People in Business is a core part of GCSE Business Studies. Revise the key concepts and common mistakes below, then lock them in with the free games.
Key concepts
RecruitmentAttracting candidates to apply for a job
SelectionChoosing the best applicant for the role
Internal recruitmentFilling a job from existing staff
External recruitmentHiring from outside the business
CVCurriculum vitae — summary of skills/experience
Assessment centreMulti-task day to test applicants
HierarchyLayers of authority within an organisation
Span of controlNumber of staff one manager directly oversees
DelayeringRemoving management layers to cut costs
RetentionKeeping good staff in the business
Labour turnover% of staff who leave in a period
EmpowermentGiving staff authority to make decisions
InductionTraining given to new staff in their first days
On-the-jobTraining done at the workplace by doing the job
Common mistakes to avoid
Questions where students often pick the tempting wrong answer — make sure you know the right one:
Does producing more always increase profit?✗ Yes, more output always means more profit. ✓ No — overproduction raises costs and waste if it isn't sold.
Why does a business motivate its staff?✗ Motivation has no effect on performance. ✓ Motivated staff are more productive and stay longer.
Why are cash flow and profit different on different time-scales?✗ Cash flow and profit are the same thing measured differently. ✓ Profit is recognised when a sale is made (even on credit); cash flow is when money actually moves. A profitable sale today may produce no cash for 60 days while bills are due — creating a cash-flow problem despite profit.
What is operations management concerned with?✗ Operations management is the same as general management. ✓ The design and control of the production process and business operations — converting inputs into outputs efficiently. It includes capacity, quality, supply chain, and process improvement.
Theory Y managers believe staff are.✗ Lazy and avoid work ✓ Self-motivated and creative
Practise People in Business — free games
Test yourself with these quick revision games for this topic:
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