Unit 1 case study

Applied Business question 2014 will have 1 question on Unit 1

32 minutes o answer the case study

        20 marks = 8 minutes

30 marks = 12 minutes

40 marks = 16 minutes

Answering case study questions

1.  Define key words in question

2.  State

3.  Explain

4.  Quote

5.  Apply the case

Unit 1 case study questions:

Year	Case	Question
2009	RES Ltd	C
2004	Peter Palmor	B

 

2009

RES Ltd

C

C.

(i)

Non-legislative – not involving law or legal bodies

Legislative –involving the law

Industrial relations (IR) – relationship between employers and employees

IR Problem:

Staff pay cut

‘it will be necessary to implement a 10% pay cut’

Non-legislative

·         Negotiate

This is when employer and employees, with unions, formally discuss the problem in hand and try to come to a compromise on the industrial relations problem.

‘The staff contacted Trade Union to express their concern’

Once staff have discussed the problem with their union Liam and staff (represented by union) should try to compromise.  Liam should explain that he does not want to make anyone redundant.  Maybe Liam could reduce the pay cut a little and staff could realise the financial demands on Liam.

Legislative

·         Arbitration

Once all channels have been used an industrial relations problem can be brought to the Labour Court, established under the Industrial Relations Act 1990, who will listen to both sides of the case and give a binding decision.

‘Pay cut with immediate effect’ ‘action needed swiftly’

As Liam wants to implement this quickly he will want to resolve the problem as fast as possible.  Once Liam and employees try to resolve pay problem with an Industrial Relations officer and if this is not accepted they can then go to the Labour Court and their decision will be binding.

(ii)

Industrial Conflict -  when a competitive relationship exists between employer and employee

·         Talk it out

Employers should speak to the employees about problems.  This can be done:

o   Formally

Holding a meeting

o   Informally

Speaking to staff on a regular basis

‘Liam has e-mailed all staff’
 

Liam emailed staff about the pay-cuts, this is not the correct method of communication to use.  Liam should have spoke to the staff face to face.

·         Pay fairly

Employees want fair pay for a fair days work.  This is particularly important in the current economic situation.

‘staff .....express their concerns about  proposed pay cuts’

Liam should have spoke with staff and tried to come up with an alternative cost saving measure for the staff other than a pay cut.

·         Treat staff fairly

Employees like to have a voice in their place of employment.  Employees should be treated with respect and dignity.

‘A trade union meeting has been organised to discuss staff concerns and agree a response to the pay cut proposed by Liam’

Liam should facilitate staff with the opportunity to be involved in decisions.  He could do this by allowing staff into the decision making process at board level.

2004

Peter Palmor

B

Summary Report

Title of report: Challenges encountered by Peter Palmor

Prepared by: Ms

Prepared for: Mr Peter Palmor

Terms of reference:

To prepare a report on Challenges encountered by Peter Palmor and identify remedies for the challenges he is facing

Aims:

·         To identify remedies for the challenges Peter Palmor is facing

Body of report:

Employees

·         Work for an employer day to day.

·         Carry out essential tasks needed for the business success

·         They can also give ideas to the employer to make the business successful

Investors

·         Give financial support to business

·         Provide the business with capital

·         They expect financial return

·         Bank, shareholders and government are examples of investors

Suppliers

·         Supply the business with goods

·         The business need reliable suppliers to operate efficiently

·         Business rely on suppliers for stock control

Conclusions:

Peter Palmor’s main challenges are with employee’s, investors and suppliers

Recommendations / remedies:

Employees

·         Pay fairly

·         Do not discriminate

·         Treat fairly

·         Communicate regularly

Investors

·         Give them a fair financial return

o   Bank – pay interest on loan

o   Shareholders – pay dividend

o   Government – create jobs and pay tax

·         Be open and honest regarding financial position

·         Keep all financial accounts in order

Suppliers

·         Pay them on time

·         Remain loyal with suppliers

·         Place orders giving suppliers enough lead time to deliver

Signed:_________________________

Date: 15/01/2014