People and finance

Question 1

identify 5 sources of finance

Answer 1

bank overdraft 
bank loan 
retained profits 
sale of an asset
government grant

Question 2

2 advantage and disadvantages of a bank overdraft

Answer 2

advantage:

• its relatively easy to be arranged with the bank
• it allows businesses to carry on paying general expenses with no money in the account

Disadvantages:

• high interest rates apply
• the bank can choose to withdraw the overdraft if this happens the money needs to be repaid immediately

Question 3

2 advantage and disadvantages of bank loan

Answer 3

Advantages:
-the business can prepare budgets for the repayment
- the payback time is over a number of years
disadvantages:
-interest is paid on top of the original loan amount
- smaller businesses can find it hard to secure a loan there’s higher interest rates higher risk

Question 4

1 advantage and disadvantage of retained profits

Answer 4

Advantage:
- Profits belong to the company, so the owner is in control
disadvantage:
- Using retained profits find it difficult to grow and reach the speed they would like

Question 5

2 advantages and 1 disadvantage of sale of assets

Answer 5

advantages:
- The money can be raised due to a sale of an asset which will boost cash flow
-the money does not need to be repaid
disadvantage:
-If finance is needed urgently assets might not be sold for their highest value to get money in time.

Question 6

1 advantage and disadvantage of a government grant

Answer 6

advantage:
- The money is granted so the money does not have to be repaid
disadvantage:
-these are usually one off payments

Question 7

What is the 4 roles of the Human Resources department

Answer 7

Train staff

Motivate staff

Ensure positive employee relations

Ensure organisation has personnel necessary

Question 8

What are 4 reasons for workforce change

Answer 8

To meet increasing demand for existing products

To develop new products to satisfy demand

To help enter new markets

To respond to flexible working arrangements

Question 9

What are the 4 internal recruitment methods

Answer 9

Staff notice board

Organisations intranet

Internal email to all or selected staff

Company newsletter

Question 10

What are the 4 external recruitment methods

Answer 10

Job centre

Newspaper adverts

Websites (like s1 jobs)

Recruitment agencies

Question 11

3 advantages of internal recruitment

Answer 11

The vacancy can be filled quickly

Employee knows organisation which saves Induction training costs and time

The employee is known to organisation and can be trusted to do a good job

Question 12

3 disadvantages of internal recruitment

Answer 12

Applicants are drawn from a very limited pool so the organisation may not hire best person for the job

Promoting one employee will consequentially create a vacancy in their old post

The organisation misses out on a change to bring in fresh new ideas and skills to the organisation

Question 13

3 advantages of external recruitment

Answer 13

Fresh new ideas and skills are brought into the organisation

Wider pool of candidates to choose from

It avoids creating a further vacancy in the organisation

Question 14

3 disadvantages of external recruitment

Answer 14

Existing staffs become demotivated as the perceive that there is not chance of internal promotion

Such a potentially large pool of candidates means that it takes longer to choose suitable applicants to review

Candidates do not know the organisation so induction training will need to be carried out which can be costly and time consuming

Question 15

What are the 6 selection methods in choosing the correct person for the job

Answer 15

Application forms and cvs

Interviews

Testing

Assessment centres

References

Trial periods

Question 16

What is on the job training

Answer 16

Where an employee is trained within the company’s facility maby by another employee

Question 17

What is off the job training

Answer 17

Where an employee is trained out with the company’s workplace at a real training facility by specialists

Question 18

2 advantages of on the job training

Answer 18

The employee actually contributes to the company while they are training

It saves finance because the trainee doesn’t have to go elsewhere spending money for things like transport or specialist training

Question 19

2 disadvantages of on the job training

Answer 19

Being trained within the workplace can distract others from their own work

Mistakes can be made as it is not specialists training the employee

Question 20

2 advantages of off the job training

Answer 20

Staff can concentrate fully on learning about the job without any distractions

Current staff aren’t distracted by new employees being trained around them because it’s off the job

Question 21

2 disadvantages of off the job training

Answer 21

Can be costly to send staff to training centres

Nothing is actually being contributed to their own company while training is taking place out with the company’s workplace

Question 22

What 2 statements describe training schemes

Answer 22

The schemes are intense programmes that equip staff with enhanced skills

Resulting in a good position for a pay rise or a promotion

Question 23

2 advantages of management training schemes

Answer 23

The organisation benefits from highly skilled staff

Motivated staff which lowers staff turnover

Question 24

2 disadvantages of management training schemes

Answer 24

Work time will be lose throughout training

More wages required after training is complete

Question 25

2 statements that describe a work based qualification

Answer 25

Offer the chance to gain formal qualifications through work

Apprenticeships And manual trades are common for these few days a week usually at college to learn

Question 26

2 advantages of work based training

Answer 26

Employees gain a recognised qualification and learn through practical application of learning

Employees can contribute to organisation while training

Question 27

2 disadvantages of work based training

Answer 27

Staff may leave for a better job after gaining this qualification

Organisations usually pay for training and examinations

Question 28

What 2 statements describe virtual learning

Answer 28

Access learning tools outside of the work place through internet

Also use of a webcam can be used to talk to trainers and students

Question 29

2 advantages of virtual learning

Answer 29

Trainees can access materials from home or on the go at any time of day

Saves money on sending trainees to courses and printing training materials

Question 30

2 disadvantages of virtual learning

Answer 30

Some trainees will work better face to face instead of online

Virtual learning can be costly to set up

Question 31

Motivation

Answer 31

See page 55 for maslows hierarchy of needs

Now draw the diagram

Question 32

Motivation

See page 56 for mcgregors theory x & y

Answer 32

Now draw the table

Question 33

2 statements that describe hygiene factors page 57

Answer 33

These will not motivate employees but if not met they can lower motivation

Can range from clean chairs to job security

Question 34

2 statements that describe motivator factors

Answer 34

Can be responsible for increasing motivation

Factors are linked to the top of maslows hierarchy of needs

Question 35

What are the 5 basic motivation methods

Answer 35

Fair pay (work to earn more money to satisfy their needs)

Payment methods( commission,performance related pay, piece rate, overtime)

Incentives( non financial like holidays,discounts)

Permanent contracts

Good working conditions (safe conditions)

Question 36

What are the 3 different leadership styles

Answer 36

Autocratic: (authority and control is retained by leader managers tell employees what to do)

Democratic:(communication and employee participation is key managers let employees have say In decision making)

Laissez faire:(everyone’s a manager lets everyone just carry out jobs without supervisors)

Question 37

2 advantages and disadvantages of autocratic leadership style

Answer 37

Advantages:

1: There a clear expectations of what needs to be done
2: Decisions can be made quickly

Disadvantages:
1:No opportunity for empowerment meaning demotivated some staff

2:Lack of creativity in decision making as retained with senior management

Question 38

2 advantages and disadvantages of democratic leadership style

Answer 38

Advantages:

1: employees feel motivated as they have a say in decision making
2: managers have final say but contribution of staff encourages creativity and helps solve complex problems

Disadvantages:

1: mistakes can be made if employees are not experienced enough to make decisions
2: some employees less productive without a manager

Question 39

2 advantages and disadvantages of the laissez faire Leadership style

Answer 39

Advantages:
1:employees make decisions and only seek managers assistance when help is needed= high motivation
2: can create a very relaxed working environment
Disadvantages:
1:lack of direction can lead to objectives not met
2: can only work in highly professional environments where employees are self motivated ie technology companies

Question 40

What are 5 factors that affect the leadership styles

Answer 40

The task(complex could require help)

Skills of staff(high skilled= less supervision)

Motivation of staff(highly motivated=less instruction and supervision)

Time available(little time to complete project might mean less time for discussion on how to achieve it)

Group size( too large groups= confusion large groups benefit from clear direction of AUTOCRATIC leadership

Question 41

What are 3 statements that describe appraisals

Answer 41

Two way meeting between employee and another member of staff

Discussing the employees success setting targets for them to meet

These can be peer appraisal,360 degree appraisal,informal appraisal

Question 42

3 advantages and disadvantages of appraisals

Answer 42

Advantages:
1:positive feedback which motivates employee
2:targets set motivates employees to meet those
3: training needs can be identified motivating staff and increasing quality standards
Disadvantages:
1: negative feedback means demotivated employees
2: employee can be set unrealistic targets putting them under pressure
3:too many development needs may be identified which will stress employee

Question 43

describe peer appraisals

Answer 43

when the review interview is carried out by a colleague at the same level in the organisation

Question 44

2 advantages of peer apprasials

Answer 44

employees may relax more and react better to a review given by a colleague

relationships with line managers are not harmed through judgements or weaknesses being highlighted