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

Internal recruitment can significantly impact businesses in various ways:

• Cost-Effectiveness: It is usually cheaper than external recruitment, saving costs related to advertising and agency fees.

• Employee Morale: Promoting existing employees can boost morale and motivation, reinforcing the belief that hard work can lead to advancement within the organization.

• Knowledge of the Business: Internal candidates bring a pre-existing understanding of the company's culture, values, and operations, which can aid in a smoother transition and quicker adaptation to the new role.

• Retention of Talent: It helps in retaining talent, reducing employee turnover as current employees see opportunities for growth.

• Skill Gaps: However, there may also be disadvantages, such as limited fresh ideas and perspectives, potential inability to fill higher positions, or creating jealousy among coworkers who were not promoted.

• Enhanced Customer Satisfaction: A good quality management system ensures that customer needs and expectations are met, resulting in increased customer satisfaction.

• Improved Operational Efficiency: It allows organizations to streamline processes, reduce waste, and improve resource utilization, ultimately enhancing productivity.

Quality indicators in the financial function include:

• Accurate Financial Reporting: Ensuring that reports are precise and timely provides stakeholders with reliable information for decision-making.

• Cost Management: Monitoring and controlling costs effectively is key to maintaining profitability and aiding in strategic planning.

• Budget Variance Analysis: Regularly assessing the differences between budgeted and actual performance can highlight areas for improvement.

1. Quality Assurance: This concept is applicable as ECM ensures regular checks during and after production to maintain the quality of their carpets.

2. Quality Management: The CEO's involvement in using different techniques to improve product quality indicates a commitment to implementing effective quality management practices.

Customer satisfaction plays a crucial role in Total Quality Management (TQM).

• Positive Business Growth: High levels of customer satisfaction lead to repeat business and referrals, contributing to growth and sustainability.

• Innovation and Improvement: Collecting feedback from satisfied customers can help businesses innovate and continuously improve products and services to meet evolving customer needs.

However, potential challenges can arise, such as:

• Resource Allocation: Businesses may need to allocate significant resources to monitor and improve customer satisfaction, which can be costly and time-consuming.

• Diverse Customer Expectations: Balancing different customer preferences and expectations can be complex and sometimes conflict, requiring careful management.