Leaving Cert Business Management Skills: A contingency plan is a back-up

Question

A contingency plan is a back-up plan to take account of possible future events/an unforeseen event, to prevent the closure of a business or disruption to supply. For example, an airline should have a contingency plan as a back-up plan if many pilots were seeking holidays during the busiest season.

The importance of a strategic plan for an airline such as Ryanair lies in its long-term planning for major objectives established by senior management. It allows the company to back up strategic goals and ensure financial stability by anticipating decisions regarding fleet changes and potential market expansions. A tactical plan involves detailing the procedures to achieve these strategic goals, such as deciding on new routes to increase air traffic.

Manpower planning is essential, as it involves adequately staffing the business to prevent operational disruption. For example, Ryanair might not have sufficient cabin crew during peak seasons if their manpower planning does not account for pilot holiday arrangements.

In summary, a contingency plan is vital for preparing for unpredictable disruptions, while strategic, tactical, and manpower planning are crucial for the airline’s sustainable operations.

(i) Maslow's theory of motivation is based on two assumptions:

1. Every employee has the same needs organized into a hierarchy of 5 categories.  
2. Once a need is met, it stops being a motivator; the next need becomes the motivating influence for the employee.

The five needs are:  
1. **Physical Needs**: Basic physical needs such as food, shelter, and fair wages.  
2. **Safety Needs**: Security and stability in the work environment.  
3. **Social Needs**: Belongingness and interaction with others; teamwork and social events.  
4. **Esteem Needs**: Recognition and status, leading to increased self-respect.  
5. **Self-Actualization Needs**: Full potential realization in personal and professional aspects.

(ii) Limitations of Maslow's theory include that needs may not occur in a strict order, as individuals can have varying priorities. Likewise, motivations differ across individuals and across time, making it challenging to apply a one-size-fits-all model. Furthermore, the theory lacks empirical support due to unrigorous sampling methods, questioning its universality and reliability.

(C) Reasons for becoming an entrepreneur include:
- **Freedom to do new things**: Entrepreneurs cherish the ability to innovate and pursue their projects without constraints.  
- **Earn extra income**: The potential for financial growth and a rewarding career drives many to entrepreneurship.  
- **Being ‘own boss’**: The autonomy of decision-making is appealing, as entrepreneurs manage their operations without external oversight.  
- **Seeing a gap in the market**: Identifying unmet needs can inspire business ideas and drive entrepreneurial success.  
- **Pro entrepreneurship culture in Ireland**: Local governmental support encourages individuals to launch small businesses.  
- **No choice**: Circumstances might lead individuals to entrepreneurship.  
- **Inspired by notable figures**: Influences from successful entrepreneurs can motivate others to embark on similar journeys.

A contingency plan is a back-up plan to take account of possible future events/an unforeseen event, to prevent the closure of a business or disruption to supply - Leaving Cert Business - Question 4 - 2018

Worked Solution & Example Answer:A contingency plan is a back-up plan to take account of possible future events/an unforeseen event, to prevent the closure of a business or disruption to supply - Leaving Cert Business - Question 4 - 2018

Explain the term contingency plan.

Outline the importance for an airline such as Ryanair.

Explain the hierarchy of needs developed by Maslow.

Discuss possible limitations of this theory.

Outline two reasons why a person might become an entrepreneur.

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