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Student's Book Form Five

and fosters a culture of innovation and programs geared to maximise employees’
continuous improvement. potential, satisfaction, and well-being. It

Corporate governance: This refers to the is, therefore, crucial to have good human
system of rules, practices, and processes resource management practices since a
from which businesses are directed, competent and motivated workforce is the
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controlled, and governed. It ensures backbone of organisational success, driving
accountability, transparency, and ethical productivity, creativity, and customer
behaviour at all levels of the business satisfaction.
organisation. Solid corporate governance Operational processes: This encompasses
mitigates risks, safeguards stakeholders’ the procedures, workflows, and systems
interests, promotes long-term sustainability used to deliver products to customers. They
and value creation. define the way resources are allocated, how
Organisational climate: This reflects tasks are performed, and how objectives are
the predominant mood, atmosphere, achieved within the business organisation.
and perceptions within the business Streamlining and optimising operational
organisation. It includes factors such as processes that boost efficiency, eliminates
communication patterns, morale, trust, unnecessary costs, and improves business
and employee satisfaction. A positive performance.
organisational climate fosters creativity, External environment
employee engagement, and commitment, The external environment of a business
which drive business performance.
organisation focuses on the external forces
Organisational culture: This refers to that influence its operations, decisions,
the shared values, beliefs, norms, and and performance. These are factors that
behaviours that tend to shape the work the business has no direct control of.
environment and guide employee actions. The external environment represents the
It reflects the business organisation’s dynamic context in which the business
identity, personality, and its core principles. operates. These contexts include economic,
A positive organisational culture fosters social, political/legal, technological,
unity, cohesion, and creates a sense of competitive and global environments. By
belongingness among employees which comprehensively analysing and adapting
results in driving business performance to these factors, businesses can navigate
and resilience. uncertainties, seize opportunities, and
achieve sustainable growth and success
Human resources management: This in business landscape. Thus, understanding
encompasses all activities related to the external environment helps businesses
recruitment, training, development, to anticipate trends, identify risks, and
retention and retirement of employees. develop strategies to remain competitive
It involves all policies, practices, and and resilient in the market.

3 Business Studies for Advanced Secondary Schools

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