Departmental Functions – Chapter 24

Key Words:

Trade Union: organizations, usually in a particular trade or profession, that represent workers, especially
in meeting with employers.

Contracts of employment: Written agreements between an employer and an employee in which each
has certain obligations

Unfair Dismissal: When worker is dismissed illegally by a business

Employment Tribunal: Court that deals with cases involving disputes between employer and employee

Market Orientated: Where a business focuses on the needs of the consumers when developing
products.

Wholesalers: Persons or business that buy goods from manufacturers and sell them in smaller quantities
to retailers.

Pharmaceuticals: Relating to the production of drugs and medicines

Automotive: Relating to cars

Questions

Activity 1 Pg 203

1: Two other activities carried out by the marketing department could be that advetsing or doing market
research

2: This might be because as businesses grown, marketing have grown in significance so marketing team
has an important role.

3: Monica’s role in the marketing department is public relation. This is because Monica has to talk to
media and has to present presentation to shareholder, potential investor and customer. All of this is
public relationship role in the marketing departments.

Multiple choice questions pg 205:

1: C

2: D

3: A

4: B

Chapter Question – Case Study JakAC

1:
Chairman
Departmental Functions – Chapter 24

Senior Manager of Senior Manager of Senior Manager of Senior Manager of

Marketing Human Resources Finance Production

Debuty Manager of Debuty Manager of

Debuty Manager of Debuty Manager of
Human resource production (2)
Marketing (2) Finance (2)
(2)

2a: Finance department

2b: Human Resources

2c: Marketing

2d: Production

3: The marketing department may find out the trends because this is the department that does most of
the market research so it will gather all the information about the prices, costs and demand in the
specific market and the department will present it so they will choose the appropriate action.

4: Two other function of JakAC production department could be that maintenance so basically thye will
maintain and clean the machines used to make the AC. Another function of JakAc production
department could be that they must make innovating design ideas to keep up with customer trends.

5: The importance of interdependence between business departments is that if they have depend on
each other, there communication will be good so the business will run more efficiently and production
will be maximized.

In the case study, It states the departments “production and financial department are not working well
together”. This is because the financial department argues that the production is overspending on their
labor budget. Since there arguing the departments are not communicating well so if the department
need to depend on each for a task such as the financial department talking to the production
department about if the product is profitable or not. Because of this bad communication the financial
department and production will not be able to be efficient in discussing if a product is profitable or not.

Notes from other chapters.

Chapter 20

Training = process that involves increasing the knowledge and skills of a worker to enable them to do
their job more effectively

Induction training = Training given to a new employee when they first start a job. Some of it may involve
Departmental Functions – Chapter 24

Mentoring = This is where an experienced worker and a trainee are paired. The trainee is put to work
unsupervised and he can ask the mentor for some advice and help.

Job Rotation = This involves a trainee spending a period in different departments, by working in
different departments employee will gain skill required and gain a broad knowledge of how the business
works

Chapter 21

Job Satisfaction = Pleasure, enjoyment or sense of achievement that employee get from their work.

Hygiene factors (Herzberg’s) = Things at work that result in dissatisfaction.

Motivators (Herzberg’s) = Things at work that result in satisfaction.

Job enrichment = Making a job more challenging and interesting.

Physiological needs = Adequate pay – subsidized meals and accommodation

Safety and Security = Job security and safe working conditions

Social Needs = Teamworking, good communication systems and social facilities

Esteem needs = Praise for doing a good job, awards, and rewards for achievement

Self-actualization = Opportunities to be challenged, be creative, solve problem and make decisions.

Chapter 22

Payment system based on the amount of time employee spend at work e.g. if someone with $20 per
hour worked a 20-hour week he will get $400 for that week.

Gross Pay = pay before reduction, such as income tax, national insurance contributions, pension
contributions, contribution to an employer saving scheme, repayments for education or training loans,
trade union membership fees.

Net Pay = Take home pay, that is, pay after deduction, such as income tax pension contribution or
student loan contributions

Overtime = Rate of pay above the normal rate to companion employee for working extra hours.

Salary = pay, usually to non-manual workers, expressed as a yearly figure but paid monthly. These
workers usually are not payed for overtime.

Method of Motivation Description Rate (0-10)

Time Rates Payment system based on the amount of time employee 6
spend at work
Piece Rates Payment system where workers receive an amount of 7
money for each unit produced
Performance- Related Payment system designed for non-manual workers where 8
pay (PRP) pay increases are given if performance target are met
Bonus Payments Payment in additions to the basic wage for reaching a 9
Departmental Functions – Chapter 24

target or in a recognition for service

commissions Payments based on the value of sales, usually a 8
percentage of sales made
Promotion This is when a worker gets put with more responsibility 9
and take a higher role in the company but gets higher
pay.
Fringe Benefits ‘perks’ over and above the normal wage or salary 8
Job Rotation Allowing employee to change jobs from time to time 5
Job enrichments This means to make jobs more challenging and rewarding 7
Autonomy Giving worker more authority to make choices and 6
decisions about the way they work