Unit 2 - Functions of a Business

Question 1

When a labour market is competitive, companies use —- to attract employees from other firms.

Answer 1

PERKS

Question 2

What are different types of perks?

Answer 2

• Casual Dress code
• Daycare services
• Gym facilities
• Food
• Reading rooms/nap rooms

Question 3

What is the Role of Production?

Answer 3

is important in business as it is the process and method of transforming raw materials, into ideas, information, or know how, into goods or services

Question 4

What is the Role of Human Resources?

Answer 4

is important in business as they are the people who work to create the goods or services

1. Provide Employment
2. Provide Training
3. Manage HR Information Technology Systems
4. Ensure Positive Employee Relations amongst Staff

Question 5

What is the Role of Sound Management Practices?

Answer 5

communication skills, orientation, training methods, improving productivity, resolving conflicts, improving employee relationships, doing performance appraisals

Question 6

What is the Role of Marketing?

Answer 6

to sell what a business makes and to manage a business’s brand/brands

Question 7

What is the Role of Accounting?

Answer 7

to ensure the statements and documents the company produces are accurate and most recent

Question 8

What is the Role of Information Technology?

Answer 8

has to manage and monitor everything that affects the business

Question 9

What are the types of Interviews?

Answer 9

• Employment Interview
• Exit Interview
• Corrective Interview

Question 10

What is an employment interview?

Answer 10

Human resources meets with applicants to ask questions and determine the applicants personality, work habits, values and interests

Question 11

What is an exit interview?

Answer 11

completed when an employee leaves the business, discusses future goals

Question 12

What is a corrective interview?

Answer 12

discuss problems with employees

Question 13

What is employee turnover?

Answer 13

the rate at which employees of a business leave their position, reasoning could include participating in a different job or retirement

Question 14

Why is it a good idea for businesses to maintain a health and safety environment?

Answer 14

1. To keep productivity levels high
2. To avoid going to court
3. To create positive employee attitudes

Question 15

What are psychometric tests?

Answer 15

A way to measure the ability of a candidate to perform well in a job role, measure a range of skills from cognitive abilities, knowledge, and assessing your personality

Question 16

What are the functions of management?

Answer 16

Leading – Motivating employees to do their best

Controlling – Control their resources (Employee discipline, perks, appraisals)

Planning – Setting goals

Organizing – Arranging people and tasks

Question 17

What are the different levels of management?

Answer 17

• Upper Management
• Middle Management
• Lower-level Management

Question 18

What is Upper Management?

Answer 18

–> (CEO, COO, CFO, V.P.)
Sets long term company goals, new products, new markets

Question 19

What is Middle Management?

Answer 19

–> (Plant Manager, Regional Manager)
Interprets plans from upper management and puts them into action

Question 20

What is lower-level management?

Answer 20

–> (Team leader, foreperson, assistant manager)
Implements plans from above

Question 21

What are the 3 types of leadership?

Answer 21

Democratic
Provides opportunities for employees to contribute to the decision -making process
————————————————-
Autocratic
Takes control
————————————————-
Laissez-faire
Leaves employees alone
(mature and experienced employees)

Question 22

What are the first 4 types of compensation?

Answer 22

Hourly Wages: most often used for part-time employees

Salary: a fixed amount of money that an employee receives on a regular schedule such as weekly or monthly

Salary Plus Commission: employees get paid a base salary plus a percentage of their sales

Straight Commission: employee only gets paid a percentage of their sales

Question 23

What are the 5 last types of compensation?

Answer 23

Incentive Bonus: a bonus or reward offered for good performance

Performance Based Pay: employee gets paid for each product they create

Fee for Service: used by construction, catering and cleaning businesses

Royalty/Licensing Fee: if you write a book, record a song or have an idea you can sell

Stock Options: businesses offer shares of their company to employees to entice them to work harder

Question 24

What are the 4 types of Labour?

Answer 24

Unskilled: jobs that don’t need a lot of training
EX –> Kitchen Help

Semiskilled: jobs that need some instruction
EX –> Cashier

Skilled: jobs that need training from educational institutions or previous employment
EX –> Cake Decorator

Professional: highly trained people with specific occupations
EX –> Electrician