Unit 2 Flashcards
(41 cards)
What is Human Resource Management?
Strategic approach to the management of people within a business to meet its objectives
What are the main functions of the Human Resource department?
- HR planning
- Recruitment
- Training
- Appraisal
- Remuneration
- Dismissal
- Redundancy
- Motivation
What factors influence HR planning?
- Internal factors
- External factors
What is labor turnover?
Percentage of employees in a year as a proportion of the workforce
What are some internal factors that influence HR planning?
- Labor turnover
- Change in company objectives
- Productivity of employees
- Automation
- Flexitime
- Homeworking
What are some external factors that influence HR planning?
- Demographic change
- Changes in labor mobility
- Immigration
- Economy
- Change in laws
- Gig economy
What are some reasons for resistance to change in the workplace?
- Fear of change
- Self-interest
- Poor communication by the business
- Lack of trust in management
What are the three stages of HR strategies for managing change?
- Unfreeze
- Change
- Refreeze
What is capital expenditure?
*Purchase of fixed assets
*The main purpose is to drive growth in the business
What is revenue expenditure?
*Spending on the day-to-day costs of running the business
*Paid daily, weekly, monthly
What are internal sources of finance?
- Personal funds
- Retained profits
- Sale of assets
What are external sources of finance?
- Equity Finance
- Debt Finance
- Other
What are the pros and cons of personal funds as a source of finance?
- Pro: No interest payments or loss of control
- Con: May not have personal funds
What is trade credit?
When businesses buy inputs from other businesses but pays for it later in 30-90 days
What should be considered when recommending a source of finance?
- Time period
- Amount needed
- Cost involved
- Legal structure
- Size of existing borrowing
What is the definition of marketing?
Identifying and satisfying consumer needs
What are the components involved in marketing?
- Advertising
- Market research
- Product design
- Setting pricing
- Designing promotion campaigns
What is market orientation?
Finding out what the market wants and producing a product or service to satisfy the market
AO4 - What is market share?
Sales Revenue of the Business / Sales Revenue of Market × 100
What is market leadership?
Business in the market with the highest market share
What are the benefits of high market share?
- High revenue
- Control over pricing
- Economies of scale
- Better shop placements
What are the pros of using decision trees?
- Tangible and mathematical answer
- Visual representation of information
- Risk is included and assessed
What are the cons of using decision trees?
- Probabilities may contain error
- Estimates may contain bias
- Ignores qualitative aspects
What is share capital?
Selling part of the business to an investor in return for finance
