Theme 1 review: People Flashcards
Key features of treating staff as an asset
- Treat employees as most important resource to the business
- Source of competitive advantage
- Flatter structures
- Employees seen as individuals and have there needs planned to accordingly
Key features of treating staff as a cost
- Employees treated simply as a resource to the business
- Short-term changes in employees and numbers of staff
- Minimal investment in training and development
- ## Taller structures
3 Methods to achieve flexible workforce
- Multi skilling
- Work from home and flexible hours
- Part time and temporary workers
Whats the difference between dismissal and redundancy
Redundancy is when a role is no longer needed
A dismissal is when an employer ends an employee’s contract for their actions
What is the difference between individual and collective bargaining
Individual bargaining- workers negotiate their own pay and conditions with their employers
Collective bargaining - when workers allow the union to negotiate on their behalf
4 costs associated with recruitment, selection and training processes
- administrative costs when checking and updating job descriptions
- costs of advertisement
- time consuming
- interviewing can be expensive
What is induction training
It is a form of introduction that allows employees and new hires “learn the ropes” of their new job or position and get started easily.
2 benefits and draw back of internal recruitment
Benefits: It's quicker It's cheaper It's less risky It'll improve your employer brand It'll boost your employee engagement
Drawbacks:
It could cause internal conflict
They may not be respected by others
Sometimes, ‘you just need a breath of fresh air’
2 benefits and draw back of external recruitment
Benefits: Fresher skill and input Qualified candidates Better competition Better growth
Drawbacks: Higher risk High costs Time consuming A limited understanding about the company
Examples of roles of an entrepreneur
- Initiating and leading business activities
- Allocating employees’ duties
- Forecasting business changes
- Identifying business opportunities
- Creating and sharing wealth
Characteristics and skills of an entrepreneur
Creativity. Professionalism. Risk-taking. Passion. Planning. Knowledge. Social Skills. Open-mindedness towards learning, people, and even failure.
Barriers to entrepreneurship
Managing Finances Inadequate Market Experience Human Resource Problem Non-strategic Planning Lack of Capacity Political Barriers Lack of Practical knowledge Not Having the Right Team
What are financial motives used in setting up a business
Financial motives relate to an entrepreneur setting up a business to make money, this can either be in the form of income or as business profit.
What are non-financial motives used in setting up a business
Non-financial motives relate to an entrepreneur setting up a business for reasons other than to make money. Reasons might include personal satisfaction, challenge, being your own boss and independence.
Difference between entrepreneurship and intrapreneurship
An entrepreneur runs their own company. They have complete freedom and responsibility – for better or for worse. An intrapreneur is responsible for innovating within an existing organisation
Benefits and draw backs of a sole trader
Benefits:
Easy to set up
Sole trader retains all profits for themselves
Sole trader makes all the decisions
Drawbacks:
Can be difficult to raise finance
Unlimited liability
Heavy workload
Benefits and draw backs of a partnership
Benefits:
More equity available to finance the business compared to a sole trader
Different partners can bring different skills
Workload is shared
Drawbacks:
Unlimited liability
Profit is shared between the partners
Partners may not always agree on decisions for the business
Benefits and draw backs of a private limited company
Benefits:
Owner can retain control
More able to raise money
Limited liability
Drawbacks:
High set-up costs (legal and administrative)
Harder to motivate and control workers
Benefits and draw backs of a public limited company
Benefits: Raising Capital Through Public Issue Of Shares Transferability Of Shares Other Finance Opportunities Growth And Expansion Opportunities
Drawbacks:
More Regulatory Requirements
Ownership And Control Issues
Short-Term
The 4 basic types of business forms
Partnership
Sole trader
Public limited company
Private limited company
What is opportunity cost
the loss of other alternatives when one alternative is chosen.
What is trade-off
sacrificing some of X to get more of Y
