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Higher Business Management > Prelim > Flashcards

Prelim Flashcards

(90 cards)

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1
Q

What is a functional grouping?

A

This involves grouping an organisation into departments called functional areas, based on skills and experise

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2
Q

Name two advantages of functional grouping

A

Staff with similar skills and expertise are together, allowing for specialisation. Each department will become excellent at what they do

Staff know who to report to and who to get guidance from

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3
Q

Name two disadvantages of functional grouping

A

The organisation can become too large to manage if functional departments grow rapidly

Functional grouping is often coupled with tall and centralised management structure. Communication can be slow.

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4
Q

What is location grouping?

A

This is grouping and organisation into geographical divions. Each division will operate to serve customers in that particular location.

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5
Q

Name two advantages of location grouping

A

Each division can meet the needs of the local markets

The business can react quickly to changing external factors quickly.

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6
Q

Name two disadvantages of location grouping

A

Duplication of resources.

Divisions may compete against each other

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7
Q

What is customer grouping?

A

Grouping of resources that deal with a different type of customer.

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8
Q

Name two advantges of customer grouping

A

Each group can tailor it’s product to suit the customers requirements

Customer loyalist can build up over time.

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9
Q

Name two disadvantages of customer grouping

A

Duplication of resources.

Only suitable for large businesses.

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10
Q

What is an internal recruitment?

A

Where you advertise for the job within the business or organisation.

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11
Q

What is an external recruitment?

A

where you advertise for the job without the business or organisation.

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12
Q

Name two advantages of internal recruitment

A

The vacancy can be filled quickly

The employee will know the business and won’t have to be taught it.

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13
Q

Name two disadvantages of internal recruitment

A

The business or organisation will have to fill the other person’s job when they’re promoted.

applicants are very limited

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14
Q

Name two advantages of external recruitment

A

The new employee will bring new skills and expertise into the organisation or business.

There is a wider pool of candidates

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15
Q

Name two disadvantages of external recruitment

A

Candidates don’t know the organisation so they will have to be taught their way around, this will lose valuable time.

Might take longer to choose as there a wider pool of candidates.

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16
Q

What is an application form?

A

An application form is a document that is produced by the employer. It contains a selection of question that can help the employer find out about their skills, experience and qualities.

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17
Q

What is a CV?

A

CV is a document listing a persons work experiences, qualifications and person experiences.

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18
Q

What is an interview?

A

All interviews are designed to compare the applicants.

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19
Q

Name two advantages of an interview

A

Finds how the applicants react under pressure.

Indication of the applicant’s personality and character.

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20
Q

Name two disadvantages of an interview

A

Some applicants can train specifically for interviews - might not be the best person for the job.

Highly stressful for some. Might be good for the job but won’t show up well to the panel/ manager.

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21
Q

What is testing?

A

This provides additional information about the applicant.

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22
Q

Name two disadvantages of testing

A

Time consuming

Applicants put under too much pressure

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23
Q

What is an assessment centre?

A

This is to see a large of number of applicants at the same time..

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24
Q

Name two advantages of assessment centre

A

Allows an organisation to really scruitinise applicants over a long period of time.

Access how applicants interact with others.

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25
Name two disadvantages of an assessment centre
A venue will need to be hired. - this can be expensive Several managers will need to be sent to the centre to conduct and supervise the tests.
26
What is the two methods of research?
Desk and field
27
What does desk research do?
Secondary | It's information that has already been gathered
28
Name a way of desk research
Internet Government publications Newspaper/report
29
What is a disadvantage of using a newspaper/report
It could be bias Factually incorrect Out of date
30
Name two advantages of desk research
Timely - quick to gather information | Cost effective - doesn't require trained or paid interviewers
31
What is field research
Finding out brand new information suitable for the business' exact needs
32
Name two advantages of field research
It won't have any parts missing Accurate - information should be validated
33
Name a disadvantage of field research
No cost effective - requires trained and paid interviewers or expensive research companies
34
What is a postal survey?
Questionnaires being sent out by mail to people to complete themselves and return
35
Name two advantages of using postal surveys
It is relatively cheap to send large numbers of surveys No interviewer bias
36
Name two disadvantages of using postal surveys
Response rate is less than 10% No opportunity for anything to be clarified
37
What is a telephone survey?
People who are contacted by telephone and asked a number of questions
38
Name two advantages of using a telephone survey
Large numbers can be contacted across the country Less expensive to carry out
39
Name two disadvantage of using a telephone survey
People might not want to participate - might be an unsuitable time Long surveys take up time. Short surveys are easier over the telephone
40
What is an online survey?
People answer a number of questions that are displayed on a website
41
Name two advantages of using an online survey
Can be sent to large numbers with using a link Don't need to spend anything - cost effective
42
Name two disadvantages of using an online survey
Relies people to have an Internet access No personal contact
43
what is diversified product line
Involves having products to sale across completely different market segments
44
What is the minimum wage act of 1998
It makes it illegal to pay an employee below a certain amount per hour
45
What is the employee rights act 1996 and what must it contain
An employee must be given a written contract. It must contain rate of pay, hours, holidays.
46
What type of contracts can you get?
Permanent Temporary Fixed
47
What is the health and safety at work act 1974
All employers must ensure the health, safety and welfare of their employees as far as possible.
48
What is grievance?
A grievance is a complaint by an employee again their employer. It could be the way they've been treated.
49
What can employee do if they feel unhappy with the organisation?
They can involve ACAS and eventually an industrial tribunal
50
What should happen before a grievance hearing?
Give the employee a notice so they can prepare their case. Carry out a full investigation.
51
What is discipline?
A disciplinary procedure is a process for dealing with pereceived employee misconduct.
52
What should the employer put in place? | - discipline
They should put a disciplinary procedure in writing and make it easily avaliable to all staff
53
What should the disciplinary procedure have ?
- what kind of performance and behaviour might lead to discipline. - what action the employer will take - who to report to
54
What are the steps of a disciplinary procedure?
1. letter with the issues. 2. a meeting 3. a decision. 4. chance to appeal.
55
Name three uses of ratio analysis
To compare the current years Performance with that of the pervious To compare their performance with those of a similar organisation To interpret information in order to identify why differences occur and how best to improve it
56
Name three limitations of ratio analysis
Information contained in final accounts is historical Comparisons must be made with firms with a similar size and in the same type of industry Finding do not reflect the implications or effects of new polices
57
What is ratio analysis measures profitability liquidity efficiency
Profitability - can control its spendings Liquidity- ability to pay off their short term debts Efficiency - to make good use of their resources
58
Name four advantages of e-commerce
Opens the market to customers nationally and internationally Enables smaller companies to compete with larger companies Reduces in staffing/or high street stores thereby reducing costs. Provides he option to offer 24 shopping.
59
Name four disadvantages of e-commerce
Stiffer competition. Competing with shops in the next town Staff reductions - increased competition with local companies might resulted in work force. Cost of restructuring- move to e-commerce might not be smooth and will require a degree amount of investment Costumer concern - costumes may not be comfortable shopping online.
60
What are the four distribution methods?
Road Rail Air Sea
61
What are two advantages of distribution on the road
Generally quick and short Allows door to door delivers
62
Name two disadvantages of distribution on the road
Delays on the road and weather can hold it up m Fuel costs can push up the costs
63
Name two advantages of distribution on the rain
Some businesses have private rails. Useful for heavy goods
64
Name two disadvantages of distribution on the rails
The rail terminal is generally not the final destinations Not suitable for some locations
65
Name two advantages of distribution of air
Ideal for long distances Quick delivers can be made overseas
66
Name two disadvantages of distribution of air
The airport is not the final destinations This could cost a lot to where it needs to go
67
Name an advantages of distributions of sea
Useful for importing exporting heavy or bulky products
68
Name two disadvantages of distribution of sea
The dock is not the final destinations A slower method meaning longer delivery times
69
What is cash budgeting
It's a prediction of the flow of cash in to and out of an organisations Cash budgets need to be completed to help the organisations remain liquid.
70
Name two advantages of cash budgeting
To predict a positive cash flow (surplus) To predict a negative cash flow situation (deficit) Allow investment during surplus To allow action being taken during deficit.
71
Technology of finance
Reduces Rick of human errors Can be changed easily Spreadsheets allows a to budget quickly Graphs/charts can be created automatically Records can be emailed and sent for free Files can be backed up
72
What is just in time stock control
It's a system that aims to get the highest volume of output at the lowest unit cost.
73
Name two advantages of just in time stock control
It improves the cash flow in many businesses. It reduces storage costs Reduces waste Not factory space
74
Name two disadvantages of just in time stock control
A lot of faith in placed in the reliability and flexibility of supplies No times for quality control when material arrives Instead ordering and administration costs
75
What happens after the grievance hearing?
- give employee a copy of the meeting records. - might be able to leave some information out. ( certain circumstance) - what you want done and reasons
76
What should the employer to legally? | -grievance
- must set out a grievance procedure - share it in writing to all employees e. g staff hand book
77
What should an employer do ? | -discipline
- Create a disciplinary procedure contact - best way to tell if you have done something wrong. - explains clearly the improvement needed.
78
What is a dismissal procedure?
Referred to firing or sacking.
79
What are the rules of a dismissal procedure?
- employer must set out the disciplinary and dismissal procedure in writing. - if they don't they will pay the employee compensation.
80
What is a bank overdraft?
- Short term | - Facility allows the business to spend more money than whats in their bank account.
81
Name two advantages of a bank overdraft.
- Usually easy to arrange with their bank. | - Allows them to continue spending, even if there is no money in the account.
82
Name two disadvantage of a bank overdraft.
- high interest rates | - must be repaid
83
What is a trade credit?
- Allows a business to buy goods from a supplier and pay them at a later date. - usually at the end of the month
84
Name two advantages of using a trade credit.
- Allows the business to sell stock at a higher price. Earn money before the bill comes in - Keeps a business going when cash flow is poor
85
Name two disadvantages of using trade credit.
- Discount for prompt payment is lost. | - suppliers reluctant to continue to offer if a business does not pay in time.
86
What is debt factoring?
Business sells it's unpaid customers invoices to a factoring company.
87
Name two advantages of using debt factoring
- responsibility for collecting the debt is passed on to the factor/ - cash flow is improved
88
Name two disadvantages of using debt factoring
- has to be sold at a reduced amount | - factoring companies usually only interested in large amount of debt
89
What is a bank loan?
When a bank agrees to lend a business money for a specific purpose.
90
Name two advantages of using a bank loan
- can budget for the repayments | - purchase of essential equiptment can be made in advance and paid back over a number of years

Higher Business Management (4 decks)

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