A LEVEL BUSINESS STUDIES REVIEW

PRACTICING THE P1
CLASSIFIED QUESTIONS
PEOPLE IN ORGANISATIONS. HUMAN RESOURCE MANAGEMENT
Q1 The training of workers is an unnecessary business cost.
(a) To what extent do you agree with this statement? [8]
(b) Evaluate the methods a business might use to train its staff. [12]
Q2 Discuss the importance to a growing business of human resource planning. [12]
Q3 (a) Define the term redundancy. [2]
(b) Briefly explain the role of human resource management. [3]
Q4 Discuss the importance of good leadership for a successful business. [20]
Q5 Outline the main factors which a manager of a large hotel might consider when
carrying out manpower planning. [8]
Q6 State two functions of a Human Resources (Personnel) Manager. [2]
Q7 Briefly explain three functions of Human Resource Management. [5]
Q8 Evaluate how Human resource management might affect the success of a business.
[12]
Q9 To what extent is it important for a business to have a Human Resources Manager?
[20]
Q10 Information is collected by the Human Resources Department (Personnel). Explain
how a business might use this information. [8]
Q11 State two functions of a Human Resources (Personnel) Manager. [2]
(j10 1)
Q12 Briefly explain three functions of Human Resource Management. [5] (j10 3)

Q13 (a) Explain the importance of human resource management to a large business. [8]
(b) Discuss why the management of a hotel might decide to recruit a new head chef
externally rather than internally. [12](j11 1)
Q14 (a) Define the term job enrichment. [2]
(b) Briefly explain two benefits to a business that might result from the use of job
enrichment. [3](j11 3)
Q15 Discuss the importance of staff training and development in achieving business
objectives. [20] (n11 1)
Q16 (a) Define the term induction training. [2]
(b) Briefly explain why a business might invest in the training of its staff. [3]
(w11 3)
Q17(a) Define the term workforce planning. [2]
(b) Briefly explain two ways a Human Resources manager could achieve effective
workforce planning. [3] (j12 1)
Q18(a) State two methods of staff recruitment. [2]
(b) Distinguish between job description and person specification. [3] (j12 2)
Q19 (a) Define the term contract of employment. [2]
(b) Briefly explain the difference between redundancy and dismissal. [3] (j12 3)
Q20 Discuss the importance of training and development in motivating the workforce in
a school. [12] (w12 1)
Q21 (a) Define the term induction training. [2]
(b) Briefly explain two ways a Human Resources manager can help a business
achieve its objectives. [3] (w12 2)
Q22 Explain why teamworking may not always be beneficial for a business.

[5]

Q23 (a) Define the term intellectual capital. [2]

(b) Briefly explain how intellectual capital could increase the value of a business. [3]
(w13 2)
Q24 (a) Define the term labour turnover. [2]
(b) Briefly explain two ways human resource management could help a business
achieve its objectives. [3] (j14 1)
Q25 Discuss the benefits of team working for production workers and managers. [12]
(j14 2)

Solutions
Q1 The training of workers is an unnecessary business cost.
(a) To what extent do you agree with this statement? [10]
Training the workers brings many advantages to a business. Training is a commitment
towards developing the skills of staff and cements their importance to the organization,
which improves staff morale and loyalty. Increased staff morale and loyalty results in
increased motivation. It provides the structures, techniques and awareness to manage
time and workload efficiently, which increases productivity. As a result business can
minimize wastage of resources and decrease its costs of production hence maximizing
profits.
Training the workers gives the firm a competitive advantage in the industry. Training
gives staff the skills to handle customers professionally and increase customer
satisfaction. Satisfied customers are more loyal and help sustain demand for the firms
products. Training also improves internal efficiency, which always keeps a firm ahead of
the competition.
However, one of the biggest potential problems with employee training is the cost of the
process. If the firm handles the training internally, it costs money because it has to pay
one of its employees for training instead of doing productive work. If an outside trainer is
used, the firm has to pay him for his time. Employees can be sent to a seminar or training
conference in another location, which also can represent a substantial cost for the
company. BUT, the long-term benefits generated from training the employees outweigh
these initial costs the business has to incur. Effective training lowers staff turnover, which
reduces recruitment and training costs in the long-run and the business can continue its
operations smoothly hence it is not an unnecessary business cost.
(b) Evaluate the methods a business might use to train its staff. [10]
Picking the best method of training employees is a challenge for business owners. Some
methods are more cost effective than others.
The first method is known as induction training. It is a form of introduction for new
starters in order to enable them to do their work in a new profession or job role within a
business. As a part of induction training, the employees are taught duties of their job,
introduced with their co-workers, taught the values and aims of the business along with
internal working and policies. Induction training is important as it enables a new recruit
to become productive as quickly as possible. It can avoid costly mistakes by recruits not
knowing the procedures or techniques of their new jobs. The length of induction training
will vary from job to job and will depend on the complexity of the job, the size of the
business and the level or position of the job within the business.
The second type of training is known as on-the-job training. With on the job training,
employees receive training whilst remaining in the workplace. The main methods of onethe-job training include showing the trainee how to do the job, establishing a close
working relationship between an experienced employee and the trainee known as
coaching, job rotation where the trainee is given several jobs in succession, to gain
experience of a wide range of activities and projects i.e. employees join a project team
which gives them exposure to other parts of the business and allow them to take part in
new activities. On-the job trainings generally turn out to be; cost effective as the business
does not have to incur extra costs for making the arrangements for training, and
productive since the workers get a chance to practice the skills themselves and polish

them. However, the quality of on-the-job training would depend on the quality of trainer
(since the trainee is learning skills from him) and the availability of time. If more time is
available more skills can be learnt and polished.
The third type of training is known as off-the-job training. This occurs when employees
are taken away from their place of work to be trained. Some common methods of off-thejob training include Day release, Distance learning / evening classes, sponsored courses
in higher education, Self-study, computer-based training etc. with the use of off-the-job
training, A wider range of skills or qualifications can be obtained as the employees can
learn from outside specialists or experts. As a result employees can be more confident
when starting job. However, Off the job training is a more expensive as extra
arrangements have to be made by the firm e.g. transport and accommodation. While
training, the working time of the employees is lost leading to a loss of potential output
from the employee. New employees may still need some induction training so extra costs
will have to be incurred.
Q2 Discuss the importance to a growing business of human resource planning.[12]
Many critically important business functions are covered under human resources,
including hiring, firing, payroll, employee training and standards setting. With wellresearched human resources plans, owners of businesses can address these
responsibilities while also preparing the company for future growth by finding and
retaining top talent. For growing businesses, comprehensive HR planning may require
bringing on an HR specialist or manager.
A comprehensive human resources plan covers many important goals and responsibilities
for businesses, including recruiting talented staff, management of payroll and benefits,
administration over employee policies and employee training programs. An HR plan can
address both tactical and strategic needs. HR planning that addresses tactics lays out how
day-to-day staffing issues and compliance with government regulations are managed. A
strategic HR plan helps a company grow by setting up advanced recruitment and training
programs, as well as detailed timetables and metrics to evaluate progress. High-quality
employees can increase productivity, give companies a competitive advantage and help
them meet their goals.
A business cant grow without having the right staff in place, which makes recruiting top
talent one of the most important functions of HR planning. Any plan should include a
method for reviewing the companys goals and needs and determining the staffing
requirements to meet them. A plan for recruiting should examine any budgeting
restrictions and identify sources for finding qualified candidates so that the right
employees can be brought in at the right time.
Growing businesses can also use HR planning as an important tool to evaluate staff
efficiency. By laying out the roles and responsibilities of the companys staff, along with
a process for employee performance reviews, an HR plan can help managers identify
under-performing staff members and determine where training or education programs are
needed. As a result corrective measures can be taken as soon as the need arises and the
growing business can enhance its productivity thus ensuring that this growth is sustained
in the future.
Q3(a) Define the term redundancy. [2]
Redundancy is the termination of employees as his services are no longer needed for
business reasons, such as poor economic conditions, shut-down, switching to capital

intensive methods etc. Redundancies can be forced or voluntary.

(b) Briefly explain the role of human resource management. [3]
HRM aims to ensure that a business has the appropriate number of employees with the
appropriate skills at the time and place that they are required.
Q4 Discuss the importance of good leadership for a successful business. [20]
The four fundamental factors of production are land, labor, capital and entrepreneurship.
The final factor belies the vital importance of leadership in business settings. Leadership
acts as the catalyst that makes all other elements work together; without leadership, all
other business resources lie dormant.
A leaderless organization is like an army without generals. Work forces need the
leadership of skilled and experienced individuals to provide guidance and a single
direction for all employees to follow. Leaders are invaluable when it comes to
formulating and communicating new strategic directions, as well as communicating with
and motivating employees to increase dedication to organizational goals. Without the
presence of good leaders, the employees will not know which way to work and what
outcomes does the firm wish to achieve with their work. This can lead to possible
wastage of resources and increased costs so the firm will not be able to maximize its
profits.
Business leaders serve a range of important functions in their organizations. Leaders are
responsible for training employees to perform their tasks effectively, as well as
supervising the actual completion of those tasks on a regular basis. Leaders must inspire
employees to get excited about the company and their work, pushing them to excel and
helping them along the way. This keeps the workers motivated to work so their
productivity levels are higher that can be of great use for the business. It will give the
firm a competitive edge over other firms in the industry as well as help the firm achieve
economies of scale by decreasing average costs of production.
Different leaders employ different leadership styles. Leaders with a command and control
style formulate ideas on their own and dictate actions to their employees. Collaborative
leaders come up with ideas with the assistance of employees from all levels of the
organization, leveraging employees' creativity to boost company performance.
Facilitative leaders delegate almost all productive tasks to subordinates, and focus on
providing their employees with everything they need to excel in their jobs. All types
leadership styles are extremely important in crafting the culture of the company and
determine the success of the business operations by influencing the effectiveness of the
employees.
Leaders and leadership styles may need to be changed to suit specific situations. A new
CEO in an established company, for example, may benefit from altering his leadership
style to be more in line with the culture of his new company. Top executives themselves
may need to be switched out from time to time if a company's performance establishes a
pattern of decline. This switching is only possible if it is a good leader and understands
the needs of his organization. If changes arent adopted suiting to the changing
environment in and around the business, it can hinder future growth of the firm.
Q5 Outline the main factors which a manager of a large hotel might consider when
carrying out manpower planning. [8]
Manpower planning means selecting the right number of people with appropriate skills so
that the demand of the workforce is met.

First of all the managers will need to consider the number of people required. The main
factor that affects what number of workforce is required is the forecast demand. If the
demand for the hotel services is expected to increase the manager will consider hiring
more workers and vice versa. However, the forecast demand is only a prediction and may
turn out to be different in reality. This demand is also expected by several exogenous
factors making the forecast unreliable.
Another factor that should be considered is the skills of the workers. The managers will
need to analyze the skills of the existing workforce call workforce audit. After a careful
workforce audit, the manager will be able to decide whether it needs more skilled
specialists for the hotel or unskilled ones for clerical staff. However, workforce audit is
not an easy task, and if ineffective, it may result in under or overestimation of the skills of
the workers.
The human resources budget of the firm will also be considered. If the hotel has large
financial reserves it may bring in more skilled and expert specialists as it can afford to
pay them high remunerations for their technical skills. However, this amount of budget
will depend on the willingness of the manager to allocate resources to a particular area.
Q6 State two functions of a Human Resources (Personnel) Manager.[2]
One function of an HR manager is to recruit and select new staff when additional
personnel are required. Another function of the HR manager is to organize necessary
trainings for new and existing workers to acquire new skills or polish the old ones.
Q7 Briefly explain three functions of Human Resource Management. [5]
Human resource management (HRM) aims to ensure that a business has the appropriate
number of employees with the appropriate skills at the time and place that they are
required. One function of an HRM is to recruit and select new staff when additional
personnel are required. By bringing in staff at the right time, the firm will be able to
produce its goods and services and meet the consumer demand on time. Another function
of HRM is to organize necessary trainings for new and existing workers to acquire new
skills or polish the old ones. Enhanced worker skills will contribute to the productivity of
the workers as a result of which resource wastage and production costs can be reduced
and profit can be maximized. The HRM is also responsible for workforce planning i.e.
anticipating the future requirements of the firm and comparing those needs with the
current workforce and making plans to correct any imbalances so that the business will
have to correct the number of employees when required and with the appropriate skills.
Q8 Evaluate how Human resource management might affect the success of a business.
[12]
Human Resource Management (HRM) is the term used to describe formal systems
devised for the management of people within an organization. The responsibilities of a
human resource manager fall into three major areas: staffing, employee compensation
and benefits, and defining work for the employees.
Human resource management is important to all types of businesses; large or small. HR
improves the profits of the business with its knowledge of how human capital affects
organizational success. Managers with expertise in HR strategic management participate
in corporate decision-making that underlies current staffing assessments and projections
for future workforce needs based on business demand. As a result output is produced

timely and the business better satisfies the demand of its customers thus maximizing
sales revenue and profits.
HR management can also reduce the firms costs associated with turnover, training and
hiring replacement workers. It is important to large organizations because the HR has the
skills and expertise necessary to negotiate group benefit packages for employees, within
the organization's budget and consistent with economic conditions. The HR is also
familiar with employee benefits most likely to attract and retain workers. This can reduce
the companys costs associated with labor turnover, and recruitment of the workers.
The HR management in a business is also responsible for keeping the employees
satisfied. HR specialists achieve high performance, morale and satisfaction levels
throughout the workforce, by creating ways to strengthen the employer-employee
relationship. They administer employee opinion surveys, conduct focus groups and seek
employee input regarding job satisfaction and ways the employer can sustain good
working relationships. As a result, the employees become more motivated to work hence
their productivity levels are higher hence making the business successful.
Q9 To what extent is it important for a business to have a Human Resources Manager?
[20]
Human Resource Management (HRM) is the term used to describe formal systems
devised for the management of people within an organization. The responsibilities of a
human resource manager fall into three major areas: staffing, employee compensation
and benefits, and defining work for the employees.
Human resource manager is important to all types of businesses; large or small. HR
improves the profits of the large business with its knowledge of how human capital
affects organizational success. Managers with expertise in HR strategic management
participate in corporate decision-making that underlies current staffing assessments and
projections for future workforce needs based on business demand. As a result output is
produced timely and the business better satisfies the demand of its customers thus
maximizing sales revenue and profits.
The HR manager can also reduce the firms costs associated with turnover, training and
hiring replacement workers. It is important to organizations because the HR has the skills
and expertise necessary to negotiate group benefit packages for employees, within the
organization's budget and consistent with economic conditions. The HR is also familiar
with employee benefits most likely to attract and retain workers. This can reduce the
companys costs associated with labor turnover, and recruitment of the workers.
The HR management in a business is also responsible for keeping the employees
satisfied. HR specialists achieve high performance, morale and satisfaction levels
throughout the workforce, by creating ways to strengthen the employer-employee
relationship. They administer employee opinion surveys, conduct focus groups and seek
employee input regarding job satisfaction and ways the employer can sustain good
working relationships. As a result, the employees become more motivated to work hence
their productivity levels are higher.
However, there are other managers too that play an important role for the business. The
operational manager is responsible for the arrangement of raw material and efficiency of
the production processes. Similarly, the finance manager manages the funds of the
business and arranges the necessary finances so that are used by the operations

department of the business. The marketing manager ensures that the business produces
products that match the needs and requirements of the customers and that demand is
created for such products. Thus, the human resource manager does play a vital role in
helping the business achieve its objective and is an important part but all other managers
are very important. A combined effort from all the managers proves to be the best for the
business.
Q10 Information is collected by the Human Resources Department (Personnel). Explain
how a business might use this information. [8]
Human resources (HR) is the company department charged with finding, screening,
recruiting and training job applicants, as well as administering employee-benefit
programs. As companies reorganize to gain competitive edge, human resources plays a
key role in helping companies deal with a fast-changing environment and the greater
demand for quality employees.
The information collected by HR department is very useful for a business. The HR
anticipates future employee needs of the business which can be used to recruit new staff
or wave off workers as per the requirements of business processes. If this information is
not collected, the business cannot make effective recruitment and redundancy decisions
on time which can cause extra costs to the business. If the HR department does not
collect information about the employee needs, the business processes will come to a halt
as the necessary workers will not be available when needed.
The Hr can also collect information about staff skills and the need for training the
workers. This information can then be used to provide the employees with the necessary
skills needed, or teach them new skills through training and other measures. Untrained
workers that lack the required skills will not be able to work effectively and may lead to a
greater wastage of resources which will increase the business production costs as a result
of which profits would fall.
Similarly, the HR can also collect information regarding the needs and requirements of
the workers appointed by the firm. If workers needs are not identified and treated, the
workers will not be satisfied with their job and so their productivity might be very low. It
will also lead to increased labor turnover. Hence the business can use this information to
make the necessary arrangements to keep the employees satisfied and happy from their
work so that they can be more loyal towards the business.
Q11 State two functions of a Human Resources (Personnel) Manager.[2]
One function of an HR manager is to recruit and select new staff when additional
personnel are required. Another function of the HR manager is to organize necessary
trainings for new and existing workers to acquire new skills or polish the old ones.
Q12 Briefly explain three functions of Human Resource Management. [5] (j10 3)
Human resource management (HRM) aims to ensure that a business has the appropriate
number of employees with the appropriate skills at the time and place that they are
required. One function of an HRM is to recruit and select new staff when additional
personnel are required. By bringing in staff at the right time, the firm will be able to
produce its goods and services and meet the consumer demand on time. Another function
of HRM is to organize necessary trainings for new and existing workers to acquire new
skills or polish the old ones. Enhanced worker skills will contribute to the productivity of
the workers as a result of which resource wastage and production costs can be reduced

and profit can be maximized. The HRM is also responsible for workforce planning i.e.
anticipating the future requirements of the firm and comparing those needs with the
current workforce and making plans to correct any imbalances so that the business will
have to correct the number of employees when required and with the appropriate skills.
Q13(a) Explain the importance of human resource management to a large business. [8]
Human Resource Management (HRM) is the term used to describe formal systems
devised for the management of people within an organization. The responsibilities of a
human resource manager fall into three major areas: staffing, employee compensation
and benefits, and defining work for the employees.
Human resource management is responsible to all types of businesses; large or small. HR
improves the profits of the large business with its knowledge of how human capital
affects organizational success. Managers with expertise in HR strategic management
participate in corporate decision-making that underlies current staffing assessments and
projections for future workforce needs based on business demand. As a result output is
produced timely and the business better satisfies the demand of its customers thus
maximizing sales revenue and profits.
HR management can also reduce the firms costs associated with turnover, training and
hiring replacement workers. It is important to large organizations because the HR has the
skills and expertise necessary to negotiate group benefit packages for employees, within
the organization's budget and consistent with economic conditions. The HR is also
familiar with employee benefits most likely to attract and retain workers. This can reduce
the companys costs associated with labor turnover, and recruitment of the workers.
The HR management in a large business is also responsible for keeping the employees
satisfied. HR specialists achieve high performance, morale and satisfaction levels
throughout the workforce, by creating ways to strengthen the employer-employee
relationship. They administer employee opinion surveys, conduct focus groups and seek
employee input regarding job satisfaction and ways the employer can sustain good
working relationships. As a result, the employees become more motivated to work hence
their productivity levels are higher.
(b) Discuss why the management of a hotel might decide to recruit a new head chef
externally rather than internally. [12](j11 1)
Internal recruitment is when the business looks to fill the vacancy from within its existing
workforce. External recruitment is when the business looks to fill the vacancy from any
suitable applicant outside the business.
There are many reasons why the management of a hotel might decide to recruit a new
head chef externally. Recruiting externally brings new ideas and talent to the
organization. Because the new employees have not worked with the organization before,
their thinking patterns might be much open than those of the existing employees of the
firm. External recruiting opens up opportunities to find experienced and qualified
candidates and may also help develop a diverse team of employees.
Through external recruitment, the firm has a wider pool of potential candidates available
out of which it can select the best head chef for its hotel. Since people working in the
organization are limited, the firm has fewer options available to choose from, thus
external recruitment opens up more option for the hotel management. With wider options
available, the best candidate can be selected that would ensure effective workings of the
hotel with respect to food.

Hiring a skilled and experience external candidate may also reduce training costs and
give the organization a competitive advantage. Candidates coming from within the
organization will typically be working in any other area of the business and might not
have the desired skills of a head chef. This means that the hotel management would have
to spend time and money on this employee before he can become an efficient head chef.
Through external recruitment the person having the desired skills can be appointed.
However the hotel management would still have to incur staff recruitment costs.
Q14(a) Define the term job enrichment. [2]
Job enrichment is a common motivational technique used by organizations to give an
employee greater satisfaction in his work. It means giving an employee additional
responsibilities previously reserved for his manager or other higher-ranking positions.
(b) Briefly explain two benefits to a business that might result from the use of job
enrichment. [3](j11 3)
Through job enrichment a firm can improve the decision making ability of the employee
by asking him to decide on factory layout, method and style of working etc. This leads to
increased worker motivation. Another advantage of job enrichment is that since authority
and decision making power is delegated to the workers, it reduces workload on the
supervisors and managers so they can better focus on other strategic areas.
Q15 Discuss the importance of staff training and development in achieving business
objectives. [20] (n11 1) + (w11 2)
Training and development is the official and ongoing educational activities within an
organization designed to enhance the fulfillment and performance of employees. Training
and development programs offered by a business might include a variety of educational
techniques and programs that can be attended on a compulsory or voluntary basis by
staff.
Staff training and development plays a vital role in helping a business achieve its
objectives. Most employees have some weaknesses in their workplace skills. A training
program allows the firm to strengthen those skills that each employee needs to improve.
A development program brings all employees to a higher level so they all have similar
skills and knowledge. This helps reduce any weak links within the organization that rely
heavily on others to complete basic work tasks. As a result of which output per worker
increases and the firm can increase reduce its costs, hence maximizing profits. Providing
the necessary training creates an overall knowledgeable staff with employees who can
take over for one another as needed, work on teams or work independently without
constant help and supervision from others.
Moreover, an employee who receives the necessary training is better able to perform their
job. He becomes more aware of safety practices and proper procedures for basic tasks.
The training may also build the employee's confidence because he has a stronger
understanding of the industry and the responsibilities of his job. This confidence may
push her to perform even better and think of new ideas that help her excel. As a result
employees are more motivated to work. Thus the business can satisfy the needs of its
customers in a better manner and hence improve sales revenue or maximize its market
share. Employees who are competent and on top of changing industry standards help the
company hold a position as a leader and strong competitor within the industry.
A structured training and development program ensures that employees have a consistent
experience and background knowledge. The consistency is particularly relevant for the

company's basic policies and procedures. All employees need to be aware of the
expectations and procedures within the company. This includes safety, discrimination and
administrative tasks. Putting all employees through regular training in these areas ensures
that all staff members at least have exposure to the information. Better informed
employees are more loyal to the firm as a result of which labor turnover is low so the firm
does not have to incur hiring and recruitment costs over and over again hence minimizing
hiring costs and maximizing profits.
Moreover, employees with access to training and development programs have the
advantage over employees in other firms who are left to seek out training opportunities
on their own. The investment in training that a company makes shows the employees they
are valued. The training creates a supportive workplace. Employees may gain access to
training they wouldn't have otherwise known about or sought out themselves. Employees
who feel appreciated and challenged through training opportunities may feel more
satisfaction toward their jobs. This can also contribute to the overall image or repute of
the business in the industry as an employer.
Q16(a) Define the term induction training. [2]
Training provided to new employees by the employer in order to assist in adjustment to
their new job tasks and to help them become familiar with their new work environment
and the people working around them is known as induction training.
(b) Briefly explain why a business might invest in the training of its staff. [3] (w11 3)
Trained personnel are better able to make an economical use of the resources which leads
to lower wastage. As a result production costs are lower than if they would be if the
workers were untrained. Moreover, a well trained employee usually greater productivity
and higher quality of work-output than an untrained employee. Training increases the
skills of the employees in a particular job which helps to increase both quantity and
quality of output.
Q17(a) Define the term workforce planning. [2]
Workforce planning is a systematic identification and analysis of what an organization is
going to need in terms of the size, type, and quality of workforce to achieve its
objectives. It determines what mix of experience, knowledge, and skills are required, and
it sequences steps to get the right number of right people in the right place at the right
time.
(b) Briefly explain two ways a Human Resources manager could achieve effective
workforce planning. [3] (j12 1)
At strategic level, the HR manager will be involved in objective setting and business
planning. Once the long term goals of the firm are set, the workforce will have a better
direction in which it has to work towards hence leading to an effective workforce
planning. At the operational level the HR manager can define the key functions and
activities of human resources such as recruitment and selection, training and
development, motivation and culture influences, managing the workforce change etc, so
that the firm can ensure that the employees work well and are productive for all business
operations.
Q18(a) State two methods of staff recruitment [2]
One method of staff recruitment is by hiring the workers from within the organization
known as internal recruitment. Another method is hiring new workers from outside the
organization known as external recruitment.

(b) Distinguish between job description and person specification. [3] (j12 2)
A job description is a list that a person might use for general tasks, or functions, and
responsibilities of a position. It may often include to whom the position reports,
specifications such as the qualifications or skills needed by the person in the job, and a
salary range. Whereas person specification is a description of the qualifications, skills,
experience, knowledge and other attributes (selection criteria) which a candidate must
possess to perform the job duties. The specification should be derived from the job
description and forms the foundation for the recruitment process.
Q19(a) Define the term contract of employment. [2]
An employment contract is an oral or written, express or implied, agreement specifying
terms and conditions under which a person consents to perform certain duties as directed
and controlled by an employer in return for an agreed upon wage or salary.
(b) Briefly explain the difference between redundancy and dismissal. [3] (j12 3)
Redundancy is the termination of employees as his services are no longer needed for
business reasons, such as poor economic conditions, shut-down, switching to capital
intensive methods etc. Redundancies can be forced or voluntary. Whereas dismissal is the
termination of the employment by an employer against the will of the employee.
Q20 Discuss the importance of training and development in motivating the workforce in
a school. [12] (w12 1)
Training and development is the official and ongoing educational activities within an
organization designed to enhance the fulfillment and performance of employees. Training
and development programs offered by a business might include a variety of educational
techniques and programs that can be attended on a compulsory or voluntary basis by
staff.
Staff training and development plays a vital role in helping a school achieve its
objectives. Most employees have some weaknesses in their workplace skills. A training
program allows the firm to strengthen those skills that each employee needs to improve.
A development program brings all employees to a higher level so they all have similar
skills and knowledge. This helps reduce any weak links within the organization that rely
heavily on others to complete basic work tasks. As a result the teachers i.e. workforce of
the school becomes more efficient and the quality of education provided will improve
that will help attract more business.
Moreover, an employee who receives the necessary training is better able to perform their
job. He becomes more aware of safety practices and proper procedures for basic tasks.
The training may also build the employee's confidence because he has a stronger
understanding of the industry and the responsibilities of his job. This confidence may
push her to perform even better and think of new ideas that help her excel. As a result
employees are more motivated to work. Thus the business can satisfy the needs of its
customers in a better manner and hence improve sales revenue or maximize its market
share. Employees who are competent and on top of changing industry standards help the
company hold a position as a leader and strong competitor within the industry.
A structured training and development program ensures that employees have a consistent
experience and background knowledge. The consistency is particularly relevant for the
company's basic policies and procedures. All employees need to be aware of the
expectations and procedures within the company. This includes safety, discrimination and
administrative tasks. Putting all employees through regular training in these areas ensures

that all staff members at least have exposure to the information. Better informed
employees are more loyal to the firm as a result of which labor turnover is low so the
school does not have to incur hiring and recruitment costs over and over again hence
minimizing hiring costs and maximizing profits.
Q21(a) Define the term induction training. [2]
Training provided to new employees by the employer in order to assist in adjustment to
their new job tasks and to help them become familiar with their new work environment
and the people working around them is known as induction training.
(b) Briefly explain two ways a Human Resources manager can help a business achieve its
objectives. [3] (w12 2)
The HR manager is responsible for hiring and developing employees for business
operations. Once these employees are hired they work to produce goods and services
which are then sold in the market to earn revenue and profit hence helping the business
achieve its objectives. Moreover, HR managers are also responsible for training the
workers the skills essential for their work so that their productivity levels are high as a
result of which the costs of production will be low and so the business can achieve it aims
of maximizing profit.
Q22 Explain why team working may not always be beneficial for a business. [5]
One disadvantage of teams within an organization is the possibility of conflicts arising
between team members. One team member may disagree with the ideas of another team
member, which may lead to an argument. Hostility within teams limits productivity,
creativity and the decision-making process. Moreover, some employees work better by
themselves than in a group. An employee who does not work well within a group can
hinder the progress of the entire group as a result communication will suffer within the
group and might lead to wastage of resources. Further, some team members may take
advantage of the efforts other team members make within the group often known as freeriding. This acts as a demotivator for those working well as they feel that they have the
burden of doing the work of other employees as well, so they might not continue to work
as good as they used to.
Q23 (a) Define the term intellectual capital. [2]
Intellectual capital is the term used to describe the intangible assets provided to an entity
by its employees' efforts and also knowledge assets such as patents, trademarks,
copyrights, and other results of human innovation and thought.
(b) Briefly explain how intellectual capital could increase the value of a business. [3]
(w13 2)
The knowledge, experience, professional skills, relationships and networks can be a
source of value or profit for the business as it would to the goodwill on the firms balance
sheet. Similarly, intellectual capital can be a source of distinctive competitive advantage
over other firms as it is allows for a better use of other tangible assets and factors of
production.
Q24(a) Define the term labor turnover. [2]
Labor turnover is defined as the proportion of a firm's workforce that leaves during the
course of a year. A higher turnover negatively affects the output and sales of a business.
(b) Briefly explain two ways human resource management could help a business achieve
its objectives. [3] (j14 1)
The HR manager is responsible for hiring and developing employees for business

operations. Once these employees are hired they work to produce goods and services
which are then sold in the market to earn revenue and profit hence helping the business
achieve its objectives. Moreover, HR managers are also responsible for training the
workers the skills essential for their work so that their productivity levels are high as a
result of which the costs of production will be low and so the business can achieve it aims
of maximizing profit.
Q25 Discuss the benefits of team working for production workers and managers. [12]
(j14 2)
Teamwork involves different people and different groups across a business working
together to maximize their efficiency and reach a common goal. There are many benefits
of team working for both production workers and managers.
Teamwork allows employees to take greater responsibility for decision making and also
allows team members to control more of the work process. This can lead to improved
morale as employees gain more authority and ownership over the projects they are
working on. The extra responsibility can lead to a more rewarding work environment and
lower labor turnover. This can save business from incurring numerous costs such as cost
of motivating the workers, recruiting new workers etc. However, there can conflicts
between members of a team, which can lead to decreased productivity.
Moreover, team projects encourage employees to feel proud of their contributions.
Tackling obstacles and creating notable work together makes team members feel fulfilled.
Working toward achieving company goals allows employees to feel connected to the
company. This builds loyalty, leading to a higher level of job satisfaction among
employees. The more satisfied the employees are, the more dedicated they are to work at
their best.
Also, teamwork can lead to better business outcomes because the team can bring more
resources to bear against a challenge and there is more oversight to reduce risk of poor
individual contributions. As a result, the managers benefit from enhanced performance of
their team which contributes to their performance and outcomes. The managers bear less
burden work and can focus more on other strategically important areas of work.