Define
Intrapreneur
Is acting like an entrepreneur within an established company. It’s creating a new business or venture within an organization.
High Turnover
-Low skilled and less productive staff might be leaving -> and could be replaced with more skilled ones.
-New ideas brought into the organization by the new workers
-High labour turnover can help a business plan to reduce employment numbers as workers who leave will not be replaced.
businesses fail
1.Lack of accurate record keeping
2.Lack of cash and working capital
3.Poor management skills
4.Change in business environment
Identifies and records the responsibilities and tasks relating to a job
Job Analysis
Internal Recruitement
●Limits the number of potential applicants
●No new ideas can be introduced from outside
●May cause resentment amongst candidates not appointed
●Creates another vacancy which needs to be filled
Social Enterprise
Are not charities, but their objectives re not just profit. They are businesses that make money in a socially responsible way.
3 main objectives behind any social business are: Economic - Profit, Social - People, Environmental - Planet
Internal Recruitement
●Internal employees will understand the business/culture/processes
●No need for extensive training especially on culture and expectations of the business
●Promotion from within may well be a significant motivator for staff – improving morale
●Cheaper and quicker to recruit – more cost effective
●Known past performance can be assessed.
de-industrialisation
Rise in income of people makes them spend on more services like holidays, tourism and other services
Production is cheaper in less developed countries, so it usually costs less for these countries to import then produce in their own country
Sets out the kind of qualifications, skills, experience and personal attributes a successful candidate should possess
Job Specification
Empowering your employees
• Employees not capable of taking control over their work.
• Empowerment/training and development makes employees attractive to other businesses (poaching).
• Employees prefer other methods of motivation.
• Managers need to keep control over production.
• Employees are unskilled.
Workforce Planning
the analysis and forecasting of the numbers of workers and the skills/quality of those workers that will be required by a business organisation to achieve its objectives
• Creates opportunities for social? and esteem needs to be met
• Creates a positive work environment
• Opportunities for more empowerment and job enrichment in teams
• Suggests more interesting work - away from one worker-one task
• Greater opportunity for employees to use and develop skills and talents
• Opportunity for employees to become multi-skilled
• Allows opportunity for more participation in decision-making
• Greater satisfaction in working on a more complete unit of work
• Provides emotional support - reduces conflict - increases bonds
importance of workforce planning
●A business will identify the existing skills and qualifications of its existing workforce
● A business will identify gaps in skills of existing workforce.
●A business will analyse and anticipate the future needs of the organisation for particular skilled workers
●A business will ensure that in each department and throughout the organisation the numbers and skills of the workforce are appropriate
●Avoids the consequences of not having a workforce plan
●Assists the business to meet objectives and respond to current/future environmental/competitive situations.
The internal and external factors that stimulated the desire in workers to be continually interested in, committed to, doing a job well.
Motivation
Cash Flow Forecasting
§Mistakes can be made in preparing the revenue and cost forecasts or they may be drawn by inexperienced entrepreneurs or staff.
§Unexpected costs increase lead to major inaccuracies in forecasts.
§Incorrect assumptions can be made in estimating sales if we have poor market research.
Quality Circles
A voluntary group of workers who meet regularly to discuss and try to resolve, work related problems and issues.
using incremental budgeting
Fundamental review of the work is done each year, Incentives for managers to defend their work, accounts for marketing conditions, Each department is part of the budget making
A fair dismissal
Inability to do the job after sufficient training has been given
Continuous negative attitude at work
Disregard of required health and safety procedures
Deliberate destruction of an employer’s property
Bullying of other employees
argues that job satisfaction and dissatisfaction exist on two different continua, each with its own set of factors.
The two-factor theory (also known as Herzberg's motivation-hygiene theory)
Breakeven analysis
1.Assumes costs don’t change and businesses run smoothly
2.Not all costs can be easily classified into fixed and variable costs
3.Inventory levels are not considered in break-even chart (and their costs)
4.In reality fixed costs DO change at different output levels
5.For new businesses breakeven data will be based on forecast and these could be inaccurate
6.The assumption that costs and revenues are always represented in a straight line is unrealistic. For i.e. labour cost may increase as output reaches its maximum.
Insolvent
When a business cannot meet its short term debts.
of variance analysis
●Measure differences from the planned performance of each department over a given period
●Finding out the reasons for variances can help set more realistic budgets in the future
●The performance of each individual cost centre and profit centre may be appraised in an accurate and objective way
use of full costing technique
●Easy to calculate
●Best used for single product businesses
●No costs are ignored
●Good for pricing decisions
●Often includes a reduction of direct supervision as workers take more responsibility for their own tasks.
Job Enrichment
Incremental Budgeting
Each department is not part of the budget making, does not account for unforseen events