Prelim Flashcards
What is a functional grouping?
This involves grouping an organisation into departments called functional areas, based on skills and experise
Name two advantages of functional grouping
Staff with similar skills and expertise are together, allowing for specialisation. Each department will become excellent at what they do
Staff know who to report to and who to get guidance from
Name two disadvantages of functional grouping
The organisation can become too large to manage if functional departments grow rapidly
Functional grouping is often coupled with tall and centralised management structure. Communication can be slow.
What is location grouping?
This is grouping and organisation into geographical divions. Each division will operate to serve customers in that particular location.
Name two advantages of location grouping
Each division can meet the needs of the local markets
The business can react quickly to changing external factors quickly.
Name two disadvantages of location grouping
Duplication of resources.
Divisions may compete against each other
What is customer grouping?
Grouping of resources that deal with a different type of customer.
Name two advantges of customer grouping
Each group can tailor it’s product to suit the customers requirements
Customer loyalist can build up over time.
Name two disadvantages of customer grouping
Duplication of resources.
Only suitable for large businesses.
What is an internal recruitment?
Where you advertise for the job within the business or organisation.
What is an external recruitment?
where you advertise for the job without the business or organisation.
Name two advantages of internal recruitment
The vacancy can be filled quickly
The employee will know the business and won’t have to be taught it.
Name two disadvantages of internal recruitment
The business or organisation will have to fill the other person’s job when they’re promoted.
applicants are very limited
Name two advantages of external recruitment
The new employee will bring new skills and expertise into the organisation or business.
There is a wider pool of candidates
Name two disadvantages of external recruitment
Candidates don’t know the organisation so they will have to be taught their way around, this will lose valuable time.
Might take longer to choose as there a wider pool of candidates.
What is an application form?
An application form is a document that is produced by the employer. It contains a selection of question that can help the employer find out about their skills, experience and qualities.
What is a CV?
CV is a document listing a persons work experiences, qualifications and person experiences.
What is an interview?
All interviews are designed to compare the applicants.
Name two advantages of an interview
Finds how the applicants react under pressure.
Indication of the applicant’s personality and character.
Name two disadvantages of an interview
Some applicants can train specifically for interviews - might not be the best person for the job.
Highly stressful for some. Might be good for the job but won’t show up well to the panel/ manager.
What is testing?
This provides additional information about the applicant.
Name two disadvantages of testing
Time consuming
Applicants put under too much pressure
What is an assessment centre?
This is to see a large of number of applicants at the same time..
Name two advantages of assessment centre
Allows an organisation to really scruitinise applicants over a long period of time.
Access how applicants interact with others.
Name two disadvantages of an assessment centre
A venue will need to be hired. - this can be expensive
Several managers will need to be sent to the centre to conduct and supervise the tests.
What is the two methods of research?
Desk and field
What does desk research do?
Secondary
It’s information that has already been gathered
Name a way of desk research
Internet
Government publications
Newspaper/report
What is a disadvantage of using a newspaper/report
It could be bias
Factually incorrect
Out of date
Name two advantages of desk research
Timely - quick to gather information
Cost effective - doesn’t require trained or paid interviewers
What is field research
Finding out brand new information suitable for the business’ exact needs
Name two advantages of field research
It won’t have any parts missing
Accurate - information should be validated
Name a disadvantage of field research
No cost effective - requires trained and paid interviewers or expensive research companies
What is a postal survey?
Questionnaires being sent out by mail to people to complete themselves and return
Name two advantages of using postal surveys
It is relatively cheap to send large numbers of surveys
No interviewer bias
Name two disadvantages of using postal surveys
Response rate is less than 10%
No opportunity for anything to be clarified
What is a telephone survey?
People who are contacted by telephone and asked a number of questions
Name two advantages of using a telephone survey
Large numbers can be contacted across the country
Less expensive to carry out
Name two disadvantage of using a telephone survey
People might not want to participate - might be an unsuitable time
Long surveys take up time. Short surveys are easier over the telephone
What is an online survey?
People answer a number of questions that are displayed on a website
Name two advantages of using an online survey
Can be sent to large numbers with using a link
Don’t need to spend anything - cost effective
Name two disadvantages of using an online survey
Relies people to have an Internet access
No personal contact
what is diversified product line
Involves having products to sale across completely different market segments
What is the minimum wage act of 1998
It makes it illegal to pay an employee below a certain amount per hour
What is the employee rights act 1996 and what must it contain
An employee must be given a written contract. It must contain rate of pay, hours, holidays.
What type of contracts can you get?
Permanent
Temporary
Fixed
What is the health and safety at work act 1974
All employers must ensure the health, safety and welfare of their employees as far as possible.
What is grievance?
A grievance is a complaint by an employee again their employer. It could be the way they’ve been treated.
What can employee do if they feel unhappy with the organisation?
They can involve ACAS and eventually an industrial tribunal
What should happen before a grievance hearing?
Give the employee a notice so they can prepare their case.
Carry out a full investigation.
What is discipline?
A disciplinary procedure is a process for dealing with pereceived employee misconduct.
What should the employer put in place?
- discipline
They should put a disciplinary procedure in writing and make it easily avaliable to all staff
What should the disciplinary procedure have ?
- what kind of performance and behaviour might lead to discipline.
- what action the employer will take
- who to report to
What are the steps of a disciplinary procedure?
- letter with the issues.
- a meeting
- a decision.
- chance to appeal.
Name three uses of ratio analysis
To compare the current years Performance with that of the pervious
To compare their performance with those of a similar organisation
To interpret information in order to identify why differences occur and how best to improve it
Name three limitations of ratio analysis
Information contained in final accounts is historical
Comparisons must be made with firms with a similar size and in the same type of industry
Finding do not reflect the implications or effects of new polices
What is ratio analysis measures
profitability
liquidity
efficiency
Profitability - can control its spendings
Liquidity- ability to pay off their short term debts
Efficiency - to make good use of their resources
Name four advantages of e-commerce
Opens the market to customers nationally and internationally
Enables smaller companies to compete with larger companies
Reduces in staffing/or high street stores thereby reducing costs.
Provides he option to offer 24 shopping.
Name four disadvantages of e-commerce
Stiffer competition. Competing with shops in the next town
Staff reductions - increased competition with local companies might resulted in work force.
Cost of restructuring- move to e-commerce might not be smooth and will require a degree amount of investment
Costumer concern - costumes may not be comfortable shopping online.
What are the four distribution methods?
Road
Rail
Air
Sea
What are two advantages of distribution on the road
Generally quick and short
Allows door to door delivers
Name two disadvantages of distribution on the road
Delays on the road and weather can hold it up m
Fuel costs can push up the costs
Name two advantages of distribution on the rain
Some businesses have private rails.
Useful for heavy goods
Name two disadvantages of distribution on the rails
The rail terminal is generally not the final destinations
Not suitable for some locations
Name two advantages of distribution of air
Ideal for long distances
Quick delivers can be made overseas
Name two disadvantages of distribution of air
The airport is not the final destinations
This could cost a lot to where it needs to go
Name an advantages of distributions of sea
Useful for importing exporting heavy or bulky products
Name two disadvantages of distribution of sea
The dock is not the final destinations
A slower method meaning longer delivery times
What is cash budgeting
It’s a prediction of the flow of cash in to and out of an organisations
Cash budgets need to be completed to help the organisations remain liquid.
Name two advantages of cash budgeting
To predict a positive cash flow (surplus)
To predict a negative cash flow situation (deficit)
Allow investment during surplus
To allow action being taken during deficit.
Technology of finance
Reduces Rick of human errors
Can be changed easily
Spreadsheets allows a to budget quickly
Graphs/charts can be created automatically
Records can be emailed and sent for free
Files can be backed up
What is just in time stock control
It’s a system that aims to get the highest volume of output at the lowest unit cost.
Name two advantages of just in time stock control
It improves the cash flow in many businesses.
It reduces storage costs
Reduces waste
Not factory space
Name two disadvantages of just in time stock control
A lot of faith in placed in the reliability and flexibility of supplies
No times for quality control when material arrives
Instead ordering and administration costs
What happens after the grievance hearing?
- give employee a copy of the meeting records.
- might be able to leave some information out. ( certain circumstance)
- what you want done and reasons
What should the employer to legally?
-grievance
- must set out a grievance procedure
- share it in writing to all employees
e. g staff hand book
What should an employer do ?
-discipline
- Create a disciplinary procedure contact
- best way to tell if you have done something wrong.
- explains clearly the improvement needed.
What is a dismissal procedure?
Referred to firing or sacking.
What are the rules of a dismissal procedure?
- employer must set out the disciplinary and dismissal procedure in writing.
- if they don’t they will pay the employee compensation.
What is a bank overdraft?
- Short term
- Facility allows the business to spend more money than whats in their bank account.
Name two advantages of a bank overdraft.
- Usually easy to arrange with their bank.
- Allows them to continue spending, even if there is no money in the account.
Name two disadvantage of a bank overdraft.
- high interest rates
- must be repaid
What is a trade credit?
- Allows a business to buy goods from a supplier and pay them at a later date.
- usually at the end of the month
Name two advantages of using a trade credit.
- Allows the business to sell stock at a higher price. Earn money before the bill comes in
- Keeps a business going when cash flow is poor
Name two disadvantages of using trade credit.
- Discount for prompt payment is lost.
- suppliers reluctant to continue to offer if a business does not pay in time.
What is debt factoring?
Business sells it’s unpaid customers invoices to a factoring company.
Name two advantages of using debt factoring
- responsibility for collecting the debt is passed on to the factor/
- cash flow is improved
Name two disadvantages of using debt factoring
- has to be sold at a reduced amount
- factoring companies usually only interested in large amount of debt
What is a bank loan?
When a bank agrees to lend a business money for a specific purpose.
Name two advantages of using a bank loan
- can budget for the repayments
- purchase of essential equiptment can be made in advance and paid back over a number of years
