Q&A - Explain what is meant by outsourcing
A business does not have to do everything that is required to produce its products and services. For example:
- A retailer rarely designs and makes the fixtures and fittings that create the shop interior
- A large consumer products business will not do all its own primary market research
- A local baker will not grow wheat or even mill it into flour
Why don’t these businesses do these things? Because there are other businesses that are specialised in the tasks required and can do it better and cheaper. This process is called outsourcing.
read more...»Q&A - What is the cost of absenteeism and does it vary from firm to firm?
According to ACAS, the average worker in the UK is absent from work for 8.4 days a year. This figure varies from one workplace to another but it adds up to an annual cost of £598 per employee. The cost to the UK economy is £10-12 billion annually. Why is this cost so high?
read more...»Q&A - Outline the ways in which a business can better manage stakeholder conflict
There are two main approaches to handling the often conflicting needs of stakeholders…
read more...»Q&A - What is absenteeism and what can businesses do about it?
Absenteeism concerns employees who don’t turn up for work and who don’t have a legitimate reason. It is, therefore, largely about unauthorised absence from work.
read more...»Q&A - Why might high labour turnover be bad news for a business and what can it do about it?
There are many reasons why a high labour turnover figure (poor employee retention) may cause problems for a firm…
read more...»Q&A - Explain what labour turnover is and why it happens
Labour turnover (or “staff turnover” as it is sometimes called) is all about employee retention - i.e. the ability of a business to convince its employees to remain with the business.
read more...»Q&A - Outline some ways in which a business might improve its labour productivity
How can a business improve its labour productivity? Here are some possible approaches;
read more...»Q&A - Explain what is meant by labour productivity and how it can be measured?
Labour productivity is concerned with the amount (volume) of output that is obtained from each employee. It is a key measure of business efficiency, particularly for firms in which the production process is labour-intensive.
read more...»Q&A - Explain “delayering”
The traditional way to achieve a flatter organisational structure is through de-layering. De-layering involves removing one or more levels of hierarchy from the organisational structure.
read more...»Q&A - What is training?
Training can be defined as:
The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively
Training is, therefore, a process whereby an individual acquires job-related skills and knowledge.
read more...»Q&A - What is profit-sharing?
Profit sharing refers to any system whereby employees receive a proportion of business profits.
read more...»Q&A - What is performance-related pay?
Performance-related pay is a financial reward to employees whose work is considered to have reached a required standard, and/or above average
read more...»Q&A - What is commission and when should it be used in a pay package?
Commission is a payment made to employees based on the value of sales achieved. It can form all or (more often) part of a pay package. Commission is, therefore, a form of “incentive pay” (see also profit-related pay, bonuses).
read more...»Q&A - What is “piece-rate” pay?
Piece-rate pay gives a payment for each item produced – it is therefore the easiest way for a business to ensure that employees are paid for the amount of work they do. Piece-rate pay is also sometimes referred to as a “payment by results system”.
read more...»Q&A - Explain “time-rate” pay
Time rates are used when employees are paid for the amount of time they spend at work. This is the most common method of payment in the UK.
read more...»Q&A - What factors should a business consider when deciding what to pay employees?
With so many methods of pay available, how should a business decide to structure the pay package it offers to employees, and what rate of pay should it use?
read more...»Q&A - Explain job rotation
Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation.
read more...»Q&A - What is job enlargement?
Job enlargement involves the addition of extra, similar, tasks to a job.
read more...»Q&A - What are the main methods of financial reward?
There is a wide variety of ways in which a business can offer money (or “financial rewards”) as part of the “pay package”, including:
read more...»Q&A - Explain Taylor’s theories of motivation at work
Taylor put forward the idea that workers are motivated mainly by pay. His Theory of Scientific Management argued the following:
read more...»Q&A - How does a business benefit from having a well-motivated workforce?
A well-motivated workforce can provide the following advantages:
read more...»Q&A - What is motivation?
Motivation is essentially about commitment to doing something. In the context of a business, motivation can be said to be about...“the will to work”
read more...»Q&A - Why are job descriptions and specifications important?
The job description and specification are important parts of planning the workforce needs of any business. So what are they?
read more...»Q&A - What is the recruitment process?
Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job.
read more...»Q&A - Does a start-up or small business need to recruit staff?
Look at the payroll of many start-ups and small businesses and it won’t take you long to count the people. There are over 4.5 million businesses in the UK, and about three-quarters of them don’t employ any staff! That is about 3.3 million businesses that have just one employee – the owner, manager and staff all rolled into one person!
read more...»Q&A - Why should a small or start-up business employ consultants and advisers?
Most entrepreneurs know that making a success of a new business requires hard work, the ability to multi-task, persistence and a decent amount of good luck.
One way in which a start-up can reduce the need for good luck is to ensure that weaknesses in specific skills required by the business are covered. Many start-ups find that there are some skills for which it is always best to seek outside professional help.
read more...»Q&A - Why do businesses employ temporary workers?
Whether hired on fixed-term contracts or not, temporary employees are particularly useful if the business has seasonal peaks and troughs in workload. Temporary workers also enable a business to fill short-term gaps, for example caused by illness or maternity leave.
read more...»Q&A - Explain the main issues with part-time employees
Approximately 25% of employees in the UK are employed part-time. That means that they work “less than full-time”. Not a very helpful definition! What that means is that part-time employment is the term used to describe various methods of employing people who don’t work a full working week.
read more...»Q&A - What are full-time employees?
In the UK, there are about 30 million employees working in businesses, of which around three-quarters are in full-time employment. Full-time is generally taken to mean an employee working 30 hours or more each week. However, it is not the hours that really matter; it is the fact that a full-time employee is fully committed to working for a business in return for the employment rights contained in the contract of employment.
read more...»Q&A - What is “off-the-job” training?
Off-the-job training occurs when employees are taken away from their place of work to be trained.
read more...»
