1.4

Question 1

What does staff as an asset mean?

Answer 1

Staff are seen as valuable and a skilled resource capable of developing either by themselves or with help from management
In doing so, their value to the business increases and they become more efficient and productive.
Investment staff is likely to be more productive and cost effective in the long run

Question 2

Staff as a cost or liability?

Answer 2

Labour is seen as a resource to be used as cheaply as possible. Pay may be at minimum wage level.

Question 3

What is multi-skilling?

Answer 3

The practice of training employees so that they have the ability to do a range of tasks, or of recruiting employees who have several skills.

Question 4

Benefits of multi-skilling?

Answer 4

Absences can be covered easily without loss of production
Business can be respond to unexpected changes in demand and special orders
The business becomes much more flexible
Employees may find that their jobs are less tedious or repetitive and respond to increased responsibility
All this provides a competitive advantage

Question 5

Part-time and temporary work advantages and disadvantages for employers?

Answer 5

Pay for staff only when needed, reducing labour costs.
Less costly in terms of employment rights.

Employees may not be as committed or motivated.

Question 6

Part-time and temporary work advantages and disadvantages for employees?

Answer 6

May suit some workers e.g. parents with school age children
Flexible working hours suit some employees

Lack of job security and full employment rights

Question 7

What are flexible hours?

Answer 7

Requires the employee to work a certain number of hours in a given time period but mostly there are no fixed hours when they have to be on sight

Question 8

Home working advantages and disadvantages to employers?

Answer 8

Less office space means lower costs
Productivity can increase when away from workplace distractions

Employers must trust that the employee will work efficiently from home without

Question 9

Home working advantages and disadvantages to employees?

Answer 9

Reduces the time and cost of commuting
Working hours may be more flexible and suit other lifestyle requirements

Can be lonely without company of fellow workers
The home needs to be equipped as a workplace

Question 10

What is dismissal?

Answer 10

Means a worker is told to leave the job because their behaviour is unsatisfactory or they have repeatedly failed to work to the required standard.

Question 11

What is redundancy?

Answer 11

Occurs when a worker is told to leave the job because their skills are no longer of use to the organisation

Question 12

Employer/employee relationships

What is the individual approach?

Answer 12

Direct discussions between an employer and an individual.
Suits employees because people with scarce skills find that they can benefit from dealing independently without employers.

Question 13

Employer/employee relationships

What is collective bargaining?

Answer 13

Refers to discussions between employers and representatives of employees.
Suits employees in large organisations where the employer is likely to treat all employees doing the same kind of work in the same way

Question 14

What are trade unions?

Answer 14

They represent employees where group action is more effective than any individual can be.

Question 15

What is internal recruitment?

What is external recruitment?

Answer 15

Internal - potential applicants are found within the organisation
External - means that potential candidates are found from outside the organisation

Question 16

Advantages of internal recruitment?

Answer 16

Quicker and cheaper
Candidates are known to the business and the candidates know the business
Reduces training costs
Motivates the workforce with chances of career progression

Question 17

Disadvantages of internal recruitment?

Answer 17

Number of applicants limited by the size of the business
Promoting an internal applicant leaves another vacancy to be filled
May cause resentment amongst any internal candidates not chosen

Question 18

Advantages of external recruitment?

Answer 18

External candidates may be more experienced or have different skills
May have fresh ideas that the company needs
Likely to be a larger number of applicants

Question 19

Disadvantages of external recruitment?

Answer 19

Can be time consuming and expensive
May need a longer training and induction period
Impressions at interview might be misleading and mistakes may be made

Question 20

What are hard costs of recruitment and training?

Answer 20

Advertising and recruitment agency costs
Interview costs and expenses and managerial time diverted
Costs of training and induction

Question 21

What are soft costs of recruitment and training?

Answer 21

Loss of production when staff are involved in recruitment and training
Time taken to build up knowledge, experience and working relationships with co-workers and customers

Question 22

Types of training

Induction training?

Answer 22

The training given to new employees to familiarise them with the work environment, the requirements of the job and their colleagues.

Question 23

Types of training

What is on-the-job training?

Answer 23

Training occurs in the workplace, sometimes as part of an apprenticeship scheme.

Question 24

Types of training?

What is off-the-job training?

Answer 24

Training takes place away from the workplace, in colleges or specialist training centres.

Question 25

Advantages and disadvantages of on the job training?

Answer 25

Usually easy to organise
Costs tend to be lower as done internally
Training is specific to that business and therefore fully relevant

Business may not have competent trainers
Trainers may not have up-to-date knowledge
Trainer and recruit may be less productive initially

Question 26

Advantages and disadvantages of off the job training?

Answer 26

Training can be both relevant and intensive
Trainers will be professional
Training will be up to date

May be more expensive
Trainee is off side and not productive
Training may be general, not specific to the job or the business

Question 27

What is a hierarchy?

Answer 27

Employees are ranked in layers, one above the other. Each has fewer employees than the one below. Pyramid shape.

Question 28

What is delayering?

Answer 28

It flattens an organisational hierarchy by removing levels of management

Question 29

What is a chain of command?

Answer 29

Sets out the levels of authority for giving and taking instructions within an organisation

Question 30

What is the span of control?

Answer 30

The number of people directly answerable to each person in the chain of command.

Question 31

What is a centralised structure?

Answer 31

Involves keeping all decision-making at the top of the hierarchy, usually in the head office

Question 32

What is a decentralised structure?

Answer 32

Means that businesses have moved decision making process away from a central head office and spread it throughout the organisation, often to branch level

Question 33

Centralised advantages?

Answer 33

Helps to maintain an overall strategic direction
Decision making is easier and swifter
Decisions can be quickly passed down the structure
Standardising everything may increase efficiency

Question 34

Centralised disadvantages?

Answer 34

It can be rather bureaucratic and lack flexibility
Can be slow to respond to local problems in the branches
Decision taking may be slower
Local managers may not be consulted, local needs may not be catered for and local opportunities may be missed
As a result local managers may feel powerless and demotivated

Question 35

Decentralised advantages?

Answer 35

Senior managers concentrate on the most important strategic decisions
Everyday decisions can be made close to the market
Local managers know their market and customers and may react faster to local changes, making more effective decisions
Giving responsibility to local managers may empower them and increase motivation

Question 36

Decentralised disadvantages?

Answer 36

It can be more difficult to do-ordinate overall strategy
Communications may be more difficult without a clear chain of command
There can be a lack of accountability if things go wrong
It may be that employees at branch level do not want the extra responsibility

Question 37

Explain a matrix structure?

Answer 37

Individuals are assigned to teams according to their specialism and work on a particular project
This can greatly encourage teamwork, empowerment and creativity and give real flexibility to an organisation
Once the project is complete, employees may be moved onto a different team

Question 38

What is Taylor’s scientific management?

Answer 38

If an employee produces more then a bonus is earned

If less is produced then earnings are lost

Question 39

Why did Taylor’s theory go out of date?

Answer 39

Didn’t take into account individual differences in the way employees work
Employees became worried about their jobs as productivity increased and fewer people were needed to do the work
In order to meet productivity targets, quality may suffer
Supervisors were needed to maintain quality & efficiency
Repetitive nature of demotivating

Question 40

What is Mayo’s human relations theory?

Answer 40

Emphasises the importance of the ways in which people interact and how they are treated. Motivation can improve when the employees feel more involved.

Question 41

Stages of Maslow’s hierarchy of needs?

Answer 41

Self actualisation - being able to develop and be creative
Self esteem - gaining respect and recognition for achievements
Social needs - communicating with colleagues etc
Safety needs - a safe working environment and job security
Basic physical needs for survival - having enough money to survive

Question 42

Issues with Maslow’s ideas?

Answer 42

Some jobs are satisfying but do not pay enough for the employee to survive in the long run
Not all employee needs are the same

Question 43

Herzbergs two factor theory?

Answer 43

Argued there were two groups of needs. The motivating factors and hygiene factors.

Question 44

What are Herzbergs motivating factors?

Answer 44

Personal achievement 
Stimulating work
Status
Responsibility 
Praise and recognition
Promotion

Question 45

Herzbergs hygiene factors?

Answer 45

Working conditions
Pay levels
Company policy
Job security 
Closeness of supervision
Relations with co-workers

Question 46

What is leadership?

Answer 46

The art of motivating and organising a group of people to achieve a common goal.

Question 47

Types of leadership style?

Answer 47

Autocratic
Democratic
Paternalistic
Laissez faire

Question 48

What is an autocratic leader?

Answer 48

Take top-down decisions without consultation.
Delegation is rare.
Primary concern is profitability

Question 49

What is a democratic leader?

Answer 49

Guide rather than dictate
Consult widely and encourage everyone to participate in the decision making process
Rewards are open and fair in distribution

Question 50

What is a paternalistic leader?

Answer 50

Behave as a parent might in making family decisions.
Consult early on and at every level to explain their reasons but make the final decisions themselves
Show concern for employees wellbeing and social needs

Question 51

What is a laissez faire leader?

Answer 51

Will set the initial agenda, then stand back, giving staff complete freedom to complete the task as they see fit.
Little involvement from the manager, only there to answer questions, supply info and step in if needed.