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People in Business 1

What Do These Notes Cover?

To have a look at the mind map for this resource, please follow this link.

Introduction

It is often said that the most valuable resource of any business is its people. This is not difficult to understand: without people, most businesses simply would not survive. As the structure of UK industry has changed over the years, fewer people are now employed in jobs in farming and manufacturing, with many more employed in the service sector. Many of these jobs are dependent on the qualities of people to be able to succeed.

This is the first of two resources that will look at some of the different roles that people play in a business and how businesses organise people to meet their commercial needs.

A street filled with marching crowds

People - so important to a business! They come in all shapes and sizes and carry out many different roles. Copyright: David Mackenzie, from stock.xchng.

It is important to remember as you go through this resource that businesses do not want people because they happen to be 'nice', but because they perform a function for the business. Different people perform different functions in a business but ultimately, the business requires people to carry out its tasks.

Economists have a special name for the demand for labour. The demand for people in a business (labour) is called a derived demand. This means that people are not wanted for their own sake but for what they can contribute to the business.

This first resource looks at the following areas: