O Level Business: Recruitment, selection, training and communication (Cambridge 7115) – Revision Notes

These notes condense sections 2.3 (Recruitment, selection and training of employees) and 2.4 (Internal and external communication) of the Cambridge O Level Business Studies 7115 syllabus for examination in 2026. For full explanations and worked examples, use the study guide. Then test yourself with the practice questions.

Other links: Cambridge O Level Business hub, checklist, the wider People in business revision notes, and the free diagnostics.

Key terms

Term	Meaning
Recruitment	Attracting suitable applicants for a vacancy
Selection	Choosing the best applicant from those who applied
Internal recruitment	Filling the post from the existing workforce
External recruitment	Filling the post from outside the business
Job description	What the post involves
Person specification	Skills, qualifications and qualities wanted
Induction training	Introduction for new starters
On-the-job training	Learning while doing the work
Off-the-job training	Learning away from the workplace
Dismissal	Employer ends the contract because of the employee’s conduct or performance
Redundancy	The job is no longer needed, so the employee loses the post
Communication	Sending a message that the receiver understands and, where needed, answers
Barrier	Anything that stops a message being received or understood

2.3.1 Recruitment and selection

Standard sequence of stages: identify the vacancy, write the job description and person specification, advertise, shortlist, interview and test (with references), offer the post and agree the contract, then induct the starter.

Choose internal when	Choose external when
Speed and low cost matter	New skills or fresh ideas are needed
Reliability is known and valued	No suitable person is already employed
You want to reward loyalty	The business is expanding fast

Part-time	Full-time
Matches cover to busy periods	Reliable, committed cover
Pays only for hours needed	Paid even in quiet spells
More people to train and manage	Fewer people to manage

Method in steps for “recommend and justify who to employ”:

1. List what the business needs now (skills, speed, cost, long-term plans).
2. Match each candidate to that list.
3. State your choice and two reasons using the data given.
4. State one risk of your choice and why the other candidate is less suitable.

2.3.2 Training

Benefits to business: higher productivity, fewer errors and accidents, better service, new equipment used properly. Benefits to employees: new skills, confidence, promotion chances.

Type	Best used for	Main limitation
Induction	Every new starter	Time before productive
On-the-job	Skills specific to this workplace	Trainer’s output falls; bad habits pass on
Off-the-job	Specialist or risky skills	Cost and absence from work

2.3.3 Reducing the workforce

	Dismissal	Redundancy
About	The person	The job
Example	Persistent breach of safety rules	A task is automated

Situations for downsizing: automation, reduced demand, closing a branch, cutting costs to survive. To choose who goes, ask which jobs are no longer needed, whose skills are still required, and who can move or retrain. Give one cost of your choice, such as lost experience or lower morale.

2.3.4 Legal controls (general terms only)

Area	Employer impact	Employee impact
Employment contracts	Clear terms to provide and honour	Know pay, hours and duties
Unfair dismissal	Must have a fair reason and process	Protected from unreasonable dismissal
Discrimination	Hire and promote on ability	Fair treatment
Health and safety	Costs of equipment and training; fewer accidents	Safer work
Legal minimum wage	Higher wage costs	Guaranteed minimum pay

2.4 Communication

Effective means the message is received, understood and acted on. Internal is within the business; external is with customers, suppliers and others.

Method	Use it for	Weakness
Meeting or face-to-face	Complex or sensitive news	Time; hard for scattered staff
Notice or memo	Simple news to many	May not be read
Letter or report	Formal, permanent record	Slow
Email	Fast, detailed, recorded	Overload; can be ignored
Text or messaging app	Urgent, short alerts	Too brief for complex news
Video conferencing	Distant participants	Equipment and connection
Intranet or website	Information held in one place	Needs updating
Social media	Reaching customers	Errors become public

Choose a method by urgency, complexity, number of receivers, and need for a record or feedback.

Barrier	Problem	Fix
Jargon or language	Misunderstanding	Plain words; translation
Long chain	Delay or distortion	Fewer levels
Overload	Key items missed	Prioritise and summarise
Wrong method	Message ignored	Match method to message
Technical failure	Not received	Back-up channel

Problems of poor communication: mistakes, delays, low morale, lost customers and orders, conflict.

Must-know distinctions

• Recruitment finds applicants; selection chooses between them.
• Internal recruitment saves time and cost; external recruitment brings in new skills.
• Induction is for new starters; on-the-job and off-the-job are about where the learning happens.
• Dismissal is about the person; redundancy is about the job.
• Internal communication stays inside the business; external communication reaches customers, suppliers and other outsiders.
• A communication method is a channel (such as email); a barrier is what blocks the message (such as jargon).

Worked reminders

Choosing between candidates. A hotel needs a head receptionist who can start within two weeks. An internal candidate knows the booking system but has not led a team. An external candidate has led a larger team but needs six weeks’ notice. A good answer picks one, uses the start date and the experience as reasons, and names the risk (for the internal choice, lack of leadership practice, which training could address).

Choosing a communication method. A closure due to a power cut must reach 40 staff within the hour. Text or a messaging app suits speed and reach. Follow with a short email so there is a record. A letter would be too slow.

Choosing who goes. When a machine removes a task, say which posts disappear, then check which colleagues could move to other work. Keep the people whose skills the business still needs, and say what the business loses.

Calculation reminders

• Wage bill = number of employees × average pay. Saving from redundancies = posts removed × pay for each post.
• Percentage change = change ÷ original × 100.
• Cost of a part-time option = total hours × hourly rate. Compare with the full-time contract cost, then add one-off costs such as induction.
• Training cost per person = fees + lost output (or trainer time) + errors. Multiply by the number trained.
• Staff time cost of a meeting = people × hours × hourly pay.

Quick self-test

1. State two stages that come before advertising a vacancy.
2. Give one benefit and one limitation of internal recruitment.
3. A shop needs 24 hours of cover a week. Calculate the weekly cost of (a) one full-time contract of 40 hours at Rs 400 an hour, and (b) two part-timers working 12 hours each at the same rate. State the saving as a percentage of (a).
4. Ten trainees: off-the-job costs Rs 9,000 in fees plus 2 days at Rs 2,500 lost output each. On-the-job needs 5 supervisor hours at Rs 500 plus Rs 1,000 scrap each. Calculate the difference in total cost.
5. Give one example of dismissal and one of redundancy.
6. A firm has 80 employees paid Rs 36,000 a month on average. It removes 6 posts. Calculate the monthly saving and the percentage of the wage bill.
7. Name two situations in which a business may need to reduce its workforce.
8. A legal minimum rises from Rs 30,000 to Rs 32,400. Calculate the percentage rise.
9. State one benefit and one limitation of email.
10. Name two ways to reduce a language barrier.

Answers

1. Any two: identify the vacancy; write the job description; write the person specification.
2. Benefit: quicker and cheaper. Limitation: fewer applicants and no new ideas.
3. (a) 40 × 400 = Rs 16,000. (b) 2 × 12 × 400 = Rs 9,600. Saving Rs 6,400, which is 40% of (a).
4. Off-the-job: (9,000 + 2 × 2,500) × 10 = Rs 140,000. On-the-job: (5 × 500 + 1,000) × 10 = Rs 35,000. Difference Rs 105,000.
5. Dismissal: repeated serious misconduct. Redundancy: a machine replaces a task.
6. 6 × 36,000 = Rs 216,000 a month. Wage bill 80 × 36,000 = Rs 2,880,000, so the saving is 7.5%.
7. Automation; falling demand; closing a branch.
8. (2,400 ÷ 30,000) × 100 = 8%.
9. Fast, cheap and keeps a record; but it can be ignored or overloaded.
10. Plain wording; translation or interpreters; checking understanding.

Where marks are usually lost

• Using “recruit” and “select” as if they were the same thing.
• Listing a method without a limitation, or a limitation without saying why it matters here.
• Writing “the employee was made redundant” for a sacking.
• Recommending a candidate or an employee to dismiss without using the facts in the case.
• Giving only one side in a “recommend and justify” answer.
• Describing legal controls but not the effect on both employers and employees.
• Choosing a communication method by naming it only, with no link to urgency or complexity.
• Leaving out units, or giving a percentage with no working.

Frequently asked questions

What is the difference between recruitment and selection? Recruitment is attracting suitable people to apply for a vacancy. Selection is choosing between those who applied, using tools such as application forms, interviews, tests and references.

What is the difference between internal and external recruitment? Internal recruitment fills a vacancy from the existing workforce, for example by promoting a team member. External recruitment fills it from outside the business.

Is dismissal a way of cutting costs? No. Dismissal ends a contract because of something connected with the employee, such as serious misconduct. Redundancy relates to the job no longer being needed, for example after automation or a fall in demand.

What legal controls over employment are in Cambridge O Level Business 7115? The syllabus lists five areas: employment contracts, unfair dismissal, discrimination, health and safety, and the legal minimum wage. Describe each in general terms and its effect on employers and employees.

Official syllabus

Cambridge O Level Business Studies 7115, syllabus for examination in 2026 (Version 2), published by Cambridge University Press & Assessment (Cambridge International). Sections 2.3 and 2.4 of the subject content.