Flashcards · 4BS1 · Topic 2

People in business flashcards

30 cards on Topic 2, subtopics 2.1 to 2.5. Pick a subtopic or study them all.

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2.1 Internal and external communication

Effects of good and of ineffective communication: Good: fewer errors, better decisions, clear instructions, higher morale. Ineffective: wrong orders, missed deadlines, rumours, complaints, lost sales, staff who feel ignored.
Email: one benefit and one limitation: Benefit: fast, cheap and leaves a record. Limitation: overload, and tone can be misread.
Face-to-face meeting: one benefit and one limitation: Benefit: instant feedback and tone of voice. Limitation: slow to arrange, and there is no record without minutes.
How do you choose a communication method?: Ask how urgent the message is, how detailed, whether a record is needed, what it costs, and who has access to the technology.
Barriers to communication and how to remove them: Jargon: plain language. Language difference: translation, simple wording. Long chain of command: fewer layers. Overload: short messages. Technology failure: back-up method. Feedback through two-way communication catches misunderstanding.

2.2 Recruitment and selection process

Types of employment: Full-time (the standard working week), part-time (fewer hours), job share (one full-time job split between two people), and casual, seasonal or temporary (short period or set task).
Job description and person specification: Job description: what the job is (title, duties, hours, reporting line). Person specification: who is wanted (skills, qualifications, experience, qualities).
Application form and CV: Application form: the employer’s form, with the same questions for all applicants, so they are easy to compare. CV: the applicant’s own summary of history and skills.
Internal and external recruitment: benefits and limitations: Internal: cheaper, quicker, a known person, motivates staff; but few candidates, no fresh ideas, leaves a vacancy. External: wider choice and new ideas; but costly, slower, an unknown person.
Stages after advertising a job: Shortlisting (comparing applications with the person specification and keeping the best few), then interviewing (the same core questions for everyone, scored against the person specification).
Equal opportunities and minimum wage laws: effects on a business: Equal opportunities: no less favourable treatment because of gender, race, disability, religion, sexual preference or age; fair adverts and interviews, and a wider talent pool. Minimum wage: higher wage costs, possible price rises or lower profit.

2.3 Training

Induction training: Training at the start of a new job (introductions, rules, safety, systems) to settle the employee in and show what is expected.
On-the-job and off-the-job training: On-the-job: at the workplace, doing real work with a colleague or supervisor; job-specific skills with little lost output. Off-the-job: away from the workplace (a course or college); specialist skills from experts.
Benefits and limitations of training for the business: Benefits: better quality, fewer errors, flexible staff, less supervision, safer working, higher productivity. Limitations: fees, lost output while learning, trained staff may leave.
How does training help with health and safety compliance?: Induction covers emergency routes and safe use of equipment, and refreshers follow when methods change. Non-compliance risks injury, fines, legal action and damage to reputation.
Six staff each attend a course with a $300 fee and lose 2 days of work at $80 a day. Total cost?: Fees: 6 × 300 = $1,800. Lost work: 6 × 2 × 80 = $960. Total = $2,760.

2.4 Motivation and rewards

Why motivation matters to a business: It helps attract employees, retain employees (lower turnover and recruitment costs), and raise productivity.
Taylor’s theory: Money is the main motivator. Scientific management: study the task, train for the best method, give simple tasks and pay a piece rate. It ignores non-money needs.
Maslow’s hierarchy, from the bottom: Physiological, safety, social, esteem, self-actualisation. A higher need matters once a lower one is met.
Herzberg’s two-factor theory: Hygiene factors (pay, conditions, job security, policies, supervisor relations) prevent dissatisfaction. Motivators (achievement, recognition, responsibility, interesting work, advancement) create motivation.
Financial methods of motivation: Remuneration (wage or salary), bonus (for hitting a target), commission (a percentage of sales), promotion, and fringe benefits (such as a company car, health cover or discounts).
Non-financial methods: job rotation, job enrichment, autonomy: Job rotation: moving between similar tasks. Job enrichment: more demanding, responsible work. Autonomy: freedom over how the work is done.
Basic pay $1,300 plus 3% commission on sales of $41,000, and a $150 bonus for beating a $40,000 target. Monthly pay?: Commission = 0.03 × 41,000 = $1,230. Pay = 1,300 + 1,230 + 150 = $2,680.

2.5 Organisation structure and employees

Hierarchical (tall) and flat structures: Tall: many levels, narrow spans, long chain of command, slower communication, close supervision, higher management cost. Flat: few levels, wide spans, short chain, faster communication, more trust.
Centralised and decentralised: Centralised: important decisions made at the top; consistent, but slower on local issues. Decentralised: decisions passed down to branch or regional managers; faster and uses local knowledge, but less consistent.
Tall/flat and centralised/decentralised: are they the same thing?: No. Tall or flat describes the number of levels. Centralised or decentralised describes where decisions are made. A business can be flat and centralised.
Delegation and accountability: Delegation passes authority for a task to a subordinate. Accountability (being answerable for results) stays with the person who holds the post.
Activities of the human resources function: Workforce planning, recruitment and selection, training, health and safety, staff welfare, industrial relations, disciplinary and grievance procedures, and dismissal, unfair dismissal and redundancy.
Dismissal, unfair dismissal and redundancy: Dismissal: ending a contract for conduct or performance reasons. Unfair dismissal: the reason or handling was not fair, so the employee may challenge it. Redundancy: the post itself disappears.
1 owner, 4 team leaders and 8 staff under each team leader. Total employees, levels and spans?: Total = 1 + 4 + 32 = 37. Levels = 3. Owner’s span = 4; each team leader’s span = 8.