The document discusses how companies respond to financial deficits through various cost-cutting measures like reducing employee wages and headcounts. This may involve flattening management hierarchies by eliminating some management levels. Companies may also outsource specialized work temporarily to reduce long-term staffing costs. The roles and responsibilities of key company departments like Purchasing, Human Resources, Finance, and Administration are also outlined.

2. The growth of a company refers to the company growing in size and
capacity, therefore allowing it to supply a wider range and variety of
goods and services.
This however, means that more staff have to be employed and
therefore more money gets spent on employee wages

3. This means that a company are having to cut down on employees and
the amount of products bought in to save money in the event of
financial deficit
It means that some jobs will be sacrificed and wages will be reduced
It also means that there will be a larger workload for the remaining
employees and workers have more duties than they previously did

4. This is when a company decides to cut the amount of management
levels of their organisation (see below)
Fewer posts of management are easier to handle and cheaper to pay
Board of Directors
Chief Manager
Deputy Manager
Assistant Manager
Department Managers
Department Leaders
Workers

5. This refers to when a company bring in specialists from outside the
company to assist them in their expertise in that particular area
Doing this helps strengthen the organisation as ideas and methods
could be left behind for them to use in the future and the organisational
chart will be simpler with fewer full time specialist employees within the
company

6. The purpose of the Purchases Dept of a company is to buy in equipment to be
used by the employees of the organisation.
e.g.: pens, paper, pencils, printer ink, computers etc
Primarily though, they buy in the goods that the company sells to gain prophet.

7. The Purchasing Manager is the leader of that department and is in control of
the staff and work of the department, arranging staff training, keeping up-to-date
with new purchasing procedures and dealing with staff discipline.
The Purchasing Assistant is responsible for copying documents like order forms
and filling in department documents.

8. The Human Resources department is responsible for the recruitment and managing
of staff.
They issue job descriptions, personal specifications, employee record cards and
contracts.
They advertise jobs that become available, collect application and/or CV forms from
applicants, prepare a list of applicants and interview them

9. They arrange training courses for all departments of the business
 They insure that all employee’s are looked after during their working hours.
They keep employee details of sicknesses, holidays, annual leave, accidents and
personal contact information

10. The Finance Department are in charge preparing and checking of
invoices, credit notes and statements from suppliers of goods and/or
services.
They prepare cheques for suppliers.
Insure that all money that is brought in is banked

11. Prepare budgets and accounts
Calculate wages and prepare payslips
Insure that all employees are paying the correct amount of tax
Analyse the financial situation of the company and shareholders.

12. The Administration Department are responsible for typing letters etc on
word processors
They create posters to advertise their company with
They handle all ingoing, outgoing and internal mail
They are in charge of the reception
They are in control of reprographics

13.  They handle both manual and computerised databases
 They take care of general office supplies
 They are in charge of e-mails and faxes
 They handle petty cash for things like stamps