UNIT 2 IGCSE PEOPLE IN BUSINESS REVISION (1).pptx

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1. UNIT 2 IGCSE REVISION ALL THE CONTENT YOU NEED TO KNOW

2. 2.1 COMMUNICATION The process by which information is transferred from one person/group (sender)to another (receiver) Internal communication refers to information or messages sent between people inside a business External communication refers to information or messages sentto people or organisations outside the business There are 3 main methods of communication Verbal communication through listening Non-verbal communication through observation and inference Written communication through reading

3. The use of IT in Communication Digital communication involves sending and receiving information electronically Businesses have access to a range of technologies which can help improve communications flows using information technology (IT) Examples of the use of IT include video conferencing email, instant messaging and chat applications

4. Benefits of Effective Communication

5. 2.2 RECRUITMENT AND SELECTION PROCESS

6. Types of employment

7. INTERNAL AND EXTERNAL RECRUITMENT Internal recruitment  is the appointment of a suitable candidate who already works for the business External recruitment  is where a new employee is appointed from outside the business

8. Legal Controls over Employment   L aws and regulations  passed by governments that require businesses to  conduct their behaviour in a particular manner Many countries have  passed laws  and introduced  regulations  that affect the relationship between employers and employees and relate to aspects including Pay Hours and conditions of work Safety Discrimination Rights to paid and unpaid absence e.g. holiday Dismissal The main aim of  employment law  is to protect and  prevent exploitation of workers

9. Equal opportunities means that  all individuals should be treated equitably , regardless of protected characteristics such as gender, race, religion and disability Discrimination  at work is when the employer makes decisions that are  based on ‘unfair’ reasons

10. Benefits of Complying with Employment Laws Improve it's reputation Keep employees happy and motivated Prevent serious or legal issues arising, such as bullying, harassment and discrimination Better serve a diverse range of customers Improve ideas and problem-solving Attract and keep good staff

11. Minimum Wage Laws A minimum wage is the  lowest wage permitted  by law Some countries may have a very complicated minimum wage system India  has hundreds of minimum wage rates for different types of industries, geographical regions and skill levels Other countries set a  minimum hourly, weekly or monthly wage level  for all citizens In 2022  Belgium ’s minimum wage rate was €1,691 (US$ 2,000) per month In  Estonia  the minimum wage in 2023 was €4.30 (US$ 5.09) per hour Countries including  Ireland  and the  UK  set different minimum wage rates according to age There remain  some countries without minimum wage  laws In  Finland  there is no minimum wage but all employers must pay minimum rates agreed in collective bargaining agreements The  United Arab Emirates  has no minimum wage requirements

12. TRAINING Training is the teaching of  new skills Development is the  improvement  of  existing skills Some training is required to  meet legal requirements Food safety  regulations f irst-aid  training Employees working with  hazardous chemicals  must receive appropriate training

13. Induction Training Induction training  is usually delivered as soon as possible after new workers join a business

14. On-the-job Training Methods On-the-job training  takes place  while employees are working  in their job roles

15. Off-the-job Training Methods Off-the-job training  takes place away from or  outside of the workplace

16. MOTIVATION

17. The benefits of having motivated and engaged employees Higher labour productivity Lower labour turnover Higher retention rates Lower absenteeism Improved customer service Better relations in the workplace

18. HOW BUSINESSES MOTIVATE EMPLOYEES

19. How to improve employee motivation and engagement? Financial motivators: Piece rate: paid based on the number of items produced Commission: paid based on the units sold Salary: paid annually in equal set of instalments Wage: paid monthly Performance related pay: bonus Profit sharing: paid based on the level of profit made

20. How to improve employee motivation and engagement? Non financial motivators Job enrichment – more interesting and challenging tasks Job rotation – mixing up the tasks so employees don’t get bored on the job Job enlargement – offering bigger tasks Fringe benefits – perks added on top of your salary e.g; company car, health care, discounts. Training – improving skills, this can be done internally or externally Autonomy – employees can make independent decisions without consulting their manager

21. ORGANISATIONAL STRUCTURES

22. 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 – tasks are given to subordinate employees in the hierarchy 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 the top of a business Decentralisation – business decisions are made lower down the hierarchy

23. The structure of the organisation will effect many aspects of how the workers are managed and treated, including: Degree of responsibility Level of supervision Training required Motivation Flow of communication Speed and accuracy Opportunities for promotion Advantage Disadvantage Advantage Disadvantage Employees can be closely supervised Clear progression and promotion prospects Clear management structure Freedom of employees is restricted High management costs Decisions will be slowed down Messages can become lost or distorted Greater communication between workers Decision making is easier Reduced workforce costs Reduced chance of progression in the business Hinder the growth of the business Job roles can become blurred A tall organisational structure A flat organisational structure Has many layers or management Has a narrow span of control Has a long communication flow Has few layers of management Has a wide span of control Has a quick communication flow

24. A  centralised   organisation structure is where  authority for decision-making  rests with  senior management  at the centre of a business A  decentralised  structure is where authority for decision-making is  delegated  further down the hierarchy towards functional or middle managers

25. ROLES AND RESPONSIBILITIES OF EMPLOYEES SPAN OF CONTROL CHAIN OF COMMAND DELEGATION

26. Delegation is a process where responsibility for specific  tasks is given to subordinates  by managers 

27. FUNCTONAL AREAS IN A BUSINESS A functional area is a group of workers with similar skills and expertise who carries out a  specific organisational role