Training

Test yourself

The Importance of Training a Workforce

Training staff is very important for a business. It can have many positive effects:

Increased productivity

Training a workforce means that they are likely to become more skilled at what they do.
In factories or services industries, if staff are more productive, this will be beneficial for the company by increasing output or reducing costs.
- Investment Banks like Goldman Sachs start their graduate schemes with training programmes where employees learn about different investment products and the industry.

Ability to deal with change in technology

Training is needed for employees to know how to use new technology. In the digital world we live in this is more important than ever.

Increased motivation

If staff feel that they are learning and progressing in a firm, then they are likely to be happier and more motivated.

High quality output

Training staff usually makes them more skilled at the job they do. This will lead to higher quality output and this is usually beneficial for the firm’s profitability.

Staff retention

If employees are happier and more motivated then they are likely to stay at a firm for a longer period of time.
Reduces the costs involved with recruiting and training new employees.
- Staff tend to get better at their job with more experience within the same business.

Methods of Training

A business' workforce can be trained in 3 main ways:

Induction training

Induction training happens when employees first arrive at a firm. It introduces them to the firm and provides initial training for their role. Benefits include:
- Employees feel comfortable in their surroundings and meet their new co-workers (colleagues), which may increase happiness, confidence, motivation and productivity.
- Induction training is likely to make employees less likely to make basic mistakes.

On-the-job training

This is the most common type of training. The employee learns how to do the job to a high standard while actually doing the job.
This usually involves an employee being shown how to do something and then practicing and improving over time.
- On-the-job training is low cost.
- It is best suited to jobs involving practical skills.
The main drawback is that the teaching is done by other employees, so bad habits could be passed on from others.

Off-the-job training

Off-the-job training happens away from the workplace, allowing employees to be taught a wider range of skills. They get to learn skills that aren’t just related to one specific task.
- For example, it is common for managers to get training on leadership (what makes a good leader).
Off-the-job training is often taught by specialist instructors and this means that it may be higher quality training. But, this can make it more expensive than on-the-job training.

1Business Activity & Influences on Business

1.1Business Objectives

1.1.1Business Aims

1.1.2Business Objectives

1.1.3Business Objectives Change Over Time

1.1.4End of Topic Test - Business Aims

1.1.5Diagnostic Misconceptions - Profit

1.2Types of Organisations

1.2.1Sole Traders & Partnerships

1.2.2Limited Companies

1.2.3Limited Liability

1.2.4Unlimited vs Limited Liability

1.2.5Not For Profit & Franchises

1.2.6Multinational Companies

1.2.7End of Topic Test - Business Ownership

1.2.8Application Questions - Business Ownership

1.2.9Diagnostic Misconceptions - Company vs Business

1.2.10Diagnostic Misconceptions - Owners vs Shareholders

1.3Classification of Businesses

1.3.1Sectors

1.4Decisions on Location

1.4.1Location

1.5Business & the International Economy

1.5.1Globalisation

1.5.2Exchange Rates

1.6Government Objectives & Policy

1.6.1Government Objectives

1.6.2The Government & Business Activity

1.6.3Interest Rates

1.6.4Interest Rates - Calculations

1.6.5Diagnostic Misconceptions - Recessions

1.7External Factors

1.7.1External Factors

1.8What Makes a Business Successful?

1.8.1Measuring Success

1.8.2Reasons for Failure

2People in Business

2.1Internal & External Communication

2.1.1Communication

2.2Recruitment & Selection Process

2.2.1Types of Employment

2.2.2Recruitment Stages

2.2.3Effective Recruitment

2.2.4Legal Controls Over Employment

2.2.5Diagnostic Misconceptions - Internal Recruitment

2.3Training

2.3.1Training

2.4Motivation & Rewards

2.4.1Motivation in the Workplace

2.4.2Financial & Non-Financial Methods

2.4.3End of Topic Test - The Workforce

2.4.4Application Questions - The Workforce

2.4.5Diagnostic Misconceptions - Money

2.5Organisation Structures

2.5.1Organisational Structures

2.5.2Centralised vs. Decentralised Structures

2.5.3Tall & Flat Organisations

2.5.4Functional Areas Within a Business

2.5.5End of Topic Test - Org Structure

3Business Finance

3.1Sources of Finance

3.1.1Internal & External Sources of Finance

3.1.2Factors Affecting Sources of Finance

3.2Cash Flow Forecasting

3.2.1Cash Flow

3.2.2Consequences of Cash Flow Problems

3.2.3Cash Flow - Calculations

3.2.4Solutions to Cash Flow Problems

3.2.5Diagnostic Misconceptions - Cash Flow

3.3Cost & Break-Even Analysis

3.3.1Costs, Revenue & Profit

3.3.2Profit, Average Unit Cost & Interest

3.3.3Costs - Calculations

3.3.4Revenue - Calculations

3.3.5Break-Even Analysis

3.3.6Profit & Losses - Calculations

3.3.7End of Topic Test - Finance

3.3.8Grade 9 - Finance

3.3.9Diagnostic Misconceptions - Fixed Costs

3.3.10Diagnostic Misconceptions - Break-even

3.4Financial Documents

3.4.1Financial Statements

3.4.2Income Statement

3.4.3Understanding Business Performance

3.5Account Analysis

3.5.1Business Calculations

3.5.2Gross Profit - Calculations

3.5.3Net Profit - Calculations

3.5.4Business Calculations 2

3.5.5Business Calculations 3

3.5.6Liquidity

4Marketing

4.1Market Research

4.1.1Market Research

4.1.2Forms of Market Research

4.2The Market

4.2.1Customer Needs

4.2.2Satisfying Customer Needs

4.2.3Market

4.2.4The Competitive Environment

4.2.5Market Segmentation

4.2.6Market Mapping - Price vs Quality

4.2.7End of Topic Test - Marketing

4.2.8Application Questions - Marketing

4.2.9Diagnostic Misconceptions - Competition

4.3The Marketing Mix

5Business Operations

5.1Economies & Diseconomies of Scale

5.1.1Economies of Scale

5.1.2Diagnostic Misconceptions - Economies of Scale

5.2Production

5.2.1Production Processes

5.2.2Flow and Batch Production

5.2.3Production Efficiency

5.2.4Technology & Production

5.2.5Diagnostic Misconceptions - JIT vs JIC

5.3Factors of Production

5.3.1Factors of Production

5.4Quality

5.4.1Importance of Quality

5.4.2Identifying Quality

5.4.3Total Quality Management

5.4.4End of Topic Test - Operational Decisions

Jump to other topics