Unit 3.23 How Businesses Operate

Submitted by: Maria V.

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Table of ContentsTask 1 – Business environment...............................................................................................4

PowerPoint presentation submitted......................................................................................4Task 2 – Business functions....................................................................................................4

2.1 Importance of accounting for business...........................................................................4Importance of Accounting:................................................................................................4

Task 2 – HR Functions.............................................................................................................55.1 Functions of HR department...........................................................................................5

Leading on processes for recruitment:..............................................................................5Promotions of staff:...........................................................................................................5Staff training & development:............................................................................................6Benefits & compensation:.................................................................................................6Legal compliance:.............................................................................................................6Policy implementation:......................................................................................................6Implementing grievance & disciplinary procedures:..........................................................6Developing workforce relationships:.................................................................................6Performance measurement:.............................................................................................6

Task 2 – HR Functions.............................................................................................................6Key features of employment legislation................................................................................6

Hours of work:...................................................................................................................6Holidays............................................................................................................................6Rest periods:.....................................................................................................................7Shift work..........................................................................................................................7Minimum wage..................................................................................................................7Sick leave and pay:...........................................................................................................7Redundancy:.....................................................................................................................7Trade union membership:.................................................................................................7

Benefits to employees and implications for employers:........................................................7Task 3 – Accounting workshop................................................................................................8

3.1 Interpretation of Profit & Loss account...........................................................................8Income and expenditure:......................................................................................................8Budgets:...............................................................................................................................8Profit and loss:......................................................................................................................8Cash flow:.............................................................................................................................8

Task 4 – Teams.......................................................................................................................94.2 Mine and others’ roles within a team..............................................................................9Belbin team roles..................................................................................................................94.1 Stages of team development........................................................................................10Tuckman’s Model...............................................................................................................10

Forming:..........................................................................................................................10Norming:.........................................................................................................................10Storming:.........................................................................................................................10Performing:.....................................................................................................................10

4.3 Assessment of three motivation theories......................................................................10Maslow’s theory of motivation.........................................................................................10Herzberg’s two factors theory.........................................................................................10McGregor’s theory X & theory Y.....................................................................................10Taylor’s model of motivation...........................................................................................11Mayo’s Theory of motivation...........................................................................................11

4.4 Leadership styles..........................................................................................................11Authoritarian style:..........................................................................................................11Democratic Style:............................................................................................................11

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Laissez-faire Style:..........................................................................................................11Transactional:.................................................................................................................11Transformational:............................................................................................................11

Task 5 – customer service.....................................................................................................11PowerPoint presentation submitted....................................................................................11

References.............................................................................................................................12

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ScenarioYou have gained a work experience placement within the local Chamber of Commerce. Every year the Chamber runs a range of professional advisory services for local businesses, and government-funded business support programmes in addition to a membership programme.

The Business Development Manager is keen to improve their education programme for young people hoping to set up their own businesses. He plans a series of workshops titled ‘Introduction to Business’. He has asked you to prepare materials for him. You will produce presentation materials, supporting notes, handouts and workshop exercises

Task 1 – Business environmentThe meaning of business condition implies the majority of the inside and outer variables that influence how the organisation capacities including representatives, clients, administration, free market activity and business directions. A case of a piece of a business situation is the manner by which well clients' desires are met.

PowerPoint presentation submitted.

Task 2 – Business functions

ScenarioThe delegates need to know about some of the functions of businesses. Produce 3 information sheets for distribution at the workshops which:

1. explain the importance of accounting for business success 2. describe the different functions carried out by the HR department in a

business 3. outline key features of employment legislation.

Task 2 – Business functionsOnce a business has been appropriately settled and has gone up against a sensible number of workers, the hierarchical structure will include the business being parts into number of various offices, each of which has a particular employment or errand to do - these are called - functions.Examples of business function includes delivering raw materials, paying bills, receiving of cash and inventories.

Predicting and controlling of: Expenditure:

Once a business is operational, it's basic to arrange and firmly deal with its money related execution. Making a planning procedure is the best approach to keep the business - and its accounts - on track.

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Income and cash flowBusiness income is any payment that is realized through business activity. Cash flow is the money that comes in and goes out of a company. The process of income and the payment of expenses in the form of cash payments to suppliers, workers, etc. Cash inflows result from either the generation of revenue through the selling of goods and services, money borrowed, or money earned through investments.

Calculation of salariesA salary is a type of occasional instalment from a business to an employee, which might be determined in a work contract. It is diverged from piece compensation, where each employment, hour or other unit is paid independently, instead of a period basis. From the perspective of maintaining a business, compensation can likewise be seen as the cost of securing and holding HR for running operations, and is then named staff cost or pay cost. In bookkeeping, pay rates are recorded in finance accounts. Pay is a settled measure of cash or remuneration paid to a worker by a business as an end-result of work performed. Pay is regularly paid in settled interims, for instance, regularly scheduled instalments of one-twelfth of the yearly pay.

Managing expenditure

Expense management refers to the frameworks sent by a business to process, pay, and review representative started costs. These expenses incorporate, however are not constrained to, costs brought about for travel and diversion. Cost administration incorporates the strategies and systems which administer such spending, and in addition the advancements and administrations used to prepare and examine the information related with it.

Maintaining Tax recordsEvery year, tax-payers must complete information’s about their federal income. Once finished, those records are frequently documented with those of earlier years. There are a decent number of motivations to keep up exact expense records. Keeping accurate tax record can help recognize the correct wellspring of all pay, they can enable citizens to track their deductible costs, and they can help during the time spent setting up an assessment form.

Task 2 – HR Functions

Write few lines about HR and its importance

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The human resources department handles many necessary functions of one business. It is instrumental in providing labour law compliance, record keeping, hiring and training, compensation, relational assistance and help with handling specific performance issues.

5.1 Functions of HR departmentExplain the following points with regards to their impact on an organisation.Recruitment and TrainingRecord KeepingPayroll and BenefitsEmployee RelationsEmployee Performance Improvement Plans

Leading on processes for recruitment:When HR department is on the processes for recruitment, they develop criteria that will be used to screen resumes and select the best person for the job. Job description must be accurate and very detailed, but also mention about salary and roles that candidate will must complete.The process for recruitment will involve what knowledge, skills, qualifications and experience is necessary for a new employee to be able to perform the duties of the positions. If there are any of your criteria exclude certain groups as prohibited under human rights legislation?

Promotions of staff:Promotions of staff is switching an employee from one job position to another job position that has a higher salary range, a higher level job title and higher level job responsibilities in an organization.

Staff training & development:Process of improving and increasing capabilities of staff through access to education and training opportunities in the workplace, through outside organization, or through watching others perform the job. Development is more expansive and focuses on employee growth and future performance, rather than an immediate job role.

Benefits & compensation:

Compensation and benefits is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. Compensation and benefits is known as "total reward" in the United Kingdom.

Legal compliance: Legal Compliance intends to conform to all the fundamental laws and controls pertinent. The legal compliance, division inside the organization guarantees that an organization follow every one of the necessities indicated in the relevant laws and controls. Administrative consistence is an association's adherence to laws, controls, rules and determinations applicable to its business. Infringement of administrative consistence controls regularly result in lawful discipline, including government fines.

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Policy implementation:Policy implementation are the rules created by an association to administer its activities. They characterise the points of confinement inside which choices must be made. Business strategy likewise manages securing of assets with which authoritative objectives can be accomplished. Business arrangement is the investigation of the parts and duties of top level administration, the huge issues influencing authoritative achievement and the choices influencing association in long-run.

Implementing grievance & disciplinary procedures: Problems may emerge at different focuses in the work relationship, and disciplinary and grievance techniques are there to guarantee that these difficulties are managed reasonably and impartially. Therefore, managers require methodology that bolster both the business and representative's viewpoints. Businesses are informed to take after the Acas Code with respect to Rehearse Disciplinary and Grievance Systems, which The Chartered Institute of Personnel and Development(CIPD) underwrites.

Developing workforce relationships: Workforce development is an important part of a business, since providing training to produce more and better-prepared workers. Leaders are key role to develop workforce relationship: with a well planned business development, leaders prepares workers with needed skills, emphasizes the value of workplace learning and addresses the hiring demands of employers from the outset. The goal is to place workers in jobs where there are career development opportunities.

Performance measurement:A quantifiable pointer used to survey how well an association or business is accomplishing its coveted goals. Numerous business directors routinely audit different execution measure sorts to evaluate such things as results, creation, request and working effectiveness keeping in mind the end goal to get a more target feeling of how their business is working and whether change is required.

Task 2 – HR FunctionsHuman resources department can provide an organization with structure and the ability to meet business needs through managing its employees. HR disciplines have several functions, but in each discipline, may perform more than one of the more than six essential functions. Recruitment, safety, employee relations, compensation and benefits, compliance, training and development.

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The manager of the human resources department is responsible for ensuring that department employees are well-versed in their areas of expertise. The various disciplines of HR require expertise in compensation, benefits, safety, payroll, recruiting and training.

Key features of employment legislationWrite few lines about employment legislation and why it is important.

Labour and employment laws give structure to the workplace, define what employees and employers are responsible for and, in some cases, outline federal regulations to give both parties necessary direction for resolving workplace conflict. The main features of employment legislation are:Employment rights, equality and discrimination, health and safety.Legislation relating to employment is important because is preventing the exploitation of employees by employers. Legislation protects employees’ rights and covers areas such as:Salary, equal pay, Safety, Maternity/Paternity entitlement, Sick pay, Holiday pay, Redundancy, Working hours, Discrimination i.e disability, gender, age.If employers not respect this legislation they will receive penalties.

Hours of work:Hours of work are the way to measure the labour an employee performs. In every country Labour law establishes maximum or minimum hours of work to protect employees. In other places, overtime hours (usually more than 40 hours of work) require extra pay.

Holidays:

Holiday day, is a day put aside by custom or by law on which ordinary exercises, particularly business or work, are suspended or decreased. For the most part, occasions are expected to enable people to celebrate or honour an occasion or custom of social or religious centrality. Holidays might be assigned by governments, religious foundations, or different gatherings or associations. How much typical exercises are diminished by an occasion may rely on upon neighbourhood laws, traditions, the sort of employment being held or even individual decisions.

Rest periods: Rest periods are small brakes during the working day, breaks between working days, and weekly rest periods.Employer is required to provide adequate rest breaks, by the Working Time Regulations., in which cases employees work in hard conditions and put their health and safety at risk.

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Shift work Work shift are schedules in which some groups of workers rotate through set periods throughout the day, usually 24 hours factories have employees that work through shifts.

Minimum wage A minimum wage is the lowest legal amount an employer can pay an employee. The majority of countries across the world have some form of minimum wage legislation in place. Minimum wage has been introduced by government to avoid exploitation of employee and fight poverty.

Sick leave and pay:There are different type of paid sick days or sick pay, in some cases, when workers can use to take a few days off their job to stay home to address their health and safety needs, without losing pay. Paid sick days guarantee workers paid time off to stay home when they are sick. Some policies also allow paid sick time to be used to care for sick family members, to attend routine doctor or medical appointments, or to address health and safety, or various emergencies.

Redundancy:Redundancies is a type of rejection and can happen when the job of an employee is no longer exist. This might be because of a business expecting to diminish their workforce, close the business, or certain work is at no time in the future required. In the event that a representative is made repetitive they might be qualified for specific rights, for example, time off to search for work, excess pay, a notice period and meeting with the business.

Trade union membership:An association whose enrolment comprises of laborers and union pioneers, joined to secure and advance their normal advantages.

The main motivations behind a worker's guild are to arrange wages and working condition terms, manage relations between laborers (its individuals) and the business, make aggregate move to implement the terms of aggregate bargaining, raise new requests for the benefit of its individuals, and help settle their grievances. An exchange union may be an organization union that speaks to interests of just a single organization and might not have any association with different unions.

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Benefits to employees and implications for employers: Employees are relied upon to get the terms and states of their work setting out when their work begins, what their primary obligations are, their identity responsible to, rates of pay, and different qualifications. Rise to Circumstances enactment sets out that all representatives ought to get a similar pay and conditions for doing the same or comprehensively comparable work. There are likewise laws against sexual, racial and incapacity separation. Managers and representatives are relied upon to meet least legitimate necessities for such territories as Wellbeing and Security at Work, and least norms and conditions identified with hours, and the treatment of individuals in the work environment. Alongside rights for representatives there are relating obligations, for example, the desire to work safely and to have respect for the security of work partners.

Bosses and representatives have obligations to each other, they ought to likewise anticipate that their rights will be maintained. These rights and obligations identify with territories, for example, Wellbeing and Security, the arrangement of Terms and States of Business, Equivalent Open doors and the privilege to be paid a Lowest pay permitted by law. The Wellbeing and Security at Work Acts set out duties and rights for both representatives and managers. Representatives are required to complete their work in a way that has respect to the wellbeing of others. Businesses are relied upon to comply with a scope of necessities overseeing such perspectives as giving safe hardware and gear, doing standard wellbeing and security checks, guaranteeing the preparation of representatives in wellbeing and security issues, and doing a hazard appraisal to evaluate the risks of specific work exercises.

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Task 3 – Accounting workshopScenarioYour line manager wants to run a workshop to improve delegates accounting skills. You must provide the answers to the planned workshop activities so your line manager can check they are correct! Provide a profit and loss account for delegates to use.

a) Interpret the information on the profit and loss account

3.1 Interpretation of Profit & Loss accountProvide a Profit & Loss account sheet of a business. You may search online and give reference to the source. Discuss the following in context of the P/L account sheet.

This analysis has been done for Sainsbury UK.J Sainsbury Plc Full Year Update – 07 May 2015Sainsbury has been founded in 1869, by J Sainsbury Plc. Sainsbury, is a UK grocery retailer that operates more than 1,200 stores and employs 161,000 people in Britain. The group is divided between three divisions: Grocery Retailing (Sainsbury’s), Financial Services (Sainsbury’s Bank) and Property Investment (joint venture with British Land).

The group holds almost a 17% share of the UK grocery market and is often perceived by consumers to be an upmarket brand with a bias toward quality as opposed to value or price-driven retailing. The group also boasts of being the largest Fairtrade retailer in the world, the sixth largest retailer of children’s wear in the UK by volume, as well as the seventh largest purveyor of home ware and small ticket household goods.Today we provide an overview of the group’s 2014 results, financial position and the current industry backdrop; before outlining why we have raised our price target for the shares.J Sainsbury full year results overview

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J Sainsbury said goodbye to what has been a terrible year for all of the large UK supermarkets on Wednesday when it released preliminary results for the period. The announcement saw management detail what was a remarkably strong performance when compared against some of the numbers to have been reported by competitors, with the decline in group sales confined to the low single digits and the decline in underlying profits capped below 20%. In this regard, we note that the fact that there was a decline at all reflects the extent to which the group has cut prices to maintain competitiveness during the period.However, despite the many positives, in the face of diminishing margins at the industry level Sainsbury could not escape the need to revalue its property portfolio and to review its new store pipeline.As a result, it is write downs relating to property and store leases (£628 million) that were the predominant drivers behind a total of £752 million in impairment charges for the year, which were in turn responsible for the group having to report its first annual loss for 10 years (-£166 million). Once all is said and done, Sainsbury shareholders were left in the red by £166 million which equates to a per share loss of 8.7 pence for the period. Although this means that the dividend was not covered at all for 2014, we are encouraged by the fact that if it hadn’t been for the one off charges, Sainsbury would have reported basic EPS of 26.4 pence.This represents a much lesser decline than those we have seen elsewhere, with underlying profits at Tesco down by 75% and underlying profits at WM Morrison down by 50% for 2014 alone.

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J Sainsbury Plc Income Statement for year ending 14 March 2015Balance sheetIn relation to the balance sheet, total borrowings fell during the 2014 year at J Sainsbury albeit by a meagre £18 million. This leaves the debt/equity measure at 0.49 X and total gearing at 33%, both of which are well within the bounds of what can be considered as reasonable.The above headline metrics also leave Sainsbury with the strongest balance sheet out of the big four grocers who are listed here in the UK, although we should caution that these figures only take account of interest bearing borrowings. They do not reflect the true level of indebtedness as like Tesco, J Sainsbury also has large unfunded pension liabilities.Nevertheless, we continue to see the group as well funded and consequently, we offer no objections or cautionary statements in regards to its financial position.

Cash flowIn regards to cash flow, Sainsbury currently consumes roughly 30% more cash than it is able to generate from operations. While much of the outgoing cash relates to the purchase of property, plant and equipment; if such a situation were allowed to continue then the group could find itself eventually being forced to resort to ever increasing levels of debt finance in order to fund itself.Although we believe that the prospect of a cash crunch at Sainsbury is highly unlikely, we cannot say in this case that the group is ahead of the pack as WM Morrison actually leads the way in terms of its cash generation and cash management at present.

DividendSainsbury’s paid dividends totalling 13.2 pence for the 2014 year, which provides a yield of 5% at current prices, with cover of 2 X if we strip out the impact upon earnings of one off charges for the period.We are encouraged by management’s pledge to maintain dividend cover at 2 X during the coming years as we feel that given the uncertain outlook for earnings across the sector, this is the best way for the board to avoid shareholder disappointment and a consequent revolt.

However, we do caution investors against excessive optimism as it is certainly possible that earnings could fall further during the year ahead and this would constrain the ability of management’s to offer the same or a similar payout in May 2015.

ValuationFrom a valuation perspective, we believe that J Sainsbury is close to being fairly valued at present, although there remains some scope for further upside in 2015.This is as the group currently trades on a multiple of 12.5 X consensus estimates for EPS in 2015, which is by far the lowest and most reasonable forward price to earnings valuation out of all of the big four grocers who are listed in the UK.A brief look at consensus estimates and current prices across the remainder of the big four (UK listed) shows Tesco trading on a considerable 29.9X 2015 EPS and WM Morrison at 16.9X.Using this style of analysis one could be forgiven for thinking that the market is pricing in a recovery throughout much of the sector and that J Sainsbury is either undervalued, or yet to experience its fair share of turmoil; hence the lower vote of investor confidence. However, we disagree with this view as our belief is that current consensus estimates are overly bearish, in that they all appear to suggest the same level of contraction in EPS that was seen in 2014 will be recurring in 2015.

We do not think that this will be the case as there are already signs that growth among the discounters is beginning to slow, while the haemorrhaging of market share by the big four has also begun to lose traction.

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In addition to this, given that J Sainsbury and Tesco have both previously announced big write downs, we are also optimistic that impairment charges will have less of an impact on the bottom line for the year ahead.If we are write on these points then higher levels of EPS should automatically lead to a certain amount of multiple compression across the sector, although we still view Tesco and WM Morrison as overvalued and overdue are rating lower.In the case of Sainsbury, we think that upside surprise is equally likely when it comes to earnings for 2015, which should again lead to some form of valuation compression. Our base case assumption is for a lesser contraction in underlying earnings of 10% this year (23.0 pence EPS), which is significantly above the -19% consensus.If we are right on this point then management would be able to support a broadly similar dividend payment for 2015 which would be a big plus for investors, one that could then support a sustainable advance by the shares back to the 300.00 pence level.Our conclusion today in terms of the valuation is that relative to the sector, J Sainsbury remains the most attractive given its comparative stability in an environment where dividends are likely to be non-existent (Tesco), or just teetering on the verge of being cut or reduced significantly (WM Morrison).

The TakeawayLooking on the bright side for much of the industry, growth at the discounters is now beginning to slow according to recent reports by Kantar Worldpanel, although it still remains in the double digits. This could be an indication that the big four may be able to expect their respective market shares to stabilise over the next 12 -18 months or so.At the company level, we continue to see J Sainsbury as the best in class, with a more favourable outlook for earnings and the dividend. This is while the group is further supported by a low valuation relative to the sector, which could reduce further if we are right in our expectations for earnings in 2015.We go out on a limb today and project that the contraction in earnings for 2015 will be less than the consensus currently suggests, with our exact projection being for a decline of -10% VS the consensus of -19%.We also use this assumption and the resultant implication for EPS (23.0 pence) at the close of 2015 to inform a change to our price target of 260.00 pence for J Sainsbury.In short, we revise our price target higher today from 260.00 pence to 299.00 pence per share, which corresponds to an earnings multiple of 13 X our 23.0 pence projection for EPS in 2015, while also marrying closely with the 38.2% retracement off from lows set within the November 2013 – December 2014 trend.The next major scheduled event for J Sainsbury shareholders will be the release of the Q1 Trading Statement on 10 June 2015.Reference:http://www.stockatonia.co.uk/j-sainsbury-plc-full-year-update-07-may-2015/

Income and expenditure:Income and expenditure is a record showing debits and credits for an organization within a particular time period.

Budgets:Budget is an estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.

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Profit and loss:Profit and loss is the information’s that a business summarizes, its revenue, costs and expenses. Profit and loss statements that summarizes the revenues, costs and expenses are created for a specific period of time, usually a fiscal quarter or year.

Cash flow:Cash flow represent the, incomings and outgoings of cash, representing the operating activities of an organization.

Business ratios: Business ratios, is a financial analysis comparison in which certain financial statement items are divided by one another to reveal their logical interrelationships.

Working capital:Working capital is the cash available for daily operations of an organization.

Acid test:Acid-test in an organisation is an indicator of whether a company, has sufficient short-term assets to cover its immediate liabilities.

Quick ratio: Quick ratio is showing the short-term liquidity if a company. Also, quick ratio calculates, a company’s ability to meet its short-term obligations with its most liquid assets.

Return on investment:Return on Investment (ROI) is the benefit to an investor, resulting from an investment of some resource.

Return on capital:Return on capital (ROC), or return on invested capital (ROIC), is a ratio used in finance, valuation and accounting, measuring the profitability of a firm expressed as a percentage of funds acquired from investors and lenders.Gross margin:Gross margin is the difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage.

Net profit margin:Net profit margin is the percentage of revenue left after all expenses have been deducted from sales. The measurement reveals the amount of profit that a business can extract from its total sales.

Breakeven:

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In economics and business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal. A profit or a loss has not been made, although opportunity costs have been paid and capital has received the risk-adjusted, expected return.

Stock turnover:Stock turnover is a ratio showing statements, of how many times a company's inventory is sold and replaced over a period of time.

Task 4 – Teams

Working in business often involves working in a team. For some people, it may also mean managing and leading teams. It is important that delegates understand the theories of teams, motivation and leadership. To help delegates you must:

carry out an analysis to determine your own and others’ roles within a team. Write up the results of your work

produce detailed notes which can be used to support future training events which:

o describe the stages of team development o assess three motivation theories o describe different types of leadership style

4.2 Mine and others’ roles within a teamBriefly describe the type of team you have worked in and what the team goals were. In my preview job I've been working in a clothing shop and my role in the team, was shop assistant, along with my colleagues. My role in the team was to assist customers and make sure their shopping experience is enjoyable so they come back. Together me and my colleagues goal was to process orders and create repeat sales for the business.

Belbin team rolesShaper:Shaper generally make good managers because they generate action and thrive underpressure. They are excellent at sparking life into a team and are very useful in groupswhere political complications are apt to slow things down; SHs are inclined to riseabove problems of this kind and forge ahead regardless.

Completer/finisher:Completer finishers, are not assertive members of the team, but they maintain a permanent sense of urgency, which they communicate to others to galvanise them into activity.

Team worker:

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Team worker is defined as a tendency to behave, contribute and interrelate with others in a particular way" and named nine such team roles that underlie team success.

Plant:Plant Solves difficult problems with original and creative ideas. Can be poor communicator and may ignore the details.

Monitor/evaluator:Monitor/Evaluator think carefully and accurately about things. May lack energy or ability to inspire others.

Implementer:Well-organized and predictable. Takes basic ideas and makes them work in practice. Can be slow.

Specialist:Has expert knowledge/skills in key areas and will solve many problems here. Can be disinterested in all other areas.Co-ordinator:Respected leader who helps everyone focus on their task. Can be seen as excessively controlling.

Resource investigator: Explores new ideas and possibilities with energy and with others. Good networker. Can be too optimistic and lose energy after the initial flush.

4.1 Stages of team development

Tuckman’s ModelBriefly describe the model.Bruce Tuckman model of team work has been proposed first time in 1965. His theory uses four steps of group development, which they are: Forming–storming–norming–performing, who said that these phases are all necessary and inevitable in order for the team to grow, face up to challenges, tackle problems, find solutions, plan work, and deliver results.

Forming:The team meets and learns about the opportunities and challenges, and then agrees on goals and begins to tackle the tasks.

Norming:This process, tends to be a move towards harmonious working practices with teams agreeing on the rules and values by which they operate.

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In the ideal situation teams begin to trust themselves during this phase as they accept the vital contribution of each member to the team. Team leaders can take a step back from the team at this stage as individual members take greater responsibility.

Storming:Storming often starts where there is a conflict between team members natural working styles. People may work in different ways for all sorts of reasons but, if differing working styles cause unforeseen problems, they may become frustrated.

Performing:

Resolved disagreements and personality clashes result in greater intimacy and a spirit of co-operation emerges. This happens when the team is aware of competition and they share a common goal. In this stage, all team members take the responsibility and have the ambition to work for the success of the team's goals. They start tolerating the whims and fancies of the other team members. They accept others as they are and make an effort to move on to the next step which is performing.

4.3 Assessment of three motivation theoriesWrite few lines about motivation and its impact on an employee’s work output. Select any three of the following theories and delete the remaining heading under this task 4.3. Keep in mind that you have to describe or explain these theories briefly but mainly you have to assess them individually. Assessment is to write about how good or useful they are or if they have any limitations. Employee motivation is the level of energy, commitment, and creativity that a company's workers bring to their jobs. Whether the economy is growing or shrinking, finding ways to motivate employees is always a management concern. In the past, professors has developed different kind of motivational theories, some of them which are still used these days by companies and some of them which managers find them unsuitable for development of the business. In this assignment i choose three types of motivational theories with their explanation.

Maslow’s theory of motivation

Herzberg’s two factors theoryHerzberg is know for his 'hygiene' and motivational factors theory, he was essentially concerned with people's well-being at work. Very often organisations fail to understand their employees needs and as a result that business is destined to fail. Based on his theory, people are only truly motivated by enabling them to reach for and satisfy the factors that Herzberg identified as real motivators, such as achievement, advancement, development, etc., which represent a far deeper level of meaning and fulfilment.Examples of Herzberg's 'hygiene' needs (or maintenance factors) in the workplace are:policyrelationship with supervisorwork conditionssalarycompany car

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statussecurityrelationship with subordinatespersonal lifeHerzberg's research identified that true motivators were other completely different factors, notably:

achievementrecognitionwork itselfresponsibilityadvancementHerzberg concluded that money are not primary motivation for employee’s and satisfaction of the job is more important than having a good salary, but less pleasant environment and work conditions.

McGregor’s theory X & theory Y

Taylor’s model of motivation

In 1911, engineer Frederick Taylor published one of the first motivational theories. According to Taylor´s motivation theory, people are motivated, purely by money. On the beginning of cars assembly industry, work on a production line was based on producing quantity and was repetitive tasks. Employees, where paid for every piece they were produced, driving good results for the business. The business had great production but didn't offer any opportunity, encouragement or time for employees to think for themselves or be creative in what they did.While Taylor's methods produced higher productivity, they also produced worker unrest, as workers felt they had been turned into automatons. Doing a repetitive task all day, led to boredom and worker dissatisfaction, and his methods also allowed companies to lay off workers and increase joblessness. Method of Frederick is still used in some industries, especially in clothes factories.

Mayo’s Theory of motivationElton Mayo (1880 – 1949) motivation theory is based on the fact that, workers concerned not only by money but also motivated by having their social needs met whilst at work. His work illustrated that, if the company or managers took an interest in employees and cared for them, it had a positive effect on their motivation. When managers took a greater interest in employees they felt more valued and empowered. His work also showed that employees often work best in teams. He also showed that they were more motivated if they were managed and consulted more.Experiment of Mayo is based on group of people working in different conditions and measuring their productivity. He expected to see productivity levels decline on the group of people with harder conditions of working, then the group of people working on better conditions.After this experiment Mayo discovered that productivity of the two group of people where the same. His conclusion was that, people actually work better in an harmony collective or group with managers involving in their working lives.

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4.4 Leadership stylesWrite few lines about leadership and why it is important in business. Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. The following points justify the importance of leadership in a concern.

Initiates action- Leader is a person who starts the work by communicating the policies and plans to the subordinates from where work, actually starts.Motivation- A leader proves to be playing an incentive role in the concern’s working. He motivates the employees with economic and non-economic rewards and thereby gets the work from subordinates.Providing guidance- A leader is not only supervising, but also play a guiding role for the subordinates. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently.Creating confidence- Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve the goals effectively. It is also important to hear the employees with regards to their complaints and problems.Building morale- Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning their trust. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals.Builds work environment- Management is getting things done from people. An efficient work environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a leader. He should have personal contacts with employees and should listen to their problems and solve them. He should treat employees on humanitarian terms.Co-ordination- Co-ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can be achieved through proper and effective co-ordination which should be primary motive of a leader.

Authoritarian style:An authoritarian leader dictates policies and procedures, decide what goals need to be achieved and his word is final and employees are not expected to question the direction they have been given.

Democratic Style:Leaders who use democratic style, encourage group discussion and believe in decision-making through consensus. After all leaders have the final decision only after considering what other group members have said.

Laissez-faire Style: Laissez-faire style is known as delegate leadership, is a type of leadership style in which leaders try to give the least guidance to subordinate’s and allow a group of members to

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make the decisions. Researchers have found that this type of leadership leads to the lowest productivity among group members.

Transactional: Style of leadership that is based on the setting of clear objectives and goals for the followers as well as the use of either punishments or rewards in order to encourage compliance with these goals.

Transformational: Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders. Enacted in its authentic form, transformational leadership enhances the motivation, morale and performance of followers through a variety of mechanisms.

Task 5 – customer serviceCustomer service is a process to supply their customer's wants and needs, such as performing a transaction for the customers, making sale or returning an item. Customer service Customer service adds value to a company and builds good relationship. Customer service can take the form of an in-person interaction, a phone call, self-service systems, or by other means.Some characteristics of good customer service include:PromptnessPolitenessProfessionalismPersonalisation

PowerPoint presentation submitted.

Referenceshttp://www.yourdictionary.com/business-environmenthttp://www.infoentrepreneurs.org/en/guides/budgeting-and-business-planning/http://www.investopedia.com/terms/b/businessincome.asphttp://financial-dictionary.thefreedictionary.com/cash+flowhttps://en.wikipedia.org/wiki/Salaryhttps://en.wikipedia.org/wiki/Expense_managementhttp://www.money-zine.com/financial-planning/tax-shelter/keeping-tax-records/http://study.com/academy/lesson/what-is-cash-flow-definition-calculation-example.htmlhttp://hrcouncil.ca/hr-toolkit/right-people-recruitment.cfmhttps://www.thebalance.com/a-promotion-rewards-an-employee-for-work-contributions-1918231

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http://www.allencomm.com/resource/what-is-employee-training-development/https://en.wikipedia.org/wiki/Compensation_and_benefitshttp://searchcompliance.techtarget.com/definition/regulatory-compliancehttp://www.managementstudyguide.com/business-policy.htmhttps://www.cipd.co.uk/knowledge/fundamentals/emp-law/discipline/factsheethttps://en.wikipedia.org/wiki/Compensation_and_benefitshttp://www.wfconnections.org/what_is_workforce_developmenthttp://www.businessdictionary.com/definition/performance-measure.htmlhttp://smallbusiness.chron.com/six-main-functions-human-resource-department-60693.htmlhttp://financial-dictionary.thefreedictionary.com/hours+of+workhttps://en.wikipedia.org/wiki/Holidayhttps://worksmart.org.uk/work-rights/pay-and-contracts/hours-work/what-definition-rest-break-workhttp://www.businessdictionary.com/definition/shift-work.htmlhttps://en.wikipedia.org/wiki/Minimum_wagehttps://www.nidirect.gov.uk/articles/sick-pay-rightshttp://www.acas.org.uk/?articleid=1611http://www.businessdictionary.com/definition/trade-union.htmlhttp://www.businessdictionary.com/definition/employee-benefits.htmlhttp://www.businessdictionary.com/definition/trade-union.htmlhttp://www.businessballs.com/herzberg.htmhttp://businesscasestudies.co.uk/tesco/motivational-theory-in-practice-at-tesco/taylors-motivational-theory.htmlhttps://www.tutor2u.net/business/reference/motivation-mayo-human-relations-schoolhttp://www.businessdictionary.com/definition/authoritarian-leadership.htmlhttp://www.businessdictionary.com/definition/democratic-leadership.htmlhttp://www.businessdictionary.com/definition/laissez-faire-leadership.htmlhttps://en.wikipedia.org/wiki/Transactional_leadershiphttps://www.reference.com/business-finance/income-expenditure-account-f4ec7d5a42239c48#http://www.businessdictionary.com/definition/budget.htmlhttp://www.investopedia.com/terms/p/plstatement.asphttp://www.businessdictionary.com/definition/cash-flow.htmlhttp://www.businessdicionary.com/definition/financial-ratios.htmlhttp://www.businessdictionary.com/definition/working-capital.htmlhttp://www.investopedia.com/terms/a/acidtest.asp#ixzz4kUU90bOWhttp://www.investopedia.com/terms/q/quickratio.asp#ixzz4kUW41pg8http://www.investopedia.com/terms/r/returnoninvestment.asp#ixzz4kUYsFFg1https://en.wikipedia.org/wiki/Return_on_capitalhttps://en.wikipedia.org/wiki/Gross_marginhttp://www.businessdictionary.com/definition/net-income-margin.htmlhttp://www.businessdictionary.com/definition/breakeven.htmlhttp://www.investopedia.com/terms/i/inventoryturnover.asp#ixzz4kUdKBVTIhttp://www.businessdictionary.com/definition/Belbin-team-roles.htmlhttp://www.stockatonia.co.uk/j-sainsbury-plc-full-year-update-07-may-2015/

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Guidelines for assessors

The assignments submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. The suggested evidence listed below is how learners can demonstrate that they have met the required standards.

Tasknumber

LOs and AC Suggested evidence PASS

Suggested additional evidence MERIT

Suggested additional evidence DISTINCTION

1. LO1AC 1.1, 1.2,1.3

The learner must name a country and provide a comprehensive description of the diverse types of organisations found within that country. Examples of both public and private sectors should be provided and a range of business sectors should be included. Organisational structures need to be explained in detail with examples and reasons for the differences of structure. A minimum of three organisational structures should be exemplified. Using a named business the learner provides a detailed description of the impact of the economic environment on that business. This will include the local economy, the national economy and the global economy, showing how they are related. For each the learner will describe the impact on the named business.

The learner provides a detailed explanation of why business objectives differ between different organisations. Appropriate examples of public and private sector organisation objectives must be provided to illustrate the answer and demonstrate understanding.

Using the named country, the learner will provide an analysis of the national and global environment considering the separate parts and directly relating the information to the impact on businesses within that country. Statistics will be used to illustrate the answer and demonstrate depth of understanding

2. LO2, LO5AC 2.1, 5.1, 5.2

The explanation of the importance of accounting should be comprehensive, relating the importance of planning, budgeting and monitoring costs to business success. The description of the HR functions

The learners’ explanation of the benefits of employment legislation must show detailed knowledge and

The learner must name a country and analyse the impact of employment legislation within that country. The analysis must

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should be extensive covering the diverse activities. The key features of employment legislation should provide an outline of a minimum of 2 key features for each of 4 pieces of employment legislation. The features identified must be from the most current legislation.

understanding. A balanced approach must be evident and benefits to both employees and businesses must be included.

show evidence of research and understanding. Statistics will be used to exemplify the impact.

3 LO3AC 3.1

All headings on the profit and loss account will be defined. Key information will include turnover/sales and cost of sales, operating profit, gross profit and gross profit margin. The learner will use this information to provide level of profitability, whether the organisation is carrying forward a deficit or a surplus and areas of concern.

Using the same accounts, learners will use the profitability ratios (Return on capital employed, Gross profit:sales ratio, net profit:sales ratio); working capital, current ratio and quick ratio to interpret the balance sheet. Their analysis will show an understanding of the purpose of each ratio. They will indicate whether the company will be able to meet current obligations, the relationship of current assets to liabilities and the liquidity of the company.

Using a second set of accounting information including budgets, profit and loss accounts and cash flow predictions, the learner will analyse business performance. This analysis must demonstrate an understanding of each financial statement and its implications for the financial viability of the organisation.

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4 LO4AC 4.1,4.2,4.3, 4.4

The learner must provide a comprehensive description of the stages of team development, providing evidence of understanding of relevant theories. A minimum of three motivational theories will be assessed. These may contrast with or support each other. The learner should be able to compare theories as part of their assessment. The description of leadership styles should include a minimum of three styles and must be supported by theories.

Learners need to explain the appropriate use of different leadership and motivational styles. Examples should be provided indicating when different styles can work well. Their understanding of the inappropriate use of a style on employees should be evident

In the evaluation of how motivational theories are used in business the learner will draw on examples from own experience or case study materials to show depth of understanding. The evaluation of the impact of leadership styles on employees will be balanced including both positive and negative examples. The learner will consider the information from different perspectives and make a reasoned judgements.

5 LO66.1, 6.2

The learner will provide a full explanation of the impacts of customer service on business and include the impacts of good and poor service on customers, staff and the organisation. The benefits of profiling will be explained using examples of benefits to the organisation and the consumer.

The analysis of the impact of customer service on business will build on the requirements of the pass criteria. In addition learner will need to demonstrate research and evidence that supports their information about impacts of customer service on business success. This may

Learners will draw on their own experience or case study material to provide examples of how technology is used to profile customers and deliver targeted service.

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include statistics and details of increased turnover, customer satisfaction levels, or profits.

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