Training, redundancy, dismissal and trade unions
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What this lecture covers
- Developing and managing the workforce
- Why training matters
- Induction training
- On-the-job training
- Off-the-job training
- Redundancy
- Dismissal
- Redundancy or dismissal?
- Trade unions
- Unions: for employees and employers
- Mistakes that lose marks
- The full-marks tip
- On one card
Read the transcript of the teaching part
Last time
Before we start: last time, in Recruitment, selection and employment law, you learned these points. Here they are again on one card. Keep them in mind, because today builds on them.
Developing and managing the workforce
A new machine arrives at a factory. Workers must be trained to use it, and some jobs may no longer be needed. This lesson covers training, the two ways a worker can lose a job, and how trade unions speak for workers.
Why training matters
Training improves workers' skills, so productivity and quality rise. Trained workers can use new technology, and give better customer service. Training also motivates, so labour turnover falls. But it costs money, and trained workers may leave for better-paid jobs.
Induction training
Induction training introduces new workers to the business: its layout, its rules, health and safety, and their colleagues. It helps them settle quickly and become productive sooner. But it takes time, during which the new worker is not yet fully productive.
On-the-job training
On-the-job training means learning at the workplace by watching and working with an experienced worker. It is cheap, and the worker produces while learning, using the firm's own methods. But the trainer's work slows, and bad habits may be passed on.
Off-the-job training
Off-the-job training happens away from the workplace, at a college or training centre. Experts teach new skills and wider knowledge. But it is expensive, no work is done meanwhile, and the new skills may help the worker find a job elsewhere.
Redundancy
Redundancy is when a worker loses their job because the job is no longer needed. It is not the worker's fault. Causes include falling sales, new machines replacing workers, the business moving, or closing a branch. Redundant workers are often paid redundancy pay, as compensation.
Dismissal
Dismissal is when a worker is sacked because of their own conduct or performance: theft, repeated lateness, or poor work. There is no compensation, and usually written warnings come first. Dismissal for reasons such as pregnancy or joining a union is unfair dismissal, and is against the law.
Redundancy or dismissal?
Here is the difference examiners ask for, side by side.
Trade unions
A trade union is a group of workers who join together to protect their interests, such as pay, conditions and job security. It uses collective bargaining: negotiating with the employer for all members at once. If talks fail, it may take industrial action: strikes, overtime bans, or work-to-rule.
Unions: for employees and employers
For employees: stronger bargaining power, better pay and conditions, and legal support if treated unfairly. For employers: one body to negotiate with saves time, and unions help communicate with staff. But industrial action stops production and harms the business's reputation, and higher wages raise costs.
Mistakes that lose marks
Mistake one: saying a redundant worker did something wrong. Mistake two: describing training without saying how it helps the business in the case. Mistake three: giving only benefits of a union to the employer when asked about employees. The fix: define the term, then the benefit to the named group.
The full-marks tip
The full-marks tip: say redundancy is when the job is no longer needed, and dismissal is for the worker's conduct. For training, name the type, then its benefit and its cost for this business.
On one card
So, on one card: training and the workforce. Keep it for revision.
How often it comes up
How often Cambridge has asked each part, counted by ExamYard from every past paper in its question bank: Reducing the workforce: redundancy and dismissal · Trade unions · Training · Training.
The whole chapter: People in Business, People in Business.
Chapter 2: People in business
- Motivation: theories and methods 5 min
- Organisation structure, management and leadership 5 min
- Recruitment, selection and employment law 4 min
- Training, redundancy, dismissal and trade unions 4 min
- Methods of communication and barriers 4 min
Also for O Level Business 7081
Which topics come up most in O Level Business 7081 past papers, counted from every paper since 2004: O Level 7081 topic frequency, IGCSE 0264 topic frequency.
The topical past-paper books: O Level 7081, IGCSE 0264.