A Level Professional Business Services CCEA

This subject is broken down into 60 topics in 6 modules:

  1. The Business Environment 10 topics
  2. Marketing 10 topics
  3. Operations Management 10 topics
  4. Human Resources Management 10 topics
  5. Finance and Accounting 10 topics
  6. Ethics and Sustainability in Business 10 topics
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  • 6
    modules
  • 60
    topics
  • 24,304
    words of revision content
  • 3+
    hours of audio lessons

This page was last modified on 28 September 2024.

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Professional Business Services

The Business Environment

The Purpose and Types of Business Activity

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The Purpose and Types of Business Activity

The Purpose of Business Activity

Understanding the purposes of business activity is essential. Businesses exist mainly to:

  • Satisfy customer needs and wants through the provision of goods and services. This is achieved through the process of production, which involves combining various inputs such as raw materials, labour, capital and enterprise.
  • Create value. This is achieved when the selling price of goods or services exceeds their cost of production, resulting in profit.
  • Address societal needs. Businesses form part of the wider society and therefore have a role in contributing to societal needs such as providing employment, promoting sustainable use of resources, and contributing to the economy through taxes.

Types of Business Activity

Businesses engage in various types of activities. These are usually categorised into:

  • Primary sector activities: These involve the extraction and collection of natural resources. Examples include agriculture, mining, fishing, and forestry.
  • Secondary sector activities: These involve the transformation of raw materials into finished or semi-finished goods. This is often referred to as manufacturing and includes industries such as automobile manufacturing, food processing, and furniture making.
  • Tertiary sector activities: These involve the provision of services to consumers and other businesses. They include retailing, transportation, healthcare, education, and financial services.

Each of these sectors interacts and relies upon the other. Primary sector businesses provide raw materials for the secondary sector, which in turn produces goods for the tertiary sector to distribute or provide as services. Understanding this interdependence of sectors is crucial in the business environment.

Classifications of Businesses

It's also important to recognise businesses can also be classified according to various characteristics including ownership, size, and scale of operations.

  • Ownership could be private, public, or voluntary. A private business is owned by private individuals or organisations, a public business is owned by the government, and a voluntary business is usually a non-profit organisation run by volunteers.
  • The size of a business can range from small (a sole trader or partnership) to medium-sized (usually defined as having a certain number of employees) to large (usually multi-national corporations).
  • The scale of operations can range from local to regional, national, or global.

Understanding these various classifications helps give insight into the structure, objectives, and potential behaviour of businesses. This in turn plays a role in understanding the business environment as a whole.

Course material for Professional Business Services, module The Business Environment, topic The Purpose and Types of Business Activity

Professional Business Services

Human Resources Management

The Role of Human Resources Management

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The Role of Human Resources Management

The Role of Human Resources Management

Introduction to Human Resources Management

  • Human Resources Management (HRM) refers to the strategic approach that manages people within an organisation.
  • HRM plays a significant role in ensuring that the company has the right people, at the right place, at the right time to achieve its overall objectives.
  • HRM functions range from hiring and training new employees, to managing relation criticisms, to ensuring that safety and health standards are met.

Strategic Role of HRM

  • HRM involves planning to meet the organisation's long-term strategic goals and objectives.
  • Strategic HRM includes tasks such as performance management, talent acquisition, succession planning and workforce planning.
  • It involves making decisions and forming strategies in relation to employee recruitment, retention, development, and utilisation.

Operational Role of HRM

  • The operational role of HRM involves implementing the programmes and policies developed at the strategic level.
  • It includes functions like recruitment, performance management, and training and development.
  • The day-to-day running of the HR department, such as handling employee relations, benefits administration and maintaining HR records, comes under operational HRM.

Human Resource Planning

  • HRM is responsible for identifying the organisation's future human resource needs.
  • It prepares a Human Resource Plan to ensure that the company has the right number of capable individuals at the right time.
  • This involves calculating current staff resources, future needs and developing a plan to fill any gaps.

Recruitment and Staffing

  • An important role of HRM is to manage the recruitment process, from identifying vacancies to vetting applications and conducting interviews.
  • Once candidates are hired, HRM also handles onboarding and induction to ensure new staff members are accustomed to the workplace and its culture.
  • HRM also has to plan for and manage staff attrition, either through retirement, termination, or employees leaving the company for other reasons.

Training and Development

  • HRM ensures that staff members continue to grow professionally and remain productive within the organisation.
  • Training and development programs are designed to help employees acquire new skills, improve existing ones, and increase productivity and efficiency.
  • HRM also identifies potential leaders within the organisation and prepares them for higher roles and responsibilities through management development programmes.

Employee Relations

  • HRM is responsible for maintaining a positive work environment and fostering good relations between employees and management.
  • HRM handles conflict resolution, disciplinary issues, complaints, and ensures the workplace is free from harassment and discrimination.
  • The HR department also ensures compliance with employment laws and is the bridge between staff and management.

Conclusion

  • The role of Human Resource Management is critical to an organisation's success.
  • Skilled and motivated employees are crucial to achieving business objectives, and HR plays a significant role in ensuring this.
  • Through strategic and operational HRM, recruitment and staffing, training and development, and employee relations, HRM contributes to building a competent and efficient workforce.

Course material for Professional Business Services, module Human Resources Management, topic The Role of Human Resources Management

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