Maximizing Business Success Through Strategic Objectives

1. UNIT 8 ICT SYSTEMS IN BUSINESS A STUDENT’S GUIDE You will be tested on this on a weekly basis.

2. BCS Keywords: The Business Environment • Aims and Objectives • (Students should understand the objectives of businesses.) • Survival • Expansion • Maximisation of Profits • Maximising Sales Revenue (Sales Turnover) • Maximise market share • Provide a good product or service • Apply these to sole traders, partnerships, limited companies

3. BCS Keywords: The Business Environment • Measuring Success of a Business • (Students should understand the criteria for judging the success of a business. Students should understand • who stakeholders are and the influence they have) • Making/increasing profits • Job creation • Expansion • Increased market share • Good Reputation (Ethical Practices) • Apply this knowledge to local,regional, national and multi-national organisations

4. BCS Keywords: The Business Environment • Stakeholders • (Students should understand who stakeholders are and the influence they have) • Customers • Owners • Managers • Employees • Suppliers • Apply this knowledge to organisations. What conflicts/tensions might exist?

5. BCS Keywords: Business Administration • How does administration support the main business functions? • The importance of accuracy in the preparation, storage and retrieval of information • Job roles • Routine and Non-routine tasks • Routine and Non-routine decision-making • Prioritising and Planning.

6. BCS Keywords:Work place Organisation • Different kinds of working environment (Open plan vs cellular offices) • Advantages and disadvantages of different office layouts • Impact of modern developments on working Practices e.g. Hotdesking, flexitime, video conferencing etc. • ergonomics • sustainability.

7. BCS Keywords: Health and Safety at Work • Health and Safety at work act • Display Screen Regulations • Be able to apply knowledge of these acts to the workplace. What reponsibilities does an employee and an employer have under the UK law?

8. BCS Keywords: ICT Data Systems • Primary vs secondary sources of data • Main input devices • Manual input (Keyboard, Optical Mouse, Controller, Scanner, Web cam etc) • Direct input devices (Magnetic stripe, MICR, OMR, OCR, Bar Code Reader)

9. BCS Keywords: ICT Data Systems • Main storage devices • CD ROM • DVD • Magnetic Tape • Floppy Disk • Hard Drive • USB Memory Stick

10. BCS Keywords: ICT Data Systems • Main output devices • TFT screen/ Monitor • Speakers • Printer • Plotter • Buzzer • Motor • LED

11. BCS Keywords: Security of Data • Responsibilities outlined under the Data Protection Act • Keeping Data safe • Virus protection • Firewalls • Passwords • Encryption • Screen savers • Levels of access

12. BCS Keywords: Recruitment and Selection • Main Methods of advertising for staff • Internal vs external recruitment • Advantages and disadvantages of different methods of recruitment including:- • Job Centres • Agencies • Notice Boards • Newspaper advertising • Trade Press • Internet

13. BCS Keywords: Recruitment and Selection • Understanding the recruitment process • Job analysis • Job Description • Person specification • Job advert and where to advertise – (see previous section) • Long Listing • Short Listing • Interview • CV vs Application form

14. BCS Keywords: Recruitment and Selection • Employment Contracts • What goes in an employment contract? (Main features) • Why have an employment contract? • Temporary vs Permanent

15. BCS Keywords: Employment Rights and Responsibilities • Equal opportunities legislation • Sex discrimination act • Race relations act • The Employment Equality Act (Age) Regulations 2006 • The Disability Discrimination Act

16. BCS Keywords: Rewarding Staff • Methods of remuneration and reward • Time rate • Piece rate • Salary • Bonuses • Commission • Fringe Benefits • Perks

17. BCS Keywords: Training • On the job training (In house/internal) • Off the job training (external) • Induction training (content) • Identify benefits to training individuals (to the business and the employee)

18. BCS Keywords: Internet and e-commerce • How does a business use the internet? • Source new products • Sell on-line (e-commerce) • Research new markets/products

19. BCS Keywords:The Purpose of Communication • Why is communication (Clarity/Accuracy) important in Business? • What are the benefits of effective communication? • Process of Communication • (Sender, Message, Channel of Comm., Medium, Receiver, Feedback) • Barriers to communication

20. BCS Keywords: The Importance of ICT in Business Communications • Why is one piece of software more appropriate than another? • Identify the features of software used and explain the uses of main types of software

21. Answers

22. BCS Keywords: The Business Environment • Aims and Objectives • (Students should understand the objectives of businesses.) • Survival (Many smaller businesses such as Sole Traders and Partnerships aim to survive. This means to keep the business going. Many small businesses fail within the first year.) • Expansion (Some businesses may aim to expand. This means to grow bigger. They can do this by taking on new staff, increasing the size of their premises or by introducing new products/services.) • Maximisation of Profits (Some businesses aim to make as much profit as possible. Profit is equal to Sales Revenue – Cost of Sales. PLCs often have this as an aim in order to satisfy their shareholders. ) • Maximising Sales Revenue (Sales Turnover) (Some businesses aim to maximise their Sales Revenue. This is the money they make from selling their products or services. No of items sold x Selling price = Sales Revenue.) • Maximise market share (Some businesses aim to get as many customers as they can. This means trying to increase the % of customers in a particular market over a given period of time) • Provide a good product or service (Some businesses aim to provide a good product or service. Smaller businesses often have this as an aim in order to differentiate themselves from other businesses. This can lead to a good reputation and repeat trade) • Apply these to sole traders, partnerships, limited companies

23. BCS Keywords: The Business Environment • Measuring Success of a Business • (Students should understand the criteria for judging the success of a business. Students should understand • who stakeholders are and the influence they have) • Making/increasing profits (Successful businesses make profits. Profit is the money left after subtracting Cost of Sales from Sales Revenue. Typically, businesses want to improve their profits year upon year.) • Job creation (If a businesses if doing well and growing, it will need to expand its operations. More people will need to be employed to keep up with the demand. Therefore, job creation can be seen as a measure of the success of a business) • Expansion (Successful business grow and get bigger. They may expand into new premises. They may expand their actual premises. They may take on new employees or they may expand the products/services they sell (product range) • Increased market share(If a business if doing well, it will attract more customers. Some of these will come from the business’s rivals. Some of these customers may be new to the market. If more customers are coming to the business compared to their rivals, the market share will increase. • Good Reputation (Ethical Practices) (If a business if doing well, customers will talk about them. A good reputation is a sign that over a period of time, customers have built up trust in a business. One way to develop a good reputation is to develop ethical practices. This means making business decisions that are in the best interests of the local community/environment/wider world.) • Apply this knowledge to local,regional, national and multi-national organisations

24. BCS Keywords: The Business Environment • Stakeholders • Customers (Customers are interested in the business because they usually want the best possible product at the lowest possible price. They are interested in value for money) • Owners (Typically, the owners of the business want to maximise the return on their investment) One way they could do this is by raising prices and cutting costs. • Managers (Managers in a business are usually set targets. They are usually interested in meeting their targets so that they can receive a bonus) • Employees(Most employees want a fair days pay for a fair days work. This might be at odds with what the owners want) • Suppliers(Suppliers are interested in a business because they want to know that the business will be able to pay them for their products. They will also want to get the maximum price for the products they supply. This may conflict with what the owners or managers want.) What are Stakeholders? Can you give some examples of different Stakeholders? Stakeholders are people or groups who have an interest in what a business does and whether or not it is successful. Examples of stakeholders include: the owners or shareholders, employees, managers, suppliers, customers, the government and the local community. Why might different Stakeholders want different things from a business? While all stakeholders are keen for the business to do well they may still want different things. For example, the owners of a business want to make money, one way to make more money might be to pay lower wages. This would obviously be against the interests of the employees who are another set of stakeholders.

25. BCS Keywords: Business Administration • How does administration support the main business functions? - The administration department controls all the paperwork and supports the other departments by servicing their needs for secretarial work eg. Filing, mailing, handling information.

26. BCS Keywords: Business Administration Routine and Non-routine tasks - Routine jobs are jobs that are done on a regular basis. An example might be completing sales invoices. Non-routine jobs are jobs that occur from time to time. • Routine and Non-routine decision-making - Routine decision making refers to decisions that have to be made on a regular basis.

27. BCS Keywords:Work place Organisation What is an Open Plan office? An open plan office is a large room where lots different people will work at the same time. What are cellular offices? A cellular office is a smaller room with only up to 4 people in it. What are the advantages of Open Plan offices? The advantages of using Open Plan offices include: • It promotes teamwork and makes communication easier within the office. • Employees enjoy the social aspect of working with others. • Equipment can be shared e.g. printers or telephones. • People can see what other people within the business do. • Managers are easily seen by their team • Managers can check that work is being done. • It is cheaper than having a series of small rooms for individuals.

28. BCS Keywords:Work place Organisation What are the disadvantages of Open Plan offices? The disadvantages of using Open Plan offices include: • It can be noisy and people can get distracted. • No privacy for working with confidential information. • Employee may think they are always being watched. • It is easier to lose important documents. • People may not feel like the office belongs to them and is impersonal. What are the advantages of Cellular offices? The advantages of cellular offices are: • A quite and private place to work in. • Meetings can be held privately with customers. • Confidential information can be easily dealt with. • Documents and other information are less likely to go missing. • The office can be personalised making the workers feel more comfortable.

29. BCS Keywords:Work place Organisation What are the disadvantages of Cellular offices? The disadvantages of cellular offices are: • Employees cannot be constantly supervised so may not be working. • An employee could feel isolated and not know what id going on elsewhere in the business. • May need more equipment, e.g. a printer for every office rather than one shared by lots of people. What factors affect how a business will set out its workplace? How the work place is set out will depend on the type of job being done, and involve things such as noise, data security and the confidentiality of information.

30. BCS Keywords:Work place Organisation What are some of the modern developments in how people work? Modern developments in working include “hot-desking”, teleworking, flexible working and job sharing. What is Hot Desking? Hot desking means that employees do not get their own desk but share working space with other people. This could be because the other people are there at different times or when they have different tasks to do. What is teleworking? Teleworking is working away from the office, usually at home, and keeping in touch with the work place by telephone and email.

31. BCS Keywords:Work place Organisation What are the advantages of Teleworking? The advantages of Teleworking include: • The employee saves time & money travelling to work. • There maybe fewer distractions on the employee. • There is time to concentrate on a specific project. • Work can be combined with family matters such as dropping kids off at school. • The employee needs less formal work clothes.

32. What is flexible working? Flexible working allows the employee to choose what hours they work. There will often be a core time when the employees have to be there, often between 10am & 4pm. The rest of the time can be done when it suits the employee, for example work 10-6 or 8-4. What is Job Sharing? Job sharing is when two employees divide the work and the hours they work between them. What are the advantages of job sharing? The advantages of job sharing include: • A business has two employees for the cost of one, so the staff has the energy of two part time workers, rather than one tired one. • If one employee is off sick at least half the job still gets done. • The two employees can cover each other’s holidays. What are the disadvantages of job sharing? The disadvantages of job sharing are: • One might work harder than the other. • One may be better organised and efficient than the other. • The company has legal responsibility for two members of staff What is ergonomics? Ergonomics is the design of an object so that it easy and comfortable for people to use efficiently. For example, a mouse is designed to suit the size of a hand. BCS Keywords:Work place Organisation What are the disadvantages of teleworking? The disadvantages of using Teleworking include: • It can be lonely and the employee may not be motivated which could lead to unproductive days • There are other distractions at home that could stop people working. • It is easy to lose touch with what is happening at work. • People work later because there is no difference between home & work. This can lead stress.

33. What is flexible working? Flexible working allows the employee to choose what hours they work. There will often be a core time when the employees have to be there, often between 10am & 4pm. The rest of the time can be done when it suits the employee, for example work 10-6 or 8-4. What is Job Sharing? Job sharing is when two employees divide the work and the hours they work between them. What are the advantages of job sharing? The advantages of job sharing include: • A business has two employees for the cost of one, so the staff has the energy of two part time workers, rather than one tired one. • If one employee is off sick at least half the job still gets done. • The two employees can cover each other’s holidays. What are the disadvantages of job sharing? The disadvantages of job sharing are: • One might work harder than the other. • One may be better organised and efficient than the other. • The company has legal responsibility for two members of staff What is ergonomics? Ergonomics is the design of an object so that it easy and comfortable for people to use efficiently. For example, a mouse is designed to suit the size of a hand. BCS Keywords:Work place Organisation What is Job Sharing? Job sharing is when two employees divide the work and the hours they work between them. What are the advantages of job sharing? The advantages of job sharing include: A business has two employees for the cost of one, so the staff has the energy of two part time workers, rather than one tired one. If one employee is off sick at least half the job still gets done. The two employees can cover each other’s holidays. What are the disadvantages of job sharing? The disadvantages of job sharing are: One might work harder than the other. One may be better organised and efficient than the other. The company has legal responsibility for two members of staff

34. BCS Keywords: Health and Safety at Work • Which are the main laws about Health & Safety in the workplace? • The main health & safety laws include: • - The Health & Safety at Work Act 1974 • - The Workplace (Health, Safety & Welfare) Regulations 1992 • - Display Screen Equipment Regulations 1992

35. BCS Keywords: Health and Safety at Work What responsibility does an employer have with Health & Safety? Under the Health & Safety at Work Act employers must make sure the following things take place: • All entries & exits are safe to use • There must be a safe working environment and suitable facilities such as toilets & drinks • Equipment must be well maintained • Protective clothing and equipment should be provided where needed • Clear instructions and training should be given to ensure safety.

36. BCS Keywords: Health and Safety at Work What must employees do about Health & Safety? Again under the Health & Safety at Work Act employees must do the following: • Make sure they are working in a safe manner. • Take responsibility for the safety of those they work with. • Make sure they always use any safety equipment provided • Follow any health & safety rules or instructions set by the employer.

37. BCS Keywords: Health and Safety at Work What are they key aspects of the Display Screen Equipment Regulations? This law covers the use of all computers at work, the key aspects of the law include: • Make sure that all desks, chairs are adjustable and suitable for use. • Allow users to have regular breaks. • Give proper health & safety training.

38. BCS Keywords: ICT Data Systems • Types of Primary Data What Are Some of the Differences Between Primary & Secondary Data? • Primary data is information collected by the researcher directly through instruments such as surveys, interviews, focus groups or observation. Tailored to his specific needs, primary research provides the researcher with the most accurate and up-to-date data. • Secondary data, on the other hand, is basically primary data collected by someone else. Researchers re-use and repurpose information as secondary data because it is easier and less expensive to collect. However, it is seldom as useful and accurate as primary data.

39. BCS Keywords: ICT Data Systems • What are the most common data storage devices used on computer? • What do they do? • Floppy Disk – small magnetic disk for storing files. Cannot hold much information, also easy to damage and lose what is saved. Not used very often now. 1.44 MB • CD – optical disk used to store audio or digital information. • CD-R – recordable cd, can only be recorded on once. • CD-RW – rewritable cd, can be recorded, erased and then recorded on again. 650-700MB • DVD – works in a similar to a cd, but can contain more information, such as a film, or more files. Like CD can be either recordable or rewritable. Approx 5 GB • USB Memory Stick – Often known as flash drives or pen drives. Offers secure storage as well as being small and easy to use. • Hard Drive – Most computers have an internal hard drive. Storage space measured in GB or TB.

40. BCS Keywords: ICT Data Systems • Direct input devices • Magnetic stripe(Bank cards used Magnetic Stripe cards until they were replaced by chip and pin cards. Store cards still contain magnetic stripes that allow the card to store around 250 characters of information.) • MICR(Magnetic ink character recognition. Used in banks to read and sort cheques quickly) • OMR(Optical Mark Recognition. With OMR technology, marks are read by a machine by shining a light on the paper) • OCR (Optical Character Recognition. Software is used to recognise characters that have been scanned into the computer by a scanner) • Bar Code Reader (EPOS systems in supermarkets use bar code readers to scan items at the electronic point of sale (checkout). 1 item is deducted from the database’ stock inventory. The manager simply has to set re-order levels and the system will re-order stock once it becomes low

41. BCS Keywords: ICT Data Systems • What are the most common input devices used on computer? • What do they do? • Keyboard – Used to enter text and numbers into a computer. • Mouse – A pointing device that move the cursor round the computer screen. • Digital Camera – Takes high quality pictures and records them in a digital form that can be used on computer. Images can then be used • Webcam – Takes pictures that are uploaded on to a website. • There are also automatic ways of getting information into a computer system that are often used in business, the most common are barcodes that are on products in shops.

42. BCS Keywords: ICT Data Systems • What are the most common output devices used on computer? • What do they do? • Monitor – The display screen that shows text, numbers, images etc. Almost all monitors are now flat LCD screens. • Inkjet printer – prints by using small droplets of ink to create text and images. High quality printing that can include photographs. • Laser printer – uses a laser to transfer the image onto paper. More expensive than inkjet. • Plotter – A pen and an arm are used together to draw technical drawings • L.E.D – Light emitting diode. A light that might be used to indicate whether a device is on or off. • Buzzer – Emits a noise to communicate with the user.

43. BCS Keywords: ICT Data Systems • What two types of network are there? • LAN and WAN. • LAN – Local area network. This is a network that will cover one building or site, one example is the network we have that covers the whole school. • WAN – Wide area network. This is a network over a larger area that involves using a phone line to connect computers together. The Internet is an example of a WAN.

44. BCS Keywords: ICT Data Systems • What is the Data Protection Act 1998? • The Data protection Act 1998 is the law that covers the processing of information about you. It contains 8 principles of data protection. • What are the 8 principles of data protection? • The 8 principles include: • 1. Data must be obtained lawfully and in acceptable ways. • 2. Personal data must only be used for the reason it was collected. • 3. Personal data should be relevant and not be more than is needed. • 4. Personal data must be accurate and up to date. • 5. Personal data must not be kept longer than it is needed. • 6. Personal data must be processed according to your rights. • 7. Appropriate measures must be taken to make sure all data is safe for unauthorised access or accidental loss. • 8. Personal data must not be passed out of Europe unless the country has data protection of the same standard as ours.

45. BCS Keywords: Security of Data • Keeping Data safe • Virus protection (Virus scanner is a piece of software that runs on a computer system looking for viruses against a list of known virus definitions. If it finds a virus, it will quarantine or delete it.) • Firewalls(Firewalls can be hardware or software. A firewall sits between a computer system and the outside world and stops data being transferred in either direction without the say so of the computer systems end user. • Passwords(Passwords can be used to stop unauthorised access to a computer system. They should be at least 8 characters long, a combination of text and numbers and not contain easy to guess references) • Encryption • Screen savers (A screen saver that requires a password to unlock is a good way of protecting sensitive information. This technique is often used by the Doctor’s secretary at the local GP. • Levels of access(Many organisations will set up levels of access for workers depending on the jobs they carry out or need to carry out. This means workers who are inputting data shouldn’t have access to deleting programs, for example)

46. BCS Keywords: Recruitment and Selection • Explain how a firm might select its employees • By advertising in the appropriate place Eg. Newspaper • Providing the right information for jobseekers . • Asking the right information from jobseekers • Long listing and short listing • Interviewing candidates • presentation and communication skills to the interview panel

47. BCS Keywords: Recruitment and Selection • Main Methods of advertising for staff • Internal vs external recruitment • Advantages and disadvantages of different methods of recruitment including:- • Job Centres Isn’t very expensive to do so. Might not reach many people. People might not have the skills you are looking for. • Agencies • Takes the hassle out of recruitment as the agency can do all of the process on your behalf. Agencies charge a fee for recruiting. Typically 10% of the salary. Agencies might not fully understand your business and needs. • Notice Boards (Notice boards can be used within an organisation to recruit. This is an example of internal recruitment. This would be cheap way of recruiting and applicants would know the business and what to expect. However, new ideas might not be forthcoming from applicants who have always worked in the business) • Newspaper advertising (Will be seen by a wider audience. Might not be where people who are most suitable for the job are looking. National advertising is expensive) • Trade Press(Potential employees are buying these magazines so you are more likely to be seen by someone with the relevant skills and experience.) • Internet

48. BCS Keywords: Recruitment and Selection • Understanding the recruitment process • Job analysis – Looking at the job. What is involved? Usually carried out by Human Resources and a Manager. • Job Description – Contains job title, working hours, duties and responsiblities, who you will line manage, who line manages you. • Person specification – The attributes required for the job. These are personal characteristics that are needed. E.g. qualifications, experience etc. • Job advert and where to advertise – (see previous section) • Long Listing – Going through the applications and selecting those that have followed instructions. Any with mistakes are discarded.

49. BCS Keywords: Recruitment and Selection • Short Listing – Selecting candidates based on their ability to meet the person specification and job description as demonstrated in their application form/CV and covering letter. The short list will be typically 5-10 in number and these candidates are invited to interview. • Interview –Candidates are asked to a formal meeting where they are questioned to see how welll they meet the person specification and job description. • CV vs Application form – A CV stands for a curriculum vitae and tells an employer about the candidate. It details their name, their education and qualifications, their hobbies and interests and their work history. Employers will sometimes ask candidates to send their CV and a covering letter to apply for a job. An application form can be tailored by the employer to ask for certain pieces of information from the person specification and job description that might be important.

50. BCS Keywords: Recruitment and Selection • Employment Contracts • What goes in an employment contract? (Main features)The main parts of a job contract include; The Name of the employee and the name of the employer, The Job Title, The Period of Employment, Remuneration (How the employee will be paid), The Working hours and Notice Period • Why have an employment contract?The employment contract helps to protect the employee and the employer. A period of notice will be specified so that an employee cannot walk out on the employer without having completed this period. This gives the employer time to recruit. Similarly a contract gives the employee stability and allows them to plan for their future knowing they have financial security. • Temporary vs Permanent Temporary work or temporary employment refers to a situation where the employee is expected to leave the employer within a certain period of time. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "freelance"; or the word may be shortened to "temps.“ • A permanent contract indicates that the job is required on an on going basis. Staff on permanent contracts have the security of knowing that the job is not seasonal or casual.