Business Context
What are the three main sectors organisations can operate in?
Private, Public, Not-for-Profit (Voluntary)
What is the role of the Human Resources (HR) department in an organisation?
To manage recruitment, training, employee relations, and compliance with employment laws.
What does 'quality' mean in a business context?
Meeting or exceeding customer expectations through products or services.
What is meant by the term ‘revenue’?
The total amount of money a business earns from sales before any costs are deducted.
What is a 'milestone' in project management?
A key point or event in a project that marks significant progress toward the overall goal.
What is the difference between a sole trader and a private limited company (Ltd)?
Sole trader is owned by one person with unlimited liability; Ltd is owned by shareholders with limited liability.
What is meant by the term 'stakeholder'?
A person, group, or organisation that has an interest in or is affected by the organisation’s activities.
What is the purpose of compliance in an organisation?
To ensure the organisation follows laws, regulations, and internal policies.
What is the difference between fixed costs and variable costs?
Fixed costs stay the same regardless of output (e.g., rent); variable costs change with production levels (e.g., raw materials).
Name two common reasons why organisational change might be resisted by employees.
Fear of the unknown, loss of job security, lack of trust in leadership, poor communication about the change.
Name two external factors that could impact how an organisation operates.
Political changes, economic changes, social trends, technological developments, legal changes, environmental concerns.
Give two examples of internal stakeholders in an organisation.
Employees, managers, shareholders.
Name one quality standard an organisation might work towards.
Examples: ISO 9001, Investors in People.
Name two reasons why an organisation might set a budget.
Examples: To control spending, plan finances, monitor performance, support decision-making.
What is the purpose of a project initiation document (PID)?
It outlines the project’s scope, objectives, deliverables, stakeholders, risks, timescales, and governance structure.
What is the purpose of an organisation’s mission statement?
To communicate the organisation’s overall aim or purpose, guiding decision-making and strategy.
Why is effective communication important between teams in an organisation?
It ensures clarity, reduces misunderstandings, improves collaboration, and supports organisational goals.
How can non-compliance with regulations impact an organisation?
It can result in fines, legal action, reputational damage, and loss of customers.
What is a cash flow forecast used for?
To predict the inflows and outflows of money over a period, helping to identify potential shortfalls.
In change management, what is meant by ‘stakeholder engagement’, and why is it important?
Involving and communicating with those affected by the change to build support, reduce resistance, and ensure successful implementation.
Explain how a multinational company (MNC) might be affected by operating across different time zones and currencies.
Managing operations across time zones can delay communication and decision-making; fluctuating currencies can impact profits and costs.
Explain the impact of poor leadership on team performance and morale.
Poor leadership can cause low motivation, high staff turnover, reduced productivity, and conflict within teams.
Explain the relationship between quality management and customer satisfaction.
Effective quality management improves product/service consistency, leading to higher customer satisfaction, loyalty, and repeat business.
Explain why profit is important to a business.
It allows the business to reinvest, pay dividends, survive long-term, and attract investors or funding.
Describe two tools or techniques that could be used to manage change effectively.
Examples: Force Field Analysis (to weigh driving and resisting forces); Lewin’s Change Model (Unfreeze–Change–Refreeze); stakeholder analysis; communication planning; training and support programmes.