Business Environment Essay Example for Free

Business Environment Essay Recruitment and retention The need of recruit- There is been a new position arisen for Customer Service Executive in Buffs Supplies LTD. As now they have a website developed, there is a need of person who can run the website effectively, and make a very good use of the website to help the business to offer a good and improved service for their customers. Job description- is there to provide a clear understanding of the job details for the people who are going to apply. It outlines the things that he/she will do during his/her employment and it outlines the things that employer wants from the employee. So that Job description should include the following: * The job title/type * Position of the employee, who they will report to * The location * A summary of the jobs objectives, * Main purpose/duties/responsibilities * Pay levels, and any potential increase, benefits, uniform/dress code * Hours/ holidays * How to apply and deadline for application Ive designed a job description document (please see attached document) for Buffs Supplies LTD to assist my manager. Person specification- gives a better understanding of what kind of person that certain company wants for the job, and to identify the knowledge, skills and ability to require to do the job as well as to fit within the company. It should include the following: * Educational/ qualification- it is essential for professional jobs like lawyers, accountants as it is directly connected to their performance as well as they should know what they should/ should be doing. If you dont know the law you cannot work as a lawyer, simple! * Experience and training- you may need to be experienced to be able to do a good job for your role and its likely for employers to specify length of time of experience on their job description. A good thing of being experienced is you may not need a qualification to do certain jobs if you are experienced. * Personal interest/ attributes- its helpful for both parties to understand each other as it shows the requirement of peoples character for the job role. Persons interest may relate to the job role, for example if you are not comfortable with approaching to stranger, you may not be suitable for jobs like sales person who deals with customers face to face as part of their job role, if you enjoy talking to people you might enjoy the work and motivated to be at work, meaning that success will be a closer for you. Ive designed a personal specification with my job description for customer service executive. (Please see attached sheet) Different methods of advertising a job There are number of method that you can use to advertise your job vacancy arises. It helps the company to reach targeted group of candidate and it might also depend on the people who will be your candidate to choose where you would like advertise the job vacancy. First of all you will need to have a good job description to help the candidate what youre looking for. Im going to write about different methods. 1. Internal Advertising- you can employ people within the organisation instead of getting some one from outside. It might be cost efficient as you might not have to pay for recruitment agency to advertise your job, when you can put it on your companys website, employees board, send internal e-mails to everyone and even put it on companys facebook page. It is useful because if someone wants to climb to the ladder, they can do so by applying for the job vacancy. 2. Online- you can advertise it by online through job websites such as Monster, Job Centre website etc. Advantage of online advertising is you might be able to reach a lot of people and they can search by location, industry or job titles they wish to apply. 3. Recruitment Agency- you can also advertise it through these agencies with a small charge. They will advertise the job, maybe create the job description according to the company needs and asses the applicants to ensure they meet the minimum requirements. It might be useful for them if the company needs a staff urgently they can quickly find someone to cover as they have a lots of member who are seeking for jobs. they also 4. Newspapers- this is a offline choice you can advertise it on a local newspapers to let the local know about the job vacancy. Importance of staff retention I think recruiting a new staff is an expensive, because you will have to advertise the job, do the search on the applications, interview them individually and also once you got the right candidate you will have to train them from the start pointing every single fire points etc. Instead of going through all these you can try to retain the staffs you already has so that person is already know the companys style and people so it will be easier for him to work/deal with things. It is good for the company image and reputation to promote people within the organisation. If someone got hired and leaves after a month It will cause a problem, because they will have to do the recruitment process all over again and spend money to recruit the person will be a waste. Existing staff might be overworked so it will lead to unhappy employees and they will not perform their best as theyre tired of long hours and covering for someone else. However, businesses can avoid this situation by retaining staff as if the person stayed within the organisation and got promoted it is likely for the person to stay longer and work more harder as he will feel he is achieved something after working for the company. Ways of improving staff retention rate Businesses calculate to see how long their staffs are tending to stay with the company using the following formula. Number of staff leaving a year 100 Average number of staff employed that year This formula helps them to identify any problem so that Human Recourse can act on it to research what is going on by preparing surveys for staffs to complete or organise an open meeting with their staffs to know exactly what is going on, what is that they are happy and not happy with, so that they can act on it straight away. Reason to have high rate: this is when employees are not happy with the work they do, or the environment they work with, or even the management they are working for. It could be anything to be not happy as human expectation is increasing with the technology. However, employers should provide the right facility with the right motivation to keep the employers happy and juice them effectively. Ways to avoid these situations: to improve the rate you can do all sorts of things like showing them that they (employer) really care about them by listening to what they have to say, support them with their life, or organise some outside work events like weekend bowling competition to help them work closely with each other. Make the work place more challenging by doing competition with a price, a little investment wont bring down the company, in that way work place might be more interesting and staff will perform better. Motivation is a key thing to get a better out of the staff and keep them within the business as well. b) Describe main employability, interpersonal and personal skills required by the new customer service executive. Organisations often look for people who are skilled or experienced so that it will be easier for both parties, from the employers view it helps them to replace the worker quickly and it may save some money as there might not need of training for example if he is trained as first aider, and the job requires to have a qualification the company does not have to train the staff who already has the qualification for it, from the employees part of view it might be easier for him to do the job and as he is experienced he will have an idea of what he is expected to do, and will be paid as a full employee, I mean some organisations pay lower wage for those who are not experienced enough. Employability skills: this is the basic skills that are needed to get, keep, and do the job. It is necessary for the candidate to have or knowledge these skills as it can be transferable during the employment as they go up the ladder in a modernised environment. It includes the following: 1. Qualification/ Previous experience in similar role and industry You may not need any qualification for some profession, but you will need your GCSE or NVQ qualification for some job roles for example if you are seeking to work as waitress as such, you may even not need any qualification as long as you are experienced enough or maybe your employer will provide a full training to do the job. However, for professions like accountant and lawyer or higher positioned job role which requires specialised skills/ qualification, you will definitely need not only GCSE but at least a Bachelors Degree to be considered in your application. According to my study book Im on the right track to develop and educate myself further. Having an experience in similar role is always a bonus for employers and it is more likely for employers to consider those who are experienced and it is important that you mention it on your CV or letter indicating that you have worked in this role before. However, previous experience in similar industry is very beneficial for the employer, because they can get information about their competitors as well as an idea of how they worked to be more effective so that they can walk in a same level of their crowd. For example when I applied for a job in Harry Ramsden, Ive put on m CV that I used to work in McDonalds, so I knew that I would definitely be invited for an interview so I did, on my interview they asked me that how McDonalds motivate their workers to stay with the business longer as I worked there for quite long time, I said to the lady that if you hire me Ill tell you how they did it, and she smiled at me and welcome aboard! It shows that it is useful for the candidates as well as the business. 2. Knowledge of product/services This is one of the must have knowledge. For example you will obviously need to know about your product if you are a sales person, you should have a good knowledge of what you are going to sell. If you dont know of your product, you cant possibly persuade to sell it to different person. 3. Effectiveness in meeting personal and team targets As every business work towards achieving their aims and objectives, you must be able to meet targets to do so in the first place. You should clearly indicate if you have met any previous targets during your previous employment and any achievement, improvement you have set as a target for yourself past years, showing that to an employer will help you to get the job and it shows/proves that you are able to meet targets because of your previous achievement. 4. Ability to observe and raise professional standards There is a quote I know from my country it says if you work your hands hard, your mouth will also work hard, which means if you work hard, you will be able to feed yourself, same as that if you work hard and have a great attitude towards you work then you might get a reward/promotion. In business you are a professional, so you have to be professional to people taken be considered seriously and every organisation have a set of standard which you should meet. Personal skills: Everyone have their own character and attitude from their childhood. It might be difficult for some to change that in a day because of the job you are doing, but for some it doesnt matter as you can learn them from others or on your own. Basically if you have the right attitude that the employer wants, it will attract the employer towards you as you are the right candidate for the job. For example if you are a kind, understanding, a good listener and most importantly patient and calm, then you are suitable for jobs like carer or consultant as the job itself requires you to be calm and a good listener as you will be hearing all kind of things and dealing with the public. A personal skill requires you to have the following: 1. Patient and hard working Patient is a very difficult thing that human being can face in difficult situations. I would consider a person who is very patient is a very calm and collective person. For some jobs you will have to be patient and calm at all times, if you can do that employers are very like to keep them as it is difficult to find these kind of people in our society and I believe making your business successful is hard work and them patient. I mean you work very hard to build your business, and it might not be success as you want it to be, so you will have to be patient to drink the juice of your fruit you plant. 2. Team work Ability to working as a team or a part of a team is essential for you and for your employer. If you are a peoples person/ easy to get along with people you might/can be a good team player as it is all about communicating and understanding each and everyone one of the team players. Employers will always look for a people who can work with the team as if you have a say of different people you can get the work done quickly and more effectively, because the things you dont know, the other people might know so it is better for more brain than only one. Interpersonal skills: this is the skill that how you approach or deal with people and also how well you communicate with others. Customer Service Executive Employee Skills: Personal Skills: Interpersonal Skills: * Good written and spoken skills * Good IT knowledge * Previous experience in customer focused environment * * A good team player * Problem solving * Hard working * Friendly * Professional * * An excellent communicator * Good with people * c) Assess the importance of employability, interpersonal and personal skills in the recruitment and retention of staff in a selected organisation. Ive chosen The Manchester College to assess in this task; I think The Manchester College is the largest college in Manchester and in the UK. It is important for the college to consider employability and personal skills when recruiting staff as it is an educational institution, I believe the teachers should be educated as a teacher and also the subject of their own to give their students the best knowledge possible. If the college needs to hire a new staff they should consider to hire experienced staff to save that money to put towards the existing staff training, bonus for those who worked overtime during the recruitment process, so that people get rewarded after the hard work theyve done for their organisation, in doing that college manages to keep their staff happy, that means it is likely for them to stay within the organisation longer. To work more efficient college can carry out a skill auditing to identify the skill gap within the organisation and decide whether to hire new staff or train their existing staff. Communication is the key skill that college needs to have to be able to understand their student and their needs, so it is essential for their staff to have strong communication skills in written and verbally as it is a large organisation people will need to communicate in writing. Employees of the college should be presented and act in a professional manner, so that student and teachers will be look separately. Employability skills will be required for teachers as they have to be qualified in certain areas, whereas administrator of the college will not need to have a qualification if she/he is experienced enough. Task 2 a) Select an organisation and describe the main physical and technological resources that are involved in the running of your selected business. Physical resources this is the things that business can use to run their day to day activities includes machinery, buildings and facilities. For my chosen organisation The Manchester College, it is very important for them to use all the resources to run effectively. They are number of main physical resources which needs them to run the business. 1. Building and Facility Building of your business may play an important role as you might not think, it is very important for businesses to have to well presentable building as it is effective in many different way. For example in my country there is a bank called Coin and the building is round and gold coloured. Anyone who saw that building will know it is a bank and will go straight to it as it is located near the airport, foreigners will have to get their money changed before they take a taxi etc. I think the prettiest campus of The Manchester College is Openshaw and it has a lots of facilities that is available for students and staffs to use such as IT suites for multimedia students, an award winning training restaurant, workshop for construction, engineering and electrical students, hair and beauty salons etc. I think the facilities that are available for student and staffs are amazing and it will be very useful for students to use these to improve their knowledge on things that they are studying. 2. Materials and waste The need of materials will depend on the business type as they all use different things. For my chosen organisation they are likely to use papers, computers, printers, pen, pencil, projectors and all sorts of office equipment as they are small teachers offices. Businesses should keep a close eye on what they waste, if you do that it will help them to cut costs and work more environmentally friendly. 3. Plant, machinery and equipment Businesses spend thousands of pounds on equipment and machineries to work more quickly and efficient. It is essential for them to have them and an up to date one as it helps the business run smoothly. For example teachers at The Manchester College use projectors to make it more easier for students to read or see what the teacher is teaching, and we have a library with computers which students and staffs can use to do their work. 4. Security, insurance and emergency provision I believe The Manchester College follows the Health and Safety act as Ive seen the fire exits and there were . Also they must have the policies and provisions if there is an event of fire, there must be a staff who are trained to lead the way or make way for people in that event to keep them calm and put them in the right direction, and the people who have come to study/work to the college should have had a training or at least shown the fire exits or false alarm to see if the fire alarm works and to people know what to do in that event. All the building must have insurance against things like this to ensure the building and the employee/customers are protected, so that in any case of accident the insurance company will pay for the person who is injured or pay money to the persons family in the event of death. Technological resources- are not only computers and printers which can be treated as physical resources. There are four main areas: 1. Intellectual property This is the right to own ideas and have a right to concerning what happens to them, if the one of the staff has new idea that no one has the business can protect it from others to use it so that business will only benefit from this idea to make more profit or attract more people. For my college if one of the teacher/ advisor got a new idea of having a nursery on site which can be paid by day and any student/employee can give their child it would be a good and new idea as it enables students with children to study/work and easy to bring her child to the place they study/work, and the business protected it, only The Manchester College can use this idea to bring in more students. 2. Accumulated experience and skills This is an experience gained over a number of years when a person has come across lots of different issues to do with the job. There is a good side and not so good side by keeping employers for a very long time. Of course, it will be worth if the employee is the brilliant one, if so the level of experience will grow. Not so good side is if it the experienced staff is not handled carefully, it may result that you will have to pay more for them or give them a special condition whereas you can hire a new staff with the same or higher skills and pay low wages. For my college I think the employees are likely to stay longer and I think teachers are feel privileged when the student comes back to her/him to show what they have got out of their education that is gained from the teacher and college. 3. Software licences, patents and copyright I believe The Manchester College bought a license from Microsoft to use their Microsoft Office Pack as it will cost them cheaper than buying it individually and install them on computers which they have a hundreds and thousands of them. So it is enabling them to use it unlimited with a one off payment. Often it is allowed for businesses to do so, not for single person/public. Patents and copyright has always been tricky to protect or should I say difficult to prove the person who stole it, because people may copy the whole idea and change the name of it to pt it on the market, so apparently it is different as it has a different name and maybe slightly different, but if people see it they wont even recognise or know the difference. I remember one girl was selling a hoody with the logo of the college without permission from the college back home, so the college found out and they fined her parents as she was not an adult herself. b) Explain how the management of human, physical and technological resources can improve the performance of your selected organisation. Human Resources Every activity is carried put by human at The Manchester College and other businesses, so it is essential for businesses to have the right source of people to work towards their main aims and objectives. They must improve/ update their Human Resources to work effectively. I believe that my college try to manage its human resource at the level of standard as the best to provide the better future and education for us the students, considering the highly professional staff they have in my college, they hire the best possible staffs with ability and interest to care for students, so that staff will have better understanding of what students needs, also they train their staff accordingly with the new technologys or hire new staffs who have new skill which can be introduced to the other staff. To do those things there is department especially designed to do that job. Their main job role is to manage and control the employees in the college, meaning hiring a new staff, train the existing ones to improve their employers ability to have the best source of employees. To manage its staff successfully the college tries to keep the existing staff as it is beneficial for the college as longer the staff stays, college wont have to advertise jobs and train them which costs money for them to do that, instead of spending money on new person who is starting as an entry level, the company invest in their people who have stayed with them on the long run so that the employee will feel that they belong there and work more harder. Team work is always important for organisations like Manchester College as it is very large organisation and everyone have to work as a whole to get the work done, to improve team performance organisation do things like group activity, staff meeting and staff day out to make them closer so that they work with each other more comfortably, if they work closely the organisation will benefit from the use of full staff performance and things will go quicker and smoother, so that they can move forward to their next objective. Physical Resource If the college have a good facility for students, it can attract more students and people would be looking to work for them as basic standard of facility needs to meet and higher would be an advantage. It also important for them to use these facilities with its full use and keeping them up to date as the things are developing very fast and things are getting out of fashion quickly. For example if the student had learned Microsoft Office 2003 in their IT class by the time they finish their studies and find work would be 2007 and he might struggle if the new employer has the newer version and he doesnt know how to use it properly even though it is similar to the older version, he will not get the all the benefit that the software is offering. Technological Resource As the college uses a lot of paperwork and papers, it is crucial to save them as they need to be used for hard evidence, however I would like to suggest that teachers can send their assignment brief to student e-mails which college have provided for them it saves the trees and we are going to be use the e-mail which is one of the facility college improved last year and I think we are not making a full use of it and it feels it might be waste of money to have e-mail address and not using it, to motivate students to use their e-mail college can put their names instead of student number which will look more real and nice, and not allow to have an access to any other mail service in the library so that student have no choice but to use it properly. If we can do that we will reduce the use of papers and use the facility which we dont use. Task 3 a) Describe the sources of internal and external finance, available to Barneys business. There are two main ways that business can access financial resources: 1. Internal sources ( within the business) This is the money you can get within the business: Owners savings- I believe Barney has some money for himself if he is thinking to start a new business, because its the owners who are often invest in their company to cover the setting up costs. It might be the only source they available immediately for them as for sole traders like Barney, banks or other financial institution unlikely to offer a loan as there is too much risk involved, and if you have that kind of money it is really good for the business as you will not have to pay it back by monthly or pay an interest. Capital from profit- this will become available after the business set up and operating. Once they have run for certain time, they may make some profit to invest into the business to run or buy more stock or buy new machinery to grow the business 2. External sources (outside the business) There are number of different external sources that business can get money from to help them to set up or invest in. Banks- they can offer loans, overdrafts and business account to businesses but you will have to have a good business plan to get it. Loans are not easy to get and might not be a good option for small business as you must pay it back with interest in certain amount of time and if the company goes down the owner will end up with huge debt. The choice I would suggest is the overdraft for him as it is flexible and you wont have to pay a penny unless it is used, there are some banks who offer interest free overdraft, if you can get it will be a win! Friends/Family- you can always seek for help from your friends and families and you can even offer them a share for return of their investment or just borrow some money from them to put towards the business if they are nice enough. I would say it is the best option of borrowing money as you dont pay interest and it is your family they will not give you to court unless you run with their money. Government grants- these are available from the EU, national/local government. A grant is money you can receive as a business man; a good thing about it is that you dont have to pay it back. If Barney falls under the age group of 18-30 he can get a low interest loan from Princes Trust. Task 4 (a) The purpose of budgets, and how they can be used to monitor and control the performance of Barneys business, including, the monitoring of actual performance against budget and the use of variance analysis. Budget is a written plan with spending which will occur and a revenue that is need in the future to cover these costs. The purpose of it is it gives you clear understanding of what to expect to spend/receive in the future (coming year) to prevent or act any crisis before it happens. It also can be used as a communication between the employees to understand the objectives of the business and work towards it. For owners they can see how well their managers managing the budget plan and performance of them. Budgetary control 1. Set objective for Barney Objective for Barney could look like this * Do a business related course * Get information on government grants * Find any other fund that is available to him 2. Set a plan to how to achieve these objectives He can start of with: * Do a year course in business related or hair styling course to have a better understanding of how business operate * Design business plan to show it to the banks and to apply for government grants * Get advise from people who are in the same business as his to find out what needs to be done orderly * Do an online research on advise and support from government websites to collect necessary documents to apply for government grant * Hire someone to do research on the market things like where to open the salon, and what kind of people lives in the area, and what is the average income for people in that area to help to set a price etc. 3. Prepare the plan You should produce a budget plan to attach it with your business plan to show how much is going to cost what and how you can manage to pay for it etc and you should compare it with the actual figure to analyse the situation of what has gone wrong or right and then you can take some action to prevent it in the future and more experienced on the next budgeting. Task 5 a) Study the contents of the profit and loss account and balance sheet for Wansbeck Motors Ltd and give an account of the worthiness of the business by explaining the purpose of each element. Purpose of balance sheet- is important as it shows the value of the business. * Assets things that business own * Liabilities ( debts a business owns) * Equity (the amount invested in the business) Purpose of profit and loss account- it shows how much money business making and how much money they are losing and you can identify it by looking at the profit and loss account to do something about it.