2. People in business Flashcards
(899 cards)
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.
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
What is ‘motivation’?
The reasons why people work and ways business can encourage their staff.
Why do people work?
Have a better standard of living
Be secure
Gain experience and status
Have job satisfaction
What does Herzberg’s motivational theory suggest?
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
What are the different types of needs according to Maslow’s hierarchy?
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
What are ‘financial rewards’?
Cash paid to workers often used to motivate them to increase their efforts
What are the financial methods and how do they work?
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)
What are some non-financial rewards and how do they work?
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
Name the advantages + disadvantages of hourly wage rate / time rate.
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
Name the advantages + disadvantages of salary.
Ads: Measurable, applicable, suitable to most jobs
Disads: Does not link to their efforts
Name the advantages + disadvantages of piece-rate.
Ads: Incentive for employees to produce higher output
Disads: Not quality related, lead to poor quality of work + only production jobs
Name the advantages + disadvantages of commission.
Ads: Pay is linked to value of goods
Disads: Workers are not certain about income, unreliable
Name the advantages + disadvantages of bonus scheme.
Ads: Linked to performance targets, rewards high level performance
Disads: Becomes expectation quickly, depends on profit
Name the advantages + disadvantages of fringe benefits.
Ads: Useful to make employees’ needs, motivating, make job attractive
Disads: More cost + time effective than financial rewards + admin (can be unsuitable)
Name the advantages + disadvantages of profit-sharing
Ads: Enables to see direct link between their efforts + company profits
Disads: Company loses amount of revenue + retained profit for growth
Name the advantages + disadvantages of performance-related pay
Ads: Directly links pay to meeting/exceeding target
Disads: Not measurable, can lose money
What is an ‘organisational structure’?
Levels of management and division of responsibilities within a business
Hierarchy
management levels within an organisation
Line managers
people responsible for overseeing work of other staff
Authority
power managers have to direct subordinates and make decisions
Delegation
when managers entrust tasks or decisions to subordinates
Span of control
number of subordinates reporting directly to a manager
Chain of command
path of authority which instructions are passed, from highest downwards
Lines of communication
routes messages travel along