Edexcel Business A Level Revision

Corporate culture - The values, beliefs and standards shared by people and groups within an organisation. These will impact on the way that people within the organisation interact with each other and with other stakeholders. "The way we do things around here" - Charles Handy The culture of a business is reflected in many ways, e.g; How employees are recruited - the cultural factors that make one applicant more suitable than another  The way that visitors and guests are looked after How the working space is organised The degree of delegation and individual responsibility (effects decision making) How long new employees stay in a business (retention) How contracts are negotiated and agreed The personality and style of the sales force The responsiveness of communication (impacts staff motivation) The methods used for communication (impacts staff motivation) How staff address each other (first name, last name etc) The speed in which decisions are made (effects de...

Labour Turnover - measures the rate at which staff leave the business. They may or may not need replacing. It can measured by the percentage of staff leaving within a time period. Recruitment and training are expensive and it takes some time for new recruits to become fully competent. The more senior the position, the more it will cost. HARD COSTS OF RECRUITMENT Advertising and recruitment agency costs Interview costs and expenses and managerial time diverted Costs of training and induction SOFT COSTS OF RECRUITMENT Loss of production when staff are involved in recruitment and training Time taken to build up knowledge, experience and working relationships with co-workers and customers. The costs of recruitment and training mean that a high rate of labour turnover can be a real problem. It entails the loss of valued skills and knowledge and therefore lowers productivity. It may affect employee motivation. Even so, a certain amount of labour turnover can bring in capable a...

Internal Recruitment - means that potential applicants are found within the organisation External Recruitment - means that potential candidates are found from outside the organisation, either by advertising, job centres, recruitment agencies (online and offline), headhunting and personal recommendation. BENEFITS OF INTERNAL RECRUITMENT Cheaper and quicker to recruit People already familiar with the business and how it operates Provides opportunities for promotion within a business Reduces training costs Motivates the workforce with chances of career progression DRAWBACKS OF INTERNAL RECRUITMENT Business already knows strengths and weaknesses of candidates Limits numbers of potential applicants No new ideas can be introduced from outside May cause resentment amongst candidates not appointed Creates another vacancy which needs to be filled BENEFITS OF EXTERNAL RECRUITMENT Outside people bring in new ideas Larger pool of workers from which to find the best candidat...