Photo AI
Read the scenario below and answer the questions that follow - NSC Business Studies - Question 3 - 2020 - Paper 1
Question 3
Read the scenario below and answer the questions that follow. IKUSASA TRADING LTD (ITL) Ikusasa Trading Ltd recently advertised the position for a financial manage... show full transcript
Worked Solution & Example Answer:Read the scenario below and answer the questions that follow - NSC Business Studies - Question 3 - 2020 - Paper 1
Step 1
3.4.1 Name the recruitment method used by ITL in the scenario above.
Answer
The recruitment method used by Ikusasa Trading Ltd (ITL) in the scenario above is internal recruitment through advertising the position on their notice board. This method allows current employees to apply for the financial manager role, tapping into existing talent within the organization.
Step 2
3.4.2 Discuss the impact of the recruitment method stated in QUESTION 3.4.1 on businesses.
Answer
The impact of internal recruitment on businesses includes:
- Cost Efficiency: Internal recruitment is often less costly than external recruitment since it eliminates the need for extensive advertising and third-party recruitment fees.
- Employee Morale: It can boost morale among employees as they see opportunities for advancement, which can lead to increased loyalty and reduced turnover.
- Faster Integration: Current employees are already familiar with the company culture and processes, allowing for a quicker adjustment period to their new roles.
- Skill Utilization: By promoting from within, companies can capitalize on the existing employees' skills, ensuring effective job performance immediately upon promotion.
However, challenges may arise, such as limiting the influx of new ideas or perspectives, potentially leading to a lack of innovation.
Step 3
3.5 Outline TWO benefits of a good quality management system.
Answer
Two benefits of a good quality management system are:
-
Enhanced Customer Satisfaction: A good quality management system ensures that products or services meet customer expectations consistently, leading to higher customer satisfaction and retention rates.
-
Operational Efficiency: Such systems streamline processes and reduce waste, leading to cost savings and improved productivity within the organization.
Step 4
3.6 Explain the quality indicators of the financial function.
Answer
Quality indicators of the financial function include:
- Accuracy of Financial Reports: Ensuring that all financial statements are accurate and reflect the true financial position of the organization.
- Timeliness of Reporting: The financial information must be available to stakeholders in a timely manner to enable informed decision-making.
- Compliance with Regulations: Adhering to laws and regulations that govern financial reporting and accounting practices to avoid legal repercussions.
- Budget Variance Analysis: Regular analysis of budget variances helps in assessing performance and making necessary adjustments, leading to better financial management.
Step 5
3.7 Identify TWO quality concepts that are applicable to ECM.
Answer
The two quality concepts applicable to Excel Carpet Manufacturers (ECM) are:
-
Quality Assurance: This concept involves establishing processes and checkpoints to ensure that carpets meet specific quality standards before reaching the customer.
-
Quality Management: This encompasses the various techniques and strategies used by the CEO of ECM to monitor, maintain, and improve the overall quality of their products consistently.
Step 6
3.8 Evaluate the impact of total client/customer satisfaction as a TQM element.
Answer
The impact of total client/customer satisfaction on large businesses, as a TQM element, includes:
- Positive Brand Reputation: High levels of customer satisfaction lead to a strong reputation, enhancing brand loyalty and attracting new customers.
- Increased Sales and Profitability: Satisfied customers are more likely to make repeat purchases and recommend the business to others, driving sales growth.
- Feedback for Improvement: Satisfied customers often provide valuable feedback, which can be used for continuous improvement of products and services.
On the downside, businesses that do not adequately address customer satisfaction may experience a decline in customer loyalty, increased complaints, and potential loss of market share.