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People in Business
Unit 1
| Term | Definition |
|---|---|
| Stakeholders | people who are affected by how a business is run. This includes:the entrepreneur,investor, employees, customers etc, |
| An Entrepreneur | a person who spots an opportunity in the market and takes the initiative to set up a business to make money from that oportunituy. For example Cully and Sully |
| Investor | the person who gives capital to the entrepreneur so he/she can set up and run their own business. Allied Irish banks |
| Equity Finance | when the investor gives the entrepreneur capital in return for a share in the business. The return is an annual share of the profits called a dividend. |
| Debt Capital | the financial institution or bank lends money to the entrepreneur which he/she expects to be paid back with interest. |
| Employer | A person who hires others to work for him/her. Aer Lingus |
| Employee | a person who works for an employer in return for a wage. They carry out essential tasks to make the business a success. |
| Intrapreneurs | Employees who give their employers ideas to make the business even more successful. |
| A commercial business | is one which has the aim of making a profit, e.g. Dunnes Stores, Ryanair, Apple |
| A non-commercial business | is an organisation which exists for some other reason than making a profit, i.e. to provide a service e.g. charity (Focus Ireland),SVP St Vincent De Paul, state agency (Solas, formerly known as Fás) |
| Suppliers: | These businesses provide the firm with the goods and services necessary for their success. |
| Employees/Workers: | These are the people who carry out the instructions of the managers. By law, employees have rights and responsibilities. |
| Society | Refers to both the local community where the business is located and the wider society in which it operates (nationally and globally). When Gateway moved production from Ireland, 900 jobs were lost in the local community. |
| Government | The rulers of the country have to collect taxes and regulate the activities of business within their boundaries. (Corporation Tax) |
| Interest groups | This is an organisation which represents the common viewpoint, objectives and goals of a particular group. They seek to influence decisions and policy affecting their members through negotiation, lobbying and possibly legal action. |
| Example of Interest groups | -ICTU (Irish Congress of Trade Unions) -IBEC (Irish Business and Employers Confederation) - IFA (Irish Farmers’ Association) - CAI (Consumers’ Association of Ireland) |
| A co-operative relationship | is one where joint action or effort is required to enable people to work and operate together so that everybody will benefit. It is a win-win relationship. |
| A competitive relationship | means the parties are on different sides or have different objectives. Firms compete on the basis of price, quality and labour. |
| A Legislative solution | is a solution that has a clear Legal basis. Normally this involves applying the provisions of a relevant law, or involving an agency set up by law to resolve the issue. |
| Examples of legislative solutions | 1.)Use a State Conflict Resolution Agency: State agencies that enforce the law and resolve conflicts. E,g Small claims court, Labour court.2)Use the Law: Laws that assist in resolving conflict between different stakeholders E.g. Unfair dismissals act 1977 |
| Non legislative solutions | is a solution that does not rely on direct application of the law and is generally achieved through negotiation and compromise |
| Examples of non legislative solutions | 1.) Talk – Try to see if a solution can be reached. If not, then some negotiations may be required. 2.) Seek help from a Third Party outside the business, such as industry trade associations. They will be able to provide Arbitration. |
| Arbitration | Arbitration means getting a third party to listen to all sides and recommend a solution |
| Lobbying | To try and gain support for something among the members of a particular group |
| Consent to contract | A person must enter into a contract of their own free will. They choose to enter a contract. There should be no use of force/pressure, lies ,misrepresentation. |
| Intention to contract | the persons must want to create legal relations: In a social and family situation there is no legal intent but in a commercial situation there is legal intent |
| Capacity | The power of a natural person to enter into a contract. The person is legally able to enter into a contract. |
| Ultra Vires | beyond one's legal power or authority |
| Legality of form | Contracts must be of the correct legal format e.g. Hire Purchase agreements should be in writing. |
| Remedies of a breach of contract | Sue/Seek for damages Rescind the contract (Cancel) Seek specific performance |
| Condition | This is a fundamental part of a contract, if broken, the contract is deemed to be null and void. ESSENTIAL ELEMENT |
| Warranty | NON ESSENTIAL ELEMENT of a contract. This is a less important part of a contract and if broken, the contract may not be ended but the injured party may sue for damages. |
| Agreement | Offer and Acceptance An Offer is a proposal to give or to do something and when accepted there is said to be agreement. Offer & Acceptance can be done by verbal, written or by action |
| Sale of goods and Supply of Services Act 1980 | This sets out the Legal rights of consumers when they purchase goods The responsibilities of retailers Legal remedies available |
| Merchantable quality | Reasonably durable to do what they are meant to do even if they are sale items. Price is also taken into consideration)` |
| Fit for the purpose | Must do what they are sold as being capable of doing and what they were designed for |
| Must be as described | Must match description set out by the salesperson/brochure/sample/demonstration. Should be no misleading descriptions/packaging or samples provided |
| Consideration | Each party in a contract must give something of value to the other party. Something of value must be exchanged. |
| Elements of a legally binding Contract | Agreement (Offer + Acceptance) Consideration Intention to Contract Consent to Contract Capacity to Contract Legality of form Legality of purpose |
| Legality of form | Contracts must be of the correct legal format e.g. Hire Purchase agreements should be in writing |
| Legality of purpose | A contract should not be for a purpose which offends the law of the land (Not for an illegal purpose) e.g. – illegal drugs / tax evasion / illegal weapons |
| TERMINATION OF CONTRACT A contract can be terminated (Ended) by: | 1. Performance - Both parties carry out the contract fully 2. Frustration - E.g. Death 3. Agreement - Both agree to cancel contract 4. Breach - One party breaks a condition (essential element) of the contract. |
| Invitation to treat | Goods on display are merely an invitation to the buyer to make an offer to buy but are not necessarily an offer to sell. |
| Caveat Emptor | LET THE BUYER BEWARE The principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made. (Common Sense, Eg - Garage sales, checking that the car is in good condition before buying) |
| THE CONSUMER PROTECTION ACT 2007 | This law protects consumers from unfair business to consumer commercial practices. It sets out the law concerning false or misleading promotion of goods for sale |
| Remedies available for the consumer | 3 Rs Refund, Repair, Replacement |
| CCPC | Competition, Consumer Protection Commission. This is an agency that provides advice to consumers. |
| What is industrial relations | Relations between the management and employees in an organisation |
| Causes of conflict | *Conflict over Pay and Pensions * Conflict over working conditions (Working hours, Holidays, Health & Safety) * Conflict over redundancies or Dismissals * Discrimination of staff * New technology & work practices that may threaten workers’ jobs |
| Trade Union | Organisations that represent the views and interests of employees in matters concerning pay and conditions of employment. E.g. TUI Teachers union of Ireland SIPTU Services, Industrial, Professional & Technical Trade Union (Ireland) |
| Benefits of a Trade Union | Protect employee rights Better pay and conditions Skilled negotiators Provide advice to members National voice through ICTU Employer benefits are Simplifies communications, saves time and money |
| ICTU Irish Congress of Trade Union | Speaks on behalf of all trade unions Negotiates with the government on behalf of unions Provides training/education to unions and members Give support to trade unions for trade industrial action - Strike |
| Relativity claim | Where one group of employees want same or higher pay as another group of employees(Not the same job) e.g. teachers, gardai and nurses are paid similar amounts if one group gets a rise, others will want the same. |
| Cost of living claim | They want wages to keep up with inflation (prices of goods/services go up) |
| Comparability claim | Employees want similar pay and working conditions to workers doing comparable/similar work in a different company. |
| Productivity claim | Employees look for a pay rise in return for greater work done (increase in output/efficiency) |
| Primary Picketing | This takes place at an employer’s place of business and involves employees and trade union officials walking up and down outside the workplace. |
| Secondary picketing | This occurs at a place other than an employer’s place of business. and involves employees walking up and down outside . |
| Industrial Relations Act 1990 states that | * Disputes must be for a legitimate reason *Majority approval in a secret ballot is required . * At least 1 weeks notice must be given * Immunity exists for employees * Unofficial disputes are illegal |
| Official Strike | occurs when members of a union in a workplace refuse to do any work. - All out strike means all union members in an organisation are ordered by the ICTU to stop working and leave the premises. |
| Work- to- rule is | Employees only undertake the exact jobs written in their job description or contract of employment. * No flexibility is provided by staff to meet urgent or unforeseen requirements. - Workers follow the rules of their employment contract |
| Overtime ban | Workers refuse to do overtime. - This can cause major disruption, leading to lost orders and lost sales, especially at peak trading times e.g. a toy shop at Christmas, an airline during holiday time. |
| Token Stoppage | Stopping work for a short period of time – This is to make a point that you are willing to carry the threat further – official strike, if agreement is not reached |
| Wildcat Strike | Workers suddenly call a strike and walk out of work No vote and employer notice for the employer. Usually occurs when something unexpected has happened in the workplace without warning. It is Illegal |
| Sympathetic Strike: | Workers who have no problems with their employer go on strike to support their colleagues who do have a problem. No vote/notice to employer. It is Illegal |
| Conciliation | This involves the WRC assisting employers and unions in sorting out differences and negotiating a solution themselves. Talking about problem. |
| Labour Court | Also known as the Court of last resort for industrial relations |
Created by:
mcurran
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