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october 2nd and 9th business revision - Coggle Diagram
october 2nd and 9th business revision
managing people
staffing
staff as a cost
when staff are just seen as an extra cost to a business
costs
costs with managing workers
there are costs to training employees
costs of wages
costs with letting staff go
staff as an asset
when staff are employed for there skills that they can bring to a business
assets
help improve the reputation of a business with the way they communicate with customers or other stakeholders
staff can increase productiity
staff can help innovate products or the business as a whole
the effects of national minimum wage on a business
effect business that pay of a wage system meaning they will have higher labour costs
business that pay on a salary basis will normally have lower labour costs
flexible workforce
ways to develop a flexible workforce
multi-skilling
advantage
use there workforce more efficiently
lowers labour costs
disadvantage
may require investment in training
wont work for all roles especially ones with expert expertise
flexible hours and home working
part time and temporary
advantages
helps attract and retain talent
may improve productivity since workers will be working in there most productive hours
disadvantage
monitoring and managing flexible hours can be hard
does not help with communication meaning could make the business less efficient
outsourcing
advantages
may reduce labour costs
allow the business to access specialised skills
disadvantages
lead to a lack of control over quality and delivery
may cause ethical concerns if the partners is based in lower labour standard countries
a way of work where employees either have many skills or work in different patterns of work
dismissal and reduncies
dismissal
usually terminated due to misconduct
dismissals can be done with or without notice
redundancy
when a job is no longer available against the will of the employer
not due to the fault of the employee
employer must follow certain legal procedures
different approaches to employee/employer relations
individuel
focuses on the relationship between employer and employee
assumes each employee is unique
empahssises the need for tailored compensation packets
the employer has the power to employe fire and set the rules of the place
collective bargaining
a process in which a group of employees will negotiate with there employees for higher wages
employees have more bargaining power
the employment relationship is more of a pwoer stuggle
recruitment, selection and training
recruitment
recruitment is the process of attracting and identifying people who would be suitable for a role
the goal of recruitment is to create a pool of qualified candidates
recuritment activites
job advertising
job fairs
social media outreach
referalls
costs
advertising
interviewing
screening canditaes
recruitment team
selection
selction is the process of choosing the best candidate
the goal is to hire the most suitable candidate for the job
selection activities
reviewing cvs
interviews
assessment tasks
costs
background checks
visa costs
training
types of training
induction training
when a business will teach a new employee about the culture of a business and the skills needed before they start
advantages
helps new employees learn there new responsibilities and skills
introduces employees to the company and its culture
reduces the time it takes for employees to become productive
disadvatages
can be time consuming and expensive to set up
may not cover all aspects of the job role
may not be effective in all cases
on the job training
training that takes place whilst there on the job
advantages
training is tailored to the employees needs
can be cost effective
training is more practical and relavent
disadvantages
employees can make mistakes whilst learning which can impact quality and productivity
may not be effective in all cases
can be disruptive to a work place
off the job training
training that takes place outside of the business
advantages
employees learn new skills and knowledge outside the work place
training can be tailored to the employees needs
can be cost effective
disadvatages
an be expensive to organise
employees will miss work whilst training
the training might not be directly applicable
costs
cost of trainers
cost of materials
cost of facillities
cost to set up the training
if employees fail the training might have to re try
selection and recruitment process
define the role
outline the qualifcations needed
have a job description that outlines what responsibilities and tasks will be completed at the job
determine best source for candidates
internal recuitment would be where you hire within the business
external recruitment would be where you hire outside from the business
advertise
business with strong social media following can use that
depending of the nature of the business they can spend more for portals that will bring in more employees
recieve applications
involves collecting information from candidates
a business might use its own form to gather information like personal details or qualifacations
candidates might be asked to submit a cv
selection process
interviews will be face to face where an employer will ask questions to a potential candidate
assessment tasks are where a company tries to see which candidates best at completing certain tasks to decide between them
organisational structure
hierarchy
the levels of authority in a business
the higher up in the hierarchy the more power you hold
normally higher level management > middle level management > lower level employees
chain of command
formal line of authority in a business
it defines who reports to who
helps establish a clear communication channel
span of control
refers to the number of employees a manger or superviser can manage
a wider span of control means there are fewer layers of managment
a narrower span of control means that there are fewer layers of management
centralised and decentralised structure
centralised is where all the control comes from the higher level management of the business
decentralised control of a business is when authority is distributed throughout the business so different people from all layers can have involvement in decisions
different types of organisational structures
tall
charactierised by multiple level of managment
a long chain of command
common in lager organisations
advantages and disadvantages
advantages
provides a clear hierarchy of authority
promotes specialization and expertise within each department
offers opportunities for advancement in a career
disadvantages
can create communication barriers
decision making can be slow
can lead to a bureacracy
flat
characterised by fewer levels of management
short chain of command
common in small organisations
advantages and disadvantages
advantages
promotes culture of collaboration
encourages creativity and innovation
decision making can be faster
disadvantages
an lead to role ambiguity
may not provide clear ways for career progression
might mean employees need to take on multiple roles
matrix
the structure is normally built around spesific products
it combines the functional roles of a business with a specialist team that works in the business
advantages and disadvantages
advantages
promote cross functional collaboration
enables efficient allocation of resources
allows for expertise in all functional areas
disadvantages
can lead to conflicts over priorities and resources
can create confusion over roles
requieres a high degree of communciation
motivation in theory and practise
motivation is the desire in someone to complete a goal or task
impacts from motivation
impacts productivity
makes workers more engaged with there work so it makes them more likely to work harder
impacts reliability of workers
workers will take more pride in there job
impact on turnover rates
motivated eployees more liely to stick with the comapny long term
taylor's scientific management
focuses on breaking down tasks into smaller ones
many manufacturing business use these principles to help manage structure to there staff benefits
study and analyse the work process
standardise the work process
select and train workers
4.provide incentives for performance
advantages
increased efficency
specialisation of labour
clear hierarchy
disadvantages
rudcuses worker satifaction
reduces creativity
workers may disengage due to being treated like a machine
mayo's human relations theory
focuses on the importance of social aspects of the business
communciation
motivation
job satifacation
relies on improving relationship between workers, supervisors and management
advantages
improved job satifcation
better communciation
employee empowerment
disadvantages
time consuming
potential for conflict
resistance to change
maslow's hierarchy of need
a theory that bases itself on the fact that there are 5 tiers of needs that every person must have fulfilled in order to meet there full potential
phycoligcal
businesses can provide necessities
safety
businesses can provide job security or good pay and safe working conditions
love and belonging
encourage teamwork and a sense of community in a business
esteem
show recognition for employees
self actualisation
give employees opportunities that help them pursue there passions
advantages
higher employment satifcation
increased motivation
imporved empkloyee perfomrance
disadvantages
one size does not fit all
expensiove
time consuming
herzburg
relies on the fact that workers become satisfied with there jobs because of motivational factors and disqualified due to hygienic problems
management and leadership
leadership
about having a vision and letting others know about that vision
leadership types
autocratic
leader has complete control
paterneritic
the leader makes the best decisions for there staff
laissez faire
allows the team to manage its work
democratic
leaders involve the team in the decision making process
management
is the day to day organization of the business
entrepreneurs and leaders
role of an entrepreneur
they organise resources
must gather and coordinate the resources needed to start a new business
they make business decisions
must make decisions that will decide the future fate of the company
bad decisions can lead to loss of resources or even worse business failure
they take risks
involve financial, personal or professional
risks can pay off with massive rewards
might put life savings or quit a secure job to beign the business
entrepreneurship
where employees are pushed to be entrepreneur minded
barriers to entrepreneurship
access to finance
many budding entrepreneurs dont have the ability to find finance for the venture
lack of training/know-how
if you don't have certain skill sets it will be a struggle to manage business
entrepreneurial capacity
refers to someone ability to be creative and take risks and be intelligents in business
fear of failure/ lack of confidence
overall there is just a hue risk and many wont want to make the move
business objectives
cost efficiency
the business ability to take make and produce products for cheaper
increase market share
a business might try and increase there market share through producing and selling better products
try and lower costs in the long run
foucs on welfare of staff
an objective of making a good healthy work environment for its employees
try get profit maximisation
a business will want to generate the most profit they can as a business
wanna try and have positive cash flow through cash flow management
the aim of a new business is to just survive at first and get through the initial costs
customer satifaction
people try to get customer satisfaction by either creating high quality products or making good customer service options.
social objectives
when a company main focus in social issues
forms of business
sole trader
a business owned by one person and may have a few employees
advantages
asy and inexpensive to set up
owner has complete control
all profits belong to owner
disadvatages
unlimited liability
limited skill set
limited finance
partnership
when a gorup of 2 - 20 people join together
advantages
easy to set up and inexpensive
more skills and knowledge avalable
increased access to finance
disadvantages
unlimited liabiity
profits are often equally shared
difficult to transfer ownership
private ltd comapany
business that has very ew shares tht are normally dished out to family or firends of the bsuiness owner
advtanges
limited liability
ccess to greater finance
easier transfer of ownership
disadvantages
more expensive and time consuming to set up
more complex legal requirements
shareholders have little control over the company
public ltd companyf
a business that will sell shares on the public stock exchange
risk of a hostile takeover
more pressure to get results due to shareholders expecting money
franchises
where you sell the right for a franchisee to use your branding and sell your items
entrepreneurial motives and characteristics
skills
communication
team working
problem solving
organisation
numeracy
information technolagy
characteristics
creativity
hard working
resilience
initaive
self confidence
risk taker
why people set up a business
financial
profit maximisation
people want to have a business that makes a lot of profit
profit satisfaction
when a entrepreneur doesn't want to maximise profit ,but make a satisfactory amount
non financial
ethical stance
a business owner might have an ethical stance to base there business around
social entrepreneurship
entrepreneur that seeks to solve a social issue through there business
independence
many people want to be there own boss and have control over there work
home working
people start business to stay at home and give themselves more flexibility for there work
business choices
opportunity cost
the value of the next best option foregone when a business desicon is made
got to make sure all options are appropriately quantified
needs accurate forecasting a challenge a lot of business struggle to achieve
if the best decisions are to be made cool heads must carefully identify the opportunity costs involved in making a particular business choice
decisions are often made upon personal preference from business leaders.
choices and trade off
many times a business needs to have a form of compromise with a trade off between competing objectives
unerstanding of consumer trades
experiences
a broad understanding of the businesses current position
an understanding of the external issues influencing the decision
moving from entrepeneuar to leader
issues with changing from entrepreneur to leader
buisness issues
matching production to demand
financial growth
overtrading
change in structure
personal issues
delegating
maintaining effective communication
coordination far more people
keeping an eye on the big issues
matching production to demand
for growth a business must stimulate growth
this can be achieved by targeting new markets or by opening new branches in new towns for example
in every scenario a business chooses they must forecast demand in a less familiar market
if you underestimate demand expansion can be doomed to failure
financing growth
if you want to grow your output must increase output and to do this you need more cash
methods of financing
sell shares
this will result in loss of control for the entrepeneur
loans
interest and repayments will drain cash from the business and security may be required
overdraft
interest rates are even higher than on loans
leasing new equipment
this will lead to higehr costs long term
overtrading
your product become to trendy
boom in sales outstrips production
big investment in new capacity
sales still rising but cash outflows rise faster
cash flow crisis due to over trading
overtraining illustrates why it is so important to ensure that growth is appropriately financed
change in structure
with more staff being taken on you will need extra layers
to avoid span of control becoming too wide managers ore supervisors will now be required but this can fundamentally change how the business works
much of the change relates to personal issues faced by the entrepreneur as their roles shifts
delegating
a business owner used to making all the decisions can dislike the matter of letting go of authority as the business grows and more management is put in
maintaining communication
as a business grows it will struggle to keep its communication as smooth as it would of been before all the different layers did as it grew and this can be annoying since keeping good communication is vital for keeping a business alive during time of a lot of growth
coordinating more staff
when the business was smaller the owner would probably know all the staff on a more personal level adn this would allow for the company to run smoother and the boss to keep it running smoother ,but as the business grows it gets harder and harder to coordinate everyone
keeping an eye on big issues