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SUBJECT AND GRADE Business Studies Grade 10

TERM 2 Week 7 4 Hours
TOPIC CONCEPT OF QUALITY
OBJECTIVES OF THE At the end of the lesson you should be able to:
LESSON • Define the meaning of (1) QUALITY, (2) QUALITY CONTROL and (3) QUALITY ASSURANCE.
• Explain / distinguish / tabulate the difference between QUALITY CONTROL and QUALITY ASSURANCE.
• Discuss / explain the importance of quality for BUSINESS.
• Explain how quality is related to the following BUSINESS FUNCTIONS (QUALITY INDICATORS)
1. Human resources function
2. Administration function
3. Financial function
4. General management
• Outline/Suggest QUALITY INDICATORS of the business function
• Discuss the relationship between MANAGEMENT and the BUSINESS SUCCESS.
RESOURCES PAPER BASED RESOURCES DIGITAL RESOURCES
• WCED Grade 10 Business Studies Core Notes (2020): • [Link]
Business Operations, p. 17-20 •
• Via Afrika Business Studies Grade 10 Learner's Book
• Platinum Business Studies Grade 10 Learner's Book
Oxford
• Successful Business Studies Grade 10 Learner's Book
• Solutions for a Business Studies Grade 10 Learner's
Book
• Focus Business Studies Grade 10 Learner's Book
INTRODUCTION
Businesses realise the importance of quality management in maintaining
customer satisfaction and reducing the cost of replacing faulty/inferior
products. Customers want to buy quality products that last for a long
period of time. Businesses who do not improve on the quality of products
and services run the risk of losing customers to competitors and getting
bad publicity. A strong reputation for quality can be an important
differentiator in markets that are very competitive.
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CONCEPTS AND SKILLS You are required to know the concepts and their meaning, to ensure a better understanding of the QUALITY content.
1.1. QUALITY
• Quality refers to the ability of a product / service to meet a specific need.
• It refers to the characteristics of a product / service that meets the customer's requirements.
• The efficiency of services and the ability to deliver an effective result without too many delays.
• It is measured by specific criteria such as physical appearance / reliability / durability / sustainability / after-sales
services.
1.2. QUALITY CONTROL
• A system that ensures the desired quality is met by inspecting the final product to ensure that it meets the required
standards.
• Checking raw materials/employees/machinery/workmanship/production to ensure that high quality standards are
maintained.
• Includes setting targets/measuring performance and taking corrective measures
1.3 QUALITY ASSURANCE
• Control what is performed during and after the production process. to ensure that the required standards are met at
every stage of the process.
• Ensure that the required standards are met at every stage of the process.
• Processes set up to ensure that the quality of products / services / systems meets predetermined standards with
minimal defects / delays / shortcomings.
2. QUALITY CONTROL vs. QUALITY INSURANCE
QUALITY CONTROL QUALITY ASSURANCE
• A system that ensures the desired quality is met by • Performed during and after production process to
inspecting the final product to ensure that it meets the ensure that required standards are met with each step
required standards. in the processes.
• Checking raw • Ensure that every process is focused on getting the
materials/employees/machinery/workmanship/produ product right the first time and prevent errors from
ction to ensure that high quality standards are happening again.
maintained.
• Includes setting targets/measuring performance and • The 'build-in' of quality rather than the 'check for'
taking corrective measures quality '
3. Importance of quality for businesses.
• Improve customer satisfaction.
• Efficient use of resources and time.
• Increase productivity.
• Continuous improvement of products and services.
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• More likely to achieve the business vision and goals.

• Place products above those of competitors.
• Improved skills and knowledge of employees through training.

4. QUALITY INDICATORS in the business functions

GENENERAL • Develop / implement / monitor effective strategic plans.
MANAGEMENT • Communicate shared vision, mission and values effectively.
• Make sure all departments meet their deadlines / targets
• Understand changes in business environments.
• Be prepared to give an example of the behaviour expected of employees in terms of ethics
as well as productivity.
ADMINISTRATION • Use modern technology efficiently.
• Easy to recall / locate information / documentation
• All systems and processes are documented
• All documents are kept neat and tidy in a safe place.
• Make relevant information available for quick decision making.
FINANCIAL • Effective cash management through cash budgeting.
• Financial records must be kept up to date.
• Liability through rigorous financial processes.
• Prepare timely / regular accurate financial statements.
• Invest surplus funds to create sources of passive income
HUMAN RESOURCE • Low staff turnover in the business
FUNCTION • Provide good working conditions
• Motivate and reward employees
• Ensure fair and equitable selection process
• Fair remuneration packages that match the industry.

5. Relationship between MANAGEMENT and the SUCCESS of the business.

• The correlation between management and the success of the business in achieving its goals, strengths and
weaknesses.
• Management plays an important role in making the right decisions and motivating employees to be productive.
• Poor management can lead to ineffective employees and loss of productivity.
• Businesses require continuous decision making and problem solving.
• Problems that cannot be solved and decisions that are made appropriately can lead to a decrease in productivity.
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ACTIVITIES / CONSOLIDATION ACTIVITY

ASSESSMENT
1. Essay
Vivo Supermarket has certain business and management functions performed by the managers of the various
departments in the organization. Mr. Zizi, the general manager, made the following statement: 'The quality of
performance within these business functions can contribute to the success of the organization'.

Give Vivo Supermarket advice on the following aspects.

• Distinguish between quality control and quality assurance.
• Discuss quality in relation to the following business functions:
o Finance
o Administration
o General management
o Human resources
• Elaborate on the relationship between management and the success of the business.
[Source: Eastern Cape, November 2018: Paper 1]

Possible answer / solution:

1 Introduction
• The business functions describe what needs to be done in the business, whether the business is large or small. √
• Whether it is a large or a small business, the quality of goods and services is non-negotiable. √

2 Distinguish between quality performance and quality management

QUALITY CONTROL QUALITY ASSURANCE
A system that ensures the desired quality is met by Performed during and after production process to
inspecting the final product to ensure that it meets ensure that required standards are met with each step
the required standards. in the processes.
Checking raw Ensure that every process is focused on getting the
materials/employees/machinery/workmanship/prod product right the first time and prevent errors from
uction to ensure that high quality standards are happening again.
maintained.
Includes setting targets/measuring performance and The 'build-in' of quality rather than the 'check for'
taking corrective measures quality '
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3. Explain the importance of quality in relation to the following business functions:

3.1 Quality in Financial function

• Obtaining capital √ from the most suitable source available. √
• Drafting of √ budgets. √
• Ensure that financial records √ are up to date. √
• Investigate strategies √ to increase profitability. √

3.2 Quality in Administration

• To use technology √ effectively. √
• Collect data √ and information. √
• Ensure that the entered data / information is accurate √. √
• Process data √ and information. √

3.3 Quality in General Management

• Design an appropriate mission and vision √ for the business enterprise. √
• Organize workers √ in the most effective way. √
• Demonstrate √ effective leadership. √
• Control √ all processes. √

3.4 Quality in Human Resources

• Effective recruitment √ to attract the best candidates. √
• Fair √ selection process. √
• Employee development √ to keep up to date with changes in technology and industry. √
• Employee retention √ and training. √

4. The relationship between management and the success of the business

• Management plays an important role in the success of a business venture. √√.
• It is the responsibility of management to determine the objectives of the business. √√
• These goals must be realistic and achievable. √√

5 Conclusion
• Businesses must at all times, strive to provide quality goods and services. √√
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Common errors and errors observed during essay marking

• Not starting the essay with the word “Introduction”.
• Not giving two facts about the topic in the introduction
• Not writing the facts in full sentences
• Not concluding the essay with the word “Conclusion”.
• Not summarizing the content of the essay
CONSOLIDATION • This lesson covered the Gr 10 content as stipulated in the Gr 10 Examination Guidelines.
• Understanding the content should enable you to apply the knowledge and skills required to successfully answers
questions based on the curriculum in all Formal Assessment Tasks.
• You will be able to use the knowledge and skills acquired to answer Section A, B and C type Questions.
VALUES • Caring: You are our most important clients in the educational landscape, therefore it’s important that that we
provide you with the necessary resources for self-directed study.
• Responsiveness: It’s our responsibility to make sure that quality lesson plans are developed timeously and
distributed to you.
• Competence: After working through the lesson plans you should be able to demonstrate the skills and knowledge
acquired, to complete the required assessments tasks successfully.