A Level Applied Business AQA

This subject is broken down into 41 topics in 6 modules:

  1. Investigating People at Work 7 topics
  2. Investigating Business 7 topics
  3. Investigating Marketing 7 topics
  4. Investigating Accounting and Finance 7 topics
  5. Investigating Customer Service 6 topics
  6. Investigating E-Commerce 7 topics
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  • 6
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  • 41
    topics
  • 15,898
    words of revision content
  • 2+
    hours of audio lessons

This page was last modified on 28 September 2024.

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Applied Business

Investigating People at Work

Recruitment and Selection

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Recruitment and Selection

Recruitment and Selection Process

  • Recruitment is the process of identifying, attracting and shortlisting potential candidates to fill job vacancies within an organisation.

  • Selection involves choosing the most suitable candidates from those applying for a job role, using tools like interviews, assessments and reference checks.

Purpose of Recruitment and Selection

  • A key objective is to ensure the best possible match between the job and the individual.

  • A successful recruitment and selection process can minimise turnover, increase productivity and positively impact the organisation's overall performance.

  • It ensures that the necessary human resources are available to deliver organisational goals in an efficient and effective manner.

Stages of Recruitment and Selection

  • Identifying the vacancy: This happens when a current employee leaves, a new position is created, or there is a need to tackle an increased workload.

  • Preparation of Job Description and Person Specification: The job description outlines the tasks, responsibilities, and conditions of the job, while the person specification details the required skills, qualifications, and characteristics of the ideal candidate.

  • Advertising the Vacancy: This can be done internally (to current employees) or externally (to the public) through various channels like job boards, social media, job centres and recruitment agencies.

  • Managing Applications and Shortlisting: Applicants' CVs or application forms are screened and the most suited are shortlisted for further evaluation.

  • Selection Process: This may involve interviews, tests, presentations, group exercises or assessment centres to assess the suitability of the shortlisted candidates. The most suitable candidate(s) are then chosen.

  • Making the Offer: The selected candidate is made a formal job offer which includes details of the job offer, salary, and starting date.

  • Induction: The successful candidate is introduced to the organisation, shown around, and given essential information about the job.

Types of Recruitment

  • Internal Recruitment: Filling the job vacancy from within the current workforce. This could be through promotion or reassignment.

  • External Recruitment: Filling the job vacancy from outside the current workforce. This could be done through job centres, online job sites, recruitment agencies, or direct applications.

Benefits and Drawbacks of Internal and External Recruitment

  • Internal Recruitment:

    • *Benefits: lowers costs related to training and acquisition, boosts employee morale, faster adaptation to the role.
    • *Drawbacks: limited pool of candidates, risk of in-house politics, lack of new ideas and perspectives.
  • External Recruitment:

    • *Benefits: wider range of applicants, infusion of new ideas and skills, possibility of discovering untapped talent.
    • *Drawbacks: more expensive and time-consuming, higher risks due to less known about the candidates.

Remember, both types of recruitment have their place and often, a balance of both is used depending on the circumstances and needs of the organisation.

Course material for Applied Business, module Investigating People at Work, topic Recruitment and Selection

Applied Business

Investigating Accounting and Finance

Sources of Finance

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Sources of Finance

Sources of Finance

Internal Sources of Finance

  • Retained Profits: This is undistributed profits from previous years. It is a cheap and quickly accessible source of finance.
  • Sale of Assets: An organisation may choose to sell off unused or non-essential assets to raise finance.
  • Depreciation: It is not a source of finance in real terms, but it is an accounting method that frees up cash by reducing the value of assets which have reduced in value over their lifespan.

External Sources of Finance

  • Bank Loans: These are sums borrowed from a bank to be repaid with interest over an agreed period.
  • Overdrafts: Banks let businesses overspend on their account up to a certain limit, but charge high rates of interest.
  • Trade Credit: Suppliers may offer businesses the chance to purchase goods and pay for them later.
  • Leasing and Hire Purchase: Businesses can get the assets they need without paying in full upfront.

Equity Financing

  • Selling Shares (Equity Financing): For publicly listed companies, selling shares can raise large amounts of finance. However, it means giving up ownership and control of the business.
  • Venture Capital: A form of private equity, usually provided by external investors for new, high-growth potential businesses.
  • Business Angels: Wealthy individuals who invest in businesses in return for a share of the profits.

Debt Financing

  • Debt Issuance/Bonds: An alternative to equity financing, where a long-term loan is issued, to be paid back after a certain period with interest.
  • Trade Credit: This technique includes a delayed payment for purchased goods, typically 30-120 days, effectively giving a short-term loan to the business.

Grants and Subsidies

  • Government Grants: These can offer large sums of funding, however they're typically intended for specific projects and come with conditions.
  • European Union (EU) Grants: For projects that support environmental, regional, or social development in the EU.
  • Small Business Grants: These are often made available to stimulate entrepreneurship and help small businesses grow.

Crowd Funding & Peer-to-Peer Lending

  • Crowd funding: Raising small amounts of finance from a large number of people, typically via the Internet.
  • Peer-to-peer Lending: A modern way to organise loans between individuals who are not related, without the need for a traditional financial institution.

It's vital to understand that choosing the right source of finance depends on the type of business, its stage of growth, and its specific needs. Companies often use a mixture of these sources for funding.

Course material for Applied Business, module Investigating Accounting and Finance, topic Sources of Finance

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