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Flashcards in People and finance Deck (44):
1

identify 5 sources of finance

bank overdraft
bank loan
retained profits
sale of an asset
government grant

2

2 advantage and disadvantages of a bank overdraft

advantage:
-its relatively easy to be arranged with the bank
-it allows businesses to carry on paying general expenses with no money in the account

Disadvantages:
- high interest rates apply
- the bank can choose to withdraw the overdraft if this happens the money needs to be repaid immediately

3

2 advantage and disadvantages of bank loan

Advantages:
-the business can prepare budgets for the repayment
- the payback time is over a number of years
disadvantages:
-interest is paid on top of the original loan amount
- smaller businesses can find it hard to secure a loan there's higher interest rates higher risk

4

1 advantage and disadvantage of retained profits

Advantage:
- Profits belong to the company, so the owner is in control
disadvantage:
- Using retained profits find it difficult to grow and reach the speed they would like

5

2 advantages and 1 disadvantage of sale of assets

advantages:
- The money can be raised due to a sale of an asset which will boost cash flow
-the money does not need to be repaid
disadvantage:
-If finance is needed urgently assets might not be sold for their highest value to get money in time.

6

1 advantage and disadvantage of a government grant

advantage:
- The money is granted so the money does not have to be repaid
disadvantage:
-these are usually one off payments

7

What is the 4 roles of the Human Resources department

Train staff

Motivate staff

Ensure positive employee relations

Ensure organisation has personnel necessary

8

What are 4 reasons for workforce change

To meet increasing demand for existing products

To develop new products to satisfy demand

To help enter new markets

To respond to flexible working arrangements

9

What are the 4 internal recruitment methods

Staff notice board

Organisations intranet

Internal email to all or selected staff

Company newsletter

10

What are the 4 external recruitment methods

Job centre

Newspaper adverts

Websites (like s1 jobs)

Recruitment agencies

11

3 advantages of internal recruitment

The vacancy can be filled quickly

Employee knows organisation which saves Induction training costs and time

The employee is known to organisation and can be trusted to do a good job

12

3 disadvantages of internal recruitment

Applicants are drawn from a very limited pool so the organisation may not hire best person for the job

Promoting one employee will consequentially create a vacancy in their old post

The organisation misses out on a change to bring in fresh new ideas and skills to the organisation

13

3 advantages of external recruitment

Fresh new ideas and skills are brought into the organisation

Wider pool of candidates to choose from

It avoids creating a further vacancy in the organisation

14

3 disadvantages of external recruitment

Existing staffs become demotivated as the perceive that there is not chance of internal promotion

Such a potentially large pool of candidates means that it takes longer to choose suitable applicants to review

Candidates do not know the organisation so induction training will need to be carried out which can be costly and time consuming

15

What are the 6 selection methods in choosing the correct person for the job

Application forms and cvs

Interviews

Testing

Assessment centres

References

Trial periods

16

What is on the job training

Where an employee is trained within the company’s facility maby by another employee

17

What is off the job training

Where an employee is trained out with the company’s workplace at a real training facility by specialists

18

2 advantages of on the job training

The employee actually contributes to the company while they are training

It saves finance because the trainee doesn’t have to go elsewhere spending money for things like transport or specialist training

19

2 disadvantages of on the job training

Being trained within the workplace can distract others from their own work

Mistakes can be made as it is not specialists training the employee

20

2 advantages of off the job training

Staff can concentrate fully on learning about the job without any distractions

Current staff aren’t distracted by new employees being trained around them because it’s off the job

21

2 disadvantages of off the job training

Can be costly to send staff to training centres

Nothing is actually being contributed to their own company while training is taking place out with the company’s workplace

22

What 2 statements describe training schemes

The schemes are intense programmes that equip staff with enhanced skills

Resulting in a good position for a pay rise or a promotion

23

2 advantages of management training schemes

The organisation benefits from highly skilled staff

Motivated staff which lowers staff turnover

24

2 disadvantages of management training schemes

Work time will be lose throughout training

More wages required after training is complete

25

2 statements that describe a work based qualification

Offer the chance to gain formal qualifications through work

Apprenticeships And manual trades are common for these few days a week usually at college to learn

26

2 advantages of work based training

Employees gain a recognised qualification and learn through practical application of learning

Employees can contribute to organisation while training

27

2 disadvantages of work based training

Staff may leave for a better job after gaining this qualification

Organisations usually pay for training and examinations

28

What 2 statements describe virtual learning

Access learning tools outside of the work place through internet

Also use of a webcam can be used to talk to trainers and students

29

2 advantages of virtual learning

Trainees can access materials from home or on the go at any time of day

Saves money on sending trainees to courses and printing training materials

30

2 disadvantages of virtual learning

Some trainees will work better face to face instead of online

Virtual learning can be costly to set up

31

Motivation

See page 55 for maslows hierarchy of needs


Now draw the diagram

32

Motivation

See page 56 for mcgregors theory x & y

Now draw the table

33

2 statements that describe hygiene factors page 57

These will not motivate employees but if not met they can lower motivation

Can range from clean chairs to job security

34

2 statements that describe motivator factors

Can be responsible for increasing motivation

Factors are linked to the top of maslows hierarchy of needs

35

What are the 5 basic motivation methods

Fair pay (work to earn more money to satisfy their needs)

Payment methods( commission,performance related pay, piece rate, overtime)

Incentives( non financial like holidays,discounts)

Permanent contracts

Good working conditions (safe conditions)

36

What are the 3 different leadership styles

Autocratic: (authority and control is retained by leader managers tell employees what to do)

Democratic:(communication and employee participation is key managers let employees have say In decision making)

Laissez faire:(everyone’s a manager lets everyone just carry out jobs without supervisors)

37

2 advantages and disadvantages of autocratic leadership style

Advantages:
1:There a clear expectations of what needs to be done
2:Decisions can be made quickly

Disadvantages:
1:No opportunity for empowerment meaning demotivated some staff

2:Lack of creativity in decision making as retained with senior management

38

2 advantages and disadvantages of democratic leadership style

Advantages:
1:employees feel motivated as they have a say in decision making
2:managers have final say but contribution of staff encourages creativity and helps solve complex problems

Disadvantages:
1:mistakes can be made if employees are not experienced enough to make decisions
2:some employees less productive without a manager

39

2 advantages and disadvantages of the laissez faire Leadership style

Advantages:
1:employees make decisions and only seek managers assistance when help is needed= high motivation
2: can create a very relaxed working environment
Disadvantages:
1:lack of direction can lead to objectives not met
2: can only work in highly professional environments where employees are self motivated ie technology companies

40

What are 5 factors that affect the leadership styles

The task(complex could require help)

Skills of staff(high skilled= less supervision)

Motivation of staff(highly motivated=less instruction and supervision)

Time available(little time to complete project might mean less time for discussion on how to achieve it)

Group size( too large groups= confusion large groups benefit from clear direction of AUTOCRATIC leadership

41

What are 3 statements that describe appraisals

Two way meeting between employee and another member of staff

Discussing the employees success setting targets for them to meet

These can be peer appraisal,360 degree appraisal,informal appraisal

42

3 advantages and disadvantages of appraisals

Advantages:
1:positive feedback which motivates employee
2:targets set motivates employees to meet those
3: training needs can be identified motivating staff and increasing quality standards
Disadvantages:
1: negative feedback means demotivated employees
2: employee can be set unrealistic targets putting them under pressure
3:too many development needs may be identified which will stress employee

43

describe peer appraisals

when the review interview is carried out by a colleague at the same level in the organisation

44

2 advantages of peer apprasials

employees may relax more and react better to a review given by a colleague

relationships with line managers are not harmed through judgements or weaknesses being highlighted