2. People in business Flashcards

(899 cards)

1
Q

A larger span of control will mean less control for the manager or leader as they will have more subordinates to supervise.

A larger span of control usually leads to more delegation of authority to subordinates. The manager or leader will not be able to directly control many subordinates.

A

Money = main motivator
Scientific management - work is broken down
> More money paid means increase in level of productivity
Training all workers using the same method

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1
Q

What is ‘motivation’?

A

The reasons why people work and ways business can encourage their staff.

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1
Q

Why do people work?

A

Have a better standard of living
Be secure
Gain experience and status
Have job satisfaction

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2
Q

What does Herzberg’s motivational theory suggest?

A

Hygiene factors:

factors that demotivate if not present but don’t actually motivate employees to work harder
e. g. working conditions, salary and wage

Motivators:

factors that directly motivate employees to work harder
e. g. giving responsibility, recognition for good work, sense of achievement, opportunities for promotion

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3
Q

What are the different types of needs according to Maslow’s hierarchy?

A

Physiological needs: basic requirements for survival
Security needs: to be physically safe
Social needs: to belong and have good relationships with co-workers
Esteem needs: self-respect and to be respected by others
Self-actualisation needs: reach your full potential and be promoted

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4
Q

What are ‘financial rewards’?

A

Cash paid to workers often used to motivate them to increase their efforts

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5
Q

What are the financial methods and how do they work?

A

Hourly wage rate/Time rate: payment to workers based on a fixed amount for each hour worked
Salary: fixed annual/monthly payment to certain grades and types of staffs (not based on hours worked or output)
Piece-rate: payment according to output number produced
Commission: pay based on the value of sales made by the staff (retail/salespeople)
Performance-related pay: payment for reaching an agreed target
Profit-sharing: additional payment to workers based on business’ profits
Bonus scheme: additional reward, often paid for reaching a target
Fringe benefits: non-cash incentives given to employees (e.g health insurance, discounts)

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6
Q

What are some non-financial rewards and how do they work?

A

Job rotation: workers swapping round, doing a specific task for a specific time then changing again (improves boredom and flexibility)
Job enlargement: adding tasks of a similar level to a worker’s job, helps reduce boredom
Job enrichment: adding tasks of a higher level to a worker’s job, organised so workers able to use more of skills and abilities

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7
Q

Name the advantages + disadvantages of hourly wage rate / time rate.

A

Ads: Only pays workers for time they are at work, encourages longer hours
Disads:
Only pays workers for time they are at work, encourages longer hours
Does not link to quality or quantity of output

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8
Q

Name the advantages + disadvantages of salary.

A

Ads: Measurable, applicable, suitable to most jobs
Disads: Does not link to their efforts

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9
Q

Name the advantages + disadvantages of piece-rate.

A

Ads: Incentive for employees to produce higher output
Disads: Not quality related, lead to poor quality of work + only production jobs

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10
Q

Name the advantages + disadvantages of commission.

A

Ads: Pay is linked to value of goods
Disads: Workers are not certain about income, unreliable

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11
Q

Name the advantages + disadvantages of bonus scheme.

A

Ads: Linked to performance targets, rewards high level performance
Disads: Becomes expectation quickly, depends on profit

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12
Q

Name the advantages + disadvantages of fringe benefits.

A

Ads: Useful to make employees’ needs, motivating, make job attractive
Disads: More cost + time effective than financial rewards + admin (can be unsuitable)

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13
Q

Name the advantages + disadvantages of profit-sharing

A

Ads: Enables to see direct link between their efforts + company profits
Disads: Company loses amount of revenue + retained profit for growth

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14
Q

Name the advantages + disadvantages of performance-related pay

A

Ads: Directly links pay to meeting/exceeding target
Disads: Not measurable, can lose money

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15
Q

What is an ‘organisational structure’?

A

Levels of management and division of responsibilities within a business

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16
Q

Hierarchy

A

management levels within an organisation

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17
Q

Line managers

A

people responsible for overseeing work of other staff

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18
Q

Authority

A

power managers have to direct subordinates and make decisions

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19
Q

Delegation

A

when managers entrust tasks or decisions to subordinates

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20
Q

Span of control

A

number of subordinates reporting directly to a manager

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21
Q

Chain of command

A

path of authority which instructions are passed, from highest downwards

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22
Q

Lines of communication

A

routes messages travel along

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23
Directors
most senior, sets out strategies, makes sure resources available, reviews performances of managers, provide leadership to ensure success
24
Managers
Day-to-day running of a department, delegation, motivation, solving problems that may arise within department
25
Workers
complete tasks efficiently at require quality standard set by managers
26
What are the features + advantages + disadvantages of tall organisations?
Tall organisations have many levels of hierarchy - span of control is narrow Ads: Opportunities for promotion → motivational Managers not overstretched, effective workload Disads: Lines of communication long → firm unresponsive to change Have to pay a large range of salary to motivate workers to try to get promoted
27
What are the features + advantages + disadvantages of flat organisations?
Flat organisations have few levels of hierarchy Ads: Lines of communication narrow → responsive to change Salary range = narrower → less competition Disads: Wide span of control → managers can feel overstretched Not many opportunities for promotion → demotivating
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Planning
managers should have a clear plan of what employees need to follow (aims, tasks, objectives)
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Organising
Managers expected to organise by setting up systems, procedures and structures in efficient way
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Coordination
related to organisation, making sure interrelated activities are integrated and carried out in a structured way
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Commanding
give direction, ensures directions are followed
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Controlling
create effective control system to make sure on track
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Why is delegation important?
Managers cannot do all tasks (overstretched) Can be delegated if they can be completed correctly Enables more work to be completed + motivating
34
Features of democratic
Encourages participation in decision making Strong coaching, listening + motivating skills Teamwork + communication important
35
Features of autocratic
Leader has full control of decision making. Employees have little/no input Good in crisis situations
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Features of laissez-faire
Gives employees much freedom as possible (art) Managers communicate goals employees, allow them to choose how to complete objectives
37
Features of bureaucratic
Done by the books/policy Reinforces rules
38
What are ‘trade unions’?
Pressure groups that have ability to influence business activity, improving working conditions
39
What are the aims of trade unions?
Defend employees rights and jobs Improve pay + other benefits e.g. holiday entitlement, sick pay Influence government policies Negotiate wages and other non-wage benefits Develop skills of union members by providing training/educational courses
40
What are the benefits of being union member?
Strength in numbers Improved working conditions Improved sickness benefits, pensions, and retrenchment benefits Improved job satisfaction and encourage training Advice/Financial support if a worker is dismissed unfairly/made redundant or is asked to do something not part of their job Improved fringe benefits
41
Describe the methods of recruiting and selecting workers.
Identify job vacancy Have a job analysis (what does the job entail), write job description Write person specification (what type of person is needed to fill the job) Advertise job and send out details + application forms on request Compare job applications with person specification to select a shortlist of best applicants to interview Send invitations to attend interviews to shortlisted applicants/If not shortlisted, send letter of regret Prepare and conduct job interviews Send best application formal job offer Draw up contract of employment
42
Internal recruitment
Vacancy filled by employee already in business
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External recruitment
Vacancy filled by someone not in business/new
44
Name the advantages + disadvantages of internal recruitment.
Ads: Knows employee, monitored on close level Save time/Less training Motivation Disads: Reduces range of employment skill Opportunity cost Unhappiness within organisation
45
Name the advantages + disadvantages of part-time workers.
Ads: Less pay/salary required More dynamic if there are more part time workers Allows employer to assess before working full time (for employee) Does not require much time (for employee) Flexibility Disads: - Less fluidity and cohesion in work - Unable to give large assignments - (for employee) less experience gained (for employee) less job security - Less commitment from employee - Overstretched management
46
Name the advantages + disadvantages of full-time workers.
Ads: Know business better than part-time workers May be more experienced More loyal to business Available for longer hours Can carry out more tasks/bigger projects Disads: More expensive than part-time workers Reduces diversity of skill set/experience (for employees) requires much time (for employees) not flexible
47
Why is training needed?
Helps to increase efficiency, quality, productivity, customer service, safety and overall, success of business.
48
What is ‘induction training’?
Training programme to help new recruits become familiar with workplace, people they work with and procedures they need to follow
49
Benefits + limitations of induction training
Benefits: Workers feel more familiar → more motivated + willing Specific to business, relevant to what business requires Limitations: Increases business costs Induction trainers receive wage/salary but don’t contribute to output
50
What is on-the-job training?
Training at the place of work (Watching an experienced worker)
51
Benefits + limitations of on-the-job training.
Benefits: Relatively cheap Workers learn how business wants job done Workers are producing output while training Limitations: Slows down production of experienced worker Workers may pick up bad habits from experienced workers May not learn the most up-to-date methods
52
What is off-the-job training?
Training that takes place away from the workplace
53
Benefits + limitations of off-the-job training.
Benefits: Workers learn latest methods, techniques Doesn’t disrupt production of other workers Limitations: Expensive Worker doesn’t produce output in training Training may not be specific to the business’ requirements
54
What is ‘dismissal’?
Termination by the employer because the worker has broken company rules or is not performing work to the required standard
55
What is ‘redundancy’?
Termination of employment by the employer because the job is no longer needed → may be given recompense
56
What are situations where downsizing the workforce is necessary?
When there is a fall in demand for product that worker produces → business may need to reduce size of its workforce When new technology is introduced Relocation
57
Unfair dismissal
laws that protect worker from unfair dismissal, employers must have good reason to dismiss the employee -> if the employee feels he/she has been unfairly dismissed,can take legal action against the employer
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Discrimination (treating one person/group less favorably than others, irrelevant to their work)
Laws protect workers from discrimination when recruiting new workers > Laws prevent discrimination from age, gender, race, colour, religion and disability > Trade unions also provide legal advice to support any of their members
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Health and safety
Health and safety laws enforced to ensure that environment of the workplace is safe to work in workers feel comfortable working there
60
Legal minimum wage
Law prevent employers from exploiting workers by paying very low wages
61
Why is communication important?
Communication ensures that all parts of business’s operations run smoothly + employees understand what they need to do
62
Why is effective communication important?
Reduce the risk of mistakes Enable faster decision-making Enable quicker responses to market changes Improve coordination between departments Improve morale and motivation of the workforce Improve customer relationships
63
Oral communication
Appropriate when more than two people need to discuss things
64
Benefits + limitations of oral communication
Ads: Easy to communicate Direct feedback Help build relationships between employees/ customers Personal contact Disads: Hard to schedule (busy) Takes up time No permanent record Receiver might not listen
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What is written communication?
Provide a permanent record of message
66
Benefits + limitations of written communication
Ads: Message cannot be changed Information is clear + can be looked at more than once Can be sent to many receivers Disads: Messages may be lost or destroyed No personal contact Time consuming
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Main types of written communication
Purchase order Minutes of meeting Agenda (Order for the conduct of a meeting) Memorandum Invoice (Official form sent to customer requesting payment for goods) Company magazine/newsletter
68
What is visual communication?
Includes presentations using graphs, charts, videos etc
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Benefits + limitations of visual communication.
Ads: Information more interesting Photographs or videos have greater impact than just words Pictures + charts easier to understand Disads: Takes time for preparation Costs money to create visual communication Details may be lost
70
What are some factors to consider when choosing the best method of communication?
Urgency Location Security issues and concerns Personal preference Cost
71
How do communication barriers arise?
Accents Channel of communication is too long Demotivated workers don’t listen to the message properly Poorly disciplined workers Technological issues Language barrier
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What are the problems of communication barriers?
Tasks are not completed → increases waste Damaged reputation of the business Higher risk of accidents Poor sales Recruitment problems
73
How to reduce or remove communication barriers?
Make sure the language used is appropriate to the receiver Keep the channel of communication as short as possible Sender asks to receive a feedback so they know it has been read and understood Physical barriers such as noise should be removed
74
Define motivation.
Motivation is the reason why employees want to work hard and work effectively for the business.
75
What are the five reasons why people work?
Money. Security. Job satisfaction. Esteem needs (self-importance). Social needs (affiliation).
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Why would money be a reason why people work?
To pay for necessities and some luxuries.
77
Why would job satisfaction be a reason why people work?
Enjoyment is derived from feeling that you have done a good job.
78
Why would esteem needs (self-importance) be a reason why people work?
Feeling important, feeling that the job you do is important.
79
Why would security be a reason why people work?
A sense of security, i.e. knowing that your job and pay are safe - you are not likely to lose your job.
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Why would social needs (affiliation) be a reason why people work?
Feeling part of a group or organisation, meeting people, making friends at work.
81
What is the main benefit of a well motivated workforce?
High productivity - high output per worker - in a business usually comes from a workforce that is motivated to work effectively and from this comes increased profits.
82
A well-motivated workforce gives benefits to a business, including:
High output per worker - which helps to keep costs low and increase profits. Willingness to accept change, for example, new methods of working. Two-way communication with management, for example, suggestions for improving quality. Low labor turnover - a loyal workforce - this reduces the cost of recruiting workers who leave. Low rates of absenteeism - reducing the disruption caused by absence from work. Low rates of strike action - avoiding damage to customer relations.
83
What leads to high profits?
well-motivated workers → high productivity (employees work more effectively) → increased output → higher profits.
84
What leads to lower/ no profits?
unhappy workers → do not work very effectively → low output → lower/no profits.
85
Abraham Maslow proposed a heirarchy of needs. From the top going down, what were these needs?
Self-actualisation. Esteem needs. Social needs. Safety/security needs. Physiological needs.
86
What are the two points to remember for self-actualisation?
Succeeding to your full potential, feeling that you have done a good job not just for financial and personal reward. Being promoted and given more reponsibilty.
87
What are the two points to remember for esteem needs?
Having status and recognition, achievement, independence. - Being given recognition for a job well done.
88
What are the two points to remember for social needs?
Friendship, a sense of belonging to a team. - Work colleagues who support you at work.
89
What are the two points to remember for safety/security needs?
Job security. - Protection against danger, protection against poverty, fair treatment.
90
What are the two points to remember for physiological needs?
Wages high enough to meet weekly bills. - Food, rest, recreation, shelter.
91
What did Maslow suggest about level advancement?
Maslow also suggested that each level in the hierarchy must be achieved before an employee can be motivated by the next level.
92
What is one problem associated with Maslow’s hierarchy?
There are problems in that some levels do not appear to exist for certain individuals, while some rewards appear to fit into more than one level. FOR EXAMPLE: Money allows basic needs to be purchased, but high pay can also be a good status symbol or indicator of personal worth.
93
What should managers do regarding Maslow’s hierarchy?
Managers must identify the level of the hierarchy that a particular job provides and then look for ways of allowing the employees to benefit from the next level up the hierarchy.
94
What is one of the tasks of managers?
One of the tasks of management is to encourage the workforce to contribute fully to the success of the business.
95
Compare how people who work for themselves (entrepreneurs) and people who work for someone else work?
When people work for themselves, for example, entrepreneurs, they tend to work hard and effectively as they see the direct benefits of their efforts. However, once people work for someone else then they may not work as effectively.
96
What did Frederick Taylor base his ideas on?
Taylor based his ideas on the assumption that all individuals are motivated by personal gain and therefore if they are paid more, they will work more effectively.
97
What were the three criticisms of Taylor’s ideas?
His ideas were too simplistic - employees are motivated by many things and not just money. A practical problem arises if you cannot easily measure an employee’s output. You can pay an employee more money, but if they are unfilled by their work in some way, there will be no increase in their effectiveness at work and there will be no productivity gains.
98
What was Frederick Herzberg’s theories?
According to Herzberg, humans have two sets of needs; one is for the basic needs, which he called ‘hygiene’ factors or needs, and the second is for a human being to be able to grow psychologically which he called ‘motivational’ needs or ‘motivators.’
99
What are the five motivators according to Herzberg?
Achievement. Recognition. Personal growth/development. Advancement/ promotion. Work itself.
100
What are the seven ‘hygiene’ or ‘maintenance’ factors?
Status. Security. Work conditions. Company policies and administration. Relationship with the supervisor. Relationship with subordinates. Salary.
101
According to Herzberg, the ‘hygiene’ factors must be satisfied; Why?
According to Herzberg, the ‘hygiene’ factors must be satisfied; if they are not satisfied, they can act as demotivators to the worker. NOTE - They do not act as motivators, as once satisfied the effects of them quickly wear off.
102
What are the methods of payment or financial reward used to provide?
The methods of payment or financial reward are used to provide incentives to employees to encourage them to work hard and effectively.
103
What are the five most frequently used methods of financial reward?
Commission. Profit sharing. Bonus. Salary. Wage.
104
What is profit sharing?
Profit sharing is a system whereby a proportion of the company’s profits is paid out to employees.
105
Why would profit sharing motivate employees?
This additional payment should motivate the workers to work hard as they all receive a share of the profits earned by the business.
106
Where is profit sharing often used?
Profit sharing is often used in the service sector where it is difficult to identify an individual employee’s contributions to the increased profits, but they will all benefit from more productive work.
107
What are the two possible limitations of profit sharing?
If the business makes very little or no profits, them no profit share will be possible, leading to employee disappointment. The profit share is usually calculated on the basis of an additional percentage of a workers existing wage or salary (higher paid workers will receive a higher profit share) leading to a bad feeling among lower paid workers.
108
What is commission?
The commission is a payment relating to the number of sales made (often paid to sales staff). NOTE - Commission is paid in addition to the existing wage or salary.
109
What encourages sales staff on a commission salary to sell as many products as possible and why is this good for a business?
For sales staff, the more sales they make the more money they are paid leading to an increase in sales for a business.
110
What are the three possible limitations for a commission based salary?
If the sales staff are very persuasive and encourage people to buy goods they don’t really want, then the business may see its sales increase only in the short term and then fall again as it gets a bad reputation. It can be stressful for the sales staff because, if they have a bad month, their pay will fall. There might be too much competition between sales staff.
111
What is a wage?
A wage is a payment for work, usually paid weekly.
112
What is time rate?
Time rate is the amount paid to an employee for one hour of work.
113
What are the two drawbacks of wages?
As the wages are paid weekly, they have to be calculated every week, which takes time and money. Wage clerks are often employed to perform this task.
114
What are the two benefits of wages?
The worker gets paid on a regular basis and does not have to wait long for some money. If the employee works longer than their normal hours, they can usually be paid overtime.
115
When calculating the wages to be paid, they can be worked out in a number of different ways. What are the two main ways?
Time rate and piece rate.
116
What is the benefit of time rate?
This makes it easy to calculate the worker’s wages and the worker knows exactly how much they will be paid for working a certain period of time.
117
What are the four possible limitations of time rate wages?
The hours are often recorded on a timesheet which must be filled in and used the calculate the wages by the Accounts department (takes time). Good and bad workers get paid the same amount of money. A clocking-in system is needed to determine the number of hours worked by the employees. Often supervisors need to make sure the workers keep working and producing a good quality product (expensive because more supervisors are needed).
118
Where is time rate used?
Time rate is used where it is difficult to measure the output of the worker (bus driver or hotel receptionist for example).
119
What is piece rate?
Piece rate is an amount paid for each unit of output (the more they make, the more they get paid).
120
What is the advantage of piece rate?
The advantage of this system is that it encourages workers to work faster and produce more goods.
121
What are three possible limitations of piece rate?
Workers are often paid a guaranteed minimum amount of money in the case that the machinery breaks down. Workers who are careful in their work will not earn as much as those who rush, which may not be seen as fair. Workers may concentrate on making a large number of products and ignore quality, producing goods that may not sell very well because they are of poor quality. NOTE - a quality control system is needed and this is expensive.
122
What is a salary?
A salary is a payment for work, usually paid monthly straight into a bank account. NOTE - It is usual for office staff or management to be paid salaries.
123
What are the two possible limitations of salaries?
Workers may prefer to be paid weekly. - No payment for extra time worked - workers may be reluctant to worklonger.
124
What are the benefits of salary payments?
The payment has to be calculated only once a month instead of at least four times a month. The employer has the money in their bank account for longer than if they were paying their workers’ wages, as salaries are paid only once a month. A salary is divided into 12 monthly amounts meaning it is easy to calculate salary costs for the business.
125
What is a bonus?
A bonus is an additional amount of payment above basic pay as a rewards for good work.
126
Why does being paid a bonus have a positive motivating effect?
Workers often consider themselves to be recognised and special if they are paid a bonus.
127
What are two possible limitations of bonuses?
Bonuses can become expected every year and if they are not paid then employee disappointment can be difficult to manage. If only one or a small number of workers are paid bonuses, then bad feelings can be caused as other workers resent this and question why they did not receive one.
128
Give five examples of fringe benefits or perks.
Company vehicle. Discounts on the business’s products. Health care is paid for. Children’s education fees paid. Free accommodation. Share options. Generous expense accounts (for food and clothing). Pension paid for by the business. Free trips abroad/holidays.
129
Define job satisfaction?
Job satisfaction is the enjoyment derived from feeling that you have done a good job.
130
What are five examples of ways in which a business can increase the job satisfaction?
Job rotation. Job enrichment. Autonomous work groups or team working. Training. Opportunities for promotion.
131
Define job rotation.
Job rotation involves workers swapping around and doing each specific task for only a limited time and then changing around again.
132
What does job rotation increase?
This increases the variety in the work itself and also makes it easier for the managers to move workers around the factory if people are ill and their jobs need covering.
133
What is job enrichment?
Job enrichment involves looking at jobs and adding tasks that require more skill and/or responsibility. NOTE - Additional training may be necessary.
134
What is a promotion?
Promotion is the advancement of an employee in an organization, for example, to a higher job/ managerial level.
135
Promotion is the advancement of an employee in an organization, for example, to a higher job/ managerial level.
Employees offered promotions will feel recognized, have a higher status, and will be given more challenging work to perform.
136
What is training?
Training is the process of improving a worker’s skills.
137
How will workers feel if they have been selected by management for training?
Workers can also feel as if they have been selected by management for training courses and this can give them a feeling that their good work has been recognized.
138
Improving a worker’s level of skills through training can have beneficial effects of motivation levels. What are the two benefits?
First, workers can feel a great sense of achievement if they successfully gain and apply new work-based skills. Second, they could now be given more challenging and rewarding work to perform.
139
Define the term teamworking.
Teamworking involves using groups of workers and allocating specific tasks and responsibilities to them. NOTE - Teamworking involves a group of workers being given responsibility for a particular process, product or development.
140
The workers of a team can become more involved in the decision-making and take responsibility for this process. What does this give?
This gives a feeling of control over the jobs/tasks and the employees feel more committed, therefore increasing job satisfaction.
141
What is an organisational structure?
Organisational structure refers to the level of management and division of responsibilities within an organisation.
142
What is an organisational chart?
Organisational chart refers to a diagram that outlines the internal management structure.
143
What is a hierarchy?
Hierarchy refers to the levels of management in any organisation, from the highest to the lowest.
144
What is a hierarchy?
Hierarchy refers to the levels of management in any organisation, from the highest to the lowest.
145
What is a level of hierarchy?
A level of hierarchy refers to managers/ supervisors/ other employees who are given a similar level of responsibility in an organisation.
146
How is an organisational structure presented?
This structure is often presented in the form of an organisational chart with several levels of hierarchy.
147
What are the two advantages of writing a job description?
People applying for the job could see if they were suitable for the work expected of them. Once the job, the new employee would know exactly what their duties and responsibilities were.
148
What is a chain of command?
Chain of command is the structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.
149
What are the three important features of an organisational chart?
It is a hierarchy meaning that there are different levels in the organisation, and each level has a different degree of authority. It is organised into departments and each department has a particular job or function. As there are different levels of management, there is a chain of command. Bigger businesses are likely to have many more levels of hierarchy and there a longer chain of command.
150
What are the 3 advantages of an organisational chart?
Every individual can see their own position in the organisation. They can identify who they are accountable to, who they have authority over, and who they should take orders from. Shows the links and relationships between different departments within the organisation. Everyone is in a department and this gives them a sense of belonging.
151
What is the span of control?
The span of control is the number of subordinates working directly under a manager.
152
What are the two terms of the span of control?
The longer the chain of command, the ‘taller’ will be the organisational structure and the ‘narrower’ the span of control. The shorter the chain of command, the ‘shorter’ will be the organisational structure and the ‘wider’ the span of control.
153
What is delayering?
Removing a layer of management to have a shorter chain of command and a wider the structure.
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What are the 3 advantages of short chains of command?
Communication is quicker and more accurate because they are fewer levels for information to pass through before reaching the intended person. These top managers should be more in touch with people below them as there are fewer management levels to get to know. Spans of control will be wider and this means that each manager is responsible for more subordinates.
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Spans of control will be wider and this means that each manager is responsible for more subordinates. What are the 2 advantages of this statement?
If superiors have more people to manage, it will encourage managers to delegate more. There will be less direct control of each worker and they will feel more trusted and therefore obtain more job statisfaction.
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What is a disadvantage of wider spans of control?
Wider spans of control, with more people to be directly responsible for, could mean that the managers lose control of what their subordinates are doing leading to the subordinates making mistakes because of poor training.
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What are the 3 key feature of large business organisational charts?
It is still largely arranged into functional departments. Regional division responsible for stores in other countries. They are other departments which do not have a typical function and which employ specialists in particular areas.
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It is still largely arranged into functional departments. What is a disadvantage of this?
Workers may feel more loyalty to their department than to the organisation as a whole leading to conflict between departments.
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The regional division responsible for stores in other countries. What is the advantage of this department?
This department has the advantage of being able to use specialist knowledge to help it run the stores abroad, such as knowledge of local cultures and customs.
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What are directors?
Directors are senior managers who lead a particular department or division of a business.
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What are line managers?
Line managers have direct responsibility for people below them in the hierarchy of an organisation.
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What are supervisors?
Supervisors are junior managers who have direct control over the employees below them in the organisational structure.
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What are staff managers?
Staff managers are specialists who provide support, information, and assistance to line managers.
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What are the 5 main roles and functions of managers?
Plan for the future. Organise and delegate. Coordinate departments. Command and guide others. Control and assess the work of departments.
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What does planning for the future of an organization involve?
Planning for the future of an organization involves setting aims or targets and the resources which will be needed.
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What is the benefit of planning for the future of an organization by setting aims and targets?
These aims or targets will give the organization a sense of direction or purpose. There will be a common feeling in the organization of having something to work towards.
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A manager cannot do everything meaning that an effective manager will organize people and resources very carefully indeed. What can be done to organize people and what is the effect of this?
An organizational chart can help to show who has the authority to do different jobs. It also helps to make sure that specialization occurs and that two people do not end up doing the same task.
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Coordinating means ‘bringing together.’ How can a good manager make sure that all departments in the organization work together to achieve the plans originally set by the manager?
This could be done by regular meetings between people in the different departments.
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Managers have to make sure that all supervisors and workers are keeping to targets and deadlines. What must managers provide to ensure this?
Instructions and guidance must be provided by managers and it is also their responsibility to make sure that the tasks are carried out by people below them in the organization.
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Controlling is a never-ending task of management. What must managers do to make sure that groups and individuals are on target?
Managers must try to measure and evaluate the work of all individuals and groups to make sure that they are on target.
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Without clear and effective management, a business is going to lack: 4 objectives.
A sense of control and direction. Coordination between departments, leading to wastage of effort. Control of employees. Organisation of resources, leading to low output and sales.
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Define delegation.
Delegation means giving subordinates the authority to perform particular tasks. FURTHER NOTICE - It is the authority to perform a task that is being delegated - not the final responsibility and if the job is done badly by the subordinate then it is the manager who has to accept the responsibility for this.
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What are the three advantages of delegation for the manager?
Delegation allows managers to concentrate their time on other important management tasks. Managers are less likely to make mistakes if some of the tasks are performed by their subordinates. Managers can measure the success of their staff more easily.
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What are the three advantages of delegation for the subordinate?
The work becomes more interesting and rewarding. The employee feels more important and believes that trust is being put in them to perform a job well. Delegation helps to train workers and they can then make progress in the organization giving them career opportunities.
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What does delegation mean in terms of what must be increased and what must be reduced?
There needs to be an increase in trust in order to reduce control over workers.
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A good manager should: 5 objectives.
Motivate employees. Give guidance and advice to employees they manage. Inspire employees they manage to achieve more than they thought possible. Manage resources effectively and keep costs under control. Increase the profitability of the business.
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What are the six qualities of managers?
Intelligence. Self confidence. Determination. Initiative. Good communication skills. Enthusiasm.
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Define leadership styles.
Leadership styles are the different approaches to dealing with people and making decisions when in a position of authority - autocratic, democratic, or laissez-faire.
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What is autocratic leadership?
Autocratic leadership is where the manager expects to be in charge of the business and to have their orders followed.
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What direction is communication in an autocratic leadership business?
Communication in the business is mainly one way, downward or top-down and the workers have little to no opportunity to comment on anything.
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What is a potential advantage of autocratic leadership?
Quicky decision making.
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What is a potential disadvantage of autocratic leadership?
No opportunity for employee input into key decisions, which can be demotivating.
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What is democratic leadership?
Democratic leadership gets other employees involved in the decision making process.
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What direction is communication in an democratic leadership business?
Communication is both downward or top-down, and upward and bottom-up.
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What is a potential advantage of democratic leadership?
Better decisions could result from consulting with employees and using their experience and ideas - as well as being a motivating factor.
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What is a potential disadvantage of democratic leadership?
Unpopular decisions such as making workers redundant, could not effectively be made using this style of leadership.
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What is laissez-faire leadership?
Laissez-faire leadership makes the broad objectives of the business know to employees, but then they are left to make their own decisions and organise their own work.
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What is a possible advantage of laissez-faire leadership?
Encourages employees to show creativity and repsonsiblity.
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What is a possible disadvantage of laissez-faire leadership?
Unlikely to be appropriate in organisations where a consistent and clear decision-making structure us needed.
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What is a trade union?
A trade union is a group of employees who have joined together to ensure their interests are protected.
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What are the 9 advantages of a trade union?
Strength in numbers. Improved working conditions. Services such as insurance, and social facilities. Possible influence in government decisions. Employment if there is closed shop. Improved conditions of employment. Advice if unfairly treated. Improved pay. Improved communications between employees and management. Advice if dismissed (unfairly or made redundant. Representation in grievances with management.
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What is a closed shop?
A closed shop is when all employees must be a member of the same trade union.
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What are the two disadvantages for an employee of trade union memberships?
It costs money to be a member. Workers may be required to take industrial action even if they don’t agree.
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What are the two advantages of trade unions to employers?
They can help improve communications between workers and management. Wage agreements will be easier to negotiate with trade union than with many many individual workers.
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What are the two disadvantages of trade unions to employers?
Trade unions can organize strikes if they do not receive the pay levels and work conditions they demand. Wages are likely to be higher.
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Define recruitment.
Recruitment is the process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business.
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Define employee selection.
Employee selection is the process of evaluating candidates for a specific job and selecting an individual for employment based on the needs of the organisation.
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What are the 6 responsibilities of the Human Resources department?
Recruitment and selection. Wages and salaries. Industrial relations. Training programs. Health and safety. Redundancy (retrenchment) and dismissal.
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When do business need to start the process of recruitment and selection?
An employee leaves their job and needs to be replaced. It is a new business starting up and needs employees. It is a successful business and wants to expand by employing more people.
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What are the 8 levels of the recuitment process?
Vacancy arises. Job analysis. Job description. Job specification. Job advertised in appropriate media. Application forms and shortlisting. Interviews and selection. Vacancy filled.
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What is a job analysis?
A job analysis identifies and records the responsibilities and tasks relating to a job.
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What is a job description?
A job description outlines the responsibilities and duties to be carried out by someone employed to do a specific job.
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What is a job specification?
A job specification is a document that outlines the requirements, qualifications, expertise, physical characteristics, etc., for a specified job,
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Once the job has been analysed, a job description will be produced. A job description has several functions:
It is given to the applicants for the job so they know exactly what it entails. It will allow a job specification to be drawn up. Once someone has been employed, it can show whether they are carrying out the job effectively.
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Job descriptions often also contains information about:
The conditions of employment - salary, hours of work, pension scheme, and staff welfare. training that will be offered. opportunities for promotion.
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The requirements stated on a job specification will usually include:
The level of educational qualifications. The amount of experience and type of experience. Special skills, knowledge, or particular aptitude. Personal characteristics, such as type of personality.
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Define internal recruitment.
Internal recruitment is when a vacancy is filled by someone who is an existing employee of the business.
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What are the four advantages of internal recruitment?
It is quicker and cheaper than external recruitment. The person is already known to the business and their reliability, ability, and potential are known. The person also knows how the organization works, its structure and what is expected from its employees. It can be very motivating for employees to see their fellow workers being promoted.
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What are three disadvantages of internal recruitment?
The quality of internal candidates might be low. There may be rivalry among existing employees and jealousy towards the worker who gains promotion. No new ideas or experience come into the business.
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Define external recruitment.
External recruitment is when a vacancy is filled by someone who is not an existing employee and will be new to the business.
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External recruitment is when a vacancy is filled by someone who is not an existing employee and will be new to the business.
Local newspapers. National newspapers. Specialist magazines. Online recruitment sites. Recruitment agencies. Centres run by the government.
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What three questions will a business need to ask itself when drawing up a job advertisement?
What should be included in the advert? Where should the advertisement be placed? How much will the advertising cost and is it within the budget of the Human Resouces department?
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A job advertisement will require the applicant to apply in writing. How could this be done?
This can either be by filling in an application form, or by writing a letter of application and enclosing a curriculum vitae (CV) and resume.
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What is a CV (curriculum vitae)?
A CV is a summary of a persons qualifications, experience and qualities and is written in standard format.
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A curriculum vitae should be well laid out and clear. It should usually contain the following details:
Name. Address. Telephone number. Email address. Nationality. Education and qualifications. Work experience. Positions of responsibility. Interests. Names and addresses for referees (for references).
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The letter of application should outline briefly:
Why the applicant wants the job? Why the applicant feels he/she would be suitable?
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The main purposes of an interview are to assess, in the shortest possible time:
the applicant’s ability to do the job. any personal qualities that are an advantage or disadvantage. the general character and personality of the applicant.
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Some businesses include tests in their selection process, for example:
Skills tests. Aptitude tests. Personality tests. Group situation tests.
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The final decision of which workers to employ depends on several factors:
Work experience. Education and other qualifications. Age. Internal. External.
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What is part-time?
Part-time employment is often considered to be between 1 and 30-35 hours a week.
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What is full-time employment?
Full-time employees will usually work 35 hours or more a week.
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The 6 benefits to a business of employing part-time employees are:
more flexible in the hours of work. easier to ask employees just to work at busy times. easier to extend business opening/operating hours by working evenings or at weekends. fits in with looking after children and therefore the employee is willing to accept lower pay. reduces business costs compared to employing and paying a full-time employee. in some countries, it is easier to make part-time workers redundant. NOTE - The advantages of part-time employees are the disadvantages of full-time employees.
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The 5 limitations to a business of part-time employees are:
takes long to recruit two part-time workers than one full-time employee. less likely to seek training because the employees may see the job as temporary. more difficult to communicate with part-time employees when they are not at work. less likely to be promoted because they will not have gained the same skills and experience as full-time employees. part-time employees can be less committed to the business and may be more likely to leave to get another job. NOTE - The disadvantages of part-time employees are the advantages of full-time employees.
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Training is important to a business as it may be used to: 6 reasons.
introduce a new process or new equipment. improve the efficiency of the workforce. provide training for unskilled workers to make them more valuable to the company. decrease the supervision needed. improve the opportunity for internal promotion. decrease the chances of accidents.
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Training is usually trying to achieve one or more of the following:
to increase skills. to increase knowledge. to improve employees’ attitudes.
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There are three main types of training:
induction training. on-the-job training. off-the-job training.
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Define induction training.
Is an introduction given to a new employee, explaining the business’s activities, customs, and procedures and introducing them to their fellow workers.
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Define on-the-job training.
Occurs by watching a more experienced worker doing the job.
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Define off-the-job training.
Involves being trained away from the workplace, usually by specialist trainers.
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The 3 advantages of induction training are that it.
helps new employees to settle into their job quickly. may be a legal requirement to give health and safety training at the start of a job. this means workers are less likely to make mistakes.
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The 3 disadvantages of induction training are that it.
is time-consuming. means wages are paid but no work is being done by the worker. delays the start of the employee commencing their job.
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The 4 advantages of on-the-job training are that it.
individual tuition is given. it ensures there is some production from the worker while they are training. it usually costs less than off-the-job training. it is training tailored to the specific needs of the business.
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The 3 disadvantages of on-the-job training are that it.
the trainer will not be as productive as usual. the trainer may have bad habits and they may pass these on to the trainee. it may not lead to training qualifications recognised outside the business.
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The 5 advantages of off-the-job training are that it.
a broad range of techniques can be taught using these techniques. if these courses are taught in the evening after work, they are cheaper for the business. the business will only need to pay for the course and it will not also lose the output of the employee. employees may be taught a variety of skills. it often uses expert trainers.
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The 3 disadvantages of off-the-job training are that it.
costs are high. -it means wages are paid but no work is being done by the worker. the additional qualifications mean it is easier for the employee to leave and find another job.
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What is workforce planning?
Workforce planning is establishing the workforce needed by the business for the foreseeable future in terms of the number and skills of employees required.
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If a business needs to reduce the number of employees, this can be done in one way of two ways:
dismissal. redundancy.
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Define dismissal.
Dismissal is when employment is ended against the will of the employee, usually for not working in accordance with the employment contract.
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Define redundancy.
Is when an employee is no longer needed and so loses their job. It is not due to any aspects of their work being unsatisfactory.
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Why else would a worker leave their job besides dismissal or redundancy?
retire. resign.
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The following factors help a business to decide which workers to make redundant and which to retain:
some workers may volunteer and be happy to be made redundant. length of time employed by the business. workers with essential skills that are needed. employment history of the worker. which departments of the business need to lose workers and which need to retain workers.
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the most important employment issues affected by legal controls are:
employment contracts. unfair dismissal. discrimination. health and safety. legal minimum wage.
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What is a contract of employment?
A contract of employment is a legal agreement between an employer and employee listing the rights and responsibilities of workers.
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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What is an industrial tribunal?
An industrial tribunal is a type of law court that makes judgements on disagreements between companies and their employees.
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What are the four impacts of unfair dismissal on employer and employee?
-employer must keep accurate records. - employees have the security of employment. - allows employees to take their employer to an industrial tribunal. - makes the business less likely to treat employees unfairly.
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What are the five main examples of when workers are treated differently?
are of a different race of color. belong to a different religion. are of the opposite sex. are considered too old/young for the job. are disabled in some way.
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What are the three impacts of discrimination on employers and employees?
employees should be treated equally in the workplace regardless of gender or disability. employers have to be careful when wording an advertisement for a job. when selecting an employee for a job an employer must treat all applicants equally.
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In most countries, there are now five laws that make sure that all employers:
protect workers from dangerous machinery. provide safety equipment and clothing. maintain reasonable workplace temperatures. provide hygenic conditions and washing facilities. do not insist on excessively long shifts and provide breaks in the work timetable.
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Impact of four health and safety on employers and employees:
Cost to the employer of meeting the health and safety regulations. Time needs to be found to train workers in precautions. Workers feel ‘safer’ and more motivated at work. Reduces accident rate and cost of compensation for injured workers.
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Define ethical decision.
An ethical decision is a decision taken by a manager or a company because of the moral code observed by the firm.
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There should be a legal agreement between worker and employer (contract of employment) which will contain details not only of the hours of work and the nature of the job but also of:
The wage rate to be paid. How frequently wages will be paid. What deductions will be made from wages.
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Impact of five legal minimum wage on employers and employees:
It should prevent strong employers from exploiting unskilled workers. As many unskilled workers will now be receiving higher wages. It will encourage more people to seek work. It increases business costs. Some employers will not be able to afford these wage rates.
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What is communication?
Communication is the transferring of a message from the sender to the receiver, who understands the message.
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What is a message?
A message is the information or instructions being passed by the sender to the receiver.
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What are the three important things about a message or information being sent?
This means that the information or message being sent is received, understood and acted upon in the way intended.
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What is internal communication?
Internal communication is between memebers of the same organisation.
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Why would management suffer without communication?
The tasks of management in guiding, instracting, warning and encouraging workers would become impossible.
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Give three examples of internal communication.
‘Please do not smoke in this area.’ (notice on a table). ‘How many hours did you work last week?’ (manager asks a worker). ‘Keep this door locked at all times.’ (sign on a door).
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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What is external communication?
External communication is between the organisation and other organisations or individuals.
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What are four main examples of external communication?
External communication is very important to the image and efficiency of a business. FOR EXAMPLE: If a company communicates ineffectively with suppliers, it may be sent the wrong materials.
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Effective communication involves the following four features:
A transmitter or sender of the message. A medium of communication. A receiver of the information. Feedback.
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What is a transmitter or sender?
The transmitter or sender of the message is the person starting off the process by sending the message.
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What is the medium of communication?
The medium of communication is the method used to send a message.
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What is the receiver?
The receiver is the person who receives the message.
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What is feedback?
Feedback is the reply from the receiver which shows whether the message has arrived, been understood and if necessary, acted upon.
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What is one-way communication?
One way communication involves a message which does not call for a require a response.
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What is two-way communication?
Two way communication is when the receiver gives a response to the message and there is a discussion about it.
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What are the two advantages of two-way communication?
It should become absolutely clear to the sender whether or not the person receiving the message has understood it and acted upon it. Both people are now involved in the communication process. This may help to motivate the reciever.
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What are the three forms of communication methods?
Verbal methods of communication (speaking). Written methods of communication include letters and notices. Visual methods of communication include methods such as diagrams, charts, and videos.
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There are several factors that the sender of a message should consider before choosing the most appropriate method to use to communicate with the receiver:
Speed. Cost. Message details. Leadership style. The receiver. Importance of a written record. Importance of feedback.
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What are the four methods of verbal communication?
Face to face/ one-to-one talks/ meetings. Telephone conversations. Videos conferencing. Meetings and team briefing.
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What are the three advantages of verbal communication?
What are the three advantages of verbal communication?
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What are three disadvantages of verbal communication?
In a big meeting, there is no way of telling whether everybody is listening or has understood the message. It can take longer to use verbal methods when feedback occurs. When an accurate and permanent record of the message is needed, a verbal method is inappropriate.
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Written methods of communication include the following:
Business letters. Memorandums. Reports. Notices (no certainty that they are read). Text messages. Email.
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What are the four advantages of written communication?
There is hard evidence of the message which can be referred to in the future. It is essential for certain messages involving complicated details which might be misunderstood. A written message can be copied and sent to many people. Electronica communication is quick and cheap way to reach a large number of people.
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What are the four disadvantages of written communication?
Direct feedback is not always possible. It is not so easy to check that the message has been received and acted upon as with verbal messages. The language used can be difficult for some receivers to understand. There is no opportunity for body language to be used to reinforce the message.
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Visual methods of communication include the following:
Films, videos, and Microsoft PowerPoint displays. Posters. Charts and diagrams. Photographs and cartoons.
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What are the two advantages of visual communication?
These methods can present information in an appealing and attractive way. They can be used to make a written message clearer by adding a chart or diagram to illustrate the point being made.
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What are the two disadvantages of visual communication?
There is no feedback and the sender of the message may need to use other forms of communication. Charts and graphs are difficult for some people to interpret.
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What is informal information?
Informal information is when information is sent and received casually using everyday language.
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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What is formal communication?
Formal communication is when messages are sent through established channels using professional language.
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What are communication barriers?
Communication barriers are factors that stop effective communication of messages.
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What are the four parts of any successful communication?
Sender, receiver, medium used and feedback.
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Why is have employees motivated a good thing
Productivity Lower labour turnover Better quality products
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Leadership styles, examples and their meanings
Leadership style - Different approaches to dealing with employees and making decisions when in authority Autocratic - when the manager expects to be in charge of the business and the decision making Democratic - when other employees are involved in the decision making process Lassiter farriez - makes broad objectives for the business and lets the employees do most of the decision making
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Advantages autocratic
Decisions made quicker Clear instructions More experience
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Disadvantages autocratic
Less motivation Ideas are not considered
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Advantages democratic
Highly motivated Employees are more accepting of change Creative thinking
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Disadvantages democratic
Longer decision making Arguments
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Advantages laissez fairies
Motivated by the responsibilities Allows innovative thinking
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Disadvantages laissez fairies
Poor performance/inexperienced decisions More work May feel directionless/I dont know what to do
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Financial methods motivation, examples and their meanings
Salary - the pay yearly Commission - a payment relating to the amount of sales made Profit sharing - where a proportion of the company’s profit is paid out Fringe benefits - other benefits such as a company car Bonuses - a sum of money given if the worker has done well Time rate - the amount paid to a worker for one hour Piece rate - the amount paid for each unit of output
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Non financial methods, examples and their meanings
Job rotations - workers swap to do different jobs in a production line Autonomy/teamworking - working in groups and are responsible for a particular part of the assembly Workers can decide as a group who does what tasks Job enrichment - adding more tasks that require more skill so they take on more responsibility (may require training) Training - the process of improving a workers skill, worker may feel a sense of achievement Opportunities of promotion- the advancement of an employee in an organisation, may feel a sense of achievement and get more Challenging work
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Maslows hierarchy
Psychological needs, food/Shelter Safety needs, job security Love and belonging (social needs), work colleagues support Self esteem, being recognised by doing a good job Self actualisation, being promoted given more responsibility
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Herzeberg motivational theory
Hygiene factor - decreases if you dont have it but doesn’t increase motivation Eg; health and safety Motivating factors - opportunities - financial
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Taylors motivational theory
Scientific theory that people are only motivated by money, piece rates However not everyone is motivated by money
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What is job satisfaction
The enjoyment derived from feeling that you have done a good job
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Hierarchy
Level of management in any organisation from highest to lowest
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Functions of an organisational structures
Describes every job in an organisation Describes the responsibilities of each employee Describes how each job is related to other jobs
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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Chain of command
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Chain of command
The structure in an organisation which allows instructions to be passed down from senior management to lower levels of management a hierarchy that outlines who reports to whom, as well as the roles each person has within the organization.
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Span of control
A feature in the organisational structure where it is the number of employees working directly under a manager and for which a manager is responsible for
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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Delegation definition and advantages (for workers and the manager)
Passing down tasks down to someone lower in the hierarchy, balancing the work load for both the manager and the employee Advantages for the manager - less work, managers can focus of managerial tasks and less likely to make mistakes - easier to measure the success of the task when its done by someone else Advantages for the worker - the work is more interesting and rewarding - the worker feels more important and feels like they are trusted - delegation may help trains he employees for more difficult tasks in the future
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Delayering
When an organisation removes a layer
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Centralised organisation
Keep decision making firmly at the top of the hierarchy amongst the most senior management
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Centralised organisation Advantages
Consistent decisions More experienced decisions are made Easier to implement policies/rules
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Centralised Disadvantages
Slow decisions Less creativity Branch managers are demotivated More layers, might increase costs Danger of losing a key decision maker
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Decentralised advantages
Communication faster Good way of training. And development More motivation with staff managers
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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Decentralised advantages
Communication faster Good way of training. And development More motivation with staff managers
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Decentralised organisation
Decision making is spread out to include more junior/lower level managers in the hierarchy
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Decentralised organisation disadvantages
Inconsistent decisions Less experience Harder to control costs Not necessarily looking to the long term future direction of the business
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Tall organisational structures features
Long chain of command Smaller span of control
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Flat organisational structures features
Large span of control Less layers
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Tall organisational structures advantages
More chances of promotion More supervision/support
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Tall organisational structures disadvantages
Slower communication Heavier work load
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Flat organisational structures advantages
Better communication Less work load
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Flat organisational structures disadvantages
Less supervision feels disconnected Less promotion opportunities
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Organisational structure
Levels of managements and responsibilities within an organisation
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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Organisational chart
To the diagram that outlines the internal management structure
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The role and function of management
Planning (relation to the main aims and targets) Organising (delegation) Commanding (guiding) Co ordinated (teamwork)
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Trade unions
An organisation that protects employees rights, for money
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Trade unions advantages
Negotiates better pay Gives advice and support Negotiates better working conditions, health and safety
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What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
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Trade unions disadvantages
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Trade unions disadvantages
Unions drive up costs for the business Expensive to pay Time consuming
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The process of recruitment
* Job analysis - identifies and records the responsibilities and tasks relating to the job * Job description - outlines the responsibilities and duties to be carried out by someone employed to a specific job also hilighting details about the job (final version of job analysis) * A job description will include a job specification as well (what qualifications are needed to get the job) * Job will be advertised to the appropriate media/target audience such as newspaper, magazine and online recruitment sites * Application forms will be submitted * Interviews and selection happens * Vacancy is filled (vacancy is a gap in the workforce)
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Why do they need to recruit people
High labour turnover New skills Growing/expand Someone got promoted
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Features of a job description
Job title Purpose of a Job Duties/responsibilities Location hours of work
334
Internal recruitment
When a business fills a job vacant with an existing employee Typically used for promotions
335
External recruitment
The process by which a business will search for a new candidates from outside a business
336
Advantages of internal recruitment
Workers strengths and weakness known No need for induction training Usually cheaper and quicker method High staff retention as staff know there is a chance of a promotion
337
Disadvantages of internal recruitment
More training may be needed to equip the employee with the right skills It creates another vacancy in the business Can cause jealously among staff if overlooked No new ideas are brought in
338
Advantages of external recruitment
News ideas and skills are introduced in the business Larger choice of applicants
339
Disadvantages of external recruitment
More cost and time
340
Selective process is important for the business If you get the right people….. it?
Increases output, productivity Different ideas Improvement in quality and customer service Increase staff retention
341
Types of training, examples and their meanings
Induction training - an introduction given to the new employee explaining the business activities customs and procedures also introducing new rooms and their fellow workers On the job training - Training at the place of work, when an experienced employee watches you and makes the necessary corrections Off the job training - Training that takes place away from the workplace usually by a specialist trainer(s)
342
Off the job training advantages and disadvantages
* broad range and variety of skills are taught * the business does not lose output of that employee * specialist trainer are the teacher who have up to date knowledge * costs can be too high * the additional qualifications will make it more easier for the employee to go and find another job
343
Dismissal
Termination by the employer because the employee has broken company rules or is not performing work to the required standard
344
On the job training advantages and disadvantages
* employee does not need to be sent away to their training (travel costs are high) * costs are less than off the job * tailored training to the superficial needs of the business * the trainer will not be as productive as usual * trainer may have bad habits which may be passed down to the trainee
345
Employee selection
The process of evaluating which candidate is best suited for the job at hand and the needs of the organisation
346
Recruitment
The process of identifying that the business needs to employ someone
347
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
347
Study These Flashcards
348
Part time vs full time jobs
Part time jobs - when you work for 1-35 hours a week Full time jobs - when you work for more than 35 hours
349
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
349
Workforce planning
The workforce needed for the business in the near future this could include skills of employees required
350
Induction training advantages and disadvantages
helps the new employees settle into their job more quickly less likely for the worker to make mistakes time consuming this means wages are paid but no work is done
351
Redundancy
When an employee is no longer needed so loses this job (not because their work was unsatisfactory)
352
Why is training important
Introduce a new process Improve the opportunities for internal promotion Decrease in mistakes Increase productivity (know what they are doing) Decreases in supervision
353
Types of legal control when hiring new employees
Discrimination Unfair Dismissal The contract of employment (legal agreement) Health and safety Minimum wage
354
Communication definition
The transfer of a message from the sender to the receiver who understands the message
355
Why is effective communication important
Increased productivity Feedback may make the person produce more more quality items Increased motivation
356
Internal communication definition
The communication between members of the same organisation
357
External communication definition
When messages are sent between one organisation and another
358
One way and two way communication
One way occurs when the receiver of a message does need to respond to the sender, some examples would be instructions, or a notice sign Two way occurs when the receiver of the message can respond this could be a simple confirmation or questions about the instructions
359
Advantages of two way communication
confirmation of what to do motivates the employees, they feel more involved in the process further questions so they can carry out the task more effectively
360
Communication methods
verbal communication, speaking in meetings/calls written communication, letters, notice boards emails visual methods, diagrams charts and videos
360
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
361
Verbal communication advantages and disadvantages
Info can be given out quickly (meeting) Opportunities for immediate feedback Body language helps communicate the message across Big meeting there is no way telling whether everyone understood No written record of the conversation, employees may forget certain details
362
Written communcation
Hard evidence of the message Complicated details are easier to communicate Written message can easier reach a lot of people (copy and pasted) The language used may be difficult to understand Direct feedback may not always be possible No opportunity for body language
363
Visual communication
More people are likely to look at more appealing posters Make written communication more clearer Charts and graphs may be difficult to interpret
364
Formal vs informal communication
Formal - when messages are sent through established channels using professional language Informal - when information is sent and received casually using everyday language
365
communication barriers definition and examples
Commutation barriers are factors that stop effective communication of messages language is to difficult to understand (use of jargon) speaker speaks to quickly (verbal meetings) sender passes on the wrong message to the wrong receiver main points may be unclear (written) long chain of command (message is lost) message is not received (written) notice on notice boards may not be read
366
How to reduce and remove communication barriers
Using understandable language (reduces the use of jargon) Making the message clear so there is no misunderstandings Make sure the message gets to the right person Asking for confirmation that the message was understood
367
Authority.
The right to command and make decisions.
368
The right to command and make decisions.
The route through which orders are passed down in the hierarchy.
369
Delegation.
Authority to pass down from superior to subordinate.
370
Formal Organisation.
The internal structure of a business as shown by an organisation chart.
371
Hierarchy.
The order or levels of responsibility in an organisation from the lowest to the highest.
372
Organisational Chart.
A diagram that shows the different job roles in a business and how they relate to each other.
373
Span of Control.
The number of people a person is directly responsible for in a business.
374
Subordinates.
People in the hierarchy who work under the control of a senior worker.
375
Department.
A section in a business where all employees have similar skills and specialise in particular activities.
376
Communication.
The sending & relieving of messages.
377
Communication Barriers.
Things that get in the way of communication.
378
Communication Channels.
Routes along which information might travel in a business.
379
Communication Media.
The different methods by which information can be sent.
380
Formal Communication.
The use of recognised channels when communicating.
381
Informal Communication.
The use of non-approved channels when communicating.
382
External Communication.
Communication between the business and those outside such as customers, investors or the authorities.
383
Internal Communication.
Communication between people inside the business.
384
Curriculum Vitae.
A document used by a job seeker which lists personal details, qualifications, work experience, referees and other details.
385
External Recruitment.
Appointing workers from outside the business.
386
Internal Recruitment.
Appointing workers from inside the business.
387
Job Description.
A document that shows clearly the tasks, duties and responsibilities expected of a worker for a particular job.
388
Person Specification.
A personal profile of the type of person needed to do a particular job.
389
Contract of Employment.
A written agreement between an employer and an employee in which each has certain obligations.
390
Discrimination.
Favouring one person over another. For example, in the EU it is unlawful to discriminate on grounds of race, gender, age and disability.
391
Employment Tribunal.
A court, which deals with cases involving disputes between employers and employees.
392
Unfair Dismissal.
Where a worker is dismissed illegally by a business.
393
Where a worker is dismissed illegally by a business.
Training given to new employees when they first start a job.
394
Off-The-Job Training.
Training that takes place away from the work area.
395
On-The-Job Training.
Training that takes place while doing the job.
396
Hygiene Factors (Herzberg’s).
Things at work that result in dissatisfaction.
397
Training.
A process, which involves increasing the knowledge and skills of a worker to enable them to do their job more effectively.
398
Job Satisfaction.
The pleasure, enjoyment or sense of achievement that employees get from their work.
399
Maslow’s Hierarchy of Needs.
The order of people’s needs starting with basic human needs.
400
Motivation.
The desire to achieve a goal.
401
Motivators (Herzberg’s).
Things at work that result in satisfaction.
402
Physiological Needs.
The basic needs of humans for their survival.
403
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
404
Social Needs.
405
Social Needs.
The need of humans to communicate, develop friendship and belong.
406
Bonus Systems.
A payment in addition to the basic wage for reaching targets or in recognition for service.
407
Commission.
A payment based on the value of sales, usually a percentage of sales made.
408
Gross Pay.
Pay before deductions.
409
Net Pay.
An employee’s take home pay, i.e. pay after deductions such as income tax and pension contributions.
410
Overtime.
A rate of pay above the normal rate to compensate employees for working extra hours.
411
Performance Related Pay.
A payment system designed for non- manual workers where pay increases are given if performance targets are met.
412
Piece Rate.
A payment system where workers receive an amount of money for each unit produced.
413
Profit Sharing.
Workers are given a share of the profits, usually as part of their pay.
414
Salary.
Pay, usually to non-manual workers, expressed as a yearly figure but paid monthly.
415
Time Rate.
A payment system based on the amount of time employees spend at work.
416
Fringe Benefits.
‘Perks’ over and above the normal wage or salary.
417
Job Enrichment.
Making workers’ jobs more challenging by giving them opportunities to be creative and take on responsibility.
418
Job Rotation.
Allowing workers to change jobs from time to time.
419
Motivation
Workers want to work hard and effectively for their employer.
420
Wage
Payment for work, usually paid weekly.
421
Time rate
Wage based on number of hours worked
422
Piece rate
Wage based on number of units of output produced.
423
Salary
Payment for work, usually paid monthly.
424
Commission
Payment based on number of units sold.
425
Profit sharing
Payment to employees based on a share of the profits of the business.
426
Bonus
Additional payment to workers, above the basic wage/salary, as a reward for good work
427
Performance-related pay
Pay is related to the performance of an employee, e.g. meeting pre-set objectives.
428
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
428
Share ownership scheme
429
Share ownership scheme
Giving employees shares in a company to encourage a sense of belonging and ownership
430
Appraisal
Assessing the effectiveness of employees (important for performance-related pay).
431
Fringe benefits
Non-financial rewards.
432
Job satisfaction
Enjoyment employees can derive from work if they feel they have done a good/rewarding job.
433
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
434
Job rotation
435
Job rotation
Workers are asked to switch different tasks with other workers (but at the same level of responsibility).
436
Job enlargement
Tasks of a similar level of difficulty/responsibility are added to a worker’s job description.
437
Job enrichment
Adding tasks that are more challenging, more skilful and more responsible.
438
Why do people work?
Money Social Needs -Esteem Needs Job Satisfaction Security
439
Maslow’s hierarchy of needs
Physiological needs Safety needs Belongingness and love needs esteem needs self actualization
440
Taylor’s theory
workers are motivated by money
441
Herzberg’s theory
Two factors, hygiene & motivation
442
types o financial rewards
wages salary bonus Commission Profit sharing
443
Methods of motivation
Financial Non-Financial
444
Organisational structure
The levels of management and divisions of responsibility in an organisation
445
Chain of command
The route taken by instructions passed down from senior management.
446
Level of hierarchy
A level of management where people have the same level of responsibility.
447
Span of control
The number of employees working directly under a manager.
448
Line managers
Have direct responsibility over people below them in the hierarchy of an organisation.
449
Staff managers
Specialists who provide support, information and assistance to line managers.
450
Delegation
Giving subordinates (employees/junior managers) the authority to perform particular tasks.
451
Autocratic leadership
Where the manager is in charge of the business, takes all decisions and expects orders to be followed.
452
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
453
Democratic leadership
All employees are involved in the decision making process.
454
Laissez-faire leadership
Makes broad objectives known to employees who are then left to make own decisions and organise the r own work.
455
Trade union
A group of workers who join together to protect their interests.
456
Roles of managers
planning organising coordinating commanding controlling
457
Leadership style depends on
type of business (creative or supply driven) nature of the task
458
Recruitment
Identifying need for new employees) and encouraging people to apply for a vacancy.
459
Job description
Responsibilities and duties to be carried out by the job holder.
460
Job (person) specification
The requirements, qualifications, experience and characteristics of people needed to fill a job vacancy.
461
Internal recruitment
The vacancy is filled by someone who is an existing employee of the organisation.
462
External recruitment
The vacancy is filled by someone who is not an existing employee of the organisation
463
Part-time employment
Jobs with less hours than a full working week, e.q. 20 hours per week instead of 40.
464
Full-time employment
Jobs with a full working week (length varies between businesses). Full-time employees will usually work 35 hours or more a week
465
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
465
On-the-job training
466
On-the-job training
Training at the place of work - watching and being instructed by experienced workers.
467
Off-the-job training
Training away from place of work, e.g. at college, being instructed by specialist trainers.
468
Induction training
Training for new employees explaining the business structure, activities and procedures.
469
Redundancy
Employees are no longer required - the job no longer exists.
470
Workforce planning
Establishing the size and skills of the workforce needed by a business for the future.
471
Dismissal
An employee’s employment contract is terminated and they must leave the business.
472
Stages of recruitment
Identifying a vacancy Prepare job description and person specification advertise shortlist references interview selection
473
why train employees?
increase productivity decrease the amount of supervision required reduce accidents and injuries improves chances of internal promotion
474
Types of training
Induction on the job off the job
475
Advantages and disadvantages of induction training
Advantages - helps new employee settle in - Health and safety training may be required Disadvantages - Time consuming (delays the start of employee’s work) - Wages are paid but no work has been done by the employee
476
Advantages and disadvantages of on the job training
Advantages Training is cheap Training is specific for their job Work can be done while training Disadvantages The trainer will not be getting work done. Training won’t be effective if the trainer is bad
477
Advantages and disadvantages of off the job training
Advantages Trainers are experts (Skills can be taught) Training can be done outside of working hours (in employee’s own time) Disadvantages Off the job training is expensive Worker may receive training paid by business and leave Training may not be specific for the job
478
Reasons why a business might need to reduce the number of employees
Automation factory/ shop closure business relocating demand for goods or services business merging
479
Communication
Sending a message from sender to receiver who understands it
480
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
480
Message
Information or instructions sent from sender to receiver.
481
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
482
Internal communication
Between members of the same organisation.
483
External communication
Between the organisation and another organisation.
484
Sender/transmitter
The person sending the message.
485
Receiver
The person who receives the message.
485
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
486
Feedback
Reply from receiver to sender to confirm message received/understood.
487
Method of communication
How the message is communicated, e.g. meeting, letter, email.
488
One-way communication
Message is sent without receiver required or expected to give feedback.
489
Two-way communication
Gives feedback to a received message - there may be discussion about it.
490
Formal communication
Messages sent through established channels.
491
Informal communication
Messages sent casually, not through established channels.
492
Communication barriers
Factors that stop effective communication
493
What is a motivated worker?
Motivated worker – A hard-working employee who works effectively for a business.
494
Why do people work (5 reasons)?
Money – People need money to buy food, water and other items they need to live. Social needs – People just like us likes to feel part of a team, socialise and make friends. Esteem needs – Feeling important, feeling that they are contributing to a business. Job satisfaction – enjoyment from the work and achievements they have accomplished. Security – Feeling of having a secure job with a stable income. (not likely to lose job etc…)
495
What are 3 ways that a business benefits from a well-motivated workforce?
labour productivity reduced absenteeism labour turnover
496
How does the workers being productive help the business and what is labour productivity?
Motivation improves productivity so motivated workers will work harder and produce more output, and the firm will make more profit as a result. Labour productivity is output per worker measured by output divided by the number of workers. So if 10 workers pick 4000 oranges the labour productivity is 4000 divided by 10, 400 oranges per person.
497
How does less absenteeism benefit the business?
Motivated workers will arrive on time, are less likely to be absent from work (also known as absenteeism) and are less likely to leave the business. We can calculate the rate at which workers leave the business by dividing the total number of employees by the number of employees who left in the last year.
498
What is labour turnover and how is it calculated?
Among the causes that contribute to high labour turnover are that the job and the worker do not suit one another, low wages, bad working conditions, bad treatment on the part of the employer or just the roving nature of the worker. Labour turnover is equal to the number of employees leaving, divided by the average total number of employees (in order to give a percentage value). The number of employees leaving and the total number of employees are measured over one calendar year.
499
What was Abraham Maslow’s theory?
Abraham Maslow’s theory states that the more levels of needs achieved by the worker = the higher motivated they will become. This also means that each level of motivation must be achieved before an employee can move to the next level of motivation.
500
What are the 5 different parts of Maslow’s Hierarchy?
Physiological needs: Food, rest, recreation and shelter wages high enough to meet weekly bills safety/security needs: protection against danger, poverty, fair treatment job security social needs: friendship, a sense of belonging to a team work colleagues that support you at work esteem needs: having status and recognition, achievement, independence being given recognition for a job well done self-actualisation: successding to your full potential feeling that you have done a good job, not just for financial and personal reward being promoted and given responsibility
501
What is one limitation of Maslow’s theory?
One limitation of this theory is that it doesn’t apply to every worker. For some employees, for example, social needs aren’t important but they would be motivated by recognition and appreciation for their work from seniors.
502
What was F.W. Taylors theory?
F. W. Taylor: Taylor based his ideas on the assumption that workers were motivated by personal gains, mainly money and that increasing pay would increase productivity (amount of output produced). Therefore he proposed the piece-rate system, whereby workers get paid for the number of output they produce. So in order, to gain more money, workers would produce more. He also suggested a scientific management in production organisation, to break down labour (essentially division of labour) to maximise output
503
What are the limitations of F.W. Taylor’s theory?
Employees can be motivated by other factors not just money There is no guarantee that all employees will work harder if they are paid more There are many jobs where output cannot be measured easily (difficult to determine if employee actually works hard)
504
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
504
Why are the hygiene factors important?
Why are the hygiene factors important?
504
What are Federick Herzberg’s motivation factors?
recognition achievements level of responsibility need for personal growth
504
What are Federick Herzberg’s hygiene factors?
working conditions salary and job status company policy and benefits working relationships
505
What is Herzberg’s Two-Factor Theory?
There are 2 factors Hygiene & Motivation factors. Workers expect hygiene factors to be available to them otherwise they will become demotivated. Hygiene factors will not motivate the workers only motivation factors will make the employees work harder.
505
What are Federick Herzberg’s motivation factors?
recognition achievements level of responsibility need for personal growth
505
What is Herzberg’s Two-Factor Theory?
There are 2 factors Hygiene & Motivation factors. Workers expect hygiene factors to be available to them otherwise they will become demotivated. Hygiene factors will not motivate the workers only motivation factors will make the employees work harder.
505
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
506
Why are the hygiene factors important?
Financial rewards Non-financial rewards Job satisfaction
507
What are the different kinds of financial motivators?
wage salary bonus, commission profit sharing
508
What are wages and some cons of this method?
Usually paid weekly – to manual workers e.g. warehouse workers, cleaners etc cons: Good and bad workers get paid the same Calculating wages takes time and money (opportunity cost)
509
What is wages (time rate) and what are the cons?
Wages (time rate) – Payment for a period of time such as amount per hour e.g. $10 per hour. Cons: Good & bad workers get paid the same Recording every employee’s working hours may be complicated costs business to hire an employee to calculate each workers’ wage (opportunity cost)
509
What is wages (piece rate) and what are the cons?
Wages (piece rate) – Workers paid depending on quantity of product produced e.g. $2 for every bicycle assembled. Cons: Workers may rush and produced bad quality products, Workers that make slow high-quality products will get paid less. workers may focus on quantity rather than quality, this can damage the reputation of the business if any machinery break down the employees will earn less money
510
What are salaries?
Workers are paid monthly Pay is calculated per year, then divided by 12 Extra work may not be paid for Often used with office staff or management It is easy to calculate It can be used in combination with other methods
511
What is commission and what are the cons?
Used with sales staff They are paid a % of the profit or value of the sale Can be very motivating! Sales staff are often paid a small percentage of the selling price of the product they are selling e.g. If a car salesman sells a car, the salesman might get 20% of the selling price of the car which is added to his salary. cons: But also demotivating if staff don’t make many sales If sales staff are too pushy it can annoy customers and harm the reputation of the business
512
What is profit sharing?
Can be used with all staff They are paid a share of the profits, in addition to their basic salary. It is a paid as a ‘dividend’ Can be motivating as all staff want the business to succeed Used when it is difficult to identify individual contributions
513
What is a bonus?
A lump sum paid to workers when they have worked well - Usually paid at the end of the year or at intervals throughout
514
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
515
What does it mean when you get performance related pay?
Employee’s pay is linked to the effectiveness of their work. This is often used with jobs where output cannot be easily measured. E.g. teachers, police officers, managers Businesses use an appraisal to assess effectiveness: The manager will interview the worker and discuss progress Training needs and objectives for the year ahead should be identified.
516
What is share ownership?
Employees are given the opportunity to buy some shares in the business This should encourage them to work hard as they will receive dividends if the company does well The share price will also increase if the company is doing well May improve employee loyalty as they now feel part of the company
517
What is another way to motivate employees which isn’t financial?
Health care paid by company Company cars Free trips / company holidays Employee of the month Free meals Discount on company’s products Free housing Children’s education fees paid by company
518
What is job sataisfaction?
Job satisfaction is the enjoyment obtained from feeling that you have done a good job. As stated by Herzberg, factors which dissatisfy or demotivate must be resolved before workers can be motivated.
519
What are ways a business can reach job satisfaction?
Pay Promotion Working conditions The work itself Status of the job
520
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
521
What is job rotation and how does it increase job satisfaction (how effective is it)? What is a con?
What: Workers swap roles to do different tasks. How: This stops the employee from getting bored. Con: It requires time and money spent to train employees Effective?: Yes
522
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
523
What is job rotation and how does it increase job satisfaction (how effective is it)? What is a con?
What: Workers swap roles to do different tasks. How: This stops the employee from getting bored. Con: It requires time and money spent to train employees Effective?: Yes
524
What is job enlargement and how does it increase job satisfaction (how effective is it)? What is a con?
What: More extra tasks are given to the worker so they have a variety of things to do. However, these tasks should not be more difficult. e.g. supermarket cashier now adds price label on items. How: It reduces boredom Con: workers will not get paid any more for doing more tasks so they may feel demotivated effective?: not very effective
525
What is job enrichment and how does it increase job satisfaction (how effective is it)? What is a con?
What: Adding tasks that require more skill and responsibility. e.g. receptionist employed to greet clients now deal with telephone enquiries How: Workers may be given greater autonomy (independence) over their work -Increased decision making opportunities Con: additional training is required effective?: very effective
526
What is team working/ autonomous work groups and how does it increase job satisfaction (how effective is it)?
What: This involves giving a group of workers responsibility for a particular process or task. How: They can decide how to complete the task using their skills, knowledge and experience, this should improve job satisfaction effective?: effective
527
What is a organisational structure?
Organisation structure refers to how responsibility and authority is shared in a business organisation.
528
What is a organisational chart?
a visual representation of the organisational structure, showing who reports to whom.
529
What are the 2 common types of charts?
Tall organisational charts – These have a long chain of command and a small span of control Flat organisational charts – Short chain of command, wide span of control
530
What is a line manager?
a manager directly in charge of a worker (above their subordinates on an org. chart)
531
What is a subordinate?
a worker who reports to their line manager (below their line manager on an org. chart)
532
What does delegate mean?
giving authority for a task to a subordinate (e.g. when a manager gives responsibility to a worker)
533
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
533
giving authority for a task to a subordinate (e.g. when a manager gives responsibility to a worker)
534
What does span of control mean?
the number of employees (subordinates) working directly under a manager
535
What does chain of command mean?
the path of authority passed from senior management to workers
536
What are the advantages of an organisational chart?
Shows how everybody is linked together in a business Lines of communication are clear Motivational as employees can see where they belong and can plan their career paths
537
What are the advantages of a short chain of command?
Faster communication – Communication is quicker and more accurate since it is passed on by fewer people. Stronger relationship between high-level managers and employees – This is because there are fewer levels between managers and employees. Each manager is responsible for more employees – This encourages them to delegate (pass down) more work to employees.
538
What is de-layering and why does it happen?
removing an entire row of management - It is primarily done to cut costs but is also used to improve/speed up communication / decision making.
539
What are the benefits and problems of a flat structure?
Benefits: Communication is quicker and more accurate Management are more in touch with the people below them Spans of control will be wider Managers will delegate more (Workers will feel more trusted, they may get to make more decisions which might lead to more job satisfaction) Problems: Fewer management positions – less chance of promotion Difficult for manager to monitor performance
540
What are the benefits and problems of a flat structure?
Benefits: More managers 🡪 easier to monitor employee performance More chance of promotion motivating Problems: - Communication takes longer - More managerial positions higher salary costs. Businesses can cut this costs by removing a layer of management which is called delayering
541
Why do we have organisational charts?
helps clear communication makes accountability easier (to see who is responsible for what/who) show the inter-relationships between departments
542
What are some different roles in an organisational structure?
directors managers supervisors other employees
543
What is the responsibility of directors and some inter-relationships they may have?
Responsibility: - Appointed by shareholders to run the business - Hold an AGM (Annual General Meeting) to review progress - Set the vision, strategy and structure of the business. inter-relationships: - Work closely with managers and shareholders to ensure that business is achieving its objectives
544
What is the responsibility of mangers and some inter-relationships they may have?
Responsibility: In charge of the employees and the business assign tasks and roles Monitor progress inter-relationships: Relay messages between directors and employees Work closely with supervisors
545
What is the responsibility of supervisors and some inter-relationships they may have?
responsibilities: - Normally in charge of a small group of people responsible for a specific task - Have less responsibility than managers inter-relationship: Work closely with specific groups of employees Feedback to managers
546
What is the responsibility of the other employees and some inter-relationships they may have?
responsibilities: - Have a duty to complete their set roles and tasks to the right standard inter-relationships: - May have close relationship and give feedback to managers and supervisors – it depends on the business
547
What are the roles of the managers in a business?
* Planning Set goals for the future of the organisation. Give the business a sense of direction and purpose (e.g. we will aim to increase sales by 10% by next year.) * Organising Organising of people and resources so that the business operates efficiently (Managers can’t do everything, they must delegate tasks to other employees) * Coordinating Making sure all departments are working together to achieve the overall objectives and plans of the organisation. (e.g. Manager makes sure marketing and operations department work together to plan for a new product launch) * Commanding Guiding, leading and supervising of employees in the organisation. (Managers need to make sure that employees are doing their work!) * Controlling This involves monitoring performance to ensure that objectives will be met.
548
What do managers do?
planning controlling organising coordinating commanding
549
How does the management plan?
A manager must set aims/objectives/targets for the business and also for the workers. These give the business a sense of direction and purpose. A manager must also plan for the resources that will be needed.
550
How does the management organise?
Organising of people and resources so that the business operates efficiently (Managers can’t do everything, they must delegate tasks to other employees) Making an organisational chart is very helpful to show authority. The chart is also helpful so all workers know what they are supposed to do and to see who is responsible for what/who.
551
How does the management coordinate?
Making sure all departments are working together to achieve the overall objectives and plans of the organisation. (e.g. Manager makes sure marketing and operations department work together to plan for a new product launch)
552
How does the management command?
A manager must guide, lead, supervise and also command people what to do. Managers must make sure the workers are meeting their targets and deadlines. Managers should share their experience to help the workers become more efficient.
553
How does the management control?
Managers must measure and evaluate the work of everyone in the company. They must find the employees that are not doing their work efficiently and discipline them. If there are reasons why the employees are not being efficient, they must find these reasons and fix them.
554
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
555
What are the advantages of delegation to the manager?
Reduced workload for the manager The manager can focus on other tasks and overseeing their dept Manager can monitor and measure staff more easily
556
What are the advantages of delegation to the subordinate?
Workers are empowered – they feel more important and trusted Work becomes more interesting and rewarding Training should be provided, leading to career opportunities
557
Why might a manager not delegate?
They may be worried the workers will do better than them They may not trust their staff! Delegation is also a balance between trust and control Managers are more likely to delegate if they trust their subordinates The more they delegate, the less control they have greater risk
558
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
559
What are the 3 main leadership styles?
Autocratic democratic laissez-faire
560
What is an autocratic leadership? Who makes the decisions? What are the disadvantages? When might it be good?
Leader is in charge and gives orders to employees: Makes decision alone Everything depends on the leader cons: - May de-motivate employees When used? - May be an advantage for some businesses where decision needs to be made quickly
561
What is a democratic leadership? Who makes the decisions? What are the disadvantages and advantages?
Other employees involved in decision making: Communication between managers and employees Future plans are discussed with other employees pros - Motivates employees because they are involved in making decisions. Sharing of ideas within the business. Cons: - Can delay decision making
562
What is a Laissez-Faire leadership? Who makes the decisions? What are the disadvantages and advantages?
“let it be” Leader sets objectives and employees makes decision and organise their own work: - Can be useful when creative ideas are needed pros: Highly motivational for employees as they control their own working life cons: - Poor coordination and decision making - Relies on good team work - leader has only a limited role to play
563
What factors might sway a businesses choice of business style?
context culture leader’s personality types of workforce - skill and motivation level
564
What is a trade union?
A trade union is a group of workers who have joined together to ensure their interests are protected.
565
Why join a trade union?
Improved conditions of employment Improved work environment Improved benefits Improved job satisfaction Advice/financial support Strenght in number (many employees will join)
566
What are the disadvantages of a trade union?
Cost money to be a member - May be forced to take action e.g. strike even if you don’t agree
567
Why do businesses recruit?
To replace staff who have left or been promoted Bring in staff with new skills Recruit more staff as business expands
568
What is recruitment?
The process of identifying that the business needs to employ someone up to the point where applications are received.
569
What is selection?
The methods used to choose which applicant(s) to offer the job(s) to.
570
Why might the business recruit someone?
To replace staff who have left or been promoted Bring in staff with new skills Recruit more staff as business expands
571
What is vacancy?
A vacancy is an unoccupied position or job.
572
What is job analysis?
A study of the tasks and activities to be carried out by the new employee
573
What is a job description?
This describes the main duties and responsibilities of the job. It should also include working conditions (pay, working hours, pension, training etc).
574
What is a job specification?
The qualifications and qualities necessary to perform the job (e.g. educational requirements, experience needed)
575
What is internal recruitment?
Internal recruitment is filling a vacancy with an existing employee.
576
What is external recruitment?
External recruitment is filling a vacancy with someone who is not an existing employee, who will be new to the business.
577
What are the advantages and disadvantages of internal recruitment?
Advantages: It saves time and money The worker is already known to the business (their ability, attitude etc) Worker already knows the organisational culture Can increase motivation as workers see colleagues being promoted Disadvantages: No new ideas come into the business. It can cause jealousy or rivalry amongst the employees. Limited pool of applicants Creates new vacancy elsewhere in the business
578
What are the advantages and disadvantages of external recruitment?
Advantages New ideas from new workers More likely to hire someone who matches job specification Disadvantages Expensive – need to advertise job Demotivating for internal candidates
579
What are the recruiting channels for external recruitment?
Local newspaper National newspaper Specialist Magazine Recruitment agencies Job centres
580
What are the advantages and disadvantages of recruiting people by using the local newspaper?
Who would you target to recruit with this method? - Usually for an office job (clerical) or factory job (manual) Advantages Relatively cheap Low skilled Lots of suitable local applicants Disadvantages Newspaper readership is falling Limited duration of advert
581
What are the advantages and disadvantages of recruiting people by using the national newspaper?
Who would be recruited through this method? - Usually for highly skilled, senior jobs. Usually these people are willing to relocate. Advantages - Read by lots of people all over the country Disadvantages Can be expensive Newspaper readership is falling Limited duration of advert
582
What are the advantages and disadvantages of recruiting people by using a specialist magazine?
Who would you try to recruit with this method? - Usually for technical/specialist roles, e.g. scientists. Advantages Mostly read by people who have the skills for the job Can be used to advertise nationally/internationally Disadvantages Quite expensive to advertise in Some suitable people may not read this magazine
583
What are the advantages and disadvantages of recruiting people by using a recruitment agency?
Who would you try to recruit with this method? - Often used for ’skilled workers’ in a variety of roles. Advantages The agency have specialist staff who can recruit effectively They advertise and interview for you Saves the business time Disadvantages - Can be very expensive, depending on the job
584
What are the advantages and disadvantages of recruiting people by using a job centre (government run)?
Who would you try to recruit with this method? - Usually for semi- and unskilled workers Advantages - Can be very cheap, even free Disadvantages Many people may not visit the centre Why are the applicants already unemployed – are they reliable?
585
What would be included on a job advert?
Duties involved Qualifications required Salary Conditions of employment Information about how to apply
586
When applying fro a job, what do people submit?
application form and/ or - a curriculum vitae (CV) – also know as a résumé
587
What does a CV include?
Name Address Telephone number Date of birth Nationality Education Qualifications Work experience Positions of responsibility Interests ( hobbies ) References (names and addresses)
588
What is the purpose of application forms/CVs and interviews?
Application forms and CVs – To see if applicant matches the job specification Interviews – Find out information about candidate’s abilities and personal qualities
589
What does the selection process include?
shortlisting interviews testing
590
What is short listing?
The HR manager will go through all the resumes and forms and pick out suitable candidates They will create a shortlist of people from all the applicants This short-listing process will involve company the CV’s of the applicants to the job description from there, you select people to interview
591
What is the purpose of a job interview?
Find out if applicant has the ability to do the job Personal qualities about the applicant To see if the candidate will ‘fit in’ with the culture of the business
592
What are the 4 different types of tests?
* Skill test – to observe the candidate’s skills * Aptitude test – to see how quickly candidate can learn new skills (Can be IQ tests or job-specific tests) * Personality test – to see if their personality has the characteristic that the job may require * Group situation test – to see how candidate(s) works as a team
593
What is a part time worker?
An employee that works fewer hours than a full-time worker
594
What are the pros and cons of a part time worker?
Pros: Can be used flexibly – needed during busy times May be more productive (less bored/tired) Part-time workers are usually cheaper – may not be entitled to benefits Cons: The employees are less likely to be trained – costs more to train large numbers of part-time employees. Takes longer to recruit 2 part-time workers instead of 1 full-time worker. They are less committed to the company and the job. Less likely to be promoted b/c they lack the skills and experience necessary to do the job. Difficult to communicate with them outside of work. Lower motivation for workers
595
What is a full-time employee and what and the pros and cons of them?
Full-time employees usually work 35+ hours per week They are usually more dedicated to their jobs and the business. They get more benefits and a higher salary. They are much more likely to be promoted. THE ADVANTAGES/DISADVANTAGES ARE THE OPPOSITE OF THOSE OF PART-TIME WORKERS
596
Why train employees?
Trained workers are more productive decrease the amount of supervision required may lead to job satisfaction reduce accidents and injuries Improve chances for internal promotion To introduce a new process or new equipment. To improve the efficiency of the workforce To improve the amount of internal promotion.
597
What are the 3 main types of training?
Off-the-job training Induction training On-the-job training
598
What is induction training and what are the pros and cons of this training method?
What is it? Training is given to a new employee, outlining the firm’s activities and culture. This can last between one day and one week. This helps the new employee meet colleagues, find where things are, and learn what is expected of them. Advantages: Helps new employees settle in quickly. Meet legal requirements (e.g. Health and Safety). Fewer mistakes will be made. Disadvantages: It is time-consuming. The employee is paid but he/she isn’t being productive It delays the start of the employees job.
599
What is On-the-job training and what are the pros and cons of this training method?
What is it? When the new employee watches an experienced worker do the job correctly. Only useful for unskilled or semi-skilled jobs. Advantages: Opportunity to learn from experienced, expert employees The worker is productive whilst training. Cheaper than off-the-job training. It trains the worker in the specific needs of the business Disadvantages: Disruption to production. The trainer may have bad habits and teach them to the new employee. The worker may not get proper qualifications by learning from another employee. Learning environment may not be idea
600
What is Off-the-job training and what are the pros and cons of this training method?
What is it? Involves being trained away from the workplace, usually by specialist business . The techniques used are much more varied and can be much more complex. The workers might be in a classroom using lectures, role play, case studies, or computer simulations to learn how to do their jobs Advantages Trainers are experts (Skills can be taught) Training can be done outside of working hours (in employee’s own time) A wider range of skills can be obtained Disadvantages Off the job training is expensive Worker may receive training paid by business and leave Training may not be specific for the job
601
Why might a business need to reduce the number of employees?
automation (machines replace humans) factory/shop closure business relocating demand for goods/services falling business merging Outsourcing – the business is paying an external business to provide some services, e.g. accounting, HR
602
What is dismissal?
Dismissal is when a worker is fired because of bad work or bad behaviour. For example: being late or being caught stealing.
603
What is redundancy?
Redundancy is when a worker is fired because they are no longer needed. It is not their fault – the requirements of the business have changed Workers are often legally due to be paid compensation for being made redundant, for example it may be one week/month of wages for each year they worked at the company.
604
What is voluntary redundancy?
Voluntary Redundancy is when workers are aware that redundancies will be made and they volunteer to leave - This is because they might retire soon, have another job they can go to, or start their own business using the redundancy money.
605
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
606
How does a business decide who to keep (redundancy)?
The workers who have worked for a business longer are usually kept. Workers with essential skills to the company are obviously retained. Attendance, punctuality, and evaluation scores are considered. Different departments also have different needs.
607
Businesses cannot discriminate and treat (potential) employees differently based upon….
Skin colour Religion Gender Disabilities Race Sexual orientation
608
In which areas do employees need protection is?
Unfair discrimination at work and when applying for job Wage protection (e.g. minimum wage) Health and safety standards Unfair dismissal
609
What are some health and safety laws businesses have to follow?
Protection from dangerous machinery. Providing safety equipment and clothing. Maintain reasonable workplace temperatures. Providing hygienic conditions and washing facilities. Provide breaks and not allow workers to work too long in one day.
610
What can a worker do if they feel they have been unfairly dismissed?
They can take their case to an industrial tribunal – a legal meeting, where the dispute can be settled.
611
What would you expect to see included in an employment contract?
Pay (how much and when it will be paid) Deductions, such as tax Roles Responsibilities
612
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
613
What are the advantages and disadvantages of wage protection?
Advantages: This prevents businesses from exploiting unskilled workers. It encourages businesses to train these workers to make sure they are more productive. It will encourage more people to look for work. Low-paid workers will earn more and can afford to spend more Disadvantages: It increases business costs which raises prices. Some employers cannot afford this wage. So they make workers redundant. -Unemployment may rise. Everyone will want to be paid the same for the same work, and the costs of the business will increase.
614
What is motivation?
Motivation is the reason why employees work hard and effectively for a business.
615
What are the benefits of motivation in a business? Why?
Motivation improves productivity so motivated workers will work harder and produce more output, and the firm will make more profit as a result. Motivated workers will arrive on time, are less likely to be absent from work (also known as absenteeism). They are also less likely to leave the business. Motivated workers are an asset who will go the extra mile for their business. Motivated workers make the workplace a fun, positive environment where people want to be.
616
How do we calculate labour productivity?
Labour productivity is output per worker measured by output divided by the number of workers. So if 10 workers pick 4000 oranges the labour productivity is 4000 divided by 10, 400 oranges per person.
617
How do we calculate the rate at which workers leave the business?
We can calculate the rate at which workers leave the business by dividing the total number of employees by the number of employees who left in the last year.
618
Define Labour Turnover rate.
Labour Turnover Rate is the amount of employees leaving a business in a year and is calculated as a share of the total workforce
619
Name some examples of highly motivated employees.
Some examples of highly motivated employees include: a sales assistant who makes every customer feel special; an engineer who works additional hours to make sure the product development is just right; a teacher who always has time to answer student queries.
620
Why are demotivated employees a disadvantage to a business?
Demotivated workers are a liability for a business, and can mean an unsatisfactory customer experience, where products are faulty or the service is inadequate. Demotivated workers are a negative influence on co workers and bring down the whole morale of the workforce, impacting the long term success of the business.
621
Explain Taylor’s idea of scientific management. What was its impact?
Scientific Management is observing employees, figuring out “one best way” of completing a task, and then training all employees to do the job exactly the same way. This had a huge impact on improving worker productivity in the early 20th century.
622
What is Taylor’s theory of motivation
Taylor’s theory on worker motivation was that the more you pay workers, the harder they will work and the greater the output will be produced. He argued it was best to pay workers by piece rate. If you paid them more by how much they produced, they would work harder and output would increase.
623
What was the disadvantage of Taylor’s approach?
His approach just focused on one human need, money (financial rewards). It ignored other human needs like social needs (being able to form friendships at work and feel part of a team) and achievement, feeling your work has meaning and you have contributed to something bigger.
624
Explain Maslow’s theory of motivation.
Abraham Maslow believed money was important in that it fulfilled a need to provide food and shelter, but he also believed humans had other needs and wants which needed to be satisfied before employees became fully motivated. He ranked them on his now famous pyramid also known as the hierarchy of needs. First physiological and safety are the most basic needs, then social, then esteem needs – feelings of achievement, respect or status. The peak of the pyramid is self-actualisation when employees have reached their absolute full potential. Self-Actualisation - achieving full potential Esteem Needs - status and achievement Social Needs - friendships with colleagues Safety Needs - health and safety at work Physiological Needs - air, water, food, shelter
625
How did Herzberg refine the Hierarchy of Needs?
Herzberg refined the pyramid with his two factor theory. He said that employees need certain basic needs, called Hygiene Factors, to be fulfilled by the business before they could even begin to think about motivation. Only after the Hygiene factors (like working conditions and wages and salaries) had been taken care of, could employees be motivated using achievement, recognition and responsibility.
626
Name some Hygiene Factors.
Company policies Supervision Relationship with supervisor and peers Work conditions Salary Status Security
627
Name some Motivators.
Achievement Recognition The work itself Responsibility Advancement Growth
628
List some examples of financial rewards.
Wages Salary A bonus Commission Profit Sharing
629
Explain wages.
Wages are usually paid weekly and are calculated by how many hours an employee works, times their hourly rate, or how much is produced by a worker in a factory, piece rate. This sort of payment is often used with lower skill workers or part time employees.
630
What are the advantages and disadvantages of wages?
Adv: Wages allow flexibility for employees and business. Disadv: It may lead to feelings of job insecurity in employees as they can’t be sure how much they will be paid every week.
631
Explain salaries
Salary is a fixed payment every month. Often used for higher skill professional jobs like teachers or managers. In these jobs it may not be possible to use time rate or piece rate.
632
What are the advantages and disadvantages of a salary?
Adv: Unlike wages, employees feel greater job security in employees as they can be sure how much they will be paid every month. Disadv: However, it can lead to complacency in employees, so businesses may need to consider additional methods of motivating staff.
633
What is a bonus?
A bonus is usually a one off reward. It could be for achieving a target like a driver delivering all his parcels accurately and on time. It could also be a team reward like a factory increasing production by 20%.
634
What is the advantage and the disadvantage of a bonus?
Adv: Bonuses gives employees a target to work towards. Disadv: They can be costly for the business
635
What is a commission?
Commission is a kind of bonus where salespeople are given a percentage of the selling price if they make a sale. If a car salesperson gets 1% of selling a $30000 car, he/she will receive $300.
636
What is the advantage and the disadvantage of a commission?
Adv: Encourages higher sales. Disadv: May lead to over pushy salespeople, who force customers to buy the most expensive products rather than what is most suitable.
637
What is profit sharing?
Profit sharing is when employees get rewarded with a very small % of the firm’s profits annually. E.g. In 2020 SouthWest Airlines shared 12% of $700 million profits giving each employee $1400.
638
What are the advantages and disadvantages of profit sharing?
Adv: It encourages a team spirit as all employees will want to make the company successful to earn more profit Disadv: However, with all team benefits there is the free loading problem where some individuals may be working harder than others but all employees are rewarded by the same amount.
639
List some non-financial rewards.
Job rotation Job enrichment Team Working Training Opportunities for promotion
640
What is a job rotation?
Job rotation is when employees switch simple tasks for a short time. E.g. Workers in McDonald’s could swap positions between grilling burgers, cooking fries or wrapping finished products.
641
What are the advantages and disadvantages of a job rotation?
Adv: This will make the job more interesting than continually doing a repetitive task. Disadv: As the work doesn’t involve much additional responsibility or skill it is unlikely to have a huge impact on long term motivation.
642
What is job enrichment?
Job enrichment is when employees are given additional responsibility in their day to day tasks which often requires more training and or development. For example, a worker in a supermarket responsible for restocking the shelves, may be given responsibility for reordering inventory and handling all customer queries in this area.
643
What are the advantages and disadvantages of job enrichment?
Adv: This will give further motivation than simple job rotation, as the employee feels like they are developing their skills and has a sense of achievement. Disadv: The additional training and reorganising of job roles may be costly for a business, at least in the short term.
644
What is team working?
Team Working is when a group of employees are given responsibility for a specific project, department or unit of work.
645
What are the advantages and disadvantages of team working?
Adv: This allows greater interaction by fulfilling social needs. As employees work together to achieve a specific goal it gives workers a feeling of much greater job satisfaction and accomplishment. Disadv: However, it means managers have to delegate responsibility to the team, and find ways of changing work processes to allow team working.
646
What does training help in business?
Training develops workers’ skills.
647
What are the advantages and disadvantages of training?
Adv: As it involves considerable investment by a business employees will feel valued and will see the benefits of staying with the business if they will receive further training in the future. Disadv: However, training is costly and there is always the chance employees will leave the business after receiving training.
648
What are opportunites for promotion?
Firms can reward employees by giving employees another job in the business with higher status, pay or responsibility.
649
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
650
What are the advantages and disadvantages of promotion?
Adv: Employees will be highly motivated to show leaders they should be promoted. Disadv: Unless a business is expanding very rapidly or has high labour turnover, there will be limited positions available for promotion so it may not motivate all employees.
651
What are the steps in recommending and justifying appropriate methods of motivation in different circumstances?
– Is there evidence in the case study which shows what is currently demotivating the employees? – Which motivational methods are suitable? Commission may not be suitable if the employees are not involved in sales – As we learned with the motivational theorists there is some debate over the importance of money or financial rewards in motivating employees. Pay is important, but financial rewards alone won’t be enough to ensure all workers are motivated. – Cost? Can the business afford to give all the employees a pay raise? Can they afford enough to make a difference? Remember with evaluation you need to make a decision, justify why your choice is more suitable than the other options for this business.
652
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
653
the motivational theorist with their ideas about motivation employees can only be motivated after hygiene factors have been fulfilled = Hierarchy of needs = Workers are best motivated by money =
employees can only be motivated after hygiene factors have been fulfilled = Herzberg Hierarchy of needs = Maslow Workers are best motivated by money = Taylor
654
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
655
the reason why an employee is demotivated and a suitable non-financial motivator Tammy feels alone at her place on the production line, as she has little interaction with other employees = Roger is bored doing the same job every day in a supermarket = Michela feels undervalued as a chef and want to develop her skills =
Tammy feels alone at her place on the production line, as she has little interaction with other employees = Team working Roger is bored doing the same job every day in a supermarket = Job rotation Michela feels undervalued as a chef and want to develop her skills = Training
656
* Is there evidence in the _____ which shows what is currently demotivating the employees * Which motivational methods is suitable? _____ may not be suitable if the employees are not involved in sales. * As we learned with the motivational theorists - there is some debate over the importance of money or financial rewards in motivating employees. Pay is important, but financial rewards alone won't be enough to ensure all workers are _____ *What is the _____ ? Can the business afford to give all the employees a pay raise. Can they afford enough to make a difference.
* case study * Commission * motivated * cost
657
What are the three impacts of employment contracts?
both employers and employees know what is expected of them. it provides some security of employment to the employee. if the employee does not meet the conditions of the contract then legal dismissal is allowed.
658
the financial motivator and the definition. * an extra reward given to employees for reaching a certain target = * fixed payment usually paid monthly = * all employees get rewarded with a very small % of the firms profits annually = * salespeople are given a % of the selling price if they make a sale =
* an extra reward given to employees for reaching a certain target * fixed payment usually paid monthly * all employees get rewarded with a very small % of the firms profits annually * salespeople are given a % of the selling price if they make a sale
659
the financial motivator and the definition. * an extra reward given to employees for reaching a certain target = * fixed payment usually paid monthly = * all employees get rewarded with a very small % of the firms profits annually = * salespeople are given a % of the selling price if they make a sale =
* an extra reward given to employees for reaching a certain target = Bonus * fixed payment usually paid monthly = Salary * all employees get rewarded with a very small % of the firms profits annually = Profit sharing * salespeople are given a % of the selling price if they make a sale = Commission
660
Delishiuice is a small business and produces a range of fruit juice made from fruit using batch production. Delishjuice uses specialisation in its factory. The business has grown quickly over the last two years. Delishiuice has increased the number of production workers from 10 to 20. This has increased the span of control for each manager. It has been difficult for Delishjuice to keep workers motivated. The Human Resources Manager has to decide whether it is better to use job rotation or financial bonuses to improve employee motivation. (e) Do vou think using iob rotation is a better way for manufacturing businesses to motivate emplovees rather than financial bonuses? Justify your answer
Yes because it will prevents workers becoming bored doing the same task repeatedly, which could increase output. No because they need to provide training to the 80 employees which increases cost. Job rotation is better, as it will also give a manufacturing business more flexibility as workers will be able to do more than one job, so can move to where they are needed on the production line. Bonuses will also cost more and not give the flexibility of job rotation.
661
Define the ‘organisational structure’.
Organisational Structure is like the skeleton and nervous system of a business. It shows where power, authority, responsibility and status lie, and how communication flows throughout.
662
Illustrate a real life example of an Organisational Structure.
(Director) | (Head Teacher) | (Head of science and maths)----(Head of Humanities)----(Head of English) (Teachers)
663
Illustrate an example of an Organisational Structure in a business.
(Board of Directors) | (Managing Director) | (Operations Manager)----(Marketing Manager)----(Finance and HR Manager) (Employees)
664
Define a Hierarchy. Give an example.
A Hierarchy shows who is the boss of who. Put simply, who gets to tell someone else what to do. The managing director has authority over the operations, marketing and finance managers, but must follow the instructions of the board of directors.
665
A Hierarchy shows who is the boss of who. Put simply, who gets to tell someone else what to do. The managing director has authority over the operations, marketing and finance managers, but must follow the instructions of the board of directors.
Chain of command is how authority is passed down in an organisation. So if the operations manager is responsible for the overall production of cars an individual employee may be responsible for quality control.
666
What are the benefits of a chain of command?
It brings order to an organisation. Employees know who they take instructions from, managers and leaders know what their authority is, what they can and can’t do without permission from their boss. It also means individuals can be held accountable. If sales start to fall the marketing manager will have to explain why, and take action to solve the problem.
667
Define ‘Span of control’
Span of control is the number of employees one manager or leader has authority over. In Higher Arch the marketing manager has a span of control of two employees, while the operations manager has a span of control of 3 employees.
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What happens if there is a larger span of control?
A larger span of control will mean less control for the manager or leader as they will have more subordinates to supervise. A larger span of control usually leads to more delegation of authority to subordinates. The manager or leader will not be able to directly control many subordinates.
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What happens if there is a narrower span of control?
A narrow span of control will mean more control and less delegation. This is the conflict between trust and control.
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What is a larger span of control associated with?
A larger span of control and greater delegation is usually associated with highly skilled and experienced employees who need less direct supervision.
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What are the benefits of delegation?
Managers may be reluctant to delegate, as they don’t trust subordinates to do a good job and fear losing control. However, delegation can be hugely beneficial to a skilled leader who can delegate effectively. It means increased motivation among subordinates and managers can focus on more important tasks.
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What are the roles and responsibilities of a director?
Directors are responsible for the big picture, setting out the vision and the long term goals for the business and providing inspiring leadership to get there. They are ultimately responsible to the shareholders (owners of the business) so need to protect their interests.
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What are the roles and responsibilities of a manager?
Managers are responsible for delegating tasks, motivating employees, and solving day to day problems, so that the goals of the directors are achieved.
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What are the roles and responsibilities of a supervisor.
Supervisors, more often known as team leaders, and employees, work efficiently towards smaller goals set by managers. If there is a big problem or issue they need to pass the information up through the organisation. Many managers or supervisors will hope to perform well so they can gain promotion to a higher position in the hierarchy.
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List the functions of management in a business.
In reality, managers or leaders may complete many functions at the same time or situation. For example, an operations manager at a meeting with other department heads will be planning further steps, but also co-ordinating plans with other managers and controlling, through reviewing if previous targets have been met. To help we will go through a day in the life of Richard who is a marketing manager In the morning he plans for the next marketing campaign. He will then coordinate with the finance manager to make sure there is sufficient budget for the campaign. Organise the different task to be carried out and delegate to the marketing team Then command the photographer to complete the publicity shots – and motivate by setting a target for completion date. Control by looking at the sales figures from the last campaign and checking if targets have been met.
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What is autocratic leadership?
Autocratic Leadership could be described as command and control. Decisions are made by the leader, alone, without discussion. Information is one way, so leaders will check only to make sure the instructions have been carried out, not to get feedback from employees.
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What is advantage of an autocratic leadership style?
It’s suitable for emergency situations at work, for example a flood or a power cut, or can be used to manage employees of low skill levels.
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What is the disadvantage of an autocratic leadership style?
In long term autocratic management can lead to low motivation and bad quality decisions.
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What is democratic leadership?
In democratic leadership the key thing to remember is consultation. There is discussion with subordinates before taking a decision. Democratic leadership does not mean there is a vote on decisions. The manager is ultimately responsible and they are not forced to follow the advice of employees.
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What is the benefit of a democratic leadership style?
It can lead to higher quality decisions and higher motivation, especially if employees are more skilled, experienced and want to be involved in decisions.
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What is the disadvantage of a democratic leadership style?
However, it is more time consuming to make decisions and arguably requires a confident manager with a higher skill level to allow a suitable level of feedback.
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What is laissez-faire leadership?
Laissez-Faire translates as “let them do it”. Leaders will support and coordinate and set broad goals, but it will be left to team members to work independently day to day
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What is the advantage of the laissez-faire leadership style?
It can be suitable for highly skilled and motivated employees, often in creative or technical posts like research and development.
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What is the disadvantage of the laissez-faire leadership style?
Most employees require goal setting and direction to keep their focus. A completely hands off Lassiez-Faire leadership style can cause worker demotivation.
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Why is democratic leadership suitable for a business?
Leaders should consult with employees before making decisions, apart from exceptional circumstances, like emergency situations where quick action is required. Autocratic leadership also prevents the flow of feedback. Lassiez Faire is only suitable with highly skilled, creative or technical professions, and still requires leaders to set goals and direction.
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List the main things to think about when evaluating leadership styles?
Managers’ skill level and experience – if a manager instinctively has an autocratic or democratic style it can be very difficult to change. Employees skill level and the speed at which the task must be completed. If employees are low skilled or inexperienced, directions will be more likely to be top down from the leader and there will be less opportunity for feedback.
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What is a trade union?
A trade union is an organisation of employees who aim to improve the pay and conditions of their members.
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What does a trade union do?
Trade Unions are all about the power of the collective, as one person if you ask for more pay from a business they are much less likely to take you seriously, but if a trade union represents the whole workforce of thousands of employees the business owners are much more likely to listen.
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What is the effect of employees being trade union members?
If Trade Unions feel strongly enough that they are not being treated fairly they can go on strike, refusing to go to work until the situation is resolved. However, if the business fails the trade union and workers will lose their jobs, so it’s always in their interests to find agreement with management. It’s important to remember that Trade Unions don’t just negotiate pay, but can ensure a safe workplace, help with disputes between managers and employees and arrange social activities for members.
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the function of management with the correct definition or example * Working with other managers to make sure departments work efficiently together = * Checking sales figures and seeing if targets have been met = * Telling an employee their tasks for the day and setting a target for completion. = * Figuring out the business objectives for the next two years. = Controlling = Commanding = Coordinating = Planning =
* Controlling = Working with other managers to make sure departments work efficiently together * Commanding = Checking sales figures and seeing if targets have been met * Coordinating = Telling an employee their tasks for the day and setting a target for completion. * Planning = Figuring out the business objectives for the next two years.
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the leadership style and the most suitable business situation * A computer chip factory manager wants to get suggestions from employees on how to improve productivity = * Apple want to find innovative products to replace the Iphone = * A tropical storm is about to strike a hotel and the manager must keep all guests safe =
* A computer chip factory manager wants to get suggestions from employees on how to improve productivity = Democratic * Apple want to find innovative products to replace the Iphone = Lassiez Faire * A tropical storm is about to strike a hotel and the manager must keep all guests safe = Autocratic
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LUV sells luxury chocolates. Last year sales in LUV's 200 shops increased but profit fell by 70% to $4m. LUV's Human Resources Director said: 'All retailers are finding this stage of the business cycle challenging. LUV has to reorganise the business. This will mean redundancy for 1800 shop workers. LUV plans to create 100 new jobs in the marketing department at head office to help maintain customer loyalty. The company is working with trade unions to carry out these changes. Identify and explain two ways a trade union could help LUV's employees. (c) Way 1: Explanation: Way 2: Explanation:
(c) Way 1: Gives strength in numbers Explanation: When dealing with the head office over the redundancies Way 2: Can negotiate better working conditions Explanation: For the workers in LUV's 200 shops
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What role does training play in a business?
Training plays a crucial role in not only increasing the efficiency and effectiveness of staff, but also in motivation and retention (reducing labour turnover).
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What is internal recruitment?
Internal recruitment is finding someone for the vacancy that already works for the business.
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What are the benefits of internal recruitment?
the employee is a known quantity. managers will know their performance, their strengths and weaknesses and feel confident they are a good fit for the business. it will limit induction and training costs as the employee knows how the business operates already. acts as an incentive to other employees, if workers see hard work and initiative results in promotion to a higher position in the business, they will work harder.
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What are the benefits of external recruitment?
External Recruitment allows a much wider choice of potential applicants, and can bring new ideas, fresh thinking and better ways of doing things. Although there is a higher recruitment cost, there may not be enough suitably skilled employees to fill the vacancies with internal recruitment, so often businesses must recruit externally.
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What are the stages in recruitment and selection of employees?
identify all the roles and responsibilities that will be included in the position. his is called the job description. The next step is to think of the skills that are required to fulfil the tasks in the job description. This is called the person specification. connect with the best possible candidates for the position and let them know about the job, normally done through a job advertisement. The job advertisement will tell potential applicants about the job, what the requirements are and encourage them to apply. shortlist the the best 3 or 4 candidates who have the most suitable skills and experience in their applications. Traditionally, the next step is an interview, where employers ask potential employees questions to decide if they are suitable for the job. But it also makes sense to test the applicants skills. select the best candidate for the job, based on all the information about each candidate.
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What are the steps to justify who is the best candidate?
There is no right or wrong answer here, the key is to keep your answer in context and explain why the candidate you recommended for selection is: 1) More suitable than the other two 2) Will lead to the long-term success of the business.
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What are the benefits of a part-time worker?
art time workers allow a business more flexibility, part time employees can work more hours during busy periods of the year and less hours when there is less demand. Part time workers are often more productive, this may be because they are less tired or more motivated than full time staff. Part time working can allow employees to have greater work life balance. For example, parents might cut down to working three days a week so they can look after their children.
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What are the limitations of a part-time worker?
part time staff can be an additional cost in training and recruitment. Part time employees may make communication more difficult. There will be more staff members who are at work less, so it is harder for messages to be delivered clearly.
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What is the benefit of a full-time worker?
Full time employees may be more committed to the company and more likely to aim for promotion.
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What are the benefits of training?
Training ensures that when employees start a new job they are not just “thrown in at the deep end”. If new employees feel supported with all the skills and information they need when starting a new job they will be more productive sooner, have a higher quality output, and be much more highly motivated. Employees will also be much more likely to stay with the business.
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What is induction training?
Induction Training aims to quickly make employees feel comfortable in their new workplace by setting out the basics of what they need to know about working at the organisation. A lot of it can be “boring but important” details like where the bathroom or coffee machine is, and safety procedures like the fire drill. It’s also important for employees to learn about the business: what it does, what its aims are and what it expects of employees.
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What are the limitations of induction training?
Induction training is an additional cost
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What are the benefits of induction training?
it’s often essential, particularly in larger organisations, to settle employees quickly and ensure long term motivation and productivity. If employees’ first experience of the business is unsatisfactory, it can take a long time to repair the damage.
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What is On the job training?
On the job training is when a new staff member learns new skills in the workplace from an experienced employee. For example, watching how to assemble parts on a factory production line and then completing the tasks under supervision.
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What are the benefits of on the job training?
On the job is lower cost than off the job training, and employees can find out exactly how the job is done in their workplace.
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What are the disadvantages of on the job training?
they may pick up bad habits from the experienced employee, and it may result in reduced output as new employees will take time to get up to speed.
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What is off the job training used for?
It is used when employees have to learn a highly specialist skill, like how to operate a new kind of computer system or a specialist management skill.
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List the benefits of off the job training?
only way of allowing employees to learn the latest specialist technical skills which may be essential for the effective and efficient operation of the business.
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What is the limitation of off the job training?
Off the job training is much more expensive than on the job as it takes place away from the workplace, usually at a specialist training facility like a university or college.
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Why is training useful?
Training is expensive, and requires additional organisation and leadership. However, the short term costs of investing in training often results in long term benefits for the business because of higher productivity and high quality output.
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When is off the job training used?
The more technical and skilled the job, the more likely it will be off-the-job training.
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What is resignation?
Resignation is when an employee leaves a job due to their own free choice, usually to move on to another job, or a change in personal circumstances.
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What is retirement?
In some countries employees must stop working at a certain age.
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What is redundancy?
“letting go” of an employee
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When does redundancy occur?
It occurs when the job position no longer exists, and the employee can’t be moved to another vacant position.
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When can redundancy happen?
This can happen when a part of a business closes down or a factory relocates to another country where the cost of production is cheaper.
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What is dismissal?
When an employee is fired.
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When does dismissal happen?
For either an employee breaking company rules, or for incompetence, not being able do the job to the required standard.
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Why is reducing the size of a workforce necessary?
* if there is lower demand for a particular product then it may not be profitable to continue production, so employees have to be let go. * if more efficient machinery or artificial intelligence can take over their role * if a business relocates to another country or area where costs are lower.
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How do you Recommend and justify which employees to make redundant in given circumstances?
With redundancy you must ensure the system is fair. This will minimise the negative impact on employee motivation, if workers know why some of their co-workers were made redundant, and why it was unavoidable. Often businesses ask for voluntary redundancy first. So they aren’t forced to choose which employees to let go. They can use a “Last in First Out System” so the last person to be employed is the first person to be made redundant if the business has to downsize.
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What is legal action?
Legal action is when a business is taken to court.
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What is the effect of legal action?
This is usually a very high cost for a business, damages a businesses reputation and has a negative effect on employee motivation.
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What are the 4 legal controls on employment?
Unfair Dismissal Discrimination Health and Safety Legal Minimum Wage
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What is Unfair Dismissal?
Unfair dismissal is when an employee has their employment terminated unfairly. For example, if an employee is dismissed, because they support a different football team from the boss of the company.
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What does unfair dismissal mean to the employee?
For an employee it means they have protection against unfair dismissal and may sue the business if they feel they have been unfairly dismissed.
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What does unfair dismissal mean to the business?
For businesses it means they have to be very careful when dismissing staff to make sure they have followed all the proper procedures, to make sure no legal action is taken against the business.
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What is discrimination?
Discrimination is being treated differently on the basis of sex, age, gender, ethnicity or sexual orientation.
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When can discrimination occur in a business?
Discrimination can occur during recruitment of new employees or anywhere where managers make decisions about employees’ working life, like promotion or deciding which tasks different employees do.
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What happens if there is legal action due to discrimination?
If employees are discriminated against they can take legal action so businesses need to have rules and procedures in place to make sure all employee are treated fairly, and if there is an accusation of discrimination it can investigated thoroughly.
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What is health and safety?
Health and Safety is the duty of businesses to ensure all employees are safe at work. This means employees are properly trained, given the correct PPE (personal protective equipment) and making sure all machinery is safe. Employees have a duty to follow health and safety rules and report any danger in the workplace.
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When can legal action be taken against health and safety of the business?
If an employee is injured at work they may take legal action against the business.
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What is legal minimum wage?
In many countries there is a minimum amount employees must be paid per hour or per month. If a minimum wage is introduced or increased, businesses will need to review their costs to ensure they can continue to operate profitably.
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the vacant position and a suitable method of selecting a candidate for the job. * Training to familiarise new employees with the workplace, co workers and procedures = * Training off site at a college or specialist training location = * Training at the workplace under the direction of an experienced employee = * May offer a lower cost option to off the job training =
* Training to familiarise new employees with the workplace, co workers and procedures = Induction Training * Training off site at a college or specialist training location = Off the job training * Training at the workplace under the direction of an experienced employee = On the job training * May offer a lower cost option to off the job training = Online Training
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the legal control on employment and the closest explanation * Being treated differently on the basis of sex, age, gender, ethnicity or sexual orientation. = * is the duty of businesses to ensure all emplovees are safe at work = * Government sets the lowest permissible pay rate = * Ending a work contract without proper or legal justification =
* Being treated differently on the basis of sex, age, gender, ethnicity or sexual orientation. = Discrimination * is the duty of businesses to ensure all employees are safe at work = Health and safety * Government sets the lowest permissible pay rate = Legal minimum wage * Ending a work contract without proper or legal justification = Unfair dismissal
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FCA is a large business and uses batch production to make instant coffee. The products are sold using several distribution channels. FC employs 700 production workers. FCA has problems with many employees leaving. Following the dismissal of the Operations Manager, the Human Resources Director has to recruit a new manager. She said: 'The person must have good communication skills to help solve the communication barriers FCA has with employees. The Human Resources Director has to decide whether to use internal recruitment or external recruitment for the new manager. Do you think external recruitment is a better way for a large business to find a new Operations Manager than internal recruitment? Justify your answer.
External recruitment might be more expensive which will increase costs However, the business might have no choice as there may not be suitable internal applicants. External recruitment means a wider choice of applicants. Although a higher cost, using external recruitment would be better as it will result in the appointment of a manager whose cost savings will soon outweigh the cost of external recruitment, especially in a large business where there is much more opportunity for cost savings
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Why is effective communication necessary?
Effective communication seems simple, but even between two people talking face to face there can often be misunderstandings. As business grows they have thousands of employees spread across hundreds of countries, speaking numerous different languages. We need to know the: different means of communication, benefits and limitations of each, and also how to overcome communication barriers like language or culture.
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What do we need to ensure for effective communication?
For effective communication we need to ensure: Message is sent using the correct communication method Message is sent to and received by the correct person The receiver understands the message The receiver provides feedback to confirm they have received and understood the message. The critical aspect to remember is that communication is not just one way, the receiver of the message has to show they have understood the message, and give feedback.
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Why is effective communication necessary?
Effective communication seems simple, but even between two people talking face to face there can often be misunderstandings. As business grows they have thousands of employees spread across hundreds of countries, speaking numerous different languages. We need to know the: different means of communication, benefits and limitations of each, and also how to overcome communication barriers like language or culture.
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Why is effective communication important to a business?
* it avoids mistakes. For example, ineffective communication could result, in a missed order, losing a valuable customer which can lead to massive loss in sales. * decisions can be made more quickly and businesses can respond to changes in the market. If the right information gets quickly to the correct employees it can give a business a competitive advantage. * Improved coordination between departments is a direct result of effective communication. If the operations department is aware of the marketing departments product launch, they will ensure they have sufficient production to meet demand. * improve motivation as workers they feel more valued and involved. * improves customer relationships. * In order to retain customers, businesses increasingly aim to keep customers fully informed about orders, respond quickly and effectively to customer queries, and update customers about new products or services.
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Give an example of what may happen if there is ineffective communication?
if a marketing department fails to coordinate with the operations department, they may not raise production to the correct level. If the information doesn’t get to the right people quickly enough then it will take a long time to come up with an alternative plan. This means customer demand won’t be satisfied, so the relationship with customers will be negatively impacted, as will motivation as employees will have to deal with more complaints, and may not have all the information to explain why the issues occurred.
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What are the benefits and limitations of email?
ads: Visual information Written Record of communication Written Record of communication disads: Employees can be overwhelmed by high volumes of emails Can be unsuitable for in depth discussions
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What happens if an organisation is heavily reliant on email?
organisation which relies too heavily on email may find motivation dropping among employees, and lower team morale, if workers only see each other as messages on a computer screen rather than having face to face conversation.
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What are the benefits and limitations of meetings?
ads: Can allow ideas to develop between multiple employees disads: Can be time consuming Can be dominated by more assertive employees
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What are the benefits and limitations of meetings?
ads: Can allow ideas to develop between multiple employees disads: Can be time consuming Can be dominated by more assertive employees
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What are the benefits and limitations of face-to-face conversations?
ads: Can improve motivation+ Allows honest feedback disads: No written record of communication Time consuming
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What are the benefits and limitations of a noticeboard?
ads: Visual Information can be shared Seen by a wide range of employees in a less formal setting disads: No guarantee all employees will see messages
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Why is effective communication necessary?
Effective communication seems simple, but even between two people talking face to face there can often be misunderstandings. As business grows they have thousands of employees spread across hundreds of countries, speaking numerous different languages. We need to know the: different means of communication, benefits and limitations of each, and also how to overcome communication barriers like language or culture.
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What do we need to consider when choosing means of communication?
How urgent is the message? If you need to communicate a message straight away and make sure the receiver understands, face to face or a telephone call is more suitable. How detailed is the message? If there is a lot of information in the message, a written communication like email is much more suitable so the receiver has a record of all the information and can refer back to the details if necessary. Does the message need to be discussed? Is quality feedback required? Meetings allow detailed feedback from the receivers; this can be much more difficult via email. Is a written record of the communication required? Often the sender will need evidence that they have sent a communication, with a record of the time it was sent. This avoids later disagreements over what “he said/she said”, or employees claiming they took no action because they did not receive a message. Is the message confidential? If a message contains sensitive information the sender should ensure that the message is not shared with only those employees who need to know the information. It is important to remember that communication methods can be used together, provided the message is the same. For example, if a financial manager creates a report on reducing costs, they can present the information to other managers at a meeting, take questions during the meeting and allow face-to-face discussions at a later date. Many managers have an “open door” policy – so employees can come and ask questions if they are unsure about any message.
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What is a communication barrier?
A communication barrier is anything that gets in the way of a message being understood.
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What can communication barriers result in?
Communication barriers can result in ineffective communication which will lead to the opposite results of effective communication. It can result in mistakes, demotivation in staff, poor coordination and decision making within the business and poor relationships with customers.
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List some communication barriers?
Problems with the physical environment. Problems with communication channels. Barriers between Sender and Receiver
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How can we overcome communication barriers involving the physical environment?
If there are high levels of background noise, for example, noisy machinery in a factory message may not be clearly understood. This can be fixed by giving instructions in a quiet area of the factory, or developing a system of visual communications
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How can we overcome communication barriers involving distance?
Multinational corporations, operating in many countries, may also have to overcome the physical barriers of being far away from other members of the organisations. Technology can increasingly overcome these challenges, by using video conferencing like Zoom, email and instant messaging.
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How can we overcome communication barriers involving problems with communication channels?
If chains of command between sender and receiver are too complex, the message may get distorted or it may take too long for the message to be given and feedback received. If highly technical information is given in a form that employees not skilled in that area can’t understand, then this can also lead to the message not being received. This can be overcome by ensuring all communication is in simple straightforward language, so that all employees can understand.
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How can we overcome communication barriers between the sender and the receiver?
If there is a lack of respect or trust between sender and receiver, the message may be misunderstood or not carried out. Demotivated employees may also ignore messages or parts of communication they disagree with. This is possibly the most difficultbarrier to overcome, as it comes from employees’ emotions, so there is no easy technical fix. However, if companies build a culture where there is trust and respect between all employees, these communication barriers will be removed.
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What are the top tips for communication?
Keep the channel of communication short, to minimise potential distortion. Adapt the message to the receiver. If the receivers of the message don’t speak English as a first language, use simple language, and speak slowly. Feedback not only to allow the sender to check that the message has been understood, but also to allow the receiver to talk through any questions or concerns.
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the communication barrier and the explanation * If there are high levels of background noise, for example, noisy machinery in a factory, the message may not be clearly understood. = * If chains of command between sender and receiver are too complex, the message may get distorted or it may take too long for the message to be given and feedback received. = * If there is a lack of respect or trust between sender and receiver, the message may be misunderstood or not carried out. =
* If there are high levels of background noise, for example, noisy machinery in a factory, the message may not be clearly understood. = Problems with the physical environment * If chains of command between sender and receiver are too complex, the message may get distorted or it may take too long for the message to be given and feedback received. = Problems with communication channel * If there is a lack of respect or trust between sender and receiver, the message may be misunderstood or not carried out. = Barriers between Sender and Receiver
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the communication barrier with the solution * Give instructions in a quiet area of the factory = * Build a business culture of trust and respect between all employees. = * Ensure all communication is in simple straightforward language, that all employees can understand. =
* Give instructions in a quiet area of the factory = High levels of background noise in a factory * Build a business culture of trust and respect between all employees. = Lack of respect or trust between sender and receiver * Ensure all communication is in simple straightforward language, that all employees can understand. = Highly technical information
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FC uses batch production to make instant coffee. The products are sold using several distribution channels. FCA employs 600 production workers. FCA has problems with many employees leaving. Following the dismissal of the Operations Manager, the Human Resources Director has to recruit a new manager. She said: 'The person must have good communication skills to help solve the communication barriers FCA has with employees. (d) Explain how each of the following could cause communication barriers within HSN. Language: Medium of Communication:
Language: Use of technical terms when using batch production so employees may not understand the message Medium of Communication: The wrong channel may be used so all if the 600 employees may not be able to access the message if they send a message by email and not all workers have access to a computes
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what is meant by the term employee motivation?
Is the real reason why employees want to work hard and work effectively for the business.
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Name and explain the main five reason why a person would work?
* Money: to pay for necessities and some luxury. * Security: a sense of security. To know that your job and pay are safe an is not likely to lose your job. * Social needs (affiliation): feeling part of a group or organizations, meeting people and making friends at work. * Esteem needs (self importance): feeling tat the job you do is important. * Job satisfaction: enjoyment from the feeling that you have done a good job.
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Explain how worker motivation is lined to business profitability.
Motivated workers work harder and are highly productive. produces a large output. business makes more profit.
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Name the three main theories published regarding employee motivation.
Taylor (1911): money is the main motivator. Maslow (1954): Hierarchy of needs. Herzberg (1959): ‘Hygiene’ and ‘motivators’
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What is the basis of F.W Taylor’s motivation theory.
That all workers are motivated by personal gain. If workers are paid more, they will work more.
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Explain how Taylor’s theory was applied.
Factory worker’s work were broken down into simple tasks. It was easier to work out their output. Workers that had more output, were paid more.
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What was the benefit of applying Taylor’s theory to businesses?
Workers worked harder and produced more output. The extra output of a worker is worth more that the worker’s increase in pay.
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What were the main criticisms of F.W Taylor’s theory?
* Too simplistic- workers are motivated by things more than money * unfulfilled workers will not produce productivity improvements, even if pay is increased. * Practicality: not easy to measure worker output.
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What were the five hierarchy of needs proposed by Maslow?
Physiological needs: food, rest, recreation and shelter. Worker’s wages should be high enough to pay bills. Safety/security needs: protection against danger, protection against poverty and fair treatment - job security. Social needs: friendship, a sense of belonging to a team - work colleagues that support you at work. Esteem needs: having status and recognition, achievement and independence - being given recognition for a job well done. Self- Actualization: succeeding at your full potential, feeling that you have done a good job, not just for financial and personal reasons - being promoted and given more responsibility.
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How can the hierarchy of needs be used to motivate an employee?
Employees can motivated by the next level when a level is satisfied. The current level will no longer satisfy the employee.
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What is the main problem in the hierarchy of needs?
That some levels do not exist for some people while some rewards appear fit to more than one level. Money is essential, but large salaries can also be perceived as a status symbol.
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What is the basis of Herzberg’s motivation theory?
That people have two types of needs: basic animal needs (hygiene factors) and psychological growth factors (motivators).
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Name five examples of motivators according to Herzberg.
achievement recognition personal growth/development advancement or promotion work itself
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Name five ‘Hygiene’ factors suggested by Herzberg
status security work conditions company policies and administration relationship with supervisor relationship with subordinates salary
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Of Hygiene and motivator factors, what should be fulfilled first by the business, according to Herzberg?
Hygiene
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Why cant businesses only use Hygiene factors to motivate employees?
Once they are satisfied, the effects of them quickly wear off. True motivators are found in other factors.
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In terms of motivation, what is one of the main reasons as to why employees may leave the business and find work elsewhere?
For some people, other factors maybe more important than money alone. A lack in such motivations mean Employees may leave.
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why are different payments and financial rewards used in a business?
To provide incentives to employees to work efficiently and harder.
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Name 5 types of financial rewards that can be used by a business to motivate its employees.
wage salary bonus commission Profit sharing
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what is a wage?
is a payment for work, usually paid weekly.
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What are the advantages of providing wages?
The worker gets a regular pay and will not have to wait long. Overtime wage can paid to workers
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What are the drawbacks of paying wages?
They have to calculated weekly and can take time and money. Wage clerks will have to be employed.
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what is a time rate?
is an amount payed to an employee for one hour of work.
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Identify the advantages to paying in time rates.
Easy to calculate. - worker will know how much he has to recieve.
786
Identify the drawbacks of paying in time rates.
Time-sheets will have to be filled and accountants will spend lots of time calculating. Good and Bad workers get paid the same amount of money. Supervisors are needed to check worker’s work. Clocking system required.
787
Provide an examples of when time rates are used in businesses.
When it is hard to calculate worker output. for bus drivers and receptionists.
788
What is a piece rate?
is an amount paid for each unit of output.
789
Identify the main advantage of using piece rates in a business.
-It encourages workers to work faster and produce more output.
790
Identify the limitations that arise from using piece rates.
Quality maybe neglected. Quality control systems are expensive. Friction between careful and rushed workers, who receive more pay. Worker output maybe stopped if machinery breaks down. Guarantee amount is required.
791
Define the term salary.
is a a term to describe payment for work, usually paid monthly.
792
Identify the advantages of a business paying a salary.
easy to calculate Employer can have money in the bank account for longer. Payments need to e calculated less frequently.
793
Identify the limitations that arise from using salaries as a payment method in a business.
worker preferences - No payment for overtime- worker maybe more reluctant.
794
define a bonus
is an additional amount of payment above a basic pay as a reward for good work.is an additional amount of payment above a basic pay as a reward for good work.
795
Identify the advantage of paying a bonus to a worker.
It allows for the worker to feel ‘recognized’ and ‘special’#
796
Identify the limitations of a business paying bonuses.
I would be expected of the business and employees will be disappointed if it cannot be paid during a bad year. If not paid to everybody, can result in some workers questioning.
797
what is a commission?
is a payment relating to the number of sales made.
798
what benefit is it to the business of using commissions as a method paying workers?
The more sales a worker makes, the more they are paid.This encourages sales staff to sell as many products as possible and therefore business sales increase, creating more profit.
799
What are the possible limitations of using commissions as a way to paying workers.
Persuasive sales staff can convince customers to buy a product, when they do not want it. sales will increase in the short term and decline due to bad reputation. Stressful for sales staff: they need to sell in order to receive a pay. Too much competition between sales staff.
800
what is profit sharing?
is a system whereby a proportion of the company’s profits is paid out to employees
801
What are the benefits of using profit sharing as a means of payment in a business.
The additional apartment will motivate staff to work hard as they receive a share of the profits.
802
what is a fringe benefit?
is an addition to financial benefits given to an employee of a business,depending on the seniority of the job performed.
803
Give some examples of fringe benefits.
company vehicle discounts on businesses products. health care paid for children’s education fees free accommodation share options generous expense accounts pension paid for free trips abroad/holidays
804
what is job satisfaction?
is the enjoyment derived from the feeling that you have done a good job.
805
what is job rotation?
involves workers swapping around and doing each specific task for only a limited time and changing around again.
806
what is job enrichment?
involves looking at jobs and adding tasks that require more skill and/or responsibility.
807
What is team working?
involves using workers and allocating specific tasks and responsibilities to them
808
what is training?
it is the process of improving a worker’s skills.
809
what is an organisational structure?
it refers to the levels of management and division of responsibilities within an organisation.
810
what is an organisational chart?
It refers to a diagram that outlines the internal management structure.
811
What does hierarchy mean?
it refers to the levels of management in any organisation, from the highest to the lowest.
812
What does a level of hierarchy mean?
it refers to the managers/supervisors/ other employees who are given a similar level of responsibility in an organisation.
813
what is a chain of command?
is the structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.
814
what is a span of control?
is the number of people working directly under a manager.
815
Describe the relationship between chain of command and span of control.
The longer the chain of command, the ‘taller’ will be the organisational structure and the ‘narrower’ will be the span of control. When the chain of command is short, the organisational will have wider spans of control.
816
what is delayering an organisational structure?
is when a level of management is removed, creating a wider organisational structure and a shorter chain of command.
817
List out the advantages of a shorter chain of command.
* Communication is quicker: messages have lesser levels to pass through. * Top managers will be less remote from lower levels; they will be in touch with lower levels. * Spans of control is wider: each manager is responsible for more subordinates. Managers have more people to manage. workers have less direct control.
818
Why is having many people to manage better for a manager?
managers will delegate more as a large department means they cannot handle tasks by them selves.
819
managers will delegate more as a large department means they cannot handle tasks by them selves.
They will feel more trusted and will be able to make decisions. This can give more job satisfaction.
820
What is the disadvantage of a wider span of control?
They have many people that they are directly responsible for and may end up losing control if they are poorly trained.
821
Who is a director?
They are senior managers who lead a particular department or division in a business.
822
what is the problem with having a large organisations being arranged into separate functional departments?
Workers may feel more loyal to their department. - Conflict between departments may arise.
823
Who are line managers?
are people with direct responsibility over people below them in the hierarchy of an organisation.
824
Who are supervisors?
they are junior managers who have direct control over the employees below them in the organisational structure.
825
Who are staff managers?
are specialists who provide support, information and assistance to line managers.
826
why is a regional department necessary?
They can use specialist knowledge to help it run the stores abroad, such as knowledge local customs and traditions.
827
list of the five main roles of a management.
Planning Organizing Coordinating Commanding Controlling
828
Explain why planning is an important role of management.
Planning for the future is when aims and targets are set It gives the organization a purpose and direction The management will also have to plan resources needed to achieve those targets.
829
Explain why organizing is an important role of management.
-Tasks must be delegated to others and resources should be properly organized as managers will not be able to do all tasks by themselves.
830
Explain why coordinating is an important role of management.
Manager should ensure all departments are working together towards the tasks planned by the management. To do this, meetings can be held.
831
Explain why commanding is an important role of management.
Managers should make sure all supervisors and workers are working towards the task. They should guide, lead and supervise them and also tell them what to do.
832
Explain why controlling is an important role of management.
Managers must try to evaluate and measure the work of all individuals and groups to make sure they are on target. They may have to find the reason why these targets are not being met and this can include disciplining the staff too.
833
list what a business might lack without proper management
a sense of control and direction coordination between departments, leading to a wastage of efforts. control of employees organization of resources, leading to low output and sales.
834
what is delegation?
It means giving subordinates the authority to perform particular tasks.
835
Describe the advantages of delegation to a manager
Gives time to concentrate on more important tasks. Less likely hood of mistakes from managers. Easy to measure success and capabilities of staff, based on the tasks delegated to them.
836
Describe the advantages of delegation to a subordinate.
the work becomes interesting and rewarding. Feeling of importance- incentive to do a good job train workers and gives better opportunities.
837
Describe the disadvantages of delegation to a manager.
subordinate may not do a task well. - subordinate may do a better job- manager insecurity.
838
list the qualities of a good manager
motivate employees guide and advise employees inspire employees manage resources and keep costs under control increase profitability.
839
what is a leadership style?
are the different approaches to dealing with people and making decisions when in a position of authority- autocratic, democratic or laissez-faire
840
what are the three most important styles of leader ship?
autocratic democratic lassez-faire
841
what is an autocratic leadership?
is where a manager is in charge of a business and expects his orders to be followed.
842
what is the advantage of an autocratic leadership?
quick decision making
843
what is the advantage of an autocratic leadership?
no opportunity for employee ideas- demotivating.
844
what is a democratic leader ship?
is where the manager gets the employee involved in the decision making process
845
what is the advantage of a democratic leadership?
better decisions as employees may have experience and ideas
846
what is the disadvantage of a democratic leadership?
unpopular decisions cannot be made. e.g employee redundancy.
847
what is a laissez-faire type of leadership?
makes the broad objectives of the business known to employees, but then they are left to make their own decisions and organize their own work.
848
what is the advantage of a laissez-faire style of leadership?
employees can show creativity and responsibility
849
what is the disadvantage of a laissez-faire style of leadership?
not appropriate in clear and consistent organizations like customer service.
850
what is a trade union?
is a group of employees who have joined together to ensure their interests are protected.
851
what are the benefits of a trade union for an employee/member?
strength in numbers when negotiating with employers. Improved conditions of employment; rates of pay, holidays and hours of work. Improved work environment; health and safety, noise and heating. Improved benefits for ill or redundant workers. improved job satisfaction Advice and financial support Influence government officials secure employment
852
what are the disadvantages of a trade union for a member /employee?
costs money to be a member - workers may have to take industrial action if they don’t agree.
853
Benefits of a trade union for employer.
better communication between worker and employer. - easy wage agreement
854
Disadvantages of a trade union for an employer
worker strikes - higher wages. more business costs.
855
Define recruitment.
Identifying need for new employee(s) and encouraging people to apply for a vacancy.
856
Define job description.
Responsibilities and duties to be carried out by the job holder.
857
Define job (person) specification.
The requirements,qualifications ,experience and characteristics of people needed to fill a job vacancy.
858
Define Internal recruitment
The vacancy if filled by someone who is an existing employee of the organization.
859
Define external recruitment
The vacancy is filled by someone who is not an existing employee in the business.
860
Define Part-time employment.
Jobs with less hours than a full working week.
861
Define Full-time employment.
Jobs with a full working week. Full time employees will usually work 35 hours or more a week.
862
Define on-the-job training.
Training at the place of work-watching and being instructed by experienced workers.
863
Define off-the-job training.
Training away from the place of work, e.g ar a college, being instructed by specialist trainers.
864
Define Induction training.
Training for new employees explaining the business structure,activities and procedures.
865
Define Redundancy.
Employees are no longer required - the job no longer exists.
866
Define workforce planning
Establishing the size and skills of the workforce needed by a business for the future.
867
Define dismissal.
An employee’s employment contract is terminated and they must leave the business.
868
Deffine communications
Sending a message from sender to receiver who understands it.
869
Define Message.
Information or instructions sent from the sender to the receiver.
870
Define Internal communications
Is communications s between members of the same organization.
871
Define External communications.
Between an organization and another organization.
872
Define sender/transmitter.
The person sending a message.
873
Define Receiver.
The person who receives a message.
874
Define feedback.
A reply from the receiver to the sender to confirm that a message is sent or understood.
875
Define a method of communication.
How the message is communicated, e.g meeting, letter, email.
876
Define One-way-communication.
Message is sent without the receiver required to receive or give feedback.
877
Define two-way-communication.
Gives feedback to a received message- there maybe a discussion about it.
878
Define formal communication
Messages sent through established channels.
879
Define informal communication.
Messages sent casually, not through established channels.
880
Define communication barriers.
Factors that stop effective communication.