Unit 4: Employees & Production Flashcards
Why might a business need a new employee?
- More staff, higher demand.
- Skills required.
- Expanding the business.
- Employees leave.
Definition: Employer
The business that employs a worker.
Definition: Employee
Anyone who works for a business or organisation.
Definition: Recruitment
The process of finding and appointing new employees.
Advantages of full time employees?
- Loyalty.
- Consistancy.
- Easier communication, there all the time.
- Better relationship.
Advantages of part time employess?
- Cheaper in total.
- More workers = variety of skills.
- More flexibility, more employees working at peak and busy times.
Steps of recruiting a new employee?
- Create a job desription.
- Create a person specification.
- Advertise job vacancy.
- Shortlist best applicants.
- Selection.
What’s a job description?
A desciption of the work the employee will do.
What’s a person specification?
A description of the skills and qualifications the new employee will need.
How can you advertise a job vacancy?
- Job centre.
- Local newspaper.
- Recruitment websites.
- Word of mouth.
- Displaying details of vacancy on the business’s premises.
Methods of selection?
- Interview.
- Trials.
- Tests.
Definition: Internal Recruitment
Promoting an existing employee of the business to fill a vacancy.
Definition: External Recruitment
Appointing an employee of another business to fill a vacancy.
Advantages of internal recruitment?
- Employee already loyal.
- Business knows strengths and weaknesses of the applicant.
- Cheaper to advertise, quicker to recruit.
- Less training
- Reduces costs.
- Saves time.
- Improve worker’s morale because thre are promotion oppurtunities.
Advantages of external recruitment?
- Doesn’t create another vacancy.
- Bring in new ideas.
- More skills/expirience.
- Wider range of candidates.
What influences how much an employee is paid?
- Skills.
- Expirience.
- Qualifications.
- How much similar and local businesses are paying.
Definition: Wage
When an employee is paid a fixed amount for each hoour or day they work.
Definiton: Salary
When a worker is paid a fixed amoint per month or year, no matter what hours they work.
Monetary benefits?
- Bonuses.
- Commision (sales).
- Profit sharing.
- Company paying money into their pension.
Definition: Pension
A wage paid to retired workers. Employees pay into their ension whilst they are working and then take it once they’re retired.
Non-monetary rewards?
- Company car.
- Private health scheme.
- Free mobile phone or laptop.
- Staff discount.
Definition: Non-Monetary Rewards (fringe benefits)
Rewards to employees that do not involve direct payment of money to them.
Definition: Motivation
The desire to work and be productive.
Benefits of motivated staff to a small business?
- Hardworking employees.
- Employee loyalty.
- Offering support to entrepreneur.
All of the above means a company gets a good reputation
Factors that can motivate employees?
- Job enrichment - making the job more demanding and chalenging, giving the empoyee more authority at work.**
- Training - ensure that employee can handle more chalenging and demanding jobs. Shows that the business values the worker.
- Working in teams - builds relationships between employees increasing their happiness and desire to work with other employees, make them work harder.
- Non-monetary rewards.
- Monetary rewards.
- Job rotation - gives employee variety of jobs so they don’t get bored.
Laws affecting employees: Health and Safety
- Increase costs of business (training).
- Compliance means business avoids paying large fines if there’s an accident.
- Improve motivation as workers know they’re safe.
Laws affecting employees: Discrimination Laws
- Extra costs, might have to employ an expert on employment law, legal advice may be expensive.
- May lead to employing a different employee that may be better suited for the job.
Laws affecting employees: Minimum Wage
- Increase costs, costs may be higher than they would be without the law.
- Lower profits.
Laws affecting employees: Employment Rights
- Extra costs, maternity pay.
- Replacment employee likely to be unfamiliar with the business and may require training.
- Increase costs.
- Replacment employee likely to be unfamiliar with the business and may require training.
- Improved motivation.
Laws affecting employees: Equal Pay
- Increase costs, costs may be higher than they would be without the law.
- Lower profits.
Definition: Job Production
When induvidual or unique products are made to match the requirments of the customer.
Kinds of businesses that might use Job Production?
- Clothing.
- Hairdressers.
- Architects.
- Artists.
- Wedding planners.
Job Production: each prodcut that is produced is unique or induvidual. Advantages and Disadvantages?
Advantages:
- High prices can be charged.
- People will pay more for unique designs.
Disadvantages:
- Labour costs are high.
- Specakist skills.
- Take time to produce.
Job Production: each prodcut is made to match the requirments of the customer. Advantages and Disadvantages?
Advantages:
- Can meet specific target market’s need’s.
- Flexible prodcution process.
Disadvantages:
- High production costs other than labour.
- Can’t buy in bulk.
- High waste.
- Buy lots of materials.
Definition: Batch Production
When groups or batches of identical products are made.
Kinds of businesses that might use batch production?
- Bakers.
- Clothing manufacturers.
- Food producers.
- Fast food resturants.
Batch Production: products are produced in larger quantities. Advantages and Disadvantages?
Advantages:
- Cost of each unit is lower than job production.
Disadvantages:
- Less scope for customisation.
Batch Production: a group of products that are identical to eachother can be produced. Advantages and Disadvantages?
Advantages:
- Different target markets can be catered for.
Disadvantages:
- Can take time to switch batches.
Definition: Operational Efficiency
Producing goods and services to an acceptable standard with as few recourses as possible to keep costs per unit low.
Definition: Unit Costs
The average cost of making one product (known as a unit of output).
Formula for Unit Costs
Unit cost = total costs ÷ output
Advantages of being more efficient (lower unit costs)?
- Reduce selling price and hopefully see and increase in demand.
- Leave prices the same and make more profit on each product sold.
Ways of improving the efficiency of a business?
- Most efficient machinery.
- However, can be expensive.
- More motivated workers.
- Reduce mistakes/wastage.
- More effective management - good managers helpt ensure the above.
- Change from job production to batch production.
- Specilisation.
Definition: Specilisation
Work is divided into seperate tasks or jobs that allow workers to become skilled at one of them.
Technology used in production?
- Robots used in production.
- Stock control programmes.
- Communication technology.
- Design technology.
Definition: Computerised Stock Control
The use of computers to keep records of all of the stock the business has on its premises.
Definition: Computer Aided Design (CAD)
Using computer programmes to design products, such as cars, chocolate bars and clothes.
Advantages of using Robots in production?
- Make less mistakes.
- Work 24/7.
- No wages.
- No lunchbreaks etc.
Advantages of using Computerised Stock Control in production?
- Workers don’t have to manually keep track of how much stock is left.
- Bar codes can instantly record that a product has been sold, so customers can be served quicker.
- Computers can automatically order more stock when supplies get low.
Advantages of using ICT in production?
- Keep customers up-to-date through internet.
- Sell through the internet (e-commerce).
- Emails are cheap and quick.
- Cheap & quick communication between staff.
Advantages of using Design Technology in production?
- Designers can lay their work out on screen, print it out as a 3D image and edit it.
- New prodcuts can be designed and developed more quickly.
- First mover advantage.
- Onscreen simulated designs mean there is no need for physical prototypes, which reduces costs.
- Design data is passed directly to computer controled machines for production, reducing the risk of errors.
Problems with using new technology in production?
- Cost of purchase can be expensive and beyond the recources of small firms.
- Training of staff is an extra cost, which small firms might find difficult to support.
- Workers can be reluctant to change and accept new ways as they fear they might lose their jobs.
Definition: Quality Product
A good or service that meets customers expectations and is therefore fit for purpose.
Definition: Customer Expectation
The minimum quality standards for a product or service that is acceptable to consumers.
How business can measure the quality of the products and services they provide?
- Amount of refunds.
- Ask customers.
- Quantity sold.
Advantages of producting a quality product?
- Charge a higher price.
- Potentially higher demand.
- Better reputation & Satisfied customers.
- Customers will return.
- Lower costs due to less waste.
Definition: Quality Assurance
Checking the quality of products at various stages of the production process rather than just checking quality at the end.
Advantages of quality assurance?
- Easier to fix.
- Saves time.
- High quality products first time round.
- Less faulty products.
- Less complaints.
- Motivated staff.
- Better raw materials - checked on arrival.
Definiton: Customer Service
Providing services to customers before, during, and after their purchase.
Examples of good customer sevice?
-
Reliability.
- Opening times.
-
Pre-Sales.
-
Advice.
- Trained staff.
-
Advice.
-
During Sales.
- Speed of service.
- Help with setting up product.
-
After Sales.
- Helpline.
- Refunds/complaints.
Benefits of providing good customer service?
- Better reputation.
- Increased demand.
- More sales.
- Increased demand.
- Customer loyalty (return).
- Customers recomend business.
- More sales.
- Customers recomend business.
- Fewer complaints.
- Less time consuming and less expensive.
- Staff be more motivated.
- Less time consuming and less expensive.
ICT & Customer Service: Advantages to customers?
- Websites provide easy access and contain details of the business and its products.
- Websites allow customers to easily compare prices.
- Internet allows customers to order and pay online.
- Customers can use internet to contact businesses directly.
ICT & Customer Service: Disadvantages to customers?
- Internet requires a computer (not everyone has one).
- Websites can become out of date.
- Customers can’t test products out before buying them over the internet.
- Some customers prefer face to face contact with sales staff so their queiries can be answered.
ICT & Customer Service: Advantages to businesses?
- Quite cheap to set-up a website.
- Businesses can target customers globally.
- Increased sales.
- Website may be cheaper than setting up a shop or producing a catologue.
ICT & Customer Service: Disadvantages to businesses?
- Websites need maintaining and updating, which may cost money.
- Extra staff may be required to handle orders and deal with email enquiries.
Definition: Customer Protection
Laws that protect the interests of consumers when buying goods or services.
Consequences that businesses may encounter if they break consumer protection laws?
- Fines and legal action.
- Bad reputation.
- Loss of customers.
Advantages of consumer protection laws for businesses?
- Consumers have the confidence to make purchases.
- Reduces the risks of losing customers due to bad products or misleading adverts.
- Prevents unfair competition from low price businesses that save on costs by selling badly made, dangerous goods.
Disadvantages of consumer protection laws for businesses?
- Meeting the conditions of the laws can be expensive.
- Time consuming to keep up-to-date with new laws on conumer protection.
Consumer Protection Law: Sales of Goods and Services Act (1979)
This law ensures that products, when sold, should work as expected and be undamaged. The goods should be as describedand of the expected quality.
Consumer Protection Law: Consumer Protection Act (1987)
This law prevents firms from selling dangerous products to consumers. It makes businesses liable for any illness of injury to consumers caused by their products.
Consumer Protection Law: Competition Act (1998)
Businesses must not have secret agreements with their competitors that ‘fix’ their prices.
Consumer Protection Law: Consumer Protection (Distant Selling) (2000)
This protects consumers who buy over the internet, TV, telephone, and mail order.
Businesses must provide clear product descriptions of products and refund money within 7 days.
Consumer Protection Law: Unfair Trading Regulations (2008)
Makes it illegal to give customers incorrect information on packaging and labels. It also outlaws aggresive selling tactics by door-door sales people.
