ADVANCED GENERATIONS SCHOOLS

Business Studies Revision pack

Name:

Grade: 7

2016 - 2017

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GRADE 7 BUSINESS STUDIES REVIEW PACK

Read the following steps to help you in preparing for the exams:

Step 1 – You work out how you learnStep 2 – You work out what study/revision strategies work best for you, thinking about how you learn.Step 3 – You work out how to practise using this knowledge you have gained through studying/revising to be successful in meeting your target grade or even exceeding it.Step 4 – You know how to prepare for an examination and have a good examination technique which will help you get the grade you deserve.Step 5 – You will complete a revision action plan to get you on the road to success!

Before doing the revision, review all the topics. Use the Study material and Exams skills in your exercise book. Complete this activity on your own. This way you will see which sections you need to

revise again.

Revision Planner:Topic Time Needed Completed/help

required

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Revision Can Be Fun! – Just Give It a Try!

Topics to review for the End of term Exams:

1. Motivating workers. 2. Organizational Structure. 3. Leadership Styles 4. Internal and External communication

After completing this topic, students must know:

Motivation meaning Benefits of well-motivated workforce Methods of motivation Piece rate Vs. Hourly wage rate Job rotation Vs. Job enrichment

Motivation 

The factors that influence the behavior of workers towards achieving set business goals. 

Benefits of a well-motivated workforce

It is vital for a company to motivate its workers because:

1. The workers will work harder and be more efficient.2. They will be less likely to take time off work unnecessarily. If workers stay away

without good cause it is known as absenteeism.3. They will be less likely to be late.4. They will be more likely to stay with the company for longer.

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Methods of motivation

Managers can motivate workers in several ways. This can be divided into financial Rewards and non-financial Rewards.

1. Methods of financial Rewards

Hourly wage rate   : An hourly wage rate means that workers are paid a fixed amount per hour worked.

Salary: With a salary workers are paid a fixed amount per year which is usually paid monthly.

Piece-rate : Piece rate means that pay is based on the number of units of output workers produce.

Commission: With commission, pay is based on the value of sales made by stuff.

Bonus scheme:  A bonus scheme is a method of performance-related pay workers receive an additional payment for achieving a Target set by managers.

2. Methods of non-financial Rewards

Job rotation - instead of doing the same task workers switch from one job to another. This makes the work more interesting and helps prevent boredom.

Job enlargement - workers are given a greater variety of similar level task to do.

Job enrichment - work is organized so that workers are able to use more of their skills and abilities.

Activity 1: Revise the definition of Motivation and benefits of well-motivated workforce:

What is meant by motivation?2. List four benefits of having well motivated workforce.

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Activity 2: Revise the different methods of motivation:

3. What is the difference between piece rate and time rate paying systems?4. What is meant by job rotation?5. What is meant by job enrichment

After completing this topic, students must know:

The definition of organizational structure Main features of organizational structure The role of management Functions of management

What is organizational structure?Organizational structure refers to the levels of management and division of responsibilities within an organization, this structure is often presented in the form of an organizational chart.

The main features of how organizational structures are:

Hierarchy

This describes the different levels in an organization structure.

Chain of command 5

As a business grows at-will employee more and more workers it will not be possible for the person at the top to have effective control of all workers.The term chain of command describes the route through which authority is passed down to managers from the top.

Delegation When authority is passed down the chain of command this is known as delegation.

Span of control

Each manager or supervisor is in charge of a number of employees or subordinates the number of subordinate reporting to each supervisor or manager is called the span of control.

The role of management

In most organizations managers are responsible for:

1. Setting up objectives

2. Motivating workers

3. Making sure workers have the resources they need to complete their task.

Functions of management: All managers perform five functions

1. Planning

Planning is about looking at where the business is now and where it wants to be in the future.

2. Organizing

This function of management is about preparing and organizing the resources needed to achieve the planned goals and objectives.

3. Commanding

This function involves the control and supervision of subordinates.6

4. Coordinating

Coordinating is making sure that all of the different parts of the business are working together towards achieving the business goals and corporate objectives.

5. Controlling

This final function of management involves checking to make sure that the plan is working.

Activity 1: Revise the definition of Organizational structure and the main features of organizational structure:

1. List the five functions of management and explain three of them.Activity 2: Revise the role of management and function of management:

2. Study the following chart then answer the below questions:

a. Define delegation.

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Managing director

Finance director

3 departmental

managers

10 assistants

Marketing director

4 departmental

managers

20 assistants

Operations Director

10 supermarket

managers

1000 assistants

Human resources manager

3 departmental

managers

5 assistants

b. Define span of control.

c. What is the span of control of the marketing director?

After completing this topic, students must know:

Difference between different types of leadership Matching leadership style to different situations

The three main styles of leadership are shown below

Autocratic leadership stylean autocratic leader will make all of the decisions without any discussions with others. They decide the objectives and how these will be achieved.

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Democratic Leadership Stylethe opposite of an autocratic leader is the Democratic leader. This type of leader will discuss with workers before taking any decision.

Laissez-faire leadership stylelaissez-faire means let them do it. It is a style of leadership which allows workers to make decisions and Carry Out tasks with very little or no input from the leader.

ACTIVITY 1:

Discuss which of the three leadership styles might be the most appropriate in each of the following circumstances justify your choice.

a. A business that designs and creates media advertisementb. A business facing a potential deadline of an important projectc. A toy manufacturing factor where workers are highly skilledd. The research and development department of a games software

design company

Fill in the blanks

Autocratic leadership is where the ____________ expects to be in charge of the business and have their ___________ followed. They keep themselves separate from the rest of the employees. They make all the _____________ and keep information to themselves. They tell the employees only what they need to know. Employees do not have a say on the _________ of the business. Laissez-faire leadership is a __________ word meaning ‘Leave them to do it by themselves’. This type of leadership informs the employees the

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Manager slow French orders organize decisions

Running equal aims independence involved

general _________ of the business, and then the employees are left to make their own decisions and ___________ their own work. The employees have a lot of _______________. Democratic leadership will get all employees _______________ in the decision making. All employees will have a/an __________ say in the running of the business. A decision will be made on what the majority of employees want. However, this type of leadership can be ________, because it takes time to go around and speak to all employees.

ACTIVITY 1.2: Fill in the blanks

Autocratic leadership is where the ____________ expects to be in charge of the business and have their ___________ followed. They keep themselves separate from the rest of the employees. They make all the _____________ and keep information to themselves. They tell the employees only what they need to know. Employees do not have a say on the _________ of the business.

Laissez-faire leadership is a __________ word meaning ‘Leave them to do it by themselves’. This type of leadership informs the employees the general _________ of the business, and then the employees are left to make their own decisions and ___________ their own work. The employees have a lot of _______________.

Democratic leadership will get all employees _______________ in the decision making. All employees will have a/an __________ say in the running of the business. A decision will be made on what the majority of employees want. However, this type of leadership can be ________, because it takes time to go around and speak to all employees.

Internal and External communicationAfter completing this topic, students must know:

One way Communication VS. Two way communication

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Manager slow French orders organize decisions

Running equal aims independence involved

Internal communication Vs. External communication (with examples on each) Examples on Verbal, written and visual communication methods Examples on barriers of communication

One-way Communication

Message is sent from sender to the receiver. Receiver has no chance to provide any feedback.

Two-way Communication

Message is sent from sender to the receiver. Receiver provides response / feedback.

Effective communication involves four features

1. Sender 2. Message 3. Receiver 4. Feedback

Internal Communication

Communication within the organization

External Communication

Communication to another organization or individual.

Types of communication:

1. Verbal or oral communication2. Written communication3. Visual communication

Verbal / Oral Communication

Advantages Disadvantages Quick Big Meetings Efficient Listening? Understood Immediate Feedback Written Feedback Reinforced Accurate / Permanent

Body Language Record Needed

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Face-to-face

Written Communication

Advantages Disadvantageso ‘Hard’ evidence o No Direct Feedback o Reduces Disagreements o Time Consuming o Essential Information o Understandability o Legality o Language o Safety o Too Long o Displayed o Confusing o Easy to Copy & Distribute o Non-interest

Visual Communication

Advantages Disadvantages Appealing No Feedback More Interesting No Checking if Message Understood Illustrations Interpretation Attractive Clear

Barriers of Effective Communication

Language too Difficult Unclear Message Speaks “too” Quickly Lost Message Wrong Channel No Feedback Received Break-Down of Medium Not Listening Not Paying Attention Sender not liked Sender not trusted

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ACTIVITY 1.1: Review one way and two way communication and internal and external communication:

1. What is the difference between one-way and two-ways communication?

2. What is the difference between internal and external communication? (Give one example for each)

3. State two example of the following:

a. Verbal communication: b. Written communication:c. Visual communication:

4. State three barriers of effective communication:

MARKETINGWhat is the meaning of “Market”?

A regular gathering of people for the purchase and sale of provisions, livestock, and other commodities.

Role of marketing.The identification and satisfying of customer needs(converting wants to needs!)

Niche Market: Very small segment of the market like selling wheelchairs for handicaps or Rolls –Royce motor cars.

Mass Market: Selling same product to whole market Example: flour, toothpaste etc.

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TYPES OF PRODUCTS SOLD BY THE BUSINESS

Consumer goods- Bought by people. (like food and cleaning materials )

Consumer services- Services for people.

Producer goods: Goods produced for other businesses.

Producer services- (Like accounting ,insurance and advertising agencies ) Services which help other businesses.

Activity 1.2: Review the topic roles of marketing, consumer goods and consumer services, producer goods and producers services:

1. Identify three roles of marketing.

2. Identify the difference between consumer goods and consumer services. (Give one example of each)

3.Identify the difference between producer goods and producer services.

4. Identify the difference between niche market and mass market. (Give one example of each)

Answer key

Chapter 61. What is meant by motivation?The factors that influence the behavior of workers towards achieving set business goals.2. List four benefits of having well motivated workforce.

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Lower absenteeism rate Higher labor productivity Better quality products Lower labor turnover

3. What is the difference between piece rate and time rate paying systems?Piece rate system is paying the worker a fixed amount of money per each output produced whileTime rate system is paying the worker a fixed amount of money per each hour worked.

4. What is meant by job rotation?Instead of doing the same task, workers switch from one job to another.

5. What is meant by job enrichment?Work is organized so that workers are able to use more of their skills and abilities.

Chapter 7

List the five functions of management and explain three of them.

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Planning: looking at where the business is now and where it wants to be in the future.

Organizing: preparing and organizing resources needed to achieve business goals.

Commanding: involves the control and supervision of workers Coordinating: making sure all departments are working together

toward achieving the business goal. Controlling: checking to make sure that the plan is working.

Study the following chart then answer the below questions:

Define delegation.When authority is passed down the chain of command

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Managing director

Finance director

3 departmental

managers

10 assistants

Marketing director

4 departmental

managers

20 assistants

Operations Director

10 supermarket

managers

1000 assistants

Human resources manager

3 departmental

managers

5 assistants

Define span of control.Number of subordinates reporting to each supervisor or manager

What is the span of control of the marketing director?

It is 4.

Chapter 8

1.Identify and explain the three leadership styles.

Autocratic leadership style: the leader take all the decisions and workers are given orders

Democratic leadership style: employees encouraged to become involved in decision-making

Laissez-faire leadership style: leaders take little control, leaving workers to control their own work

2.Discuss which of the three leadership styles might be the most appropriate in each of the following situations.

e. A business that designs and creates media advertisement Laissez-faire leadership

f. A business facing a potential deadline of an important project Autocratic leadership

g. A toy manufacturing factor where workers are highly skilled Democratic leadership

h. The research and development department of a games software design company Laissez-faire leadership

3. Manager- orders- decisions- aimsFrench- aims- running- independence

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Involved- equal- slow

Chapter 9

5.What is the difference between one-way and two-ways communication?

One-way communication: the receiver has no chance to replyTwo-way organization: the receiver has the chance to reply or confirm

6.What is the difference between internal and external communication? (Give one example for each)

Internal communication: communication occurs within the organization(Examples: A manger talking to workers, employee asking for extra day off)External communication: communication occurs with another organization or individual.(Examples: Orders sent to suppliers, asking customers to pay their bills)

7.State two example of the following:

d. Verbal communication: telephone call, face to face meeting, video conferencing

e. Written communication: email, letter, faxf. Visual communication: images, movies, graphs

8.State three barriers of effective communication:

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Message is too long Using long chain of command Break-down of the medium No feedback received Unclear message

Chapter 10

5.Identify three roles of marketing.

Identifying and satisfying customer needs and wants Maintaining customer loyalty Building customer relationships by gather information about customers

6.Identify the difference between consumer goods and consumer services. (Give one example of each)

Consumer goods are goods bought by people such as chocolate bar, shoesConsumer services are services for people such as education, hairdressing

7. Identify the difference between producer goods and producer services.

Producer goods are goods produced for other businesses such as bottle-filling machine, factory building.Producer services are services bought by other businesses such as insurance, office cleaning.

8.Identify the difference between niche market and mass market. (Give one example of each)

Niche market is identifying the needs of a small segment of the market such as wheelchairs, Rolls-Royce motor cars.

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Mass market is selling the same product to whole market such as flour, toothpaste.

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