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2 - People in Business

Syllabus
2026
Section
2
Level

Exam analysis

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In this section

Topic 2.1

2.1 Internal and external communication

Objectives in this topic

2.1.1 Effective business communication

Importance of good communication and the problems of ineffective communication:

  • the different communication methods used, including information technology (IT) and the benefits and limitations of each method.

2.1.2 Barriers to communication

Barriers to communication:

  • how communication barriers arise
  • problems of ineffective communication and how they can be removed.

Topic 2.2

2.2 Recruitment and selection process

Objectives in this topic

2.2.1 Types of employment

Types of employment:

  • full-time
  • part-time
  • job share
  • casual/seasonal/temporary.

2.2.2 Recruitment documents

Recruitment documents:

  • job description
  • person specification
  • application form
  • curriculum vitae (CV)/résumé.

2.2.3 Internal and external recruitment

Internal and external recruitment:

  • job advertisement
  • shortlisting
  • interviewing.

2.2.4 Legal controls over employment and their effects

Legal controls over employment and their effects:

  • equal opportunities – gender, race, disability, religion, sexual preference, age
  • minimum wage laws.

Topic 2.3

2.3 Training

Objectives in this topic

2.3.1 Business and employee training

Importance of training to a business and workers:

  • different types of training and the main purpose
    • induction
    • on-the-job
    • off-the-job
  • compliance with health and safety laws
  • benefits and limitations of training.

Topic 2.4

2.4 Motivation and rewards

Objectives in this topic

2.4.1 Importance of motivation in the workplace

The importance of motivation in the workplace:

  • attracting employees, retaining employees, productivity
  • motivational theories of Herzberg, Maslow and Taylor.

2.4.2 Methods of motivating employees

How businesses motivate employees:

  • financial methods:
    • remuneration
    • bonus
    • commission
    • promotion
    • fringe benefits
  • non-financial methods:
    • job rotation
    • job enrichment
    • autonomy.

Topic 2.5

2.5 Organisation structure and employees

Objectives in this topic

2.5.1 Organisational charts for different types of business

Organisational charts for different types of business:

  • hierarchical and flat
  • centralised and decentralised.

2.5.2 Employee roles, responsibilities and accountability

Roles and responsibilities of employees in terms of compliance and accountability:

  • span of control
  • chain of command
  • delegation.

2.5.3 Different functional areas within a business

The different functional areas within a business:

  • human resources – workforce planning, recruitment and selection, training, health and safety, staff welfare, employment issues, industrial relations, disciplinary and grievance procedure, dismissal, unfair dismissal and redundancy
  • finance – wages/salaries, cash-flow forecasting, budgets and accounting
  • marketing – market research, product planning, pricing, sales promotion, advertising, customer service, public relations, packaging and distribution
  • production – manufacturing the product, designing new products, quality control and stock control.
ConceptIGCSE Business Studies