesses
158
F Herzberg theory
motivated factors - give workers job satisfaction can motivate to improve the performance/effort e.g. status promotional recognition
Hygiene factors - if absent can cause dissatisfaction unlikely to motivate eg policies, regulations, wages,
159
maslow vs Herzberg ad / dis
both suggests needs have to be met to be motivated, however herzberg argues only higher levels of maslow act as a motivator
AD - knowing hygiene factors can improve working, relate to actual job, provide new challenges in increasing jobs satisfaction, family focused business increase motivation, provides opportunities for managers to improve facilities,
DIS - assume everyone wants increased increased responsibilities, some need beatrotic so may not be acceptable, job sat ≠ mot, exp, timely, relies too much on what individuals like/dislike, not easy to enrich repetitive/unskilled jobs, assumes pay isnt a motivator
160
ad and dis of monetary motivators
AD - linked to productivity, if linked to performance then when demand falls so will wages, last time spent on HR issues, reduces absenteeism, only have to pay if target is met, satisfies basic and hygiene factors
DIS - may not achieve targets due to no fault of their own, changes to external environment employee has no control over this, quality can suffer due to shortcuts, unhealthy relationships develop
161
methods of monetary motivation
peace work
Time rate
Commission
Fee
Performance related pay
Fringe benefits
Bonuses
profit sharing
162
ad and dis of non monetary motivation
AD - provides opportunity for professional development, feeling valued decreases turnover and absenteeism, eliminate boredom, build a good reputation of a good employer, new challenges increased job satisfaction, rewards for a minimum cost, may become specialist, encourages innovation via teamwork
DIS - may not want additional responsibility, criticised as a way of cutting workforce, may expect salary increases, time-consuming to organise, not available for all leading to resentment
163
methods of non monetary motivation
Job rotation
Job enlargement
Job enrichment
Employee participation/empowerment
Quality circles,
Teamwork,
164
def of management and leadership
Planning, coordination, direction and control of resources suggested by Henri Foyl
Monitors ability to inspire staff to achieve business objectives suggested by Warren bennis
165
leadership styles + def
Authoritarian - Manager has total power of decisions, communication is one way
Paternalistic - managers dictate for indicate benefits to employees
democratic - provides opportunities/encouragement for workers to participate in decision-making
Laissez-faire - encouragement of employees to make their own decisions
166
ad and dis of authoritarian
AD - quick decisions, necessary during a crisis, ensure business remains in line with objectives, used when workers are not self motivated, effective when health and safety is successful
DIS - dependency, little creativity, no opportunity for creative ideas, poor working environment/relationship relationships, decrease morale, increased turnover, decrease productivity,
167
ad and dis of paternalistic
AD - valued, persuaded decisions are made in their best interest, increased loyalty, increased motivation, decrease turnover, increase productivity
DIS - little scope to make decisions, them and us mindset, final decision is irrespective of worker input, difficult to satisfy all members,
168
ad and dis of democratic
AD - can gain commitment especially during change, based on views of employees, workers are more likely to buy in decisions, increase motivation, increased morale, increase productivity,
DIS - time consuming, slow decisions, may not satisfy all staff
169
ad and dis of Laissez-faire
AD - useful for skilled/creative employees, motivational as more control over their life, allows more innovation/relaxed environment, management only intervenes when needed, better relationships, increase productivity, increase motivation
DIS - time consuming, lead to chaos, unsuccessful if unskilled less experience or less education, inappropriate work creativity/innovation is non-existent or unsuitable, not useful in a crisis situation
170
factors affecting management styles
how quick decisions are needed
The culture
Manager’s personality
Type of industry
Skill of labour force
Group size
Skills/abilities of managers
