Business

• training - employees are provided with skills, knowledge and qualifications to enable them to perform their job
• Induction training- carried out before an employee starts the job

  PRO:

  • increase productivity
  • learn from experienced employees
  • feel safe and motivated

  CON:

  • not working to full potential
  • may not have a good mentor
• on the job training- happens in the workplace

  PRO:

  • cheaper
  • easy to organise
  • tailored to the needs of the business

  CON:

  • employees unavailable
  • no new ideas
  • ineffective if mentors are unexperienced
• off the job training- happens away from the employees normal job or workplace

  PRO:

  • new ideas
  • high quality
  • higher morale

  CON:

  • expensive
  • employee may leave business
  • loose productivity
• types of training

  retraining, new technology, health and safety, induction, on the job, off the job
• types of training

  coaching, demonstration, job rotation, job shadowing, mentoring, retraining
• coaching (teaches specific tasks)
• demonstration (shown how to perform)
• job rotation (moves around different job roles)
• job shadowing (observes workers)
• mentoring (advising and guiding)
• retraining (skills need to be refreshed or taught)
• benefits of training

  • improve employee morale
  • improve service
  • improve customer satisfaction
  • reduced waste
  • reduced costs
• span of control = number of staff that a manager has responsibility for
• chain of command = the order of authority and instructions within an organisation, from the top to the bottom
• delegation = process where tasks are given to members of staff, who then give tasks to other members of staff further down the chain of command
• businesses organise themselves in order to carry out their activities effectively
• tall hierarchy - structure with many layers of management

  PRO:

  • narrow span of control
  • opportunities for promotion

  CON:

  • slow decision making
  • difficult communication
• flat hierarchy - few structural layers between employees in a business

  PRO:

  • fast communication
  • fewer managers (reduce cost)

  CON:

  • wide span of control (difficult for managers)
  • spend on training for junior employees
• line manager = managing their own workload aswell as their team
• subordinates = members of staff below a manager in the chain of command
• trade union = type of organisation that represents workers in a workplace and aims to represent the interest of the employees

  • strikes
  • pay
  • walking conditions
• communication in the workplace -including verbal and non-verbal

  PRO:

  • understanding
  • effective decision making
  • motivation
  • less mistakes

  CON:

  • low morale
  • decrease in efficiency
  • decrease in employee cooperation
  • slow decision making
• profit sharing = employees are payed a share if the net profits of the company

  PRO:

  • increase productivity
  • increase earning
  • increase revenue for business
  • loyalty to business

  CON:

  • take from business
  • increase in costs
  • can’t see how own actions effect the business
  • some employees don’t work hard but receive money anyway
  • decrease in performance
• job enrichment = meaningful roles through feedback, encouragement, communication

  PRO:

  • job satisfaction
  • increase in motivation
  • increase customer experience and loyalty
  • increase revenue

  CON:

  • new tasks and workload
  • underperformance
  • decrease in motivation
• why would a job be vacant?


  growth, employee leaving / promoted / moving, an employee being fired, maternity or paternity leave
• Internal recruitment = appointing an existing employee to a job role

  PRO:

  • quick process
  • known applicants
  • previous experience
  • cheaper to recruit

  CON:

  • small pool of applicants
  • may not be experienced
  • lack of fresh ideas
• external recruitment = hiring people from outside the organisation to fill a vacancy

  PRO:

  • new ideas
  • fresh skills
  • enthusiasm
  • larger pool of applicants

  CON:

  • takes time
  • expensive
  • not known
• methods of recruitment

  • interview
  • agencies
  • application
  • informal contact
  • media selection
• stages of recruitment

  1. identify vacancy
  2. prepare job description and personal specification
  3. advertise
  4. shortlist
  5. check references
  6. interview candidates
  7. selection and appointment
• limited liability = the business owner is only res for the business debt up to the value of their own financial investment

  • creditor can only take assets or finances belonging to the company
  • own legal identity provided a layer of protection
• unlimited liability = business owners are responsible for all debts of the business

  • high risk
  • no legal identity
  • use personal possessions and finances
• sole trader = business owned and run by one person

  • may have employees work for them
  • unlimited liability
  • pays income task

  PRO:

  • quick and easy
  • control over business
  • be their own boss
  • low set up costs

  CON:

  • unlimited liability
  • long hours
  • stressful
  • increased responsibility
  • perform many different job roles
• partnership = business with a minimum of two owners

  • 2-20 owners
  • deed of partnership

  PRO:

  • quick and easy set up
  • shared decision making
  • shared debt responsibility
  • more funds invested
  • more ideas and skills
  • cover partners when ill

  CON:

  • long hours
  • conflict
  • unlimited liability
  • profits shared
  • let partner down (responsibilities)
• private limited company (Ltd) = small or large business owned by shareholders

  • shareholders are invited by companies to purchase a percentage

  PRO:

  • limited liability
  • increase status
  • new shareholders invited (avoid outside influence)
  • company exists after owner passes

  CON:

  • more paperwork
  • other can view financial information
  • time consuming
  • may require outside help for management
• public limited company (plc) = sells its shares on the stock exchange/ to the public

  • flotation occurs when a private company becomes public

  PRO:

  • large number of potential investors
  • more media coverage and publicity
  • shares are bought and sold easily

  CON:

  • negative media can damage reputation
  • risk of being taken over
  • more regulation, increase costs
  • shareholders and managers could have different opinions
• co-operatives = business that it owned and run by it’s members

  • set up to benefit members
  • each member gets a say
  • owned by: customers, employee, residents
• consumer co-operative is a business to provide quality products for reasonable prices (reinvest to achieve)
• employee cooperative is a business to improve working conditions and standard of living for staff (profits shared with employee)
• charity = non-profit making organisation to give to charitable causes

  • raise money through donations
  • e.g poverty, education, disease