Communication:

Internal communication is information sent between people within a business e.g

employees

Examples:

[They can use a WRITTEN method like] Emails

Emails are quick and fast BUT requires additional training for the usage of
technology

Emails are also cheap

Text messages e.g WhatsApp groups

They are quick and fast as well but they can be stacked & be easily ignored

[They can use a NON VERBAL method like] Noticeboards

Noticeboards are easy to understand but they can be easily ignored

[They can use a VERBAL method like] Meetings

Meetings are time consuming but it can be useful as questions can be asked and
answered quickly leading to decrease chance of errors

Good communication is important for:

Reduces chances of human error in production

Increased worker motivation

Communication barriers:

Long chain of command between employees so it's harder to pass information around

Language barriers for example an employee might not be fluent at English which
could be the business' main language for operating

Types of employment:

Full-time:

Full-time employment is when an employee works the total number of hours considered
by the company as full-time in a week

Part-time:

Part-time employment is someone who works part-time and may only work for two or
three days and they are more flexible as they can be adjusted subject to employee
availability and employer requirements

Job-sharing:

Job sharing is the process of breaking up a role into two time contracts

Temporary / casual employment:

Someone who works temporarily and shows up for work whenever the business needs
them, this can be seasonal and great to temporarily replace usual absent workers

Person specification:

Includes the essential and desirable characteristics of the PERSON suitable for the
job, including

Qualifications

Experience

Skills

Person attributes

Job description:

Includes the features of the job like

Duties

Hours and location of the job

Responsibilities

Pay and conditions

Application forms:

Application forms contain a series of standardised questions to which all

candidates must respond e.g name and contact details, qualifications, work
experience and interests

Advantages:

All applicants provide identical information in the same format so they are easy to
compare

Disadvantages:

Limited information can be expressed by candidates so key desirable attributes may

not be identified

CV: (Curriculum vitae)

A CV is compiled by the applicant and may be standardised to apply for varied roles

Advantages:

More applicants may apply because it is easier for candidates to prepare and adapt
a standard CV

Disadvantages:

Comparing different formats and content of CVs can take more time and lengthen the
recruitment process
Internal recruitment:

Internal recruitment is the appointment of a suitable candidate who already works

for the business

Recruiting internally is cheaper as workers do not need any new training

but the same workers might not have new skills a business might need

External recruitment:

External recruitment is where a new employee is appointed from outside the business

External recruitment is great when a business wants new skills or ideas to be

introduced to the business

but it is costly as it requires training costs

Shortlisting:

A shortlist is a collection of the most well suited candidates for the role

They are essential for sorting through large volumes of applications

Interviews:

Interviews usually include a face to face, telephone or online discussion between a

manager and the candidate about their suitability for the role

They are better for businesses who exactly want a specific skill needed for a role

Type of discrimination:

Age and gender

Benefits of complying with employment laws:

Improve its reputation

Prevent a legal issue which they can get sued for

Minimum wage:

Minimum wage is the lowest wage permitted by law

It reduces exploitation of workers so they can stay motivated

but some businesses will not be able to afford these wage rates

Some training is required to meet legal requirements

such as first-aid training and food safety regulations

Importance of well trained employees:

Higher quality goods produced since employees will know very well on how to improve
quality of products

Induction training:
Induction training is usually delivered as soon as possible after new workers join
a business

Advantages:

Helps new employees to understand their job roles and responsibilities

Improves employee confidence and motivation

Disadvantages:

Can be time consuming and expensive to organise as it requires trainers

May not cover all aspects of the job role as a trainer might miss out on some
information employees must know about

On-the-job training:

On the job training takes place while employees are working in their job roles

Advantages:

It is cost-effective as it takes place during working hours so employees can learn

while actively performing their tasks, reducing the need for separate training
sessions.

Training is relevant to the employee's specific job role and responsibilities so

they can have a better understanding of their role

Disadvantages:

Trainers might pass around bad habits which may impact productivity and quality

Can be disruptive to the workplace as it requires the trainer to devote time to

training the employee, which can cause delays

Off-the-job training:

Off the job training takes place away from the workplace

Advantages:

Can be cost effective if training is provided online

Employees learn new skills and knowledge outside of the workplace, which can bring
fresh ideas and perspectives to the workplace

Disadvantages:

Can be expensive to organise, especially if travelling is required

Employees may miss work while attending training, which can impact productivity
leading to delays

Advantages of having motivated employees:

Improved customer service so customers can be satisfied leading to customer

retention
Lower absent rate which reduces the chances of delays in the production process
resulting in higher profits

Main theories of motivation:

Taylor's scientific management: (PAY AND TIGHTLY DEFINED TASKS & CLOSE SUPERVISION)

Workers are motivated mainly by pay

They need tightly defined tasks and close supervision

Advantages:

Increased efficiency lowers cost

Clear hierarchy and lines of authority lead to efficient decision making, leading
to them accurately improving the product quality and improving sales

Disadvantages:

Overemphasis on efficiency reduces creativity which can lead to no new ideas coming
into the business, potentially giving the rivals an edge who can come up with
better ideas, this leads to customers going to the rivals who have more innovated
products and new designs instead of the business resulting in decrease of profits
and sales

Workers may become demotivated if they work in a machine-like system, leading to

bad quality products resulting in customer dissatisfaction and therefore decrease
in sales

Maslow's hierarchy of need: (Triangle of needs and meet their needs)

People move through levels of needs that motivate them

Once a need is met, it no longer serves a purpose

Advantages:

Meeting employees' needs establishes a satisfying work environment, this can lead
to increased productivity and therefore more sales as more products are produced,
resulting in more profit

Offering incentives that match their specific needs and desires can improve staff
loyalty and decrease staff turnover rates so the business wouldn't have to spend so
much into training new employees and can work with the pre existing employees,
leading to increased profits which the business can reinvest into the business'
products to achieve customer satisfaction

Disadvantages:

Meeting many individual needs can be expensive, especially when offering costly
perks such as a company car and it can decrease the amount of profits the business
gets, resulting in the business not being able to reinvest into the business'
products leading to outdated products that lead to customer dissatisfaction
therefore reduction of sales and overall profit

Determining the best way to motivate requires significant effort from management to
connect individually with workers which can be costly as they would need to pay the
management more to determine the ways more carefully and precisely

Herzberg's two factor theory: (Hygiene and motivator) (Working environemt and
praise)

Money is not a motivator but a lack of money leads to dissatisfactionZ

Workers are motivated by factors such as the opportunity to develop their skills

Two factors of Herzberg:

Hygiene factors such as working conditions and policies and rules

Motivator factors such as recognition and achievement

Improving hygiene factors decreases job dissatisfaction

Improving motivator factors increases job satisfaction

So less employee turnover and better quality goods

Disadvantages:

Does not consider individual differences as it assumes all employees are motivated
by same factors which may not be true, leading to a few number of people lacking
motivation and that people can produce bad quality products

It's costly for businesses as improving motivators like career growth and
recognition may require significant investment

remuneration: money paid for work or a service

Financial motivators:

Bonuses

Increase salary

Piece rate: paid based on the number of items produced

Commission: paid based on the units sold

Fringe benefits - perks added on top of your salary e.g; company car, health care
and discounts

Non financial motivators:

Job enrichment - more interesting and challenging tasks

Job rotation - mixing up the tasks so employees don't get bored on job

Job enlargement - offering bigger tasks

Autonomy - employees can make independent decisions without consulting their

manager
Organisational structures:

wideness - span of control

height - chain of command

A tall organisational structure:

longer chain of command due to height

Has many layers or management
Has a narrow span of control
Has a long communication flow

Advantages:

Employees can be closely supervised as the managers have small span of control
which is less subordinates to supervise

Provides a clear structure of authority and defined roles and responsibilities so

chances of human error is reduced as everyone knows their responsibility

Disadvantages:

Info is harder to pass around as there's a long chain of command

High management costs as many managers are needed

a flat organisational structure:

more span of control

Has a few layers of management
Has a wide span of control
Has a quick communication flow

Advantages:

Greater communication between workers

Reduced managers costs as less managers needed

Disadvantage:

Reduced chance of progression in the business as theres less roles because of small
chain of command

Manager might not work efficiently because they have a lot of employees under their
span of control

Organisational structures key words

Chain of command - the direction information and instructions flow

Span of control - the number of people directly controlled by a manager

Delegation - A process where responsibility for specific tasks is given to

subordinates by managers

Advantages of delegation:
For managers:

Allows managers to concentrate on important tasks as managers do not have the time
to complete every task themselves

For workers:

Delegation allows workers to feel empowered in decision making, this can motivate
as staff are trusted to perform a job well

Delayering - removing a layer of management from the structure so that there are
fewer workers in the chain of command

Centralisation - business decisions are made at top of a business e.g only owners

Advantages:

Fast and decisive decision making can increase competitiveness & prevent any delays
in production process

Consistency across the whole organisation as owners are more straightforward with
the decisions which prevents any human errors occurring in any department

Disadvantages:

Highly bureaucratic as decisions have to pass down many levels of administration,

slowing communication of decisions leading to delays

Middle managers' lack of autonomy can impact their motivation, this means they
won't produce high quality goods or services

Decentralisation - business decisions are made lower down the hierarchy

Advantages:

Staff will able to contribute to decision making and therefore be more motivated

Business can respond to local market conditions and meet customer needs more
quickly as it gives employees more control leading to less delays

Disadvantages:

Diseconomies of scale such as the duplication of staff roles might emerge leading
to waste products being produced as repeated staff produce products repeatedly and
it might produce excessive waste not needed, requiring more space to store which
can be costly

During times of crisis, leadership may not be clear leading to issues as a clear
decision wouldn't be able to be made and this can produce human errors leading to
lower quality production of products

Functional areas in business:

A functional area is a group of workers with similar skills and expertise who
carries out a specific organizational role
Human resources
Recruitment & Relations

Finance
Budgets and banking

Marketing
Advertising and research

Production
Quality and design and managing stock