business

• Recruitment


  The process from identifying that the business needs to employ someone up to the point where applications have arrived at the business
• Job analysis


  Identifies and records the tasks and responsibilities relating to the job
• Job description


  Outlines the responsibilities and duties to be carried out by someone employed to do the job
• Job specification


  A document that outlines the requirements, qualifications, expertise, skills, physical/personal characteristics etc. required by an employee
• Internal recruitment


  When a vacancy is filled by an existing employee of the business
• Advantages of internal recruitment


  • Saves time and money- no need for advertising and interviewing
  • Person already known to business
  • Person knows business' ways of working
  • Motivating for other employees to see their colleagues being promoted- urging them to work hard
• Disadvantages of internal recruitment

  • No new skills and experience coming into the business
  • Jealousy among workers
• External recruitment


  When a vacancy is filled by someone who is not an existing employee and will be new to the business
• Contract of employment


  A legal agreement between the employer and the employee listing the rights and responsibilities of workers
• Advantages to employer of part-time employment (disadvantages of full-time employment to employer)


  • More flexible hours of work
  • Easier to ask employees just to work at busy times
  • Easier to extend business opening/operating hours by working evenings or at weekends
  • Works lesser hours so employee is willing to accept lower pay
  • Less expensive than employing and paying full-time workers
• Disadvantages to employer of part-time employment (advantages of full-time employment to employers)


  • Less likely to be trained because the workers see the job as temporary
  • Takes longer to recruit two part-time workers than one full-time worker
  • Can be less committed to the business/ more likely to leave and go get another job
  • Less likely to be promoted because they will not have gained the skills and experience as full-time employees
  • More difficult to communicate with part-time workers when they are not in work- all work at different times
• Induction training


  An introduction given to a new employee, explaining the firm's activities, customs and procedures and introducing them to their fellow workers
• Advantages of induction training


  • Helps new employees to settle into their job quickly
  • May be a legal requirement to give health and safety training before the start of work
  • Less likely to make mistakes
• Disadvantages of induction training

  • Time-consuming
  • Wages still have to be paid during training, even though they aren't working
  • Delays the state of the employee starting the job
• On-the-job training


  Occurs by watching a more experienced worker doing the job
• Advantages of on-the-job training


  • It ensures there is some production from worker whilst they are training
  • It usually costs less than off-the-job training
  • It is training to the specific needs of the business
• Disadvantages of on-the-job training


  • The trainer will lose some production time as they are taking some time to teach the new employee
  • The trainer may have bad habits that can be passed onto the trainee
  • It may not necessarily be recognised training qualifications outside the business
• Off-the-job training


  Involves being trained away from the workplace, usually by specialist trainers
• Advantages of off-the-job training


  • A broad range of skills can be taught using these techniques
  • Employees may be taught a variety of skills and they may become multi-skilled that can allow them to do various jobs in the company when the need arises
• Disadvantages of off-the-job training

  • Costs are high
  • It means wages are paid but no work is being done by the worker
  • The additional qualifications means it is easier for the employee to leave and find another job
• Workforce planning


  The establishing of the workforce needed by the business for the foreseeable future in terms of the number and skills of employees required
• Reasons a business may have to downsize the workforce


  • Introduction of automation
  • Falling demand for their products
  • Factory/shop/office closure
  • Relocating factory abroad
  • A business has merged or been taken over and some jobs are no longer needed
• Ways a business can downsize the workforce

  • Dismissal: where a worker is told to leave their job because their work or behaviour is unsatisfactory
  • Redundancy: when an employee is no longer needed and so loses their work, through not due to any fault of theirs. They may be given some money as compensation for the redundancy
• Communication


  The transferring of a message from the sender to the receiver, who understands the message
• Internal communication


  Communication between two members of the same organisations
• Internal communication


  • Communication between departments, notices and circulars to workers, signboards and labels inside factories and offices etc.
• External communication


  Communication between the organisation and other organisations or individuals
• External communication


  • Orders of goods to suppliers, advertising of products, sending customers messages about delivery, offers etc.
• Product-oriented business


  Such firms produce the product first and then tries to find a market for it. Their concentration is on the product – its quality and price.
• Product-oriented businesses


  • Firms producing electrical and digital goods such as refrigerators and computers
• Market-oriented businesses


  Such firms will conduct market research to see what consumers want and then produce goods and services to satisfy them. They will set a marketing budget and undertake the different methods of researching consumer tastes and spending patterns, as well as market conditions.
• Market-oriented businesses


  • Mobile phone markets
• Market research


  The process of collecting, analysing and interpreting information about a product
• Firms need to conduct market research in order to ensure that they are producing goods and services that will sell successfully in the market and generate profits. If they don't, they could lose a lot of money and fail to survive.
• Market research will answer a lot of the business's questions prior to product development such as 'will customers be willing to buy this product?', 'what is the biggest factor that influences customers' buying preferences- price or quality?', 'what is the competition in the market like?' and so on.
• Quantitative data


  Numerical data (e.g. what percentage of teenagers in the city have internet access)
• Qualitative data


  Opinion/judgement data (e.g. why do more women buy the company's product than men?)
• Types of market research

  • Primary market research (field research)
  • Secondary market research (desk research)
• Primary market research


  The collection of original data. It involves directly collecting information from existing or potential customers.
• Process of primary market research

  1. Establish the purpose of the market research

  2. Decide on the most suitable market research method

  3. Decide the size of the sample (customers to conduct research on) and identify the sample

  4. Carry out the research

  5. Collate and analyse the data

  6. Produce a report of the findings