Unit 2.4

What are the main benefits of having a structure t

1. Each employee knows which worker they are in charge of and who reports directly to them. This helps them to distribute instructions and tasks.

2. Each employee knows who they should take instructions from and who they should report to if they encounter any problems.

3. Each employee knows what department they work in, who their colleages are and how many people work above them and below them in the company.

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What are the benefits and drawbacks of tall organi


- Allows managers to communicate quickly with the employees under them and control them more easily.                                                                                                                                                       - Feedback of ideas from the workers will be more effective.                                                                                                                                                 - There is less management skill required as there are less employees to each line manager.


- More expensive (higher cost of management)                                                                                    - More supervisory involvement in work could lead to less empowerment and delagation                    - Can result in communication difficulties and excessive distance between the top and bottom levels in the organisation   

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What are the benefits and drawbacks of flat organi


- Less layers of management to pass a message through, so the message reaches them more quickly.                                                                                                                                                     - It costs less money to run a wider span of control because a business doesn't need to employ as many managers.                                                                                                                                     - Encourages empowerment of employees by giving more responsibility.


- Could result in too much communication and exposure to the top level of the organisation.               - May not provide adequate support to employees leading to decreased morale or job satisfaction.     - May lead to too much pressure on supervisors if employees require a lot of support and task direction.

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What are the benefits of a strong workforce?

- high productivity - the best workers are more efficient,

- High quality products of customer service - the best workers will be keen to make sure that quality is maintained.

- low labour turnover - workers will be less likey to leave as they are doing a job that they are good at.

- High profits (resulting from high productivity and high quality).

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What are the four stages a firm completes during a

1. Find out from other employees the exact tasks and duties that will be involved in the job.

2. Then fnd out what kind of skills, experiences and qualfications might help someone do the job well.

3. Decide what kind of training could be given to the new recruit to help them do the job well.

4. Finally they will decide how the business will assess the perfomance of the new recruit once they've started.

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What are the benefits of internal and external rec

Internal Recruitment...                                                                                                                                     - It provides employees in the business with opportunites for promotion, which may motivate them to work well.                                                                                                                              - Employees that are promoted internally may not need as much training as they are already familiar with how the company works, which means costs are reduced.                                           - The selection process may be easier because the business will already be familiar with the candidates applying for the job and what their strengths and weaknesses are, this will also save time.                                                                                                                                                     - Internal recruitment may be quicker than recruiting employees from outside of the company.

External Recruitment...                                                                                                                      - This gives the business a wider pool of candidates to choose from, which will allow more expertise in the business.                                                                                                                   - They could be better qualified or possess more skills which increases efficiency.                          - External appointments might prevent jealousy amongst team mates that may have been competing against each other for a promotion.                                                                                 - It avoids creating another vacancy lower down the business that needs to be filled, which makes the process quicker.                                                                                                                                                              

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What are the benefits of training?

  • Aquire new skills - so a better standard of work and products are produced.
  • Better customer service
  • You demonstrate to your workers that you value them, which improves loyalty.
  • Improves businesses performance, profit and staff morale.
  • Increased flexibility - if staff are trained for a variety of tasks then workers can cover each other.
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What are the types of training?

Induction Training

This is the training an employee is given when they first join the organisation and will teach them how to do their jobs as well as train them in safety procedures and the businesses practices. This might help new workers feel part of the team and reduce accidents at work.

On-the-Job Training

The training is done in the place where the worker works. The trainee does a job and is given help by someone more experienced. The advantages of this is that its cheaper, a worker still produces and that they are trained in the ways of the firm. However the quality of the work may not be very good leading to wasted resources.

Off-the-Job Training

The worker will do the training away from their work, the trainee goes to another part of the site like a training centre or lecture room. The advantages of this are that the trainee can used specially designed equipment and they will enjoy the change of environment. However its usually more expensive because of travel and accommodation costs.

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What are the benefits of appraisals?

  • they provide feedback to the workers
  • The trainer can offer advice on how the worker can improve
  • improves motivation of workers as they can set targets for the employee to work towards.
  • they will highlight what skills the employees need to improve on.
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What are the types of appraisals?

1. By superiors - the workers line manager assesses their performance based on ther knowledge of recent work.

2. Self-appraisal - individuals carry out an assessment of their own work and progress which can be checked and agreed with a superior.

3. Peer-appraisal - carried out by a collegue at the same level within the organisation.

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What are the benefits and drawbacks of autocratic

Autocratic...                                                                                                                                          Benefits - Work will get done to the right standard.                                                                              Drawbacks - No room for the workers ideas, - agressive 

Democratic...                                                                                                                                            Benefits - Allows creativity, - Allows businesses to grow and develop further                                       Drawbacks - Takes empowerment too far and can get out of control, - Who will make the final decision, - Time consuming

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What are the main features of flow production?

  • Scale - Conducted on a mass scale, its quick and efficient, more products can be produced than with job or batch production.
  • Standardised Products - Every product produced is the same (identical), producing products on a production line means that each item produced is identical to the last.
  • Specialisation - Each worker specialises in one task, workers become quicker and therefore more efficient in their specialist task.
  • Division of Labour - The whole process of creating the product and dividing it up into smaller tasks. 
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What are the benefits and limitations of flow prod


  • lots of products can be made
  • consistant level of standard and workers can be paid less because they are only doing one task
  • less waste - the workers will be specialised in their task
  • you can take advantage of economies of scale


  • workers may become un-motivated and get bored of their repetitive task, so quality decreases
  • If theres one mistake it could affect the whole production line
  • workers can't cover each other, as they are all specialised in their own jobs.
  • People could be judged on doing their job, when other workers aren't doing theirs as well.
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What are the types of waste in a business?

  • If a production exceeds demand then items may have to be thrown away.
  • Wasted time is ineffiecient, workers may be waiting for the stage before.
  • Any faulty products, will have to be remade
  • Holding stocks - products can get damaged or stolen, there are also warehouse costs.
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What are the advantages and disadvantages of JIT p


  • Lowers the cost of holding stock
  • Smaller premises can be rented, as stock isn't stored
  • Leads to closer relationships with suppliers


  • May lose economies of scale, as lots of smaller orders are placed rather than one large one.
  • Production may stop if suppliers don't deliver in time.
  • Customers have to wait for products to be made, as there is no stock of products to sell.
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What are the different types economy of scale?

Bulk Buying Economies of Scale - Big companies buy stock in bigger quantities so can negotiate discounts with suppliers.

Technical Economies of Scale - Larger firms can afford more efficient and up to date machinary and technology.

Financial Economies of Scale - Larger firms borrow bigger sums of money, so can negotiate reduced interest rates with banks.

Specialisation - Bigger firms employ specialist managers to oversee each area of the business, improving efficiency.

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What are the main causes of quality problems?

  • Wrong leadership style
  • poorly motivated workers/overworked
  • No-one is responsible for the quality control
  • quality becomes harder because of the choice of growth e.g. franchises are hard to control
  • Work has been outsourced, this is where a business hires another company to produce the product or part of a product, where the business doesn't have control of the quality.
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What are the main principles of TQM?

  • Zero defects
  • Creating things right the first time
  • Quality involves everyone
  • continuous improvement
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