Saqa-12466 Learner Guide
Saqa-12466 Learner Guide
Saqa-12466 Learner Guide
GENERAL FORESTRY
ID 50225 LEVEL 1 – CREDITS 120
LEARNER GUIDE
SAQA: 12466
EXPLAIN THE INDIVIDUAL`S ROLE WITHIN BUSINESS
1|Page
Learner Information:
Details Please Complete this Section
Name & Surname:
Organisation:
Unit/Dept:
Facilitator Name:
Date Started:
Date of Completion:
Copyright
All rights reserved. The copyright of this document, its previous editions and any
annexures thereto, is protected and expressly reserved. No part of this
document may be reproduced, stored in a retrievable system, or transmitted, in
any form or by any means, electronic, mechanical, photocopying, recording or
otherwise without the prior permission.
2|Page
Key to Icons
The following icons may be used in this Learner Guide to indicate specific
functions:
This icon means that other books are available for further
information on a particular topic/subject.
Books
References
3|Page
An important aspect of learning is through workplace
experience. Activities with this icon can only be completed
Workplace once a learner is in the workplace
Activities
This icon indicates practical tips you can adopt in the future.
Tips
4|Page
Learner Guide Introduction
About the Learner This Learner Guide provides a comprehensive overview of the
Guide… Explain the individual`s role within business , and forms part of a
series of Learner Guides that have been developed for GENERAL
EDUCATION AND TRAINING CERTIFICATE: GENERAL FORESTRY ID
50225 LEVEL 1 – CREDITS 120 The series of Learner Guides are
conceptualized in modular’s format and developed for GENERAL
EDUCATION AND TRAINING CERTIFICATE: GENERAL FORESTRY They
are designed to improve the skills and knowledge of learners,
and thus enabling them to effectively and efficiently complete
specific tasks.
Purpose The learning outcomes in this unit standard also contribute to the
exit level outcomes required for various manufacturing and
engineering qualifications. Qualifying learners can explain their
role within a business and their rights, contributions and
responsibilities. They are able to demonstrate an understanding
of how a business functions, organisational structures,
organisational culture and procedures and concepts.
Outcomes The learning outcomes in this unit standard also contribute to the
exit level outcomes required for various manufacturing and
engineering qualifications. Qualifying learners can explain their
role within a business and their rights, contributions and
responsibilities. They are able to demonstrate an understanding
of how a business functions, organisational structures,
5|Page
organisational culture and procedures and concepts.
Assessment Criteria The only way to establish whether a learner is competent and has
accomplished the specific outcomes is through an assessment
process. Assessment involves collecting and interpreting
evidence about the learner’s ability to perform a task. This guide
may include assessments in the form of activities, assignments,
tasks or projects, as well as workplace practical tasks. Learners
are required to perform tasks on the job to collect enough and
appropriate evidence for their portfolio of evidence, proof
signed by their supervisor that the tasks were performed
successfully.
To qualify To qualify and receive credits towards the learning programme,
a registered assessor will conduct an evaluation and assessment
of the learner’s portfolio of evidence and competency
Range of Learning This describes the situation and circumstance in which
competence must be demonstrated and the parameters in
which learners operate
Responsibility The responsibility of learning rest with the learner, so:
Be proactive and ask questions,
Seek assistance and help from your facilitators, if required.
6|Page
Explain the individual`s role within business
Learning Unit 1
UNIT STANDARD NUMBER : 12466
LEVEL ON THE NQF : 2
CREDITS : 4
FIELD : Manufacturing, Engineering and Technology
SUB FIELD : Manufacturing and Assembly
The skills, values and knowledge reflected in this unit standard are
required by people in the field of manufacturing and engineering.
PURPOSE:
The learning outcomes in this unit standard also contribute to the exit
level outcomes required for various manufacturing and engineering
qualifications. Qualifying learners can explain their role within a business
and their rights, contributions and responsibilities. They are able to
demonstrate an understanding of how a business functions,
organisational structures, organisational culture and procedures and
concepts.
This unit standard has been designed as part of a progression. It is one of a series of unit
standards for business relations in the field of manufacturing and engineering.
7|Page
SESSION 1.
Learning Outcomes
An understanding of the rights of an employee within the workplace are
demonstrated
Organisational structures, culture, procedures and concepts are explained
An understanding of how a business functions is demonstrated
The individual's role within the organisation is discussed and reflected upon
There are special rules about the employment of children and young people.
Statutory rights
Statutory rights are legal rights based on laws passed by Parliament. Nearly all workers,
regardless of the number of hours per week they work, have certain legal rights. There
are some workers who are not entitled to certain statutory rights . Sometimes an
employee only gains a right when they have been employed by their employer for a
certain length of time, and when this applies, the length of time before the employee
8|Page
gains the right is listed below. Unless you are in the group of workers who are excluded,
you will have the following statutory rights:-
the right to a written statement of terms of employment within two months of starting
work,
the right to an itemised pay slip. This applies from the day the employee starts work.
the right to be paid at least the national minimum wage. This applies from the day
the employee starts work.
the right not to have illegal deductions made from pay. This applies from the day
the employee starts work.
the right to paid holiday. Full-time employees are entitled to at least 28 days a year.
Part-time employees are entitled to a pro rata amount
the right to time off for trade union duties and activities. This applies from the day the
employee starts work. The time off does not necessarily have to be paid. Employees
also have the right to be accompanied by a trade union representative to a
disciplinary or grievance hearing. If an employee takes part in official industrial
action and is dismissed as a result, this will be an automatically unfair dismissal
the right to paid time off to look for work if being made redundant. This applies once
the employee has worked for two years for that employer
the right to time off for study or training for 16-17 year olds. This applies from the day
the employee starts work
the right to paid time off for ante natal care. This applies from the day the employee
starts work,
the right to paid maternity leave. For more information, see Maternity leave.
the right to paid paternity leave
the right to ask for flexible working to care for children or adult dependents – see the
right to paid adoption leave
the right to ask for flexible working
the right to take unpaid parental leave for both men and women (if you have
worked for the employer for one year) and the right to reasonable time off to look
after dependants in an emergency (applies from the day the employee starts work)
(the right under Health and Safety law to work a maximum 48 hour working week.
9|Page
This applies from the day the employee starts work (see under heading Health and
safety)
the right under Health and Safety law to weekly and daily rest breaks. This applies
from the day the employee starts work. (see under heading Health and safety).
There are special rules for night workers
the right not to be discriminated against. This applies from the day the employee
starts work. See under heading Harassment and discrimination
the right to carry on working until you are at least 65
the right to notice of dismissal, provided you have worked for your employer for at
least one calendar month
the right to written reasons for dismissal from your employer, provided you have
worked for your employer for one year if you started before 6 April 2012 or two years
if you started on or after that date. Women who are pregnant or on maternity leave
are entitled to written reasons without having to have worked for any particular
length of time
the right to claim compensation if unfairly dismissed. In most cases to be able to
claim unfair dismissal you will have to have worked for your employer for one year if
you started before 6 April 2012 or two years if you started on or after that date
the right to claim redundancy pay if made redundant. In most cases you will have
to have worked for two years to be able to claim redundancy pay
the right not to suffer detriment or dismissal for ‘blowing the whistle’ on a matter of
public concern (malpractice) at the workplace. This applies from the day the
employee starts work (see under heading Whistle-blowing at work)
the right of a part-time worker to the same contractual rights (pro-rata) as a
comparable full-time worker
the right of a fixed-term employee to the same contractual rights as a comparable
permanent employee.
You may also have additional rights which may be set out in your contract of
employment. In particular, a part-time worker’s contract should be checked.
10 | P a g e
Workers not entitled to certain statutory rights
Some workers are not entitled to some statutory rights (see under heading Rights at
work). They are:-
anyone who is not an employee, for example, an agency or freelance worker.
However, most workers are entitled to certain rights such as the national minimum
wage, limits on working time and other health and safety rights, the right not to be
discriminated against and paid holiday.
If you are not an employee but an agency/freelance worker, a casual worker, a
trainee or self employed, you should seek help from an experienced adviser, for
example, a Citizens Advice Bureau.
members of the police service. However, members of the police service are
covered by discrimination law
members of the armed forces. However, members of the armed forces are covered
by discrimination law
merchant seamen and share fishermen
some workers in the transport industry are not entitled to paid holidays or limits on
their working hours by law and have to rely on their contract
trainee doctors are not entitled to paid holidays and have to rely on their
employment contract. They are also limited to working a 58 hour week, rather than
48 hours.
11 | P a g e
If the written contract says one thing, but in practice all the employees have been
doing something else with the employer’s knowledge and agreement, the ‘custom and
practice’ would form the contract rather than the written statement. A trade union
may have negotiated an agreement with an employer about conditions at work. The
negotiated agreement will often form part of a contract of employment, particularly if
the conditions negotiated are more favourable than the previous ones.
Wages
12 | P a g e
There are a number of statutory rights associated with wages. Holidays and holiday
pay. Nearly all workers are entitled by law to paid annual leave. Full-time workers are
entitled to at least 5.6 weeks a leave year. If you work part-time, you're entitled to a pro
rata amount. There are some workers who are not entitled to paid holiday.
Bank holidays
Unless your contract of employment gives you bank holidays in addition to your
statutory paid holiday, bank holidays are included when calculating your entitlement.
So if, for example, you work full-time and you have eight days off in a year for bank
holidays, you will be entitled to these eight days plus another 20 days of holiday.
Sickness
Many employees will be entitled to statutory sick pay if they are off work due to
sickness. In addition, some employees may receive occupational sick pay from their
employer but this will depend on their contract of employment.
In addition, almost all employees have a right to take time off work, although not
necessarily with pay, for the following:-
to participate in trade union activities
to perform ‘public duties’, for example, being a JP, local authority councillor or
school governor
to care for their children. People who have worked for their employer for one year
have the right to unpaid parental leave. You are entitled to 13 weeks' unpaid leave
before your child is five. However, if your child is disabled, you get 18 weeks' leave
which must be taken before the child is 18.
to attend to unexpected problems with dependants, for example, where child
minding arrangements break down. A dependant includes anyone who reasonably
relies on the employee
14 | P a g e
You can ask for time off to do any training which would help you be more effective
at work, and improve the performance of the business you work for. The training can
be training that leads to a qualification, or that helps you develop skills at work.
There's no time limit on the amount of time you can ask for.
Your employer must also follow a standard procedure for considering your request. This
includes having a meeting with you. If your employer wants to turn down your request
for flexible working, they must give their reasons in writing. You have the right to appeal
15 | P a g e
if your request is turned down. You must do this in writing, within at least 14 days of
getting your employer's decision. You should give your reasons for appealing and make
sure your appeal is dated. There's a strict time limit for making a claim to an
employment tribunal. This is usually three months minus one day from the date when the
thing you are complaining about last happened.
Trade unions
17 | P a g e
An employee has the right to join a trade union, and should not be refused a job,
dismissed, harassed or selected for redundancy because they are a member of or wish
to join a trade union. An employee also has the right not to join a trade union if they
wish, and should not be refused a job, dismissed, harassed or selected for redundancy
because they refused to join. A member of a trade union has the right to take part in
trade union activities, for example, recruiting members, collecting subscriptions and
attending meetings. Trade union activities must take place either outside the
employee’s normal working hours or at a time agreed with the employer. An employee
has no right to be paid for this time off work unless their contract allows for this. Trade
union activities don't include taking industrial action, for example, going on strike. There
are different rules about taking industrial action. An employee should not be refused a
job or dismissed because they are on a list because of their trade union activities or
membership. It is also against the law to make, sell, supply or use a list to discriminate
against people in a trade union.
Notice of dismissal
Most employees have a legal right to a period of notice if their employer dismisses
them. Many employees will have extra rights to notice under their contract of
employment. There will always be a contract of employment, even if there is nothing
written down. Even if the law or your contract of employment does not give you the
right to a minimum amount of notice, you are still entitled to 'reasonable' notice. In most
circumstances, if your employer wants to dismiss you, they should follow a proper
dismissal and disciplinary procedure. Before dismissing you, your employer should:
send you a written statement, telling you why they want to dismiss you
hold a meeting with you to discuss the matter
hold an appeal meeting with you, if you want to appeal against your dismissal.
After the meeting with you, or the appeal meeting if there is one, your employer
should make a final decision about what they are going to do, and tell you what it
is. If they are still going to dismiss you, your employer should tell you when the
dismissal is to take effect, and how much notice they are giving you. They do not
have to do this in writing, but it would be good practice to do so. Notice of dismissal
18 | P a g e
must be given directly to you and not through a third party, for example your trade
union.
If you are not happy with your employer's decision and you think your rights have
been ignored, you may be able to take your case to an employment tribunal
(industrial tribunal in Northern Ireland). You may need to comply with the dismissal
and disciplinary procedure first. If you do not, any future award you get from a
tribunal may be reduced.
There's a strict time limit for making a claim to an employment tribunal. This is usually
three months minus one day from the date when the thing you are complaining
about last happened.
Contractual notice
Your contract of employment may give you more notice than the minimum the law
gives you. However, you can never get less than the minimum, no matter what your
contract says. If your contract does not specify a period of notice, you may still have
the right to a minimum period of notice because of custom and practice. For example,
if everyone who works for your firm has always been given at least three weeks' notice,
you would have the right to this much notice.
19 | P a g e
'Reasonable' notice
If the law does not give you the right to notice, and there is no notice period in your
contract (whether written, spoken or through custom and practice), you will still be
entitled to 'reasonable' notice. What is reasonable will often depend on your pay
period. For example, if you are paid weekly, you could argue that a week is
reasonable, and if you are paid monthly, you could argue that a month is reasonable.
20 | P a g e
SESSION 2.
Learning Outcomes
An understanding of the rights of an employee within the workplace are
demonstrated
Organisational structures, culture, procedures and concepts are explained
An understanding of how a business functions is demonstrated
The individual's role within the organisation is discussed and reflected upon
Organisational structures
An organizational structure consists of activities such as task allocation, coordination
and supervision, which are directed towards the achievement of organizational
aims.[1] It can also be considered as the viewing glass or perspective through which
individuals see their organization and its environment. Organizations are a variant of
clustered entities. An organization can be structured in many different ways, depending
on their objectives. The structure of an organization will determine the modes in which it
operates and performs. Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities such as the
branch, department, workgroup and individual. Organizational structure affects
organizational action in two big ways. First, it provides the foundation on which
standard operating procedures and routines rest. Second, it determines which
individuals get to participate in which decision-making processes, and thus to what
extent their views shape the organization’s actions.
Functional structure
Employees within the functional divisions of an organization tend to perform a
specialized set of tasks, for instance the engineering department would be staffed only
21 | P a g e
with software engineers. This leads to operational efficiencies within that group.
However it could also lead to a lack of communication between the functional groups
within an organization, making the organization slow and inflexible. As a whole, a
functional organization is best suited as a producer of standardized goods and services
at large volume and low cost. Coordination and specialization of tasks are centralized
in a functional structure, which makes producing a limited amount of products or
services efficient and predictable. Moreover, efficiencies can further be realized as
functional organizations integrate their activities vertically so that products are sold and
distributed quickly and at low cost. For instance, a small business could make
components used in production of its products instead of buying them. This benefits the
organization and employees faiths.
Divisional structure
Also called a "product structure", the divisional structure groups each organizational
function into a division. Each division within a divisional structure contains all the
necessary resources and functions within it. Divisions can be categorized from different
points of view. One might make distinctions on a geographical basis (a US division and
an EU division, for example) or on product/service basis (different products for different
customers: households or companies). In another example, an automobile company
with a divisional structure might have one division for SUVs, another division for
subcompact cars, and another division for sedans. Each division may have its own
sales, engineering and marketing departments.
Team
One of the newest organizational structures developed in the 20th century is team. In
small businesses, the team structure can define the entire organization.] Teams can be
both horizontal and vertical. While an organization is constituted as a set of people who
synergize individual competencies to achieve newer dimensions, the quality of
organizational structure revolves around the competencies of teams in totality
Schedule 8 of the Labour Relations Act stipulates in section 3 that "all employers should
adopt disciplinary rules that establish the standard of conduct required of their employees."
" An employers rules must create certainty and consistency in the application of discipline.
This requires that the standards of conduct are clear and available to employees in a
manner that is easily understood by employees". It is obvious that no employee may be
disciplined for breaking a rule that he/she was not aware of in the first place, and therefore
it is essential that the employer's Disciplinary Code and Procedure be communicated to all
employees in writing, in a language that the employees can clearly understand. This may
mean printing your Disciplinary Code in perhaps 3 different languages. If an employee is
illiterate, then the Disciplinary Rules must be translated to him in a language that he/she
can clearly understand. The Standards of Conduct should contain rules that are, as far as
possible, common to all employees. It is advisable to include a dress code as well,
particularly for those employees who have dealings with members of the public or the
employer's clients.
23 | P a g e
The Standards of Conduct should stipulate:
Serious offenses : e.g. theft, fraud, insubordination, unauthorized absenteeism,
consumption of alcoholic beverages on company premises, arriving at work under the
influence of alcohol or any substance having a narcotic producing effect, arriving at
work with the smell of alcohol on the breath, etc.
what disciplinary action may be imposed should an employee be found in breach or
guilty of breaking any rule listed under serious offenses. For example, "any employee
found guilty of breaking any rule listed under Serious Offenses shall be guilty of
misconduct and dismissal may result.
in this way, employee are left in no doubt whatsoever regarding the consequences of
unacceptable behaviour in the workplace. They cannot claim "I did not know it was
such a serious thing" or "I never ever thought I could be dismissed for that." Your
employee will be fully aware of the consequences of his misconduct, and should he/she
choose to misconduct himself/herself, then the risk and liability passes to the employee.
Employee representation
Employee representation may be defined as the right of employees to seek a union or
individual to represent them for the purpose of negotiating with management on such
issues as wages, hours, benefits and working conditions. In the workplace, workers may
be represented by trade union or other representatives:
on disciplinary and grievance matters;
on works councils or other consultative bodies;
for the collective bargaining of terms and conditions;
for making workforce agreements;
on joint working groups.
Grievance Procedure
A the grievance procedure is probably the most simple of all procedures. It must be
noted that the grievance procedure may not be used to address unfair labour
24 | P a g e
practices, salary or wage issues, demands for other benefits, or as an appeal
mechanism following a disciplinary hearing. The grievance procedure is the vehicle
used by an employee when he has a grievance or complaint relating to his working
conditions. This may be that his supervisor is continually picking on him, or his workstation
may be situated in a draughty area which gives him a health problem, or perhaps
there is some conflict between the employee and the fellow worker, and so on.
Whatever the case the employee should first bring his grievance to the notice of his
supervisor, who must address the matter and try to solve it. If the supervisor cannot solve
the problem than the supervisor must bring it to the attention of his line manager, who in
turn must try to solve the problem by interviewing the employee and the supervisor
together, to discuss the issue and see if some agreement or solution can be reached. If
the line manager cannot solve the problem, and any must referred to the HR
department or to a director, who must attempt to resolve the issue. Should the issue not
be resolved then the employee has the right to refer his grievance to the CCMA for
assistance.
25 | P a g e
SESSION 3.
Learning Outcomes
An understanding of the rights of an employee within the workplace are
demonstrated
Organisational structures, culture, procedures and concepts are explained
An understanding of how a business functions is demonstrated
The individual's role within the organisation is discussed and reflected upon
Customers
What Customers Expect?
Relevant Information
A customer usually expects that you will be able to provide the service that you are
supposed to give. They will expect relevant information. For example, customers will
expect that:
Accuracy and reliability
As we pointed out earlier customers expect that the information and advice that you
provide them with will be accurate. If you are not sure you should always find out
before you pass information on to your customers. Your standards of customer service
should be consistent and reliable. This means that all customers can expect to receive
the same high standard of service
• no matter who they are; • at all times; • regardless of how you are feeling.
A good reputation with customers can easily be lost if they are not treated well on one
occasion. This could be because the service provider is having a bad day and takes his
or her problems to work.
Quality
Customers expect that the goods and services that they receive will be of good quality.
This is often a legal obligation. The law will that:
26 | P a g e
• there will be no abuse; • services will be good value for money; • facilities will be safe
and clean; • work will be done for them to a high standard; • service providers have
been well trained to do their jobs effectively and • the service provided will be
confidential (if required).
Speed of service
Customers usually want services to be provided promptly. For example, they expect
that:
• health services are available immediately and on a 24 hour basis; • someone will be
available to deal with their requirements at all times during business hours; • they do not
have to wait long hours before they start their tour in the morning.
Value for money
You can add value to the service that your organization delivers to your customers.
When you continue to provide customers with exceptional customer service after the
deal is done, your customers are likely to be impressed. As we saw earlier if the services
that your organization provides do not represent good value, customers are likely to
complain and create problems. Then we’ll have to deal with dissatisfied customers.
What does the organization receive?
Customer confidence
When you provide reliable, high quality customer service and give accurate
information to your customers, you will develop their confidence in you personally and
in your organization and ultimately in your country as a whole.
Customer confidence is a valuable asset. It takes time to develop and which should be
taken care of. Confident customers will be loyal customers who will continue to use your
services, give a positive impression and recommend to others.
Identifying Customer Needs, Requirements and Expectations
You can take care of your customers and provide them with excellent services they
require only if you accurately identify their needs. It is useful to categorize customer
needs/requirements so that we can understand how meeting those requirements
affect customer satisfaction.
Revealed Requirements are usually what the customers say they want. Customer
satisfaction depends upon the extent these requirements are met. A good example of
27 | P a g e
this is fast service – the faster (or slower) the service, the more the customer likes (or
dislikes) it. A customer can reasonably expect us to deliver a specific request to which
we have agreed.
Expected Requirements are so basic to a particular service that the customer takes
them for granted – often to the extent that the customer fails to mention them until we
fail to deliver them. Problems only surface when things go wrong! They are the
fundamental expectations of the service and without them the service may cease to
be of value. This means that their absence is very dissatisfying. A customer will take for
granted that we 'will' fulfill expected requirements. You will recall that some
requirements are expected because they are implied by convention or statutory
obligation.
Extra Requirements are difficult to discover. Their presence excites, but their absence
doesn't dissatisfy as the customer does not expect them. They are beyond the
customer's expectations. This is why meeting this extra requirement surprises or “wows”
the customer. These 'extras' add value to the service and can delight the customer.
Customer Complaints
Complaints should be looked upon positively. It is a way of preventing other complaints.
It is also a way of receiving feedback from clients to let you know how you are
performing. It is also an opportunity for you to improve your performance.
Techniques for dealing with customer complaints
Angry customers present unique opportunities to re-win their allegiance. Somewhere
one or more of their basic expectations were not met, and they are looking for solutions
to the problem and some form of recovery. These basic facts are guiding principles for
figuring out how to turn the negative into a positive.
i. Listen: focus on what the customer has to say. There is no need to become defensive.
Do not interrupt, but questions can be asked to clarify that you understand the
problem. Remember to take notes especially if you are receiving the complaint over
the telephone.
ii. Thank the customer: always thank the customer for bringing the problem to your
attention. Complaints are opportunities to make a better impression, while correcting
grievances or mistakes.
28 | P a g e
iii. Paraphrase: after the customer is finished, summarize what the customer said to you
so that the customer knows that you understand the problem.
iv. Show Empathy: show that you understand how the customer feels. There is nothing
wrong with apologizing for the customer’s suffering.
v. Act immediately: offer a solution to the problem. It is your responsibility to ensure that
the problem is solved. It might be appropriate to ask the customer what can be done
to make them satisfied.
vi. Follow-up: it is important for you to follow through on any promises that were made
to the customer.
Experts say that: ·Customers who complain are likely to tell an average of 10 others
about their experience ·Sixty-six percent (66%) of all those who complain will return, if
the problem is resolved. It is in the interest of the tour guide to furnish information upon
request to the customer and to solve all customer complaints in a positive and
courteous manner.
Profit
Finance - What is Profit?
Profit is a very important concept for any business – particularly a start-up
Profit is the financial return or reward that entrepreneurs aim to achieve to reflect
the risk that they take. Given that most entrepreneurs invest in order to make a return,
the profit earned by a business can be used to measure the success of that investment.
Profit is also an important signal to other providers of finance to a business. Banks,
suppliers and other lenders are more likely to provide finance to a business that can
demonstrate that it makes a profit (or is very likely to do so in the near future) and that it
can pay debts as they fall due. Profit is also an important source of finance for a
business. Profits earned which are kept in the business (i.e. not distributed to the owners
30 | P a g e
via dividends or other payments) are known as retained profits. Retained profits are an
important source of finance for any business, but especially start-up or small businesses.
The moment a product is sold for more than it cost to produce, then a profit is earned
which can be reinvested. Profit can be measured and calculated. So here is the
formula:
PROFIT = TOTAL SALES less TOTAL COSTS
Here is an example which illustrates the formula in action:
31 | P a g e
Finance expansions to production capacity
As a business grows, it needs higher capacity and new technology to cut unit costs and
keep up with competitors. New technology can be relatively expensive to the business
and is seen as a long term investment, because the costs will outweigh the money
saved or generated for a considerable period of time. And remember new technology
is not just dealing with computer systems, but also new machinery and tools to perform
processes quicker, more efficiently and with greater quality.
Take-over or acquisition
When a business buys another business, it will need to find money to pay for the
acquisition (acquisitions involve significant investment). This money will be used to pay
owners of the business which is being bought.
Amount of money required – a large amount of money is not available through some
sources and the other sources of finance may not offer enough flexibility for a smaller
amount.
How quickly the money is needed – the longer a business can spend trying to raise the
money, normally the cheaper it is. However it may need the money very quickly (say if
had to pay a big wage bill which if not paid would mean the factory would close
down). The business would then have to accept a higher cost.
The cheapest option available – the cost of finance is normally measured in terms of the
extra money that needs to be paid to secure the initial amount – the typical cost is the
interest that has to be paid on the borrowed amount. The cheapest form of money to a
business comes from its trading profits.
The amount of risk involved in the reason for the cash – a project which has less chance
of leading to a profit is deemed more risky than one that does. Potential sources of
finance (especially external sources) take this into account and may not lend money to
higher risk business projects, unless there is some sort of guarantee that their money will
be returned.
The length of time of the requirement for finance - a good entrepreneur will judge
whether the finance needed is for a long-term project or short term and therefore
decide what type of finance they wish to use.
33 | P a g e
SESSION 4.
Learning Outcomes
An understanding of the rights of an employee within the workplace are
demonstrated
Organisational structures, culture, procedures and concepts are explained
An understanding of how a business functions is demonstrated
The individual's role within the organisation is discussed and reflected upon
If individuals are pulling in different directions, this will have a detrimental impact upon
the organisation achieving its mission. It is the role of the manager to integrate the
activities of individuals, ensuring that they are aware of the institution's priorities and that
they are working towards them. Managers achieve this through the authority
delegated to them within the organisation's hierarchy.
Ways in which individuals differ and the role of the manager in harnessing individual
differences within an organisational context
How individuals are structured within an organisation to enable it to achieve its mission
and how authority is legitimised through the structure
34 | P a g e
Individual differences
We are all different. We differ in many ways, some of them visual (age, gender) some of
them non-visual (personality, abilities). These differences mean that we often have
different values and attitudes on certain issues and individuals will perceive situations in
different ways.
Different perspectives
It can be interesting and rewarding to discuss a topic from another point of view and to
gain insight into other perspectives. But diversity can also be challenging and it can
sometimes be difficult to understand things from a different point of reference. From an
individual perspective, it is important to understand and appreciate that not everyone
will see things or value the things that you do, nor agree with your opinions.
Issues of different perspectives and how these influence how we communicate are
further discussed in Communications.
Personality
There are two main approaches to the study of personality. One approach,
nomothetic, centres on personality as a collection of identifiable and measurable
characteristics. This approach identifies personality as consistent, largely inherited and
resistant to change. Therefore it is possible to predict the way in which a certain
personality type will behave in a certain situation.
Theoretical perspectives on personality differences and their use in the recruitment and
selection process are further developed in the members pages section.
Different jobs require different abilities, skills and competencies. When we assign
someone to a job that does not match their abilities, because the job is either not
sufficiently demanding or too demanding, the result can be frustration and stress for
both the individual and their work colleagues.
In a situation where an individual's abilities do not match the requirements of the job
because they are in some way lacking, then the individual will feel out of their depth.
This has an impact on the individual who feels unable to complete their tasks to the
required and expected levels of performance. The team will also be affected by the
situation. They will often have to take on extra work and duties in order to support their
colleague.
In a situation where an individual's abilities exceed those required for the job, then the
individual may find the job too easy and become bored. This leads to a lack of
36 | P a g e
enthusiasm and care for the job and a sense of frustration for the individual feeling
unable to achieve their potential. Again this frustration impacts upon the rest of the
team and ultimately their performance.
Stress is a very individual concept and our responses to it can vary considerably. We all
find different situations stressful and we all react to them in a variety of ways. Some
people are stress victims. They perceive almost every situation in life as a threat and
they respond negatively to situations causing them anxiety, anger, self-doubt or
frustration. Others view situations more positively. They assess situations and channel
their energies into a proactive response spurring them on to achieve their goals.
Different things can cause us stress. These are defined as stressors and include:
Lifestyle stressors. Things that happen in our day-to-day life can cause us stress. These
can include family relationship difficulties, money worries, constantly sitting in traffic
jams or standing in a long queue at the bank. Even seemingly insignificant lifestyle
stressors can build up over time and cause stress.
37 | P a g e
Thought stressors. The way we think about things influences our ability to cope with
stress. Feelings of inadequacy, constantly striving for perfection and a disposition to
worry all impact on our thought processes and how we perceive and cope with stress.
Body stressors. The state of our physical condition has an impact on how able we are to
cope with stress. When our physical defences are weakened, we are more vulnerable
to the physical impacts of stress.
Work stressors. Our working environment, attitude to work, the type of job we do and
how 'happy' we are in our work all impact on our stress levels.
Change stressors. Changes in our circumstances also cause us stress. Getting a new
job, finding a new partner, getting divorced, having children, the death of a friend or
relative. Some can cope with these changes better than others. However, when we
have to deal with a number of changes within a short period of time, this puts a strain
on us and can make us vulnerable both physically and emotionally.
Stress impacts on us in a number of ways and can show as:
behaviour changes including taking time off work, avoiding situations or being with
certain people, eating/drinking/smoking more or less than usual
Stress in the workplace is now a significant factor impacting upon individual, team and
organisational performance. It is therefore important that as individuals we are aware
of the things that cause us stress and how we react. It is also important that managers
are aware of the sources of workplace stress and the measures they can put in place to
alleviate workplace stress.
Within an organisational setting, it is not surprising that individuals will view their work, the
organisation itself and the people they work with in different ways. It is the role of the
manager to manage this diversity and to reconcile the needs and values of the
individual with the needs and values of the organisation to encourage creativity and
vision and minimise frustration and conflict.
38 | P a g e
Individual authority, responsibility and accountability.
Organisational structure
Span of control
The span of control refers to the number of subordinates who directly report to a single
manager and for whose work that manager is responsible. If the span is too broad then
the manager will have too many subordinates reporting directly to him/her making it
difficult for the manager to co-ordinate their efforts effectively. If the span of control is
too narrow, then subordinates may feel that there is too much direct involvement and
contact with their manager.
Chain of command
Authority
Authority is the legitimate right to direct and control the actions of others. Within an
organisation, authority is delegated to positions within the organisational structure.
Authority flows from the top of the structure to the bottom with subordinates at each
level accepting and complying with requests because they understand that the
authority holder has a legitimate right to exercise this authority. Authority therefore,
travels down the chain of command with those at the top of the chain having more
authority than managers below them. For this reason, lower level managers will have to
request permission from managers further up the chain to perform certain actions.
39 | P a g e
Responsibility
Accountability
Each level of subordinates within the hierarchy has an obligation to feedback truthfully
to their managers on the discharge of their responsibilities. We are accountable for
performing our duties satisfactorily within the scope of our responsibilities. Managers are
ultimately accountable for the performance of their subordinates.
Role
We all take on a number of different roles. Some of these are personal and others are
work-related. Within each of these roles, we interact with a number of different people.
This is known as our 'role-set'. Our role-set will have a number of expectations about how
we should behave, what we should do, what rights we have and how much authority
we have. In addition, we also have a self-perception about the same expectations
based on our values, our beliefs and our experiences.
Let us take the example of a female quality manager within an organisation. She would
take on a number of work-related roles such as project manager, company
ambassador, administrator, figurehead for the quality department and line manager.
Within each of these roles she would interact with a number of others such as
customers, suppliers, subordinates, directors and other departments. These are her role-
set and each of these will have expectations about how she performs her role. For
example, as a senior manager within the organisation's hierarchy, she would be
expected to make decisions, be organised, lead by example and have integrity. She
would also have a self-perception of how she is expected to behave. In addition to this
she will assume a number of personal roles such as parent, child, sibling and friend.
40 | P a g e
Role conflict occurs when our actual situation and behaviour is not consistent with
either our or our role-set's expected behaviour and this can lead to role stress. Using the
example above, this could occur when the quality manager cannot carry out all of the
roles effectively because she has too many roles, she finds that she cannot meet
everyone's expectations because they are so different, or because the role turns out to
be not as she had expected.
Defining jobs
In order for an organisation to operate and function effectively, there are a number of
tasks that the organisation needs to perform. It needs to produce, sell, manage its
human resources and comply with legislation. These key tasks can be broken down into
a number of sub-tasks that can then be allocated to individual jobs and the job
allocated to a position within the organisational hierarchy. This process generally results
in the production of a job description. The specialisation of work tasks and their division
into jobs will be dependent on the size and the nature of the organisation.
Job description
Job descriptions outline the purpose, scope, responsibilities and tasks for a specified job.
The level of detail required for a job description is a question of balance. On the one
hand, there is an argument for a vague and fluid job description that allows the
jobholder to develop the job as required. On the other hand, it is important that the
jobholder is clear about their responsibilities and therefore the job description needs to
be detailed.
Person specification
Organisations will usually outline the abilities and skills they require for a particular job by
producing a person specification. There are a number of different formats for person
specifications but usually they will outline the qualifications, experience, personal
attributes and disposition required for a particular job. This is usually split between
essential characteristics and desirable characteristics. Candidates can then be
41 | P a g e
objectively measured against this specification with the most suitable candidates being
invited for interview.
Some professions specify the skills, abilities and competencies required for certain
occupations in a competency framework against which occupations can be
measured. Many professional bodies also specify a competency framework against
which they can measure their members.
Job design is important for both the organisation and the individual. From an
organisational perspective, it is important that all jobs are designed in an efficient and
effective way. This will ensure that the organisation is getting optimum performance
from its workforce.
Does the job fit in with the rest of the organisation? Overlaps in job design or gaps in
design can lead to conflict and confusion within an organisation. If there is overlap,
then conflict will occur between jobholders. This is also not an efficient use of the
organisation's resources. Gaps in design will lead to key tasks not being fully achieved
and will impact on the organisation's performance and reputation.
Is the job sufficiently demanding? If a job is routine and boring with little challenge or
opportunity to develop, it is unlikely that the jobholder will feel fulfilled in such a role. This
may lead to feelings of frustration and stress. It is important that job designers consider
the nature and variety of the job.
Is the job too demanding? At the design stage, it is important that the amount of work
being required is considered. It is also important to consider the position within the
hierarchy. If a job is too demanding then the jobholder may not be able to cope with
the amount of work and will suffer frustration and stress.
Does the jobholder have sufficient control over what they do? Lack of control is a key
workplace stressor. It is important that we have some control over the work that we do.
42 | P a g e
Job design and the individual
From an individual perspective, the way in which jobs are designed impacts upon how
satisfied the jobholder will feel with the work that they do and also how motivated they
are to achieve their full potential. Individuals also need to consider if there is a match
between the job and the individual's lifestyle. With the introduction of flexible working
practices, more and more organisations and individuals are considering how jobs are
designed and how well-matched the job is with the individual and their circumstances.
Professional bodies play an important role in society in developing their individual
members, providing support for organisations and in developing the skills of the sector
they represent.
The individual
The organisation
43 | P a g e
Industry sector
44 | P a g e