1.1 To most adults whose knowledge of schools is shaped by memories of their own education, business studies often conveys an impression of a department dominated by girls with aspirations to be 'secretaries', sitting in serried ranks at rows of manual typewriters, learning the arts of shorthand, commercial arithmetic, book keeping and commerce. The impression is of subjects which are useful and practical but not appropriate for selection by the most able pupils. In the past, this approach was reflected in courses at all levels in commerce departments in schools.
1.2 By the late 1960s, as commerce gave way to business studies, the subjects were reviewed and the aims, content and methods of the courses offered changed substantially. The subjects offered by business studies departments evolved into a settled pattern of secretarial studies, accounting, economics and economic history. Economics, although a social subject, is most commonly taught by staff in business studies departments and is, therefore, seen as a business subject by many pupils. For that reason, it is included in this report.
1.3 The report draws upon the experience of HM Inspectors in carrying out inspections of more than 150 departments since 1983 and in participating in national developments. It explains the aims, objectives and development of business education, and describes and evaluates learning and teaching and pupil attainment. Chapter 2 examines the role of business education in the curriculum. Course provision, pupil uptake and the attainment of pupils in the business education subjects are described in Chapter 3 and learning and teaching approaches in Chapter 4. Most features of good learning and teaching are common to all of the subjects taught in business studies departments and, for that reason, only one chapter on learning and teaching has been included; where there are differences between subjects, these have been illustrated by the use of examples. Chapters 5 and 6 deal with accommodation, resourcing and staffing, and departmental management respectively. Chapter 7 presents recommendations for future action.
1.4 The past two decades have been years of major innovation in Scottish education and business education has been, and continues to be, affected by them. The introduction of Standard Grade courses in Office and Information Studies (OIS), Accounting and Finance, and Economics and the consequent revision of Higher Grade and CSYS courses, led to major changes in content, teaching methods and assessment. In 1991 a new Higher Grade course in Management and Information Studies (MIS) was introduced and a CSYS course the following year. In addition to knowledge and understanding, teachers must teach pupils the skills of evaluation, investigation, decision-making and handling information and help them to develop their practical abilities. Teachers are increasingly using information technology hardware and software to achieve many of these objectives. The last 12 years has also seen the development of National Certificate (NC) modules and these are offered by many business studies departments in text and word processing, office practice, accounting and economics.
1.5 The success of the increasing number of courses in business education throughout the 1980s and the 1990s owes much to the commitment of dedicated teachers attempting to meet the needs of a wide range of young people. It has posed significant challenges for the staff involved. This report provides clear evidence of the steady development of the various branches of business education and gives examples of good practice upon which teachers can build further. It is hoped that the report will stimulate discussion in business studies departments about their progress and performance, and also contribute to the debate on the best way ahead to meet the needs and aspirations of young people in the next century.
2.1 In 1987, the then Consultative Committee on the Curriculum formed a committee to review business education in schools. The committee was asked to identify the areas of knowledge, understanding and skills which were directly relevant to business management in industry and commerce, and which should be embodied in a modern school curriculum. The committee defined business activity as 'the activity which takes place when a group of individuals co-operate to achieve a common goal, using its limited resources, to get the best possible return from each unit of output'. The area of study which is delineated by this definition is extremely wide. The committee considered whether to adopt an interdisciplinary or multi-disciplinary approach to the business education curriculum. After much consideration it chose a multi-disciplinary approach and identified economics, accounting and finance, MIS, and OIS as the key disciplines. It recommended the ending of secretarial studies at Higher Grade because it saw the subject as being too skills-based, giving too little emphasis to making decisions and solving problems and because the Higher Grade course offered too little of the progression which normally characterised the movement from Ordinary to Higher Grade. For similar reasons, the subject was not considered acceptable for general entry purposes to university. Because of representations from schools and employers, however, Higher Grade secretarial studies was retained, pending a review of the entire upper secondary curriculum. In the interim, a minor review of the syllabus was undertaken to reflect changing practices in the workplace.
2.2 In 1994 the Secretary of State published Higher Still: Opportunity for All, which outlined a programme of reform of the upper secondary and further education curriculum. The Specialist Group in Business Education, in reviewing the range of SEB business education subjects and SCOTVEC National Certificate modules, identified the aims of business education as being to:
develop a broad understanding of the role, purpose and operation of business activity in contemporary society;
prepare pupils for a wide range of employment opportunities through the acquisition of relevant knowledge and generic skills;
prepare pupils for entry to a broad range of further, higher and professional education; and
contribute to the preparation of pupils as active citizens.
The contribution of economics
2.3 As children grow older they become more aware of their own local and national communities and of the world at large. The economic aspect of life affects everyone and it is important for all citizens to understand the economic forces which have a major impact on their lives. It allows them to make more informed political, social and personal decisions and hence to help to shape their own lives. Many pupils become more aware of contemporary issues as they mature. For some, this increased awareness comes from watching television, reading newspapers and discussing interesting developments in the family circle. Others see around them the effects of economic forces on the communities in which they live, as traditional industries die and new companies are created. Many will have views on the justice and appropriateness of these changes. It is, however, desirable for them to make informed judgements on such political and social issues. It is the development of informed judgements which distinguishes the educated individual and economics is a discipline which has a great deal to offer in the analysis and explanation of these issues.
2.4 Economics has links both with the other social subjects and the other business education subjects, and its study offers an enriched understanding of them. It contributes to, and complements, their concerns and requires many of the same skills. Nevertheless, its main concerns are distinctive and it is composed of a discrete and substantial body of knowledge. It is built on the key concepts of scarcity, choice and cost. Using these concepts, and an awareness of issues such as employment, inflation, taxation and public expenditure, it develops, at growing levels of complexity, the knowledge and range of skills which promote an understanding of the economic dimension of life. The application of economic principles and ideas, and the development of the skills of interpretation, analysis and evaluation, help people to understand better the processes of change and development in contemporary society. Economics provides a critical understanding of the workings of the market and of a wide range of public decisions in Britain and the world as a whole. Studying economics at school:
helps pupils to fit confusing and conflicting interpretations of events into a coherent framework; and
encourages an awareness of the inter-relationships between events and of the complexity of economic problems and possible solutions.
In addition, economics is important for anyone seeking a systematic and disciplined approach to business.
2.5 As well as developing an understanding of the economic forces, economics helps to develop important qualities and skills in the education of children by:
encouraging the development of the skills of acquiring, analysing and communicating data in different forms;
promoting the ability to explain, hypothesise, and to offer solutions to economic, social and political problems;
encouraging critical thinking by developing and using inductive and deductive reasoning; and
helping to make pupils willing to change their attitudes by nurturing a respect for evidence and an acceptance of the need to test hypotheses and theories in the real world.
The contribution of accounting and finance
2.6 Just as the study of economics enhances an individual's understanding of the economic forces in society, those more interested in individual businesses and public sector organisations find that the study of accounting and finance illuminates their understanding of many relevant key issues. Accounting has been defined by the American Accounting Association as:
"the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information"
Thus accounting is a form of service to a variety of users of information - business owners, managers, employees, customers, lenders, suppliers and government - not an end in itself. It provides the information which allows users to take decisions on how to allocate and use scarce resources efficiently.
2.7 The value of the study of accounting is founded on the benefits to pupils of understanding key accounting concepts such as accountability, responsible stewardship and resource management. It also helps develop an understanding of the relationship between income and expenditure and how best to organise and present financial information. The study of accounting and finance has an obvious vocational relevance. It enhances the capacity of:
an individual to set up and run his or her own enterprise;
a manager making major decisions about the future of his or her own business and those of competitors;
an employee to understand the position in which his or her firm finds itself; and
an investor to select and monitor his or her investments.
In addition, the study of accounting and finance offers significant benefits to people in the control of the simple and more complex financial aspects of their own lives and in their ability to contribute to community life, through assisting in the management of clubs and societies.
2.8 Accounting information is also important to the operation of a democratic society. In a complex, democratic and open society, where many people are accountable either to shareholders, volunteers or the electorate for their use of scarce resources or for the impact of their decisions on others, it is important that people understand these processes; and for all who wish to exercise their responsibilities as shareholders or voters it is also important that they understand the information which accounting is able to offer them and recognise when it is being abused.
2.9 Accounting also contributes to the development of a number of important qualities and skills which prepare young people for adult life by:
encouraging a regard for accuracy and precision;
being given the opportunity to relate numeracy to real life;
encouraging the development of the skills of acquiring, analysing and communicating quantitative and financial data in numerical form, and using information technology as appropriate;
developing the capacity to draw conclusions from data; and
developing a systematic approach to solving problems and making decisions.
The contribution of OIS and secretarial studies
2.10 Although all the business education subjects have a vocational dimension, office and information studies and secretarial studies are perhaps the most vocationally orientated. They relate well to the general vocational aspirations of many pupils and, for some, will provide the knowledge, understanding and skills which will help to prepare them to enter employment. These subjects are not intended to develop full occupational competence, for which additional experience and training are necessary. However, the subjects motivate pupils by offering the opportunity to simulate office work in the classroom. Many pupils are more motivated by practical experience than by a theoretical approach to business education. While the vocational dimension is important the subjects also have a broader purpose. Schools have a responsibility to prepare their pupils for the future. The varied demands on young people, whether for increasing flexibility from employers, or to prepare them to enter further or higher education, make it essential that all subjects contribute to the general educational development of those who study them. Both subjects do this.
2.11 OIS and secretarial studies offer a particular perspective on business activity. Both focus on the general contribution of collecting, sorting, storing, progressing, retrieving and presenting information, thus providing the information required by all organisations for effective communication, decision-making and control. These functions are vital if scarce resources are to be used efficiently, and if employees are to make effective decisions and be accountable for their actions. The office supplies the services which permit employees to fulfil their functions.
2.12 In both OIS and secretarial studies pupils learn to use word processors, spreadsheets and databases effectively; they are taught to use the keyboard effectively, thus improving their capacity to use a computer efficiently; they see the contribution which these tools can make to work in the office and to decision-making and control; and they examine the personal and social implications of the expanding use of information technology. All these aspects of the subjects, however, have a value far beyond work in the office. They are, and will continue to be, useful to pupils in many aspects of their lives.
2.13 In addition to the vocational aspects of both OIS and secretarial studies, the subjects also develop and reinforce other useful skills. They provide the opportunity to:
adapt style, behaviour and language to the demands of a variety of personal, social and business situations;
develop self assurance and confidence, an orderly and systematic approach to work, the ability to follow instructions, use initiative and co-operate with others;
use time effectively;
develop efficient working practices; and
encourage attention to accuracy, precision and presentation.
The contribution of Management and Information Studies
2.14 MIS has links with all of the business education subjects and draws upon each of them to varying degrees. These are the study of:
the processing of information to assist the work of all specialist functions in the organisation;
the processing of specifically financial information to help decision-making; and
the national and international economic environment in which the business must operate.
MIS brings these perspectives together and emphasises the importance of people and their contribution to making an organisation work. Pupils develop, through their continuing study, an understanding of how a business operates and of how the information gathered from the other disciplines is used to make management decisions and hence shape that organisation. MIS is the main vehicle for understanding how a business operates.
2.15 The subject helps pupils to understand the factors which influence decisions - resources, people and markets - and to use information to support decisions. It stresses, particularly, the importance of people in any organisation and focuses on the human aspects of management. It enables pupils to understand the complexity of organisations and the need to balance decisions made throughout the organisation so that they are compatible with its objectives. It provides pupils with the chance to acquire knowledge and understanding of management principles and practices, to exercise analytical skills in setting objectives and priorities, to employ the skills in a wide range of simulated situations, and to communicate by means of written or spoken language and numbers.
2.16 In addition to an understanding of how a business works, this course contributes to the general educational development of pupils by:
encouraging the development of the skills of acquiring, analysing and communicating data in different forms;
learning to balance different, and often conflicting, demands; and
helping to develop the ability to identify, analyse and resolve complex problems which have a number of possible solutions.
The role of information technology in business education
2.17 Information has always played a key role in the effective functioning of businesses and other organisations, as it has in education. What has changed markedly is the range and efficiency of the tools which can help to manage the information available to, and used
by, an organisation. The management of information has become increasingly technological and the importance of the computer as a business tool has greatly increased. Information technology, however, is not totally computer-based and can be defined as the use of a range of computer-based and other technologies to generate, capture, process, store and communicate information. As its capacity and influence have grown, information technology has had a major impact on the way in which many tasks are done and the way in which many organisations are staffed and structured.
2.18 Information technology contributes to business education in several ways.
Making decisions is a major part of business activity, and relies increasingly on a knowledge and understanding of information technology, for example, by using ‘what-if’ decision-making models.
Information technology helps in forecasting, planning, monitoring and controlling business activities.
In business decision-making areas such as finance, marketing and personnel, business information is processed, using databases and spreadsheets.
It helps to transmit information effectively and quickly using electronic mail and other methods.
The presentation of information in a form which is appropriate to its purpose is an important aspect of business activity.
2.19 Information technology is an indispensable tool of management. It is, therefore, important for pupils in business education to be knowledgeable about those aspects of information technology which influence the way in which information is used by organisations and the people who work in them as a routine part of their business function. Although this is essential if a student is to work effectively in a business organisation, it is also valuable in a personal capacity.
2.20 Increasingly, as 5-14 is implemented, pupils will come to business education departments with considerable experience of, and familiarity with, computers, just as they currently do with many other aspects of information technology, such as telephones, cameras and video cameras and recorders. This provides an opportunity for departments to concentrate on teaching the use of information technology in a business context to solve business problems.
Overall contribution of Business Education
2.21 Business and enterprise are at the heart of national growth and development and this is reflected in the important place that business education has in the post-school curriculum. It has yet to attain this status in school education. Business education offers opportunities for individuals to develop the crucial skills and knowledge which allow them to access, understand and contribute to the dynamic and complex business information environment. Whatever the career pathway or progression route, business education can contribute to a person's effectiveness.
2.22 Each of the business education subjects makes a valuable contribution to a pupil's understanding of business. Each provides the study of business from a particular perspective but none provides a fully integrated study of business activity in all of its aspects. This presents pupils with the dilemma of which subject or subjects to study. Fortunately all of the subjects contribute well to the general education of pupils and all contribute in varying ways to the aims of business education. Some pupils will study more than one; few will study more than two: which a pupil chooses will depend upon taste, inclination and availability. Apart from the contribution made by each which has already been detailed, if the courses are well taught, they will stimulate in pupils constructive attitudes to learning. These will be of life-long benefit to them. These attitudes will include:
openness of mind;
confidence in speaking one’s own mind;
curiosity about events and forces in the world around them;
recognition of the pace of change and a willingness to develop with it;
a positive approach to solving problems;
respect for the views of others;
willingness to change one’s mind in the light of evidence;
social awareness and concern;
willingness to accept the complexity of situations; and
taking pride in the quality of finished work.