Internal Influences on Business Operations

Internal Influences on Business Operations

NCFE Level 1/2 Award Business and Enterprise

Multiple Choice

Influences that come from within the business are in the

• macro environment

• external environment

• operating environment

• internal environment

Aims and Objectives

The aim of a business can change over time. This can happen in response to internal factors, such as business growth.

The main aims of any business are normally

Multiple Choice

A business aim...

• is where the business wants to go in the future, it’s goals. It is a statement of purpose
• stated, measurable targets of how to achieve business aims. They act as stepping stones in achieving an overall aim. They give clear targets about the business, so plans can be made to reach these targets.
• sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.

Multiple Choice

A business objectives are...

• is where the business wants to go in the future, it’s goals. It is a statement of purpose
• stated, measurable targets of how to achieve business aims. They act as stepping stones in achieving an overall aim. They give clear targets about the business, so plans can be made to reach these targets.
• sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.

Multiple Choice

Match the statement below to the correct aim:
"the business could be aiming to sell to new markets, possibly abroad or if it is a local business it might simply mean aiming to sell to consumers in the neighbouring town (e.g. restaurants)."

• Customer Satisfaction
• Expansion 
• Sales growth
• Ethical and socially responsible objectives

Multiple Choice

Match the statement below to the correct aim:
"a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis."

• Survival 
• Profit maximisation
• Sales growth
• Ethical and socially responsible objectives

Multiple Choice

Survival, Profit maximisation, Sales growth, Expansion, and Customer Satisfaction are all examples of...

• business aims.
• business objectives.
• values from a company mission statement.

Financial Position

Why does the financial position of the business effect customer service?

•May not be able to invest in staff training

•May have low number of staff

•Slow staff response to communications

•Low wages effecting morale

•Lack of focus on customer service

•Small businesses may not see it as a priority

Staffing

MOTIVATION is the reason for doing something, motivating workers is not always as straightforward as it sounds, as workers are motivated by different things!

This has lead to a number of "theorists" producing investigations into what keeps workers motivated. The main ones being:

* Elton Mayo

* Maslow

* Herzberg

Multiple Choice

Pioneer of Human Relation is

• Mary Parkett

• Lillian Gilberth

• Henry Fayol

• Elton Mayo

Multiple Choice

Mayo concluded: Employees respond to changes in the working environment, A sense of recognition and consultation is important to employees and The workplace is a social system. Employees like to work in groups.

• False

• True

• I don't know

Multiple Choice

A conclusion that Mayo made

• Employees do respond to changes in the working environment

• A sense of recognition and consultation is important to employees

• Communication with managers does not affect productivity

Multiple Choice

Which is not one of Maslow's hierarchy of needs

• Physiological

• Safety

• Motivation

• Social

Multiple Choice

What would a business need to do to meet physiological needs (Maslow)

• Pay a fair wage and allow appropriate breaks

• Humans need self esteem

• Allow social interaction with others

Multiple Choice

Which theorist stated that 'humans have a need for friendship and positive relationships with others?

• Peters

• Drucker

• McClelland

• Maslow

Multiple Choice

What is the 'hygiene' in Herzberg's 2 factor theory

• Demotivates the employee if the workplace is clean and tidy

• Demotivates the employee if the workplace is unsafe or unattractive to work in.

• Motivates the employee if the workplace is clean

• Demotivates the employee if they have to work long hours

Operational Issues

Operational issues cover the day to day running of the business, This includes:

•Disorganized or inaccurate record keeping

•Interruptions to your supply chain

•Outdated or faulty IT systems

If a business does not monitor these, Customer might see the Business as unreliable and take their business elsewhere

Open Ended

Examination Question One

Outline the theory of motivation as described by Mayo in his Humans Relations Theory (2)

Open Ended

Examination Question Two

SYM Woodcrafts Ltd new Production Director is keen to improve the motivation of the 250 skilled workers in its factory. She had noted

In the factory

* Machines are now old and break down regularly

* There has been an increase in accidents in the last 2 years

* Managers make the decisions without consulting the skilled workers

The Skilled Workers

* Are paid salaries higher than those in similar businesses

* Perform the same tasks every day

* Do not have their achievements recognised by the business

Recommend TWO changes the production Director can make to improve worker motivation. Use Herzbergs Two factor Theory (Motivators and Hygiene facts to support your suggestions (9)