People in Business

Annie Siti
Mind Map by Annie Siti, updated more than 1 year ago
Annie Siti
Created by Annie Siti about 5 years ago


A levels Business Studies Mind Map on People in Business, created by Annie Siti on 02/10/2015.

Resource summary

People in Business
1 Improving organisation structure
1.1 communication flows
1.1.1 internal - between people in the same business. ensure that all employees (from diff departments) are working towards the same goals and deadlines
1.1.2 external - with people and organisations outside the business. e.g. stakeholders, press releases, customers
1.1.3 employees feel part of the business and decision-making. improve relationship with customers and suppliers. same goals and direction
1.1.4 geographic distance between firms offices. communication overload. too many intermediaries(layers). language barriers
1.2 delegation - involves the assignment to others of the authority for particular functions e.g. task/decisions
1.2.1 reduce management stress and work load. Subordinates are empowered and motivated.
1.2.2 depends on the capabilities/ experience of subordinates as it might increase their workload and stress
1.3 workforce roles - managerial and supervisory roles within the hierarchy


  • director > managers > team leaders > supervisors
1.3.1 work loads- the tasks an individual has to complete with a period
1.3.2 job allocations - the way in which tasks are distributed to certain jobs
1.4 levels of hierarchy refers to the no. of layers within an organisation
1.4.1 span of control is the no. of subordinates for whom a manager is directly responsible narrow span of control closer supervision. better communication more layers may be required wide span of control give subordinates independence and raise motivation if high labour cost - no. of managers may bereduced
1.4.2 tall hierarchy many layers with narrow span of control. tighter control (less delegation) inefficient communication and more staff meaning higher costs
1.4.3 flat hierarchy communication improved. wide spans of control - more delegation less opportunity for promotion and less direct control
2 Measuring the effectiveness of the workforce
2.1 Labour Productivity is concerned with the amount of output that is obtained from each employee
2.1.2 improving labour productivity measure performance and set targets invest in emplyee training and capital equipment e.g. robots automation
2.1.3 essentials to produce enough because... labour costs are usually a significant part of total costs business efficiency and profitability depends on labour productivity unit costs need to be low in order to remain competitive
2.2 Labour turnover is the percentage of the workforce (employees) that leave a business within a given period (usually a year)
2.2.2 high labour turnover may increase recruitment costs and training costs of new workers. Loss of productivity. poor morale in workforce
2.2.3 gives chance for new people and gain fresh ideas. workers with specialist knowledge and expertise can be employed.
2.3 employee retention is the ability of a firm to convince its employees to remain with the business
2.3.1 improve it by: financial incentives e.g. bonus and salary OR non-financial incentives e.g. promotion and empowerment
2.3.2 adopt more flexible working practices in order to retain staff and fit in the changing trend. e.g. the 'flexible hours contracts' and part time
3 Recruitment, selection & training
3.1 workforce planning is about deciding how many and what types of workers are required
3.2 job description is detailed explanation of the roles and responsibilities. its the job rather than the person
3.3 job specification sets out the kind of qualifications and experience a person needs for a successful candidate
3.4 The recruitment process
3.4.2 when analysing applications, a business will put them into 3 categories those to reject - as they doesn't meet the standards set out in the job specs short list - often consist of 3-10 best candidates who are asked for interview long list - in case those on short list drop out. would not be put through selection process as its costly
3.4.3 internal recruitment is when the business looks to fill the vacancy from within existing workforce e.g. promotion external recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business new ideas and wider range of experience. many options to pick the best candidate longer and more expensive process due to ads and interviews. may not be effective enough to reveal best candidate 4 main ways of recruiting externally: Job centers (gov help unemployed), job advertisements, recruitment agency (give employers with details of suitable candidates for a vacancy) and personal recommendation cheaper and quicker. people know how the business operates. can be motivating no new ides or skills. creates another vacancy to be filled. demotivates other candidates who applied
3.5 selecting the best employees
3.5.1 an interview is the most common form of selection and useful for both employer and candidate
3.5.2 send applicants to assessment centre - undergo cariety of tests, role-plays and simulations
3.5.3 other selection tests: aptitude, intelligence and psychometric test to reveal their personality and select best candidate
3.6 training- process of increasing the knowledge and skills of the workforce in order for them to perform their job effectively
3.6.1 induction training - right at the start of the employment, enables a new recruit to become productive quickly most cost effective. employees are productive. opps to learn and train with real colleges in work environment quality depends on ability of trainer and time available. bad habits may be passed on. production may be disrupted.
3.6.2 on-the-job training - employees receive training whilst remaining in the workplace. includes coaching
3.6.3 off-the-job training - when employees are taken away from their work place to be trained wider range of skills can be obtained. learn from outside expertise. more expensive. lost working time. risk of them leaving for better job
3.7 training links to motivation as employees feel more loyal to business. shows that business takes interest in workers.
4 Motivating Employees
4.1 theories of motivation


  • would NOT be examined.  have to use relavent theories to support answers
4.1.1 TAYLOR - workers are motivated mainly by pay. given repetitive task. need close supervision. favour the autocratic management style
4.1.2 MARSLOW - hierarchy of needs. focused on psychological needs of employees. lower level of needs must be meet in order to be motivated by next level
4.1.3 HERZBERG - two factor theory. motivated by responsibility, interesting work & praises. demotivated by hygiene factors e.g. working conditions
4.2 non-financial methods
4.2.1 job enlargement- workers being given a greater variety of tasks to perform. rarely need new skills to do more jobs. less risk of giving promotions viewed by workers as a requirement to work more but for the same pay
4.2.2 job enrichment - given greater responsibilities, wider range and more complex tasks.
4.2.3 empowerment- giving people greater control over their working lives. motivational benefits. empowered teams motivate through allowing people to meet higher level needs
4.3 financial methods
4.3.1 time-rate pay: paid for the amount of time they spend at work
4.3.2 piece-rate pay: paid for each time produced. BUT if machine breaks down?
4.3.3 bonuses if sale targets are achieved "incentive pays"
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