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

Internal recruitment can have several positive and negative impacts on businesses.

Positive Impacts

1. Cost-Effective: Using internal recruitment can save costs associated with external hiring processes, such as advertising and agency fees.
2. Employee Morale: It can boost morale among existing employees, as they see opportunities for career advancement within the organization.
3. Familiarity with Company Culture: Internal candidates are already familiar with the company's culture and operations, which can lead to a smoother transition into the new role.

Negative Impacts

1. Limited Candidate Pool: Relying solely on internal recruitment can result in a limited pool of candidates, potentially missing out on fresh perspectives and skills.
2. Internal Competition: It may breed competition among employees, which can negatively affect team dynamics and morale if not managed properly.

1. Increased Customer Satisfaction: A good quality management system ensures that products and services meet customer expectations, leading to higher satisfaction and loyalty.

2. Operational Efficiency: Implementing quality management processes can lead to improved operational efficiencies, reducing waste and increasing productivity.

Quality indicators in the financial function typically include:

1. Accuracy of Financial Reports: This refers to the precision of financial statements and reports provided, which ensures that stakeholders can trust the information.
2. Timeliness of Reporting: The speed at which financial information is produced and disseminated can indicate the efficiency of financial processes. Timely reporting supports effective decision-making.

1. Quality Assurance: Excel Carpet Manufacturers check the quality of their carpets during and after production, indicating a commitment to maintaining high-quality standards.

2. Quality Management: The CEO uses different techniques to improve the quality of their product, showcasing an active approach to managing and enhancing quality throughout the production process.

Positive Impacts

1. Customer Loyalty: High levels of customer satisfaction often translate into loyalty, which can lead to repeat business and stable revenue streams.
2. Business Reputation: Satisfied clients can improve a business’s reputation through positive word-of-mouth and referrals, attracting new customers.

Negative Impacts

1. Over-reliance on Feedback: If businesses overly rely on customer feedback to drive every decision, it may stifle innovation and lead to a reactive rather than proactive approach.
2. Resource Allocation: Meeting customer satisfaction can sometimes take precedence over other strategic objectives, leading to misallocation of resources and potential neglect of critical areas in the business.