People and finance Flashcards
identify 5 sources of finance
bank overdraft bank loan retained profits sale of an asset government grant
2 advantage and disadvantages of a bank overdraft
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
2 advantage and disadvantages of bank loan
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
1 advantage and disadvantage of retained profits
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
2 advantages and 1 disadvantage of sale of assets
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.
1 advantage and disadvantage of a government grant
advantage:
- The money is granted so the money does not have to be repaid
disadvantage:
-these are usually one off payments
What is the 4 roles of the Human Resources department
Train staff
Motivate staff
Ensure positive employee relations
Ensure organisation has personnel necessary
What are 4 reasons for workforce change
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
What are the 4 internal recruitment methods
Staff notice board
Organisations intranet
Internal email to all or selected staff
Company newsletter
What are the 4 external recruitment methods
Job centre
Newspaper adverts
Websites (like s1 jobs)
Recruitment agencies
3 advantages of internal recruitment
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
3 disadvantages of internal recruitment
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
3 advantages of external recruitment
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
3 disadvantages of external recruitment
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
What are the 6 selection methods in choosing the correct person for the job
Application forms and cvs
Interviews
Testing
Assessment centres
References
Trial periods
What is on the job training
Where an employee is trained within the company’s facility maby by another employee
What is off the job training
Where an employee is trained out with the company’s workplace at a real training facility by specialists
2 advantages of on the job training
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
2 disadvantages of on the job training
Being trained within the workplace can distract others from their own work
Mistakes can be made as it is not specialists training the employee
2 advantages of off the job training
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
2 disadvantages of off the job training
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
What 2 statements describe training schemes
The schemes are intense programmes that equip staff with enhanced skills
Resulting in a good position for a pay rise or a promotion
2 advantages of management training schemes
The organisation benefits from highly skilled staff
Motivated staff which lowers staff turnover
2 disadvantages of management training schemes
Work time will be lose throughout training
More wages required after training is complete
2 statements that describe a work based qualification
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
2 advantages of work based training
Employees gain a recognised qualification and learn through practical application of learning
Employees can contribute to organisation while training
2 disadvantages of work based training
Staff may leave for a better job after gaining this qualification
Organisations usually pay for training and examinations
What 2 statements describe virtual learning
Access learning tools outside of the work place through internet
Also use of a webcam can be used to talk to trainers and students
2 advantages of virtual learning
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
2 disadvantages of virtual learning
Some trainees will work better face to face instead of online
Virtual learning can be costly to set up
Motivation
See page 55 for maslows hierarchy of needs
Now draw the diagram
Motivation
See page 56 for mcgregors theory x & y
Now draw the table
2 statements that describe hygiene factors page 57
These will not motivate employees but if not met they can lower motivation
Can range from clean chairs to job security
2 statements that describe motivator factors
Can be responsible for increasing motivation
Factors are linked to the top of maslows hierarchy of needs
What are the 5 basic motivation methods
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)
What are the 3 different leadership styles
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)
2 advantages and disadvantages of autocratic leadership style
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
2 advantages and disadvantages of democratic leadership style
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
2 advantages and disadvantages of the laissez faire Leadership style
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
What are 5 factors that affect the leadership styles
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
What are 3 statements that describe appraisals
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
3 advantages and disadvantages of appraisals
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
describe peer appraisals
when the review interview is carried out by a colleague at the same level in the organisation
2 advantages of peer apprasials
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