People

Question 0

Where might a business advertise a job?

Answer 0

Internally (notice boards, newsletters), job centres, local newspapers, trade journal, local shop window, national newspapers, internet.

Question 1

Describe the process of recruiting and selecting an employee.

Answer 1

Identify vacancy, write job description, advertise the job, send out application forms, receive applications, shortlist candidates, interview, select best candidate, make job offer.

Question 2

What are recruitment agencies?

Answer 2

They do work for the business: draw up job description, person specification and look for suitable candidates. They will then present the business with a list of suitable candidates.

Question 3

What are employment agencies?

Answer 3

People looking for work register with these. A business asks them to provide workers for a period of time. If the worker is good, a permanent job may be offered.

Question 4

Explain the methods of paying workers.

Answer 4

Time Rate: paid for no. of hours worked
Overtime: paid extra for working past normal hours
Piece Rate: paid for no. of items produced
Commission: paid for no. of items sold
Performance Related Pay: bonus for meeting targets set by manager
Profit Sharing: receive part of profits made
Salary: paid monthly no matter how many hours worked
Fringe Benefits: payments in kind (company car)

Question 5

What is the difference between gross pay and net pay?

Answer 5

Gross pay is the actual amount earned by the worker whilst net pay is the amount taken home by the worker once taxes, etc. have been deducted.

Question 6

In organisational structure, what is the span of control?

Answer 6

The number of workers you are in charge of.

Question 7

What is the chain of command?

Answer 7

The route by which a message is passed down the structure.

Question 8

Describe Maslow’s Hierarchy of Needs giving examples.

Answer 8

Physiological needs include a salary, food and water (basic needs).
Safety needs refer to a secure workplace and job.
Social needs are staff parties and general socialising (sense of belonging).
Self esteem needs include promotions and rewards (search for achievement, recognition and respect).
The self-actualisation need refers to getting your dream job (seeking peak experiences after realising full potential).

Question 9

What does a motivated workforce result in?

Answer 9

Increased output
Improved quality
Higher level of staff retention

Question 10

What are the non monetary factors of motivation?

Answer 10

Empowerment (authority to decide about how to do a job)
Praise
Promotion
Job enrichment (interesting, challenging tasks)
Job enlargement (more tasks)
Better communication
Working environment
Team working 
Job rotation (reduces boredom)
FEAR

Question 11

What is the aim of an employment law?

Answer 11

To protect the health, safety and rights of employees.

Question 12

Give some examples of staff protection laws.

Answer 12

Equal Pay Act 1970
Race Relations Act 1976
Health & Safety at Work Act 1974
Minimum Wage Legislation 1996
Employment Rights Act 1996
Disability Discrimination Act 1995
There is also a limit to the number of hours a person can work in a week and parents are entitled to paid leave soon after their child is born.

Question 13

What is the effect of protecting worker rights on a firm?

Answer 13

It increases the costs.

Redundancy procedures must be fair- ‘lastin-firstout’, and compensation should be paid.

Question 14

What are the benefits of being in a trade union?

Answer 14

Strength in numbers.
They can give expert advice and support.
They can help pay for expensive legal cases.

Question 15

What types of industrial action can a trade union take?

Answer 15

Strike
Overtime ban
Work to rule

Question 16

What are the costs of taking industrial action?

Answer 16

Not get paid on strike.
Customers cannot buy products or services.
Firm may make losses.
Customers take business elsewhere.

Question 17

What is the name given to training which takes place usually during the first week of employment?

Answer 17

Induction training

Question 18

What is training?

Answer 18

The process of developing knowledge and skills of employees so they become better at their jobs. It improves technical, personal or management skills and will increase staff efficiency.

Question 19

What are the advantages of on the job training?

Answer 19

Job specific to company needs.
More cost effective.
Company can control quality.

Question 20

What are the disadvantages of on the job training?

Answer 20

Lost productivity.
Training is a specialist skill not possessed by all workers.
Bad habits may be picked up.

Question 21

What are the advantages of off the job training?

Answer 21

Specialist trainers.
No work distractions.
Motivates employees and makes them feel valued by the company.

Question 22

What are the disadvantages of off the job training?

Answer 22

Must be motivated to learn.
Costly.
Lost productivity.

Question 23

What is an annual staff appraisal?

Answer 23

A chance for an employee to discuss their recent work and future training needs with their line manager in a meeting.

Question 24

Why is retaining workers important to a firm?

Answer 24

It costs time and money to hire and train a replacement. Appraisal and training helps motivate staff and so improves staff retention.

Question 25

What are the types of integration?

Answer 25

Vertical backwards
Vertical forwards 
Horizontal
Lateral
Conglomerate

Question 26

What is communication?

Answer 26

The transmission of a message from a sender to a receiver.

Question 27

What are the two types of communication?

Answer 27

Formal and informal.

These can be either one-way or two-way. Communication can take place internally or externally.

Question 28

What are some barriers to communication?

Answer 28

Timing, clarity, attitude of sender, wrong method, feedback not received/is inappropriate, problem with means.

Question 29

Three means of communication?

Answer 29

VERBAL (quick and easy but body language can get in the way and no record is kept)
WRITTEN (clear, precise and thorough but is slow, receiver may not read, can be tedious)
IMAGES (people are drawn to the colour, creator can get creative, though the lack of words provides insufficient communication and some may view it differently to others)

Question 30

What is internal recruitment?

Answer 30

Internal recruitment is when the business looks to fill the vacancy from within its existing workforce.

Question 31

What is external recruitment?

Answer 31

External recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business.

Question 32

What are the advantages of internal recruitment?

Answer 32

Cheaper and quicker to recruit
People already familiar with the business and how it operates
Provides opportunities for promotion with in the business – can be motivating.
Business already knows the strengths and weaknesses of candidates.

Question 33

What are the disadvantages of internal recruitment?

Answer 33

Limits the number of potential applicants
No new ideas can be introduced from outside
May cause resentment amongst candidates not appointed
Creates another vacancy which needs to be filled.

Question 34

What are the advantages of external recruitment?

Answer 34

Outside people bring in new ideas
Larger pool of workers from which to find the best candidate
People have a wider range of experience.

Question 35

What are the disadvantages of external recruitment?

Answer 35

Longer process
More expensive process due to advertising and interviews required
Selection process may not be effective enough to reveal the best candidate

Question 36

How can a business advertise a job externally?

Answer 36

Job centres – Government agencies to help the unemployed find jobs or get training
Job advertisements - the most common form of external recruitment. Where a business chooses to advertise will depend on the cost of advertising and the coverage needed (i.e. how far away people will consider applying for the job)
Recruitment agency - Provides employers with details of suitable candidates for a vacancy and can sometimes be referred to as ‘head-hunters’. They work for a fee and often specialise in particular employment areas e.g. nursing, financial services, teacher recruitment
Personal recommendation - Often referred to as ‘word of mouth’ and can be a recommendation from a colleague at work. A full assessment of the candidate is still needed however but potentially it saves on advertising cost