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Paper 1, (Business operations, Human resources.) - Coggle Diagram

- - - - Reason for
        
        Many businesses use organizational structure increase it helps to increase the Effectivity of the business and productivity of the business. this is because it allows people to:
        
        Know who report to.
        
        What their duties are.
        
        The other employees in the organization who they are responsible for.
  - - - An organisational chart shows the line of command and authority.
        
        Authority is defined as the power to control others and to make decisions.
  - - - As the layers pf authority increase within a business the one wit a narrow span of control will have more disillusioned workers, This is because There is a larger chain of command.
    - - A wide chain of command is when each assistant manager has a span 5 people or more.
        
        Disadvantages
        
        More responsibility is given to each managers. They can not however always control the actions that people take.
        
        Advantages
        
        Workers can communicate faster as there are few layers.
        
        Workers may need training to take on responsibility which increases motivation.
    - - A narrow span of command is defined as a manager with a span of 2 people.
        
        Disadvantages
        
        It can often be slow.
        
        Advantages
        
        It is easier to controll fewer people.
        
        Lower training costs.
        
        Responsibility is kept in the hands of seniors who are have better judgement.
        
        Appropriate for managers who need controll.
    - - The chain of command is defined as the line of authority forund within a business.
    - - Disadvantages
        
        Potentially remove highly skilled workers and experienced employees to competitors.
        
        Junior employees might not be able to make the right decision without a helping hand.
        
        Can increase the span of control , giving more responsibility to one person.
      - Advantages
        
        Managers are closer to the customer which can make customers feel more valued.
        
        It can remove highly paid workers who are not needed.
        
        Workers gain more responsibility which can motivate them,
        
        Can improve communication with the origination as messages pass though less levels of hierarchy.
  - - - Managers that are likely to rain control over employees would benefit mostly over a tall organizational structure.
    - - A business in a competitive market would wish to keep costs at a minimum would wish to have the best possible performance from its workforce. this means a flat organizational structure would be more acceptable.
    - - Skilled workers are more likely to make decisions on their own and less supervision by managers is needed.
    - - Tall
      - Wide
  - - - Reasons
        
        A business may be increasing its production and will need similar employees, diversifying into new products and may need different employees with different skills.
        
        Sometimes vacancies arise when employees leave and so this needs to be covered.
        
        A new business will need recruitment as the owners can not carry out the necessary tasks on their own.
      - Importance of recruiting the right person.
        
        Recruiting the right employee will ensure that a business has the right skills to be successful. if they are wrong , then it could impact the quality , efficiency and profit as the consumers may leave unhappily.
        
        The recruitment process takes time and money.
        
        The business is taking a risk.
        
        Retention
        
        Retention is defined as the number of a business' workforce that remains with the business over a period of time.
      - Types
        
        External recruitment.
        
        External recruitment is defined as filling a job vacancy with a person outside the company.
        
        Internal recruitment.
        
        Internal recruitment is filling the job vacancy with a position form the inside or an employee who already works there.
        
        Disadvantages
        
        Firms may have to pay for training when promoting.
        
        Can create a vacancy which then has to filled.
        
        Can only chose form a limited amounts of candidates.
        
        Advantages
        
        Candidates will have experience with the business and are formiliour with how it operates.
        
        Candidates know the people they will work with.
        
        There is a chance of promotion which provides motivation.
        
        Prevents the working of efficient teams.
- - - - Job production
        
        Job production is the process of making a product to meet the exact customer requirement.
        
        Disadvantages
        
        Labor costs can be extremely high as skilled workers are usually needed to work.
        
        Production costs can be high.
        
        It can be a slow process.
        
        Advantages
        
        It helps smaller firms gain an advantage over larger firms.
        
        Allows for specific customer requirements.
        
        Can be the best approach when tech can not be used.
        
        It is a flexible customer experience.
      - Flow production
        
        Flow production is when an item moves from one stage of production to another.
        
        Disadvantages
        
        Set-Up costs and buying equipment's can often be high.
        
        Production problems might be costly as a defect might close the whole production line to be discontinued.
        
        Worker motivation may be low as they are doing simple repetitive tasks.
        
        Advantages
        
        Low unit costs for each part produced.
        
        High amounts of automation can be used.
        
        Less need to hold stock as storage costs are lower.
        
        It allows for the division of labor.
        
        It allows for specialisation as workers are often specialists in one area of production.
      - Considerations.
        
        When considering a type of production, one needs to consider the cost, the likely level of demand and the need for flexible production,
      - Lean production
        
        Lean production refers to a production technique that aims to reduce the amount of waste in a business. if a business can reduce the waste , it can also reduce the costs.
        
        When to use Lean Production.
        
        If time is wasted in the stages of production
        
        When any faulty parts have to be remanded.
        
        If production exceeds the demand.
        
        Holding stock can be wasteful as they have to be remade.
      - Just in time production.
        
        A business sonly makes an item when there is a customer.
      - Kazien
        
        Continues improved is an approach where employees try to improve how things are done. the changes are often small but over time can accumulate to make a larger change,
    - - Managing stock
        
        Managing stock is important because a because a business needs to operate and produce. Having stock can Also be attractive because it means you are able to make a wide rage of products for customers.
        
        Types
        
        Just in time.
        
        Can only store materials you are about to use in production
        
        Disadvantages
        
        4 more items...
        
        Advantages
        
        4 more items...
        
        Just in case.
        
        Holds the stock just in case there is a delay from the suppliers or a sudden unexpected increase in demand.
        
        Disadvantages
        
        2 more items...
        
        Advantages
        
        4 more items...
        
        JIT VS JIT
        
        Businesses need to have a balance the advantages of both.
    - - Production is the activity of managing the transformation process.
      - It is the process of changing inputs such as labor into services and goods that can be sold.
      - Worker specialization occurs when individuals focus on a limited number of tasks.
    - - Working with suppliers
        
        All businesses need suppliers.
        
        General items to keep the business going.
        
        Materials used in the production process.
        
        Major production percusses like capital.
      - Procurement.
        
        Procurement is defined as the process of selecting a supplier , establishing a term of payment and negotiation contract.
        
        Supply chain
        
        A supply chain refers to all the businesses involved within a business. This is usually the people involves , and activities that take place in the production process from start to finish which is usually the customer.
        
        Importance
        
        If a supplier can meet on time , this means that the business has stock that it can meet customer demands with,
        
        If a supplier can produce quick deliveries , this means that the business can actually end up holding little stock.
        
        If a supplier provides good quality products , it will help the reputation of and quality of a business.
        
        A good supplier can produce efficiency which is useful because it helps reduce waste and increases profit margins.
    - - Total quality management
        
        The process in which people try to reduce errors and ensuring quality at each stage of the production process.
        
        It requires everyone in the business to work towards ensuring the quality is up par.
        
        Each employee must meet a standard.
      - Improving quality cons
        
        The cost of selecting better suppliers.
        
        The costs of training staff.
        
        The costs of inspections and cons,
      - Improving quality pros
        
        Higher prices
        
        Customers will be more willing to pay for reliability and reassurance that it will work as intended.
        
        Save costs
        
        Avoiding mistakes saves money
        
        Additional costs
        
        Costumers are more likely to come back and recommend the business if they know they can trust the quality.
        
        Easier to launch products
        
        Easier to launch new products
        
        Image
        
        Having good quality products will ensure that a business' reputation is maintained.
- - - - E-commerce
        
        E commerce is the selling of products on line. it can be used to provide 24/7 viewing of products to customers . It Allows people to see other people's reviews and allows people receive suggestions based on their purchases.
      - Websites
        
        Websites can give customers inforamtion about the business and the products sold. It can aid in marketing to a much larger group and therefore increese sales. FAQ's and Likert sacels can be used to gage customer satisfaction
    - - It helps the business be competitive especially if they an not compete with price.
      - It increases market share as customers are willing to spend more due to their customer service,
      - Increases customer satisfaction meaning that customers feel good about their experiences. therefore , less complaints are made. as a result staff feel happier and more motivated.
      - It attracts new customers if the product they sell is similar to competitors.
      - It increases customer loyalty,
    - - Methods of good customer service.
        
        one way of good customer service is by providing goods that meet the customers demands.
        
        Offering reliable products that do as they are expected.
        
        Offering safe products.
        
        Having good customer engament.
        
        Good product information
        
        Post sales services
      - Customer service is a part of a business that connects the business to the customers ; allowing them to understand their needs,
  - - - Disadvantages
        
        High start up costs in buying machinery
        
        Production problems can casue a whole production line to be stopped/
        
        Workers may have low motivation because they are not involved in making the whole product. Additionally , they might also be doing repetitive tasks for a long time which can make the job boring as a result of speiciolisiation.
        
        The basic standards of a product can not be changed without costly and time consuming changes to the machinery.
      - Advantages
        
        Low cost for each unit produced due to high level of output and efficiency.
        
        High amounts of automation can be used along side with computers which aids in the aim for consistency which sets high standards of quality of products.
        
        Less space is needed to hold stock. This is important as storage costs are lower as less raw materials are likely to get damaged.
        
        It allows for division of labour as the job can be split up into stages which allows the job to be done more quickly.
    - - When considering a method of production , a business should consider the likely level of output , the demand and need for flexible production.
      - Specialization refers to when an individual focuses on a limited number of task.
      - Efficiency refers to how well the business uses its resources.
        
        Suppliers
        
        How good the suppliers will tell you how reliable they are. if they are reliable and produce good quality supplies , the cost will be low.
        
        Machinery
        
        Technology and machinery will tell you how good the equipment is. good quality equipment's hold ideally be up to date which should keep the production costs low.
        
        Type of production used.
        
        The type of production used might be efficient fo0r one business and inefficient for another.
        
        Employees
        
        How well the employees are managed can tell how how motivated the workers will be. if they are well managed , they will be motivated and as a result , they will want to produce more. the cost per unit should be lower thus the business will benefit from an economy of scale.
  - - - Total quality management.
        
        Total quality management is the approach in which everyone is focused on preventing errors from occurring which ensures quality at each stage of the production process.
      - Miniating quality
        
        Making sure the suppliers are reliable and that the prodycts are of good quality l meeting customer needs.
        
        Training staff so that they know how to conduct their jobs to a desired standards.
        
        Investment in equipment so that staff know how to use do their job well.
        
        Inspecitng the quality of the products at each stage of the process of defects,
        
        Involve staff in the improvement process of kaizen.
    - - Disadvantages
        
        The cost of selecting the best supplier.
        
        The cost of inspection and checking.
        
        The cost of training staff.
      - Advantages
        
        Image/ reputation
        
        A good quality product will ensure that the business' reputation is good. Additionally , it plays a major role when the quality is better then competitors.
        
        Higher prices.
        
        Customers will become price insensitive meaning that they will be willing to spend more.
        
        Additional sales.
        
        Customers are more likely to come back and recommend it to someone they know because they can trust the business.
        
        Saves cost
        
        Avoiding mistakes saves money. it does not have to rework , replace and replace faulty products.
        
        It is easier to launch new products as the business has a good reputation.
  - - - time wased,
      - Any faulty products.
      - If a product exceeds a demand.
      - Holding unnecessary stock.
  - - - Just in case control
        
        Just in case control is used to hold stock just in case there is an unexpected increase in demand.
        
        Disadvantages
        
        Holding stock might causue it to go out of date. As a result , they might need to reduce the price to sell it.
        
        Higher stockholding costs..
        
        Advantages
        
        Can meet sudden increase in demand as there is spare stock.
        
        Lower risk if there are less supplies.
        
        Buying larger quantities can allow them to benefit of a bulk buying economy of scale.
        
        Less external cost from congestion and pollution caused by delivery which leads to a good reputation.
      - Just in time control
        
        Just in time stock control is sued to store materials that are about to be used in the stages of production and is based on having a customer order.
        
        Disadvantages
        
        There is little room for mistakes as minimal stock is kept meaning that reworking faulty products can not occur quickly.
        
        The production is very reliant on suppliers and if stock can not be delivered in time , the whole production schedule can be delayed.
        
        There is no spare finished product tp meet unexpected orders.
        
        The cost of ordering supplies can increase and so , many small orders might be needed. (Diseconomy of scale,)
        
        Advantages
        
        Cuts the stock holding cost and increases the efficiency of the business.
        
        Capital expenditure that was used to pay for stock can now be used in more efficient parts of a business.
        
        Close contract with suppliers at all times are better because it builds a more efficient relationship between the supplier meaning that you will be able to get between quality products.
        
        It improves the efficiency of cash flow by reducing the time taken to pay for supply and taking payments form customers.
        
        Less time is time is spent working and reworking on a product as an emphasis is placed on a fast delivery.
- - - - Small narrow span of controll
        
        It is easier to control fewer staff.
        
        Training costs may be lower as the average worker may not have to be trained to take up responsibilities.
        
        There is less chances of making mistakes as major decisions are made by the managers
      - Wide span of controll
        
        Quicker comunication
        
        More responsibilites are given to each manager and worker as they can not contoll everyone at any time.
        
        A span of control with 5 or more people.
        
        Workers may need training to take on responsibilities.
    - - Delegation refers to the process of giving out certain responsibilities to an employee,
        
        Advantages
        
        Allows senior managers to focus on key taks.
        
        Subordinates are empowered and motivated as they are trusted.
        
        Good method of on the job training.
        
        Reduces manager stress and workload.
        
        Disadvantages
        
        Can not delegate accountibility
        
        Harder to do in a smaller firm which is speciolised.
        
        Can increase stress on the workers.
    - - The skill of the workforce
        
        Skilled workers can make their own decisions without the need of direct supervision meaning that a wider span of control as well as a flat orginsational structure might be in use.
      - The management style used.
        
        Managers that like to retain control over their workforce may feel like a tall organizational structure may need to be used,
      - The business's competitive environment.
        
        A business in a competitive environment may wish to keep the cost at a minimum and have the best possible performance for the workforce as a result , a flat organizational structure might be selected.
  - - - Job positions are advertised internally and externally.
      - Applications are then received..
      - Job descriptions and a persons qualifications are drawn up from data analysis.
      - The business needs to find a new employee because of growth , entering a new market or employees leaving.
    - - The titles of the job
      - The hours and place of work.
      - The main taks that make up that job
      - Duties.
    - - Full time
        
        When a person works for more than 35 h per week
        
        Employers.
        
        It allows for the opportunity for promotion.
        
        Reduces the need to find a nother job.
        
        Employees
        
        May benefit from having employees the entire week.
        
        Full time employees may be more skilled and , loyal and motivated.
      - Part time
        
        A person who works less than 35 hours per week.
        
        Employers
        
        Part time employee can help a business to cope with busy periods during the week
        
        It allows access to specialized or skilled labor when needed.
        
        Employees.
        
        Employees can fit work with other commitments.
        
        Part time allows for a part retirement.
  - - - Financial
        
        Offering employees a higher pay or through reaching targets.
      - Non financial
        
        Factors such as praise or the opportunity to carry out more interesting job could motivate the employees.
    - - Improved employee retention rates.
        
        Employees who are motivated are more like to remain as they are more loyal. this removes the cost of recruiting new employees and allows the business to benefit from the skill and experience of the workforce.
      - Higher levels of sales.
        
        It will lead to higher levels of sales because the workforce as they will be more able to meet the needs of customers.
      - Increased productivity levels.
        
        This allows the business to benefit from economies of scales as the businesses average cost per unit price will decrease , thus leading to more sale.
      - Improved recruitment and selection.
        
        Motivated staff give the business a good recruitment which then intern makes it easier for the business to recruit skilled employees.