Read the scenario below and answer the questions that follow - NSC Business Studies - Question 3 - 2020 - Paper 1

Internal recruitment can have several impacts on businesses:

• Cost-Effectiveness: This method is often less expensive than external recruitment as it reduces costs related to advertising, interviewing, and onboarding new employees.

• Familiarity with the Company Culture: Internal candidates are already familiar with the company’s culture and workings, easing their transition into new roles, which can lead to less turnover.

• Employee Morale: Promoting from within can boost employee morale, showing that there is potential for career advancement. However, it can also cause dissatisfaction among employees who may have expected promotion.

• Limited Pool of Candidates: Relying solely on internal methods can limit the diversity and fresh ideas that external candidates might bring. It could stifle innovation over time.

• Training Needs: Employees may require additional training to fulfill new responsibilities, which can temporarily disrupt productivity.

Overall, while internal recruitment can be advantageous, it is important for businesses to balance it with external recruitment strategies to ensure a diverse and innovative workforce.

• Improved Customer Satisfaction: A good quality management system ensures that the products or services meet customer expectations consistently, leading to increased customer loyalty.

• Enhanced Operational Efficiency: A quality management system promotes better processes, which can lead to reduced waste and improved efficiency within operations.

The quality indicators of the financial function may include:

• Accuracy of Financial Reports: Ensuring that all financial documents are precise and reflective of the true financial position of the company is crucial.

• Timeliness of Reporting: Financial information should be prepared and reported in a timely manner to support effective decision-making.

• Compliance with Regulations: Adhering to relevant laws and regulations is a key aspect of financial quality, helping to avoid legal repercussions.

• Financial Ratios: Monitoring key financial ratios such as liquidity ratios, profitability ratios, and solvency ratios helps to gauge financial health.

• Quality Assurance: The scenario states that "Excel Carpet Manufacturers check the quality of their carpets during and after the production process," highlighting the importance of ensuring proper quality at every step.

• Quality Management: The CEO of ECM "uses different techniques to improve the quality of their product," indicating a proactive approach to managing quality.

Total client/customer satisfaction is a critical element of Total Quality Management (TQM) and has numerous impacts on large businesses:

Positives:

• Increased Loyalty: Satisfied customers are more likely to return and recommend services/products to others, boosting sales and market share.
• Enhanced Reputation: High customer satisfaction levels enhance a business's reputation, attracting more customers and possibly allowing for premium pricing.
• Feedback for Improvement: Satisfied customers provide valuable feedback, which can be used to improve products and services.

Negatives:

• Resource Intensive: Focusing too heavily on customer satisfaction can lead to increased costs as businesses might have to invest significantly in customer service training and systems.
• Unmet Expectations: High expectations from customers can sometimes lead to dissatisfaction if services/products fail to meet these expectations, impacting overall satisfaction negatively.

In conclusion, while total client/customer satisfaction is paramount for success in TQM, businesses must manage resources effectively to sustain high satisfaction levels without incurring excessive costs.