31765 bcs revision guide
TRANSCRIPT
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The Process ofCommunication
Communication is the sending andreceiving of information between
individuals who need to share information
to carry out their jobs successfully.
Effective communications is essential to the
success of any business organisation.
Without clear and effective
communications in business
Products will not be produced on time
and to the customers specification
Supplies of materials will not arrive at
the right place or on time Workers will not know which job they
are required to complete first
Managers will not know what progress is
being made and whether machinery needs
maintenance or repair
Customers will not know when to expect
the delivery of their order
Although the process of communication can
take many forms there are six common elements Sender All messages have anoriginator who decides on the nature of the
message, the channel to be used and the way
it is to be sent
Message To be effective themessage must be clear and unambiguous. It
needs to be correctly understood and may be
providing information, to give or ask for
instructions, or to persuade or influence
people e.g. adverts
Communication Channel Withinthe various levels of an organisation,
messages can be sent vertically up or down
the levels of seniority or horizontally within
work teams. Other channels, formal or
informal, may be used depending on the
nature of the message.
Medium The method by which themessage will be sent will depend on its
importance, the speed of delivery required,
the relationship between sender and receiver
and the physical distance between them.
Colleagues within an office may talk
informally but business contacts in different
countries may communicate by e-mail
Receiver The person who receives themessage who interprets it both in content and
the way it has been sent e.g. an urgent request
sent by 2nd class post wont be treated as urgent Feedback This is essential to the senderto reassure them that the receiver has got the
message and has correctly understood its
meaning. Feedback can be informal e.g. ok or
formal e.g. a written letter
Formal channels of communication are those
which employers and employees both recognise
as successful to the operation of the business
and serious enough to be given careful thought
e.g. a written warning instead of a telling off
Informal channels of communication are those
that often operate through rumour and hearsay,
often known as the grapevine. These should
be treated carefully because they do not have
official authority or support. Managers
sometimes start rumours on purpose to judge
employees reactions and take their feelings into
account when considering different options
Both sender and receiver must have the
skills to transmit and receive the message,
creating and interpreting it so that it is clear
but not too long and so that there are no
misunderstandings. The message must be
sent in time for it to be received and acted
upon by the person for whom it was
intended. Late messages or messages
intercepted by the wrong people may lead to
anger or loss of confidence.
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The importance of effectivecommunication
Communication means passing on information
or receiving it from somebody else. Imagine theproblems that could occur if this is not done
carefully
Delivering the wrong items to a
customer
Delivering the wrong letter on the wrong
date or to the wrong address
Making bad decisions based on wrong
information
Employees misunderstanding each other
Some methods of passing on information
involve writing it down, others by speaking
(oral), other methods are visual, electronic, or
by numbers. One way to remember these is to
take the first letter of each method and make the
word woven.
The method you choose depends on
Whether you need a written record of the
message e.g. print out or receipt
Whether speed is importance
What opinion the receiver will have ofyour method of communicating
Whether the message is for somebody
inside the organisation or outside of it
Internal messages are sent between people
working within the same organisation.
External messages are sent between people in
different organisations
Media for sending information include
Pictures and diagrams Graphs
Conversations Telephone
E-mail Text message
Fax Memo
Report Letter
Poster Dress or facial
expressions
Within some businesses the use of jargon
specialised technical language, can
ensure that the message is preciselyinterpreted. However it can equally cause
problems when either the sender or
receiver uses the jargon incorrectly.
Good managers are said to use the following
motivational techniques
Communicate the big plan to give
employees a sense of pride and loyalty
Delegate work and responsibility using
employees strengths and developinggood work habits and leadership skills
Help employees set personal targets o
keep the focussed, busy and motivated
Recognise problems by staying close to
your employees and intervene before
they become serious
Reward employees either financially or
through praise and make sure employees
know that you value their efforts and
contributions
Be a mentor sharing your knowledge and
experience
Give reviews of performance including
formal appraisals
Be understanding with unplanned
emergencies but dont be a doormat.
Employees appreciate firmness and
fairness
Dont forget to manage because
employees depend on a managers
strength and guidance
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WrittenCommunication
Written communication is used
extensively in business for both internal
and external messages.
Advantages of Written Communications
1. Message is written down
preventing misunderstanding
between sender and receiver
2. Confidential or personal messages
can be sent in sealed envelopes so
that they will only be read by theintended recipient
3. Pre-prepared forms e.g. memos
can speed up the process of
routine messages
4. Written messages allow the
recipient time to study them before
replying. This is particularly
important where there is more than
one option to consider
Disadvantages of Written Communications
1. Written messages can be expensive
to produce i.e. employees, paper and
office space
2. The need to write or type the
message may mean it is out of date
when it is finally sent
3. Feedback may also take time if a
written reply is needed
4. Copies of documents may get lost
through poor filing5. They rely on the intended receiver
reading the message
Business letters are the most widely used form
ofexternal written communications. They can
be sent to customers, suppliers and individuals
associated with the business. They provide a
permanent hard copy record of the message for
both the sender and receiver, which allow
simple retrieval when required. The way inwhich business letters are set out is also
important. A well presented letter containing no
errors can promote a positive image and inspire
confidence in a company.
Very often in the workplace, a junior
employee may be asked to write letters onbehalf of senior colleagues. What is in the
letter and how it is presented is extremely
important because a business is often judged
by the quality of its correspondence.
Neatness, accuracy and correct spelling are
essential and the writer must be sure of the
purpose of the letter before they start.
Obtain all the information you need
before you start
Work in a logical sequence keeping
sentences short and to the point with no
confusion
Make sure you have provided all the
information required and answered all of any
questions asked
Break up the letter by using paragraphs
with a new paragraph for each topic and a
polite sentence to finish your letter off
Check through the letter for mistakes
before it is signed and sent off
In certain circumstances it is possible for the
body of a letter to contain just one paragraph
if the heading and references have clearly
indicated the subject and the message is a
short one. Most of the time there will be at
least three paragraphs, the first acknowledging
receipt of an earlier letter and explaining why
the reply is being written, the second giving
further information and the third setting out
the conclusions or finishing the letter offpolitely.
Notices can be both internal and external
e.g. posters in corridors, newsletters or rest
rooms or advertising posters in journals,
magazines or on billboards.
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Jennys Computers1 Green Road, Oldham, Lancashire M29 1ZUTelephone 0161 2002000
Jenny Jones
Managing Director
AgendaEmployee meeting on
the 12th February startingat 5pm in Committee
Room
1. Apologies for absence2. Approval of minutesfrom last meeting3. Matters arising from
last meeting4.5.
The memorandum is the most commonly
form ofwritten internal communication.
A memorandum (memo) is less formal than
a letter and is not usually signed, but it
provides a written record of the message
sent. Today most memos are sent by e-
mail, especially the internal ones, thereby
combining new and traditional
communication methods.
Memos contain headings to indicate the
receiver, the sender, the date, a reference
and a title, but are not signed
In the course of carrying out its business, a
firm will issue trading documents e.g.
orders, delivery notes, invoices, statements
and receipts. Most firms use standard
forms for these messages to their
customers and suppliers, and create them
using computerised accounting systems.
A number of meetings will take place
within a company and each person
attending these will be given a written
agenda in advance, which informs them of
what is to be discussed.
A record of what has been decided at the
meeting, in the form ofminutes, will also
be produced and circulated.
Reports will be frequently presented and
discussed at meetings. They are formalwritten documents prepared by individuals
or committees and can cover any aspect of
the business. Reports provide useful ways
of informing interested persons of progress
and each year limited companies must
send all their shareholders a copy of the
Annual Report and accounts, prepared by
the companys directors.
Business cards are used by visitors as a
form of introduction and a signal of their
intention to do business. The card is small
(10cm x 4cm) and gives the company
name, address and telephone number plus
the name and title of the person presentingthe card.
Memorandum
To:From:
Reference:Date:Subject:
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Verbal Communication
Verbal communication occurs when there
is direct live contact between two or more
individuals. A salesman who can inform
and persuade a potential customer to place
an order will help their employer gain
more business, whilst a telephone
salesperson must get their information
across in a polite and non-threatening
manner before the phone user hangs up!
A good verbal communicator needs
a clear speaking voice and an
understanding of brevity (keeping
messages short) The ability to speak at a pace and
variety which is neither too fast nor
boringly slow
Confident with a range of audiences
and understanding of non-verbal
gestures
Good listening skills and the ability to
moderate their message to hold their
audience
Face to face contact can occur in a formale.g. at a meeting or informal e.g. passing
comment manner. It is often said that
more business is done over lunch or on the
golf course than in the office and this
underlines the importance of informal
communication, yet it is the formal
communication that is most often recorded
e.g. minutes of meetings
Face to face communication offers the
following advantages Immediate feedback and an exchange
of opinions Promotes the development of ideas
Information can be quickly spread
amongst a group
Encourages greater involvement and
co-operation particularly amongst
groups comfortable with each member
Disadvantages includeThose lacking confidence and communication
skills feel isolated
Non-verbal communication e.g. body languagecreates a barrier to communication
Differences in interpretation
No written record of the communication
Telephone users cannot see the non-
verbal reaction of the recipient
The development of the mobile telephone
has given verbal communication a new lease
of life as they can facilitate work away from
the workplace and the facility to contact
individuals 24/7. Mobile phones can also
access the Internet and be used as a modem
linked to other hardware options e.g. laptop
Mobile phones do havedisadvantages
More expensive than landline phones
Blind spots where there is no mobile signal
Need to frequently recharge the phone battery
Dangerous, illegal or annoying to use in certain
circumstances
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Human Resources and Recruitment
The Human Resources or Personnel
Department is vital to businesses success
because if it selects and trains employees
unable to carry out their duties, it is unlikelythat the business will continue.
Every business is made up of individuals even
though many employees work in teams to
combine their skills. Individuals differences
may be physical height and build, intellectual
knowledge and logic, personality and team
playing, previous experience and technical
skills. Businesses need to carefully evaluate
the different characteristics of employees and
applicants to ensure they place each other inposts where they can be the most useful. An
employee without the ability or training to
cope will not work effectively and may loose
the firm orders but an employee who finds the
work too easy may become bored or frustrated
and leave.
Businesses usejob analysis to identifythe skills that ideal employee for each job will
have, establish pay rates, training plans and
identify individuals for promotion and
appraisal. Job analysis studies what the job
entails and includes the listing of the skills,
training and tasks required to carry it out. It
also includes talking to employees and
supervisors to ensure personnel staff have
identified true worth without bias towards or
against individuals.
Once a job has been analysed thejob
specification can be written which puts theanalysis findings into words. There are foursections, the job title, summary and place in
the company structure, the list of duties; its
purpose and methods and any responsibilities;
the working conditions, starting and finishing
times, holiday entitlements and notice periods
etc; and the performance criteria by which the
job and individual employees will be
measured during interview and appraisal.
The objective in recruiting staff is to obtain
the best candidate for each vacancy. If the
wrong person is employed the company may
loose money or customers plus the costs ofrecruiting the employee will have been
wasted. It can cost up to 5000 to recruit
and train each new employee.
When a vacancy occurs it can be filled
internally be someone who alreadyworks for the firm orexternallybyrecruiting a new employee. Many
companies prefer internal recruitment via
company newsletters or notice board
announcements.
The advantages of internalrecruitment are Strengthens employees commitment
because they know they have a chance of
promotion
Provides structured development path
Existing staff use company procedures
and so require less induction
Personnel know about the real strengths,
weaknesses and suitability of internal
candidates
Quicker and less expensive
The disadvantages of internalrecruitment are Applicants are limited to those within
the company when better and more
suitable applicants may work elsewhere
Internal applicants may has bad past
experiences or grudges to settle It can be hard to manage employees who
previously were the same grade as you
Resentment may exist if unsuccessful
applicants continue to work there
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External recruitment methods differ
depending on the vacancy and the type
of employee needed
Vacancy boards outside the firmare cheap but will only be seen by
passing individuals Advertisements in the local
newspaper will be seen by localpeople but rarely attract professionals
Increasingly firms are advertising on the
Internet to reach a wider audience onthe world wide web but people still have
to visit your site to see your
advertisement
Commercial employmentagencies specialise in providingtemporary workers as well as advertising
permanent posts, sifting through
applicants to provide employers with a
shortlist to interview. This free up key
employees to concentrate on running
their business but agencies often lack
technical knowledge on business needs
and are very expensive
Advertisements in thenational press reach a much wider
audience but can be up to 10x the priceof a local advertisement
Government fundedJob Centresadvertise vacancies for local companies.
These are free but usually only seen by
those looking for work
The Careers Service not onlyprovides guidance and advice for young
people but it collects details of
employment opportunities and advertises
them in schools and colleges. Their
advantage is that they receive manyenquiries from young people actively
seeking work and able to start quickly
TheYouth Training Schemesprovide training for young people out of
work and not in school or college.
Training can lead to permanent posts and
companies can watch a trainee work
before making a decision. Costs are also
reduced as wages paid by a government
allowance.
Head hunting is where a successfulindividual is approached by another
company and encouraged to change jobs.
Companies know that an individual can
do the job but there are costs and ethicalproblems of enticing people to move
employers.
The advantages of Externalrecruitmentare
New employees will bring beneficial
new ideas, techniques and skills
New employees are keen to make a
good start
The introduction of new employees
may make existing employees work
harder to keep up
The disadvantages of Externalrecruitment are
Many of the qualities of the new
employees are not know for certain until
they start
More experienced staff who are not
promoted can be resentful of new employees
New employees take longer to settlein, learn the requirements of he job and
become an effective worker
Takes longer and is more expensive
than internal recruitment
In a small firm the responsibility for
recruitment may be with a single individual,
whilst larger firms may have whole
departments with staff specialising in
individual recruitment skills e.g. interviews.
The Personnel Department do not justrecruit new employees, they look after all
aspects of their welfare including induction
and further training, promotion and career
development, appraisal and disciplining,
pay, wage bargaining and other fringe
benefits, working conditions and contracts
of employment.
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Application Forms
When recruiting staff many firms like
applicants to fill in an application form. These
provide the Personnel Department withinformation about each applicant in aformat common to all. This makesselecting a shortlist of candidates to interview
easier because their details are easy to find and
the questions asked the same for everyone.The information on the application form can
also prompt further questions in the interview.
Those responsible for short-listing for
interview often match candidates details
against job or person specifications. For thosewho are successful in their interview, the
information on their application form will
form the basis of their Personnel record.
The main headings on an application form
Personal details e.g. name, address,gender and nationality
Details of any educational and
vocational qualifications
Details of any full time or part time
The reason why you want the job thatyou are applying for
How you spend your spare time withhobbies and interests
Two referees who can give an opinion
on you as a person two in case onesays bad things because they dont like
you
Filling in an application form is usually anapplicants only chance to make a good
impression. There must not be any mistakesand the information given must be clear,concise and accurate. Forms will be returned
to the employer in good condition, completed
in black ink so that it can be photocopied, withneat handwriting, no crossings out or
corrections, no blank spaces and the
information fitting into the spaces provided on
the form. Finally the form will be signed anddated.
Curriculum Vitae
Curriculum Vitae are a list of a persons
personal information and work history.
Applicants complete CVs and somecompanies will ask for them instead of or in
addition to an application form. In essence a
CV is a personal advertisement and the layoutwill vary from person to person. However it is
common for CVs to have sections including
name, address, and date of birth, maritalstatus, qualifications, employment history,
work experience, hobbies, personal qualities
and the reason why you want the job.
Advantages of using a CV
Candidates can include information not
asked for on the application form
CVs can be prepared in advance andsent quickly
Applicants can make their CVs suit a
particular job and leave off things theydont want the employer to know
They save the firm the cost of printing
forms
Disadvantages of using a CV notapplication forms
Each applicant may set information out
in a different way making it more
difficult for employers to find andcompare
The information on the CV may not
include all the information the
employer needs
Applicants may have left out
information on purpose
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Equal opportunities
Today men and women generally receiveequal and fair treatment if they apply for them
same job. Decisions about who to employ are
no longer based on the gender, religious orethnic group. It is illegal for employers to
discriminate on the grounds of sex, race or
religion but despite this discrimination still
occurs occasionally within training, promotionand pay.
Most discrimination that still exists despitebeing illegal is based on misconceptions e.g.
Physically handicapped people are less
intelligent
Women with children will want more timeoff to look after them
Older people find learning new ideas more
difficult and work more slowly
Information sent to applicants should state
clearly that the firm is an equal opportunitiesemployer and applicants with overseas
qualifications have these recognised.
Advertisements should not be restricted in anyway that limits applications from any ethnic
group. Applicants and employees who feelthey have been discriminated against unfairly
on the grounds of race can ask the RaceRelations Board to investigate.
Advantages of equalopportunities Workers are more motivated if they think
they will be treated fairly Training opportunities are available to all
which improves standards throughout The most suitable person will be employedleading to better production and supervision
Disadvantages of equalopportunities The total wage bill is higher
Additional facilities may be required e.g.
ramps, crches, separate toilets Working practices have to be amended and
more flexible working hours allowed
Legislation
The Sex Discrimination Act 1975 madediscrimination illegal on the basis of gender of
marital status, and was updated in 1986 to
remove restrictions on the number of hourswomen could work; allowing them to do shift
work or flexi-time. These acts ensure
Advertisements must make use of job titles
that emphasise a particular gender
Job descriptions have to be suitable forboth genders
Interviews must not be conducted in such
a way as to give preference to a particularcandidate or involve interviewer prejudice.
The Race Relations Act 1976 madeselection on the grounds of ethnic group or
race illegal. Job advertisement must notindicate a racial, religious or ethnic
preference.
The Disabled PersonsEmployment Acts 1944 and 1958introduced a scheme to encourage the
employment of disabled people. Firms must
employ at least 3% of their employees from
those with a disability. It is argued thatwithout this form of positive discrimination,
disabled people would remain out of work.
The Disability Discrimination Act1995 provided the framework to prevent
discrimination against the disabled, not only in
recruitment or selection, but also in buildingdesign and maintenance. The Act also
widened responsibility to include taxi, bus, rail
and education services.
The Equal Pay Act 1970 stated thatemployees doing broadly the same job should
be paid the same rate of pay irrespective of
their gender. Other conditions of employmente.g. overtime rates, holiday entitlements. In
1983 the Act was extended to allow women to
claim equal pay for work regarded as being ofequal value.
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Interviews
To be successful and to give candidates the bestopportunity to show what they can do, firms
carefully plan interviews. Candidates are
greeted courteously and guided to a suitablequiet area to relax and ensure they look and feel
their best. Sometimes candidates are all call to
interview together, are briefed on the
arrangements and given a tour of the premises,before being interviewed in agreed order.
Depending on the nature of the vacancy,interviews may be conducted by an individual
or by a panel of several people. Senior post
applicants are generally always interviewed by a
panel that then make a decision together tominimise risk and share responsibility.
Applicants for junior posts may see a
departmental manager alone.
Whenever possible the interview should be
conducted in private, free from noises ordisruptions so that the interviewers and the
candidates can concentrate. A good interviewer
will: Adopt a suitable friendly manner showing
respect to all candidates Ensure that all questions meet the legalrequirements giving every applicant a fair and
equal opportunity to succeed
Not hurry and ensure there are no
interruptions Encourage candidates to fully answer
questions and give them time to do so Explore areas of concern raise by theapplicants answers on their application forms or
CV
Discuss important areas not fully covered byCVs or application forms
To meet the requirements of equal opportunities
legislation all candidates should be asked thesame questions giving each the opportunity to
demonstrate their knowledge, understanding and
skills. The responses are used to assess abilityand suitability to a common standard.
The average interview will last hour and is
split into three parts.1. The introduction lasts about five minutes
and is designed to relax the candidate and
ease their nerves. The interviewers will beintroduced and the reason for the vacancy
explained. The job description and ideal
person specification may be identified butthis is rare.
2. The main part of the interview may last
20 minutes where members of the panel will
ask the candidates questions in turn. Thispart of the interview is flexible to allow the
discussion to develop
3. The candidate should be given the
opportunity to ask questions and should betold by when the panel will have made a
decision and how the candidates will benotified.
Any tests that the employer wishes the candidate
to complete are normally conducted before theinterview so that the outcomes can be discussed
in the 2nd section of the interview. After the
interview the interviewers will spend timewriting up their notes about the candidate and
discussing the candidates strengths and
weaknesses. The candidates will base thedecision on the successful candidate on the
interviewers appreciation of the information
provided and their personal impression.
The key factor will be how the candidate meets
the job/person specification and how they will
fit in with other employees. Inevitably there issome subjective judgement involved on the part
of the interviewer but these get more accurate
with experience.
Most employers appoint for a probationary
period during which new employees aremonitored and assessed on ability, attitude,
and how they get on with other colleagues.
Candidates are only appointed permanently if
they successfully complete probation period.
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Contracts ofEmployment
Under the Employment Protection
Act 1978, once a person has been offered ajob they are entitled to receive a contractof employment. There are normallyfour sections to the contract
1. Details of the company, the employee,
the job title, and the date employment
started.
2. Details of the normal hours of work,
rates and frequency of pay, length and
duration of breaks and holidays, length ofnotice required to terminate the contract
3. Conditions related to sickness andinjury, pension provision and trade union
membership
4. Information on disciplinary or
complaints procedures for both employees
and the employer, plus the arrangementsfor dealing with them
The contract of employment will be signed byboth employee and employer to show their
acceptance of the conditions, and a copy is
issued to the employee to keep.
The most frequent way in which employment
is terminated is by mutual agreement between
employer and employee e.g. retirement orresignation. Normally the employee would
work a period of notice as set out in the
contract whilst the employer looks for areplacement. If the employer is dissatisfied
with the employee they may dismiss them
provided the disciplinary procedure is
followed.
If the business is short of work or orders, the
employee may be made redundant. Thisalso terminates the employee although theemployee may be entitled to compensation
based on their number of years employment
with the employer.
Training Schemes
If the workforce is to be kept up to date withtechnological developments they require
training to learn new skills and update those
they already have. Benefits of traininginclude More production more thus increasing
profitability for the employer Improved efficiency, confidence and less
industrial accidents and days lost ill
Multi-skilled workers increasing flexibility
within the workplace, job satisfaction, andallowing short terms absences to be
covered. Motivation of employees and promotion
preparation, plus employee retention
which reduces recruitment costs
Induction is training which introduces newemployees to a business. The faster new
employees are working at their full potential,
the better for the employer. Induction training
programmes usually include details of the History and management structure of the
firm
Review of the terms within the contract of
employment
Facilities, benefits and services available
Rules and safety procedures
Introduction to other employees and
supervisory staff
Site tour, parking, hygiene facilities etc
The government runsYouth Trainingschemes and modern apprenticeships ensuring
they receive proper training in their chosentrade or profession. There are also
employment-training schemes foradultsoffering off the job training for thelong term unemployed who want to learn or
develop new skills.
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On and off the jobtraining
On the job training involves workersbeing trained as they continue to do their jobe.g.
At the elbow is the most commonform of on the job training, and is wherethe new employee works with an
experienced employee and learns the job
by watching. This training method isrelatively inexpensive and less disruptive
than other methods but new employees can
learn bad habits from existing employeeswho arent willing to show new employees
the correct methods. This training is also
unlikely to be formally accredited by
certificates etc
Mentoring enables a new employee towork on their own with guidance from an
experienced employee trained to help
newcomers. New workers get to use theirinitiative but still have the safety of
someone to turn to. Coaching is a lesssatisfactory form of coaching where new
employees work under continuoussupervision. New employees are often
nervous and the method can lead to
resentment and poor working relationships
Some firms use a system of job rotation
where new employees work for shortperiods of time in each department to learn
how each interact and depend on each
other. This training can be fragmented bythe successive moves but improves
multiple-skills, which are beneficial in the
long run.
Off the job training occurs away fromthe employees normal place of work ranging
from training courses organised by employers
or college course with nationally recognisedqualifications (NVQs). Businesses often pay
to send employees on course that will provide
additional skills and knowledge. Otheremployees will attend evening classes at their
own cost to make themselves more valuable or
employable.
Appraisal
Appraisal occurs when an employees
performance and value to the company isassessed. The process is supposed to be non-
threatening and supportive measuring of
attainment against the persons job description.
The results of appraisal can help managers
determine future training needs and plan theirfuture workforce.
Employee motivation for appraisal comes from
the possibility of increased pay through
productivity bonus or promotion. Appraisal isusually carried out by a supervisor or manager,
which makes it difficult for them to be
impartial. The following people may appraise Line managers who know an employees
working practices and habits and so can make
an informed assessment but they may be seen asa treat by the employee Work colleagues who understand the full
demands of the job and the real worth of the
employee, but colleagues are reluctant to becritical of or inform on each other
Employees themselves through self-
appraisal. This is often the most accuratemethod subject to line manager validation,
as employees generally undervalue their
contribution
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Deductions
Unfortunately employees cannot take home allthe money they earn. Everyone has certain
allowances based on their personal
circumstances e.g. married; parent etc, afterwhich they have to pay Income Tax and
National Insurance on what is left after
deducting the allowances. The full amount
earned is called gross pay whilst the amountafter allowances, tax etc that an employeeactually receives is called net pay.
Statutory deductions are those which employees
are required by law to pay. The employer onbehalf of the government takes Income Tax
from employees whilst National Insurance helpsto pay for the Health Service. Both thesedeductions are made on a sliding scale, which
means if you are a high earner you have a higher
portion of your pay deducted than lower earners.
Voluntary deductions are those that you have
agreed can be taken from your wages. These
may include contributions by you to the pensionyou will receive when you retire, union
subscriptions, charitable donations, loan
repayments etc
Fringe Benefits
Fringe benefits are the additional rewards to anemployees net pay, which gives them additional
income without it being a permanent increase.
Fringe benefits can be in cash or in kind andthese can include
Company car
Staff discount Reduced price meals and drinks in a staffcanteen
Private health insurance Accommodation Profit share
Cash fringe benefits include
Bonus payments Commission on sales Staff discount
Advantages of fringe benefits They reward the employee for hard work They employee shares in the success of thebusiness and this encourages them to make it
more successful
Increased social status e.g. new car
Avoid higher rates of Income Tax Firms can off-set benefits against their profit
tax
Disadvantages of fringe benefits Employee has no choice in how they arepaid
They disguise actual earnings Benefits lost when employee moves job Changing earnings make planning for future
spending more difficult
Less successful employees jealous of highcommission earners and how work is allocated.
This can lead to poor working relationships Product discounts reduce profit on that
item
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Representing groups atwork
There are a number of organisations that represent
the interests of groups of workers.
Trade Unions speak as a group for sections of
employees in a business with common roles or
skills. Since they speak for groups they have more
bargaining power than individuals and employerswill listen to their views. Over the years
individual unions have joined together
(amalgamated) to increase their importance and
some have signed no strike agreements in return
for special benefits for their members. The overall
organisation that speaks for all trade unions is
called the Trade Union Congress
Trade unions are independent of anyemployers
and they
Negotiate with employers to get satisfactory
rates of pay for their members
Ensure adequate breaks, days off and holidays
Ensure working conditions meet the Health
and Safety laws
Negotiate with employers on behalf of
individual members with concerns or
problems Promote the equality needs of special interest
groups within the workforce e.g. women,
disabled
Arrange special deals for their members with
insurance companies, pension providers,
retailers, lawyers and estate agents etc
The best know employers association is the
Confederation of British Industry. Itrepresents
the interests of employers in discussions with the
government, helping to influence government
policies in employers favour. It also provideslegal, financial and economic advice to businesses,
negotiates with the TUC and arbitrates in disputes,
plus promoting the interests of British industry
abroad
Management structures
The function of management is to lead and
guide others within the organisation. Goodmanagers can do this and have strategies to
cope with planned and unexpected situations(crisis management).
Leadership decisions are usually taken by
senior managers and establish the long-term
aims and plans of the company. Leaders needto possess credibility by understanding the
business and persuading others that the
decisions taken are correct.
Managers liase with stakeholders, within and
external to the business to monitor and assessdevelopments. A stakeholder is anyone whohas an interest in the businesses performance.
This knowledge of the business and the
environment in which it operates ensures themanager will make more informed decisions.
The manager provides the officialcommunication and being in a position of
authority, other employees may be willing to
accept the managers decisions, especially
during tense negotiations.
To help with the process of management,
businesses can organised themselvesdepending on its communication channels
(hierarchy), how information is communicated
(chain of command), and who makes thedecisions (span of control).
A company with lots of levels in its hierarchywill have less effective communication as
more people will be involve in passing
information along the chain of command.
The more people, the greater the chance ofmisinterpreting the message and the longer it
takes to get from the sender to the intended
receiver. Flat organisations only have twolevels.
A wide span of control means the manager has alot of extra staff to supervise and guide and as a
result, less time for good decision making.
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Motivating yourworkforce
Keeping staff motivated is good for business
because Motivated workers are more productive and
higher productivity usually means higher
profits
Workers who are well motivated will provide
a higher standard of customer service, keeping
customers happy
Well motivated workers are likely to stay with
the company, growing in experience and value
to the company
If a business successfully keeps the workers it
has, it avoids the costs of recruiting and
training replacements.
Most people work to satisfy some sort of need and
Abraham Maslow developed a hierarchy of needs
that included motivators you cant buy (non-
financial motivators). Maslow suggested therewere five levels of need, with workers needing to
be satisfied one level after the next.
1. Food, drink warmth, clothing and shelter
2. Protection against danger, threat, depravation
3. Friends, acceptance, feeling like your ok
4. Reputation, status5. Realise own potential
Businesses meet these needs by providing a fair
wage, job security and safe working conditions,
social clubs, teams or outings, qualifications, job
titles, fringe benefits etc plus promotion
opportunities and the ability to use initiative.
A fringe benefit is a payment by giving a non-
financial gift. Fringe benefits include cars, health
care, uniforms, discounted products, travel
vouchers etc. It is often cheaper for an employerto provide fringe benefit good rather than money,
particularly if competitors or other local employers
cannot do so. A good fringe benefit will make an
employee reluctant to leave their job.
Money and the way it is paid can affect
motivation to work.
There are a number of payment systems
Time rate payment by hours worked
Piecework - payment according to items of
work produced
Overtime - extra pay, usually at a higher
rate, for extra hours above that normally
done
Shift bonus extra for working at night
Bonus single payment for meeting a
target
Profit share a percentage of the
companys profit shared amongst theworkforce
A loyalty bonus can be used to persuade long
serving workers to stay and unsocial hours
bonuses are often paid to employees who haveto turn up to work at odd hours or short notice.
TYPICAL EXAM QUESTION
You are the Human Resources Manager of a large
company when employees are unhappy and production
is falling. There is no chance of extra pay for the next
year and employees are threatening to leave. How
would you improve motivation and why would this help
productivity?
A good answer would suggest introducing
A pleasant room for staff break times
Subsidised meals or kitchen equipment
Written down contracts of employment
A company pension scheme
Team working or a workers committee
Advertising promotions internally Company newsletters or trips out
Staff discounts on products or a staff shop
Improving motivation encourages harder work and
reduces the number of employees leaving. This
increases efficiency, reduces costs and increases
potential profits.
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Health and Safety at Work
Safety in the workplace is important becauseaccidents lead to time off work and lost
production, reduce efficiency, and perhaps a
civil court claim by the employee against theemployer.
In recent years Act of Parliament has
strengthened the protection employeesalready had under common law. Employers
now look very carefully at building design and
the layout of work areas including installingsafety features e.g. sprinklers, smoke
detectors, fire exits, notices, fireproof furniture
etc. Workers also have to take some
responsibility and are expected to bereasonably careful at all times and co-operate
with employer health and safety rules. Often
employees have to attend training courses tolearn about how to use their equipment or their
workspace more safely.
The advantages of a safe working
environment are:
Fewer accidents at work
Les time lost through sickness or injury
Adequate facilities e.g. toilets, rest roomsare provided
Workers can appoint health and safety
representatives to negotiate with managers
for them
Workers are happier and tend to workharder and more efficiently
Easier to recruit employees than if theworkplace was dirty or dangerous
Ensuring a safe working environment is
expensive for employers. Where possible theywill pass these costs on as higher prices to
customers. Where this is impossible, they
hope that employees working harder willeventually reduce the amount of sickness they
will have to pay.
Health and Safety Risks from working with
computers
Illnesses attributed to computer use are on
the increase, particularly eye strain from
prolonged staring at monitors and screens,repetitive strain injuries to fingers and wrists
from keyboards and backache from incorrect
posture.
You should always sit at an adjustable chair
which good support to the back and allows
you to put your feet on the floor. Sufficientroom should be under the desk to allow free
leg movement. The height of the desk should
see your forearms parallel to the floor or
slightly raised during data entry and the mouseshould be in easy reach. Bright lights should
not reflect onto the monitor and you shouldnot be facing windows or other sources of
strong light. The top of the monitor screen
should be at eye level and between 40 and 80
centimetres away from the user.
Health and Safety (Display Screen
Equipment) Regulations 1992
This set out examples of good practice in the
provision of safe working conditions forcomputer users. The employer has the
responsibility to assess each workstation, the
equipment and its environment and to put anyfaults right. All screens must be adjustable
with brightness and contrast controls plus
height adjustment. Work should be planned
so that the user can take frequent short breaksfrom the screen, as they feel the need. All
employees must be trained in the correct use
of all workstation equipment and the use ofnon-reflective screens and adjustable
chairs/good posture. Employers are required
to pay for eyesight tests for employees whouse computer screens regularly in their duties,
and to make a contribution towards spectacle
costs. Lighting must meet European Union
standards for computer areas.
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Legislation
The Health and Safety at Work Act 1974
Under this Act responsibility for employee
health, safety and welfare is placed firmlywith employers as far a reasonably practical.
Employers are required to provide premises,
equipment and training that contribute to a
safe working environment. Workplaces mustbe clean and hygienic, without risks to health.
Safe equipment must be provided and
maintained, whilst hazardous substance mustbe handled and stored safely.
Commonly employers have a checklist of
good practice when designing workspaces.These include:
1. No trailing wires that employees can trip
over2. A secure counter or cup holder to prevent
drinks spilling
3. Fire door not blocked shut4. A method of moving large or bulky
objects so that the eye line is kept free and
the back is not strained5. Sufficient rest rooms or kitchens so that
employees dont have to eat at their desk6. Toilets with hand washing facilities7. Electrical sockets must not be overloaded
8. Suitable heating, lighting, and ventilation
The Factories Act 1961
This sets out the minimum basic standards
employees can expect, the minimumworkspace per employee, the minimum and
maximum room temperatures, the ventilation
and lighting required, specialist clothingneeded. This law applies to any workplace
where two or more people are employed doing
manual work. In 1963 the Offices, Shops and
Railway Premises Act extended theprovisions of the Factories Act to these
workplaces too.
The Fire Precautions Act 1971
This made it a law that all workplaces had a
fire safety certificate, issued by the local firebrigade officer after a full safety inspection.
Particularly employees must have adequate
time and escape routes to leave a building inthe event of a fire.
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The Health and Safety at Work Act
1974 forces employers to provide a safeworking environment in three ways
(PET)
Employers must provide and
maintain premises that are safe to work
in and that meet standards of hygieneand cleanliness without risk to health (P)
Employers must provide and
maintain equipment that is safe to use
including the handling and storage ofany hazardous substances (E)
Employers must provide all
information, training and supervision
necessary to ensure the health and safetyof workers (T)
For employees using computers
Do not eat or drink when using a
computer and protect the computer from
water and moisture Do not spend long periods working
on a computer without breaks Keep all cable tidy and do not unplugcables whilst the computer is switched
on Make sure the computer is on asteady flat surface away glare on the
screen Have a comfortable chair with a backto it, at a height so your eyes are at
screen top level
Employees must observe the following
Health and Safety Guidelines
Gangways and fire exit routes must
not be blocked with boxes, bins or filesetc
Fire door must be closed but not
locked and smoking banned where
necessary Electrical appliances should be
checked regularly by a trained expert Tall cupboards should not be stacked
with boxes and cupboard doors locked Floors must be kept clean and torn or
damaged floor coverings should bereplaced
First aid boxes must be clearly
displayed and fire drill procedures
regularly practiced Fans, fires and guillotines and
dangerous machinery should have
guards in place Noise, smell and other protective
clothing/footwear must be worn when
provided
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Databases
A database is any organisedcollection of data or information, but
the more information you store the
more space you need and the harderit is to find the information you want.
A computer-based database can store
vast amounts of information in a
small space and records can besearched for or sorted quickly and in
a number of ways. Calculations can
be made on the results of searchesand alterations made quickly and
easily. Backups prevent information
being lost and inputs validated or
verified more easily than withtraditional record keeping methods.
A database consists of a file, whichcontains many records (pages). Each
record contains a number of fields
(categories/columns) and each fieldhas individual data items. Databases
are designed either as flat file
databases where all the informationfor one record is in one large list.
The other form is a relationaldatabases, where records are farsmaller with links (like an index) to
information common to more than
one record e.g. in a flat file student
database, the details about eachstudents form group would be in
each students record whereas in a
relational database, there would be alink from each students record to a
single record containing all their
form information. The mainadvantages of relational databases
compared with flat file databases are
that they take up less storage space,
are more flexible and are quicker tosearch, but on the other hand they are
more complicated to set up.
Once you are clear about the purposeof your database, you have to decide
on the following
The fields (columns) you needand what name you will give to each
field The purpose of each field The advantages or possible uses
of each field
The data type (alpha, numeric,
alpha-numeric) for each field The length of each field
Many database records have key fields e.g.primary field, which is a unique field that
ensures the record can be, identified from allthe other records e.g. passport number or
building society account number or pupil
exam entry number. Records are
automatically sorted in primary key order.Primary keys that are used in more than one
table are known as foreign keys.
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Databases
The details of each person or product held on
a computer are records made up of a series of
fields. Each field is one piece of the
information that together makes up the wholepicture, the record. All records that are of
similar information e.g. student details aregrouped together to make a file
Each field is given a title called a field name
and each record has the same number of fields
as each other. To help with the controlaccuracy of data input, fields can be set to
only accept a certain type of data e.g.letters
(alpha) numbers (numeric) or a mixture of
both (alpha-numeric). The computer willreject data that does match the programmed
format in such a field.
To save time when entering information into a
database many organisations use codes which
gives shortened versions of the data e.g. F forfemale and M for male.
Advantages of coding1. Less data to type in so quicker
2. Less chance of typing wrong letter3. Less data so less storage space needed
Disadvantages of coding1. Users may not know code
2. Code may be wrongly de-coded
Advantages of databases1. It only takes a small space to store a
vast amount of data
2. The data can be processed quickly andeasily retrieved
3. Sorting in a particular field can change
the record display order4. Particular records can be selected by
filtering the database
5. Once it is created it is easy to maintainand keep up to date
Disadvantages of databases1. The necessary computer equipment
can be expensive2. Expensive to collect and set up the
database in the beginning
3. If the computer fails, the information isunavailable
4. Staff training is required to make the
most of what the computer database
can do
Its ok to have a database but the information
to put into it has to be collected. Normally
this is via a data capture form or aquestionnaire where the answers are in the
same place on every form. The questions
should be simple and easy to understand, oftenoffering a menu of possible answers to choose
from or boxes to tick. There are data capture
forms for all sorts of things e.g. membershipforms, new bank accounts, mail order
shopping.
Databases can provide firms with an
increasing amount of useful information aboutproducts and customers. Every time you use a
store card, its computer records you, where
you shopped, what time you visited and whatyou bought. Shops can use this information to
decide on opening hours, number of
checkouts, products to stock or re-order; and
to target shoppers with mail direct to theirhome.
File
Record 1
Record 2
Record 3
Field 2
Field 3
Field 1
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Validation andVerification
The word valid means suitable and when
applied to a computer system refers to thecomputer checking for itself that the way
the computer files have been prepared toreceive information is suitable. These
checks have been put into the computer
when the computer programme was
written.
A type check looks for matching data
types e.g. the computer wont accept anumber (numeric answer) if it has been
programmed to receive a letter (alphaanswer).
A range check looks to make sure that
the piece of data typed in is sensible e.g. it
may not allow a user to type in that theyare more than 120 years old
A length check looks to make sure thatthe length of a piece of data typed in, is the
same as the length the computer is
expecting e.g. it may only allow amaximum of ten letters for a users
password
Checking a users password matches to
the one they type in is another example of
validation because the computer does the
check.
The word verify means to check for
accuracy and when applied to a computersystem refers to the users of the computer
checking for themselves that the data they
have typed, or are going to type in, isaccurate and matches the original
document that they are copying in from
e.g. if they are copying in a persons bank
account details, they must make sure thenumbers match the numbers on the cheque
book.
Verification can be done by one person
typing in the information and someone
else checking it is accurate or by twodifferent people typing it in and the
computer checking they match. This is an
excellent method of ensuring accuracy butit is very time consuming and expensive
because everything has to be done twice.
Spell checking or grammar checking are two
other examples of validation
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Data Protection
Most modern businesses whatever their size use a
computer database to store information about their
employees, customers and suppliers. Less storage
space is required than paper based records,information can be found more easily and quickly
and fewer employees are needed to maintain the
records. As a result we expect increasinglyprompt service.
Information stored on a computer should be
accurate but errors can creep in
1. People with the same or similar name have
their information mixed up (transposed).
2. The information may out of date causing a
wrong decision to be made.
3. The information was wrongly entered onto thecomputer in the first place.
The Data Protection Act 1998
An updated version of the 1984 Act of Parliamentincorporating the European Directive that any
person, organisation, or business wishing to hold
personal information about people, must register
with the Office of the Data ProtectionCommissioner.
Under the Act individuals have the right to see acopy of any of the information an organisation is
holding about them on computer. A list of which
companies have registered under the Act is
available at all major public libraries. The register
shows the type of information a company has, the
purposes they use it for, where the information
was obtained, and to whom it may be disclosed. If
you write to a company they must tell you if they
are holding any data about you and provide you
with a copy.
There are some exceptions to your rights to see
data and these include data that is
Preventing or detecting crime or catching and
prosecuting criminals
Assessing or collecting taxes
Health, education or social work
Household, personal and family affairs
The Data Protection Commissioner will
investigate any company who breaks the principals
set out in the Act.
These controls on companies holding
data about individuals on computer include:They must
Obtain and process the information fairly,
lawfully and for specific purposes
Hold only the information that is adequate,
relevant and not excessive for the purpose.
Hold only accurate information and keep the
information up to date
Not keep the information any longer than
necessary
Do not disclose the information contrary to thepurpose it is kept for
Give individuals access to information about
themselves and correct any mistakes
Take appropriate measures to ensure the datais secure to prevent loss, damage or
unauthorised processing. Not to transfer data outside of the European
Union.
The Copyright, Designs and Patents Act 1989
This Act makes the copying or pirating of
computer software a criminal offence. This
includes making copies of software and running
software without the appropriate licences. It is
estimated that of the software currently in use
has been illegally copied. Maximum penalties
include 2 years in jail and unlimited fines.
The Computer Misuse Act 1990
This Act was introduced to protect against
computer hacking, computer fraud and computer
viruses. Hacking is the process of unauthorised
breaking into a computer system and caries a
2000 fine or six months in jail.
Viruses are computer programs that cause the
unauthorised modification of a computers
operating system with the intention of impairing ordisabling it. Fines for introducing viruses are
unlimited and jail sentences up to five years.
Firms who are caught out by computer fraud,
viruses and hacking often do not want the bad
publicity associated with having unsecured
systems and fail to prosecute offenders for this
reason, thus allowing them to get away with it.
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Office Layout
A cellular office is usually for one person andis small to medium in size with a door,
windows and outside walls. Managers,
accountants and personnel managers often usethem
Advantages of cellular offices
They provide privacy for those who may need
to discuss confidential items
They can be locked providing security for
money and documents when unoccupied.Quiet working environment with few
distractions from other workers
Confer status on the user as important
employees usually have their own office
Disadvantages of cellular officesMore difficult to supervise employees you
cant see
Take up more space and more building cost to
separate each work area with walls and doorsJunior staff are scared by the impression
cellular offices suggest for their occupant
Increased running costs with each roomindividually heated and lit.
More difficult to talk to colleagues in
adjacent offices which can slow downcommunication and reduce efficiency
More often than not open plan offices are usedfor sales departments and centralised services.
Staff with specialist skills can be grouped
together to increase efficiency and improve
the service they offer other departments.Bulky and noisy equipment can be located in
one area and soundproofed to avoid disturbing
everyone. Shared equipment e.g. photocopieris cheaper than buying one for each office but
personal services can be lost, time wasted
walking back and forth and an increase inbureaucracy e.g. photocopy permission slips
Some staff do not even have there own desk
but share with colleagues on a rota basis. Thisis known as hot-desking.
Many organisations use an open plan officelayout where large work areas are broken
down into smaller areas with the use ofscreens and sliding partions. Each area is
shared by a group of employees of various
levels of seniority, with shared heating,lighting, filing and storage.
Advantages of open plan offices
Staff supervision is easier and subtler whilst a
number of employees can be viewed at once.
Communication is easier and the decisionchain shorter. Employees can share ideas in a
relaxed forum
The layout o the office can be altered quite
easily by moving some of the partions, filingcabinets etc to reduce or increase the size of
the work areas as requiredEasier to organised shared services e.g. photo-
copying, accounts and wages
Disadvantages of open plan offices
Noisier to work in with more distractions
Less security and privacyLighting, ventilation and heating cannot be
regulated to suit individual tastes and needs
Managers may resent the loss of their statussymbol
Purposes built premises are ideal if you canget them as everything is in the right places;
all the facilities needed are there and
individual needs will have been
accommodated e.g. the needs of the disabledto comply with the Disabilities Act. On the
other hand relocating may cost you your best
employees if there are no transport links to thenew site, or the journey time is significantly
longer. Also your customers etc will need to
be told of your new address, which costs andthe rent on the new premises may be higher
than on the old place.
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INPUT DEVICES
An input device is a piece of hardware that enables datato be passed into a computer system. Some of these
devices are controlled manually.
Keyboards
This is still one of the most common ways to enter data
into a computer system, e.g. in word processing.
Similar to a typewriter, but with extra keys that perform
functions dependent on the software in use. A variationis an overlay keyboard that is flat and waterproof and
can be fitted to a till, e.g. in a bar. In such an
environment it would be easy to clean and remain
undamaged by spilled drinks. Some of the keys can be
programmed to represent special codes, e.g. staff code
Touch Screen
A device used in many fast food shops it displays a
number of items on a screen and the user simply'touches' an item to make a choice. The point of contact
is detected and the choice registered by the computer.
Touch screens are ideal if there are a limited number of
options available. Again this device, like the overlay
keyboard, can be easily cleaned and potential damage
from spilled food or drink is avoided. It can also be
re-programmed if choices are changed.
Scanner
Most commonly, scanners scan a picture from paper
and display it on screen. In other words it creates a
digital image of a picture. This digital image can then
be edited or re-sized in any way we want. A digitalimage of text can also be taken. This can then be
converted into a text file and edited in the normal way.
Mouse
This is basically a pointing/selection device. By moving
the mouse a small ball is rotated on the underside. This
is interpreted by the computer as directional data for the
pointer on the monitor. By using the buttons on top of
the mouse a user can start an action, e.g. begin a word
processing package, or make choices, e.g. from a drop
down menu. In a drawing package movement can be
interpreted to create images.
Graphics Tablet
This device consists of a flat surface and a special pen.
Using the pen to 'draw' on the tablet an artist can watch
his picture actually being created on the screen.
Handling the pen is more natural for some people than
trying to draw with a mouse.
Digital Camera
Store pictures on a memory card, not on film. Theimages can then be transferred directly to a computer
where they can be edited using graphics software.
Web cams
Can be left permanently attached to the computer
collecting images, which, together with voice data, will
enable video conferencing to take place.
Microphone
Used where the input is any sort of sound, particularly a
voice. Voice recognition software can collect the data
input and convert it to written words entered into a
word processing package. At the present time this
software is still in its infancy. It has to be trained to the
user's voice and input has to take place under quietconditions to avoid background noise.
Some input systems can be automated. This reduces
the amount of time it takes to enter the data and also
the number of people required to enter it.
Optical Mark Recognition (OMR)
Probably the most widely recognized use for this
method of data entry is the National Lottery. Here
numbers are selected on a pre-printed form. Each
possible number has a space on the form and is
selected by crossing it out with dark coloured ink.
The form itself is printed using a pale coloured ink
(called fade-out ink). The form is then passed
through a machine to 'read' the selected numbers,
and everything else is ignored. Other applications of
this method include multiple-choice examinations
where there are only a limited number of answers
and the student selects the number of the answer
that he/she thinks is right. The system then goes on
to calculate a total score.
Bar Code Readers
Bar codes can be used in many situations. They have
been used not only for product information in shops but
also on railways to keep track of where the vehicleswere. In shops the bar code is scanned and the reflected
light is detected. The computer converts this to a string
of numbers. The last number is a check digit calculated
from all the others and the computer repeats
the calculation to make sure the code has been read
properly. If it has then the reader makes a beep sound.
Magnetic Ink Character Recognition (MICR)This method uses a special set of characters and is
used by banks to help process cheques quickly andaccurately. Data is printed on the bottom edge of the
cheque before it is sent to the customer and when the
cheque has been filled in, the amount is also added.
These characters can be magnetized and the pattern
recognised. This gives accuracy and speed when
sorting the cheques but also security as the characters
cannot be altered using normal ink.
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Optical Character Recognition (OCR)
This works by using a reader/scanner to detect the
pattern of light reflected from a document written on
paper. The computer identifies the pattern of eachindividual character in the text and converts the 'picture'
of the page into a document that can be edited in thenormal way.
Magetic Strips
These devices can be used to store, by means of
magnetic patterns, a limited amount of information onto
a plastic card. This might simply be an account numberand an expiry date. When the card is 'swiped' the
patterns are read and the account holders information
can be accessed. As with bar codes check digits can be
used to ensure that data is read correctly. Exposure to a
strong magnet can corrupt the data held on the strip and
the card then becomes unusable, data has to be typed in
by hand
Smart Cards
A smart card looks like a magnetic strip card but isdifferent in that it contains a small memory circuit. This
means that data can be written to the card, as well as
read from it, when it is swiped. Some companies for
their reward schemes are using cards like this, to store
data about the number of points a customer
accumulates. When these points are exchanged for
products the data on the card is changed to show the
new total.
STORAGE DEVICES Expansion cards equipped with a range of
electronic components including chips and used to
add extra functions to a computer eg sound cards
CD/DVD Combo drive - allows the computer
to take information from a CD or DVD, or write
information to them
Random access memory, the volatile
temporary storage medium for data. Data on RAM
can be read, changed and added to and is used
when the programs are running on the computer.Data stored on the RAM is normally lost when the
system is switches off. Read only memory, the
chips built into a machine that store data
permanently. Data can be read from ROM chips
but cannot be changed or added to. Programs built
into a machine on ROM chips are called firmware
as opposed to disk-based software.
Note: Floppy discs are considered too old fashioned
OUTPUT DEVICES
Monitors
Can be flat square tubes, trinitron or liquid crystal
(LCD) and this can make all the difference to the user.
The curved planes of the FST encourage screen
reflection, whereas the mesh of wire make up of the
trinitron screen allows light through without reflection.
LCD screens have allowed screens to become thinner
and refresh quicker. Software now allows for the
monitors to manage the colour display, so that thecolours viewed will match the colours scanned or
printed. Screen dimensions are normally 34cm to 53cm
across the diagonal, but extra large screens up to 107cm
are available for displays or presentations. Monitor
resolutions are usually 1600x1200.
Speakers
Either built into the computer or external, plugged
into the Input/Output port.
Modems
Internal or external communication devices used to
send and receive data, and really input, processing and
output devices. The name means
modulator/demodulator, which refers to the way signals
are received via a telephone line or satellite. Broadband
modems make more room for signals and this speeds up
data transfer and allows both telephone and computeruse on one line
Printer
The most common are ink jet and laser. Some dotmatrix printers are used for long print runs. Ink jet
printers are cheap to buy and are capable of printing
high-resolution images, but are slow and never give as
sharp an image as laser printers, because the ink is stillliquid when it hits the paper; indeed specialist paper is
required.
Laser printers are cheap for standard mono prints, but
are expensive for colour work. If a single user is using
the printer, a print rate of 4 pages per minute is
adequate, but if a whole office is using one printer,
something faster will be required. Print speed is
measured in pages per minute (ppm)
Most standard printers now fall into a resolution range
of 300-1200 dpi. If the colour work is large in size, a
bubble jet printer is the most practical solution, whilst
many CAD systems require a pen plotter.
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Networks
Electronic Data Interchange (EDI) describesthe use of computers to exchange information.
For this, computers need to be linked in the
form of a network. This has advantages forbusiness, e.g. some documents can be
transmitted from one business computer to
another via a data link instead of on paper.
The technology company Oracleprides itselfon being almost completely paperless.
Communication, wherever possible is by EDI.
Types of network:
client / server a powerful file server with
a large hard diskholds software and user
files. Workstations access the data on theserver in order to operate.
peer to peer computers are linked
together in small networks and each has itsown hard disk. Files on one computer can
be accessed from other computers on the
network.
Client / server networks
There are three types of network: star, bus andring.
Computers can be linked in small areas. These
are called Local Area Networks (LAN).
Sometimes they are linked over manythousands of miles. These are Wide Area
Networks (WAN).
Advantages of Local Area Networks are that:
a user can access his / her own work from
any workstation;
individual workstations have lower
specifications than standalone computers,
so are cheaper; it is easier to backup all the data on the
network at once rather than one computer
at a time; all users can access not only all data on the
server but also external sources such as the
internet; information can be communicated between
users.
Disadvantages are that:
building a network can be expensive due
to the cost of servers and the data links; if the server crashes all computers are out
of action.
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The Impact of ICT onhow we work
The biggest chance in technology has been
personal computers. Computer screen are
no longer just confined to shops and offices.
The ICT revolution has allowed businesses
to process much larger amounts of
information in far shorter periods of time
and with fewer staff. The results can then be
stored, represented in written form or
graphs, and transmitted at speed around the
world by electronic communications.
Changes in customer tastes and fashion
happen far more regularly and businessesneed to be producing and selling what
customers want to buy. New technology is
also making electronic products cheaper,
smaller and more advanced, plus society is
more aware of natural disasters and the need
to practice dangerous activities or predict
natural disasters e.g. earthquakes. In a
fraction of the time taken before computers,
and subject to the rules in the Data
Protection Act, large databases of data can
be stored and spreadsheets used to analyseit, model it and make predictions from it as
to what might happen in the future.
3D designs can be created using specialist
Computer Aided Design software and
products built more efficiently using
Computer Aided Manufacture. Other
specialist software is used to view and book
holidays, buy products direct over the
Internet, scanning bar codes in supermarket
to aid stocktaking and checkouting usingEPOS (Electronic Point of Sale) in shops.
EFTPOS (Electronic Funds Transfer at the
Point of Sales) is used to automatically
transfer funds from a customers debit or
credit card into the shops bank account,
when goods are purchased. This saves the
shop counting and banking cash at the end
of each day, from accepting cheques that are
not honoured, and it gets the money into the
shops bank account more quickly than cashor cheque. New CHIP and PIN systems are
designed to lessen credit card fraud.
CAD/CAM/JIT
Computers use CAD and CAM to carry out
design tasks much more quickly andefficiently, particularly those which are
complex and repetitive. This allows firms to
save on labour costs and increase
productivity (output per ), improve product
quality and consistency, and make fewer
mistakes. Computers also operate without
meal or rest breaks.
Computers have allowed many firms to take
advantage of new practices that require close
monitoring of methods and information.The concept of Just-In-Time production is
dependant on being able to obtain new
stocks of materials precisely when they are
required. Computerised stock control allows
the firm to manage its stock levels more
effectively saving money on unnecessary
items, waste and storage space; whilst
computer aided warehousing uses conveyor
belts to minimise labour handling costs.
One of the more recent developments hasbeen the big retailers customer loyalty card.
By scanning a customers card the retailer
(shop) is able to collect information on each
customer and what they normally buy. The
customer is offered small discounts on these
products to encourage them to keep
shopping at the store whilst the retailer can
target them with carefully selected
advertising.
Despite the benefits IT has brought many
people are scared of change and reluctant to
use all the facilities on offer. The is often
because
Workers think they wont cope with the
equipment and that the old ways are fine
Feelings of insecurity
Altering employment patterns and
working conditions
Loss of status and power for middle
managers who used to make thedecisions the computers make now
Ignorance of the scope or role of IT
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