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2. People in business

Syllabus
0264–2027–2028
Section
2
Level

Exam analysis

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In this section

Topic 2.1

2.1. Human resource management (HRM)

Objectives in this topic

2.1.1—Recruiting and selecting employees

  • stages in the recruitment process: job descriptions, person specifications, job advertisements (including employment agencies and online recruitment)
  • selection methods, e.g. curriculum vitae (CV)/resumé, application forms, references, testing/assessment centres, interviews
  • advantages and disadvantages of internal and external recruitment
  • recommend and justify who to employ in a given situation

2.1.2—Employment contracts and legal controls over employment issues

  • the main contents of an employment contract: duties and responsibilities, working hours, holiday entitlement, sick pay
  • the benefits of employment contracts for employers and employees
  • legal controls over employment issues: unfair dismissal, discrimination, health and safety, legal minimum wage
  • effects of legal controls over employment issues on employers and employees

2.1.3—Training

  • importance of training to a business and to employees
  • types of training: induction training, on-the-job training and off-the-job training
  • advantages and disadvantages of the three types of training

Topic 2.2

2.2. Organisation and management

Objectives in this topic

2.2.1—Simple organisational structures

  • the main functional areas of a business, e.g. operations, marketing, finance, human resources
  • simple hierarchical structures: tall and flat levels of hierarchy, long and short chains of command, wide and narrow spans of control
  • interpret simple organisational charts
  • different ways of flexible working, e.g. home working and flexible hours
  • advantages and disadvantages of part-time employees and full-time employees

2.2.2—The functions of management

  • planning, organising, coordinating, commanding and controlling
  • advantages and disadvantages of delegation

2.2.3—Leadership styles

  • the main leadership styles: autocratic, democratic and laissez-faire
  • advantages and disadvantages of the main leadership styles
  • recommend and justify an appropriate leadership style for a given situation

2.2.4—Why reducing the size of the workforce may be necessary

  • concept of downsizing
  • reasons for reducing the size of the workforce, e.g. automation, reduced demand for products, need to lower costs
  • concept of redundancy
  • recommend and justify which employee(s) to make redundant in a given situation

2.2.5—The role of trade unions

  • what a trade union is
  • benefits to employees of being a trade union member

Topic 2.3

2.3. Methods of communication

Objectives in this topic

2.3.1—Why communication is important

  • why communication is important for a business
  • methods of communication, e.g. meetings (face-to-face or virtual), email, text messages, social media, phone calls (including mobile calls), letters, posters and noticeboards
  • advantages and disadvantages of different methods of communication
  • internal and external communication
  • recommend and justify which method of communication to use in a given situation

2.3.2—Communication barriers

  • examples of communication barriers
  • reasons for communication barriers
  • problems caused by communication barriers
  • how communication barriers can be reduced or removed

Topic 2.4

2.4. Motivating employees

Objectives in this topic

2.4.1—The importance of a well-motivated workforce

  • why people work
  • the benefits of a well-motivated workforce: improved labour productivity, reduced absenteeism, lower labour turnover and greater willingness to accept change / new methods of working
  • main motivational theories: Maslow, Taylor, Herzberg

2.4.2—Methods of motivation

  • financial methods of motivation, e.g. time-based, piece-rate, salary, bonus, commission, profit sharing, fringe benefits
  • non-financial methods of motivation, e.g. job enrichment, job rotation, training, opportunities for promotion, praise, employee of the month
  • recommend and justify an appropriate method of motivation for a given situation
ConceptIGCSE Business Studies