Exam code: 0450, 0986 & 0264, 0774
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Define functional area.
A functional area is a group of workers with similar skills and expertise who carry out a specific organisational role.
What is the main advantage of dividing a business into functional areas?
Dividing a business into functional areas allows specialists to work efficiently and at a high standard on specific tasks.
True or False?
Outsourcing functional areas can help a business reduce costs and access specialist advice.
True.
Outsourcing to specialist service providers can reduce costs and give access to expert advice.
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Define functional area.
A functional area is a group of workers with similar skills and expertise who carry out a specific organisational role.
What is the main advantage of dividing a business into functional areas?
Dividing a business into functional areas allows specialists to work efficiently and at a high standard on specific tasks.
True or False?
Outsourcing functional areas can help a business reduce costs and access specialist advice.
True.
Outsourcing to specialist service providers can reduce costs and give access to expert advice.
Define human resources in the context of business functions.
The human resources (HR) function is responsible for managing the workforce and ensuring employee welfare.
List two main responsibilities of the human resources department.
The human resources department is responsible for recruitment and selection as well as training and development.
Define finance department.
The finance department manages the organisation’s money, including recording transactions, collecting debts, paying bills and salaries, and preparing financial reports.
What is the purpose of financial forecasting in a business?
Financial forecasting helps a business predict future income and expenditure to plan and make informed decisions.
Define operations function.
The operations function is responsible for creating the product or delivering the service, ensuring quality, sourcing materials, and managing inventory.
True or False?
The operations function is responsible for managing company finances.
False.
The operations function is concerned with producing goods or services, not managing finances.
Define marketing.
Marketing is the business function that focuses on understanding customer needs, researching the market, and promoting goods or services.
Give two activities that the marketing department carries out.
The marketing department is responsible for researching the market and organising distribution.
Define chain of command.
The chain of command is the formal line of authority that flows downward from top management to lower-level employees, defining who reports to whom and who makes decisions.
Define span of control.
The span of control refers to the number of employees that a manager or supervisor can effectively manage.
What is an organisational chart?
An organisational chart is a visual representation of the reporting relationships, roles and responsibilities of employees in an organisation.
Define tall organisational structure.
A tall organisational structure is one with a long chain of command and a narrow span of control, typically found in large organisations with multiple management layers.
Define flat organisational structure.
A flat organisational structure is one with a short chain of command and a wide span of control, common in small organisations or start-ups.
What is the main purpose of the chain of command in an organisation?
The main purpose of the chain of command is to establish a clear communication channel and maintain accountability by defining who reports to whom.
What is an advantage of a tall organisational structure?
A tall organisational structure provides a clear hierarchy of authority and defined roles and responsibilities.
What is a disadvantage of a flat organisational structure?
A disadvantage of a flat organisational structure is that it can lead to a lack of clear hierarchy and may require employees to take on multiple roles, potentially leading to burnout.
True or False?
A narrower span of control means there are fewer layers of management.
False.
A narrower span of control means there are more layers of management, not fewer.
Define flexible working.
Flexible working refers to working arrangements that give employees some control over where and when they work.
Give one reason why home working has become more common in recent years.
Home working has become more common because advances in communications technology and the Covid-19 pandemic made it a requirement for workers to perform their jobs remotely.
True or False?
Most UK workers are employed on temporary contracts.
False.
Most UK workers are employed on permanent contracts, though employers also use flexible arrangements such as zero hours and agency work.
Define home working.
Home working is when employees carry out their work tasks from their own home, using tools like email, instant messaging, collaborative software, and videoconferencing.
List one advantage and one disadvantage of home working for employees.
An advantage is that commuting costs are eliminated. A disadvantage is that staff may feel isolated from colleagues.
Define full-time employee.
A full-time employee is someone who works the total number of hours considered full-time by their company, usually 35 hours a week or more.
True or False?
Part-time employees in the UK must work less than 24 hours per week.
False.
Part-time employees may work less than 35 hours per week, and at some companies, part-time hours can range from 24 to 40 hours.
Define flexitime.
Flexitime is a system that allows employees to choose their working hours within limits, often with required core hours.
Give one advantage of flexible hours for employers.
Flexible hours can increase employee motivation and productivity, as workers feel trusted and have greater control over their schedules.
Define delegation.
Delegation is when a manager gives responsibility for specific tasks to subordinates by transferring authority.
What is one advantage of delegation for managers?
Delegation allows managers to concentrate on important tasks since they do not have to complete every task themselves.
How can delegation benefit workers?
Delegation can benefit workers by making them feel empowered in decision-making, which can motivate them and make their work more interesting.
True or False?
Autocratic leaders are more likely to delegate authority to others.
False.
Autocratic leaders are less likely to delegate authority because they prefer to keep control over decision-making.
Define planning as a management function.
Planning is the process of setting targets or aims for the organisation and preparing resources to achieve them.
What does the organising function of management involve?
Organising involves allocating tasks and resources and delegating responsibility to employees to achieve set targets.
List two roles a manager may have in a school setting.
Managers in schools may organise the curriculum and staffing (like headteachers) or manage teaching staff and course planning (like heads of department).
Define coordinating in management.
Coordinating is when managers encourage groups to communicate and work towards the same goals, ensuring resources are available and activities are aligned.
Define autocratic leadership.
Autocratic leadership is where a leader holds absolute power and authority within a business, making decisions without seeking input from others.
Define democratic leadership.
Democratic leadership is a style where leaders actively involve employees in decision-making and encourage discussion, though they have the final say.
Define laissez-faire leadership.
Laissez-faire leadership is when leaders play a minimal role in managing subordinates, providing little direction or supervision and giving employees significant autonomy.
True or False?
Autocratic leaders generally expect strict obedience and compliance from subordinates.
True.
Autocratic leaders expect strict obedience and compliance from their subordinates, with little room for discussion or debate.
Democratic leaders often encourage and among employees when making decisions.
Democratic leaders often encourage participation and discussion among employees when making decisions.
Laissez-faire leadership is most appropriate with a and team that requires minimal supervision.
Laissez-faire leadership is most appropriate with a highly skilled and self-motivated team that requires minimal supervision.
What leadership style is likely to be most effective in a crisis situation with unskilled workers?
Autocratic leadership is likely to be most effective in a crisis situation with unskilled workers, as it provides clear direction and control.
Why might a successful leader use different leadership styles in different situations?
A successful leader uses different leadership styles depending on the situation, such as workforce skills or business environment, to achieve the best results for the business.
True or False?
Democratic leadership can lead to higher employee engagement and job satisfaction.
True.
Democratic leadership encourages participation and makes employees feel valued and empowered, which increases engagement and satisfaction.
Define redundancy.
Redundancy is when a job role is no longer needed by a business and a worker is dismissed, usually with compensation.
Give two factors commonly considered by businesses when selecting workers for redundancy?
Factors include worker productivity, lateness or absence data, length of time employed and whether the worker has essential skills.
True or False?
Long-standing employees are usually less expensive to replace than new employees.
False.
Long-standing employees are usually more expensive to replace than new employees due to their experience and skills.
Why might some workers be happy to be made redundant?
Some workers may be happy to be made redundant because they have another job lined up, wish to retire early, want to start their own business, or are attracted by a good redundancy pay-out.
Define workforce planning.
Workforce planning is the process of determining the number and skills of employees required by a business for the foreseeable future.
List two reasons why a business might downsize its workforce.
A business might downsize due to lower demand or the need to lower costs.
True or False?
Automation is a reason businesses may need fewer employees.
True.
Automation means more machinery is used and workers' jobs are replaced, reducing the number of employees needed.
Define trade union.
A trade union is an organisation that represents the interests of its workers in negotiations with a firm’s management or owners.
What is the main aim of a trade union?
The main aim of a trade union is to protect and advance the interests of its members in the workplace.
Name two functions of trade unions.
Trade unions protect employee rights and negotiate pay and conditions for their members.
What is collective bargaining?
Collective bargaining is when workers negotiate together, through a union, with employers over pay and conditions instead of negotiating individually.
True or False?
Trade union members generally receive higher pay than non-union members.
True.
Union members often receive higher pay than non-union members.
List two non-wage benefits trade unions may secure for their members.
Trade unions may help their members get breaks and holiday rights.
True or False?
Union members are not required to pay fees to remain members.
False.
Union members must pay a monthly fee called a subscription. Membership ends if this fee is not paid.
Give one possible disadvantage for employees when joining a trade union.
One possible disadvantage is that union fees must be paid, reducing discretionary income.
Which group is more likely to be trade union members: women or men?
Women are more likely than men to belong to a trade union.
Which sector tends to have the highest trade union membership density?
The public sector tends to have the highest trade union membership density.