Human Resource Factors (SQA National 5 Business Management): Revision Note
Exam code: X810 75
The importance of workers
The people within an organisation - from managers to frontline staff - are critical to business success
The way they make decisions, perform tasks, and interact with customers directly influences productivity, profits and reputation
The role of managers
Managers play a vital role in shaping how a business operates
Their responsibilities and decisions can either help the business grow or cause setbacks
What do managers do?
Role | Impact on a business |
|---|---|
Decision-making |
|
Policies and procedures |
|
Budgeting |
|
Recruitment and dismissal |
|
Appraisals and monitoring |
|
The role of employees
Employees are directly connected to the success of the business
They are often the public face of the business and their performance shapes customer experience
The impact of employees
Productivity
Efficient staff help the business meet its targets and keep costs low
Poor performance increases waste and slows down production
Customer service
Friendly and skilled employees build customer loyalty, while poor service damages a business's reputation
Attendance
High absenteeism disrupts operations, while reliable staff help maintain smooth workflows
Skills and training
Investment in staff development improves efficiency and innovation
A lack of training can mean a business is less competitive and may struggle to attract new workers
Industrial relations
Positive relations with employees reduce the risk of disputes or industrial action
Strikes, work-to-rule, or sit-ins can disrupt production and damage sales
Case Study
Highland Fresh Foods, a small supermarket chain in the north of Scotland, has struggled with falling sales and customer complaints.
Weak management decisions and poorly motivated employees have damaged its reputation, impacted sales and threatened the business's survival.
Managers failed to invest in staff training and made poor budgeting decisions, cutting staff shifts too heavily and leaving stores understaffed.
Workers felt undervalued and overworked.
Absenteeism increased, customer service levels fell and queues grew longer at tills.
Local competitors gained customers who were unhappy with Highland Fresh Foods.
The business, under new management, has launched a recovery plan by rehiring staff, improving training and revising staff shift patterns.
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