Business Unit 2 Flashcards
(65 cards)
State three benefits of a well-motivated workforce
- High output per worker
- Willingness to accept change
- More willingness to communicate effectively with managers
- Decreased labour turnover
- Lower absenteeism
What are the 5 aspects of Maslow’s Hierarchy of needs
- Self-actualisation
- Esteem needs
- Social Needs
- Safety/ security needs
- Psychological needs
What did F.W Taylor believe workers were motivated by?
Money
What were the two sets of needs Herzberg said employees had and give two examples of each
Hygiene needs (e.g., salary, working conditions)
Motivators (e.g., achievement, recognition).
State one pro and one con to firms of workers being paid based on time rate
Pro: Easy to calculate by the company, 2. Employee knows exactly how much they should be paid
Cons: Good and bad workers get paid the same amount of money, leads to demotivation of good workers
What is piece rate
When workers are paid depending on the quantity of products made (more they make the more they are paid
State one pro and one con of paying workers piece rate
Pro: Encourages workers to work faster and produce more
Con: Workers may focus on making a large amount of products and rush their work, impacting the quality of the products
What is a salary
It is an amount of money paid per year and dividend and paid in 12 monthly amounts
State one pro and one con of a firm paying salaries to workers
Pro: Only has to be distributed once a month so less time consuming for the HR and finance department
Pro: Employer has the money in their account for longer than if they were paying wages > improves cash flow
Con: workers may prefer to be paid weekly
Con: No payment for extra time workers > demotivating employees
Define Commission
Commission is a payment relating to the number of sales made. The more sales an employee makes, the more money they make
State one pro and one con of paying workers based on commission
Pro: Motivates employees to increase sales and sell more products
Con: Employees working on commission can put pressure on customers to purchase the products leading to negative brand image
Con: If there is a recession, sales will be low and so commission will be difficult to achieve
Explain what profit sharing is
A system where a proportion of the companies profits is paid out to employees in addition to their wage/salary
State one pro and one con of Profit sharing for firms
Pro: Motivates employees to work hard and reach the objective of profit as they will all receive a share of the profit
Con: If a business makes a loss or low profits, then employees will be disappointed
Con: Profit share is usually calculated based on a percentage of your existing salary/ wage which may cause conflict between higher and lower paid staff
Define Fringe Benefits
Perks that employers give to their employees and are non-financial rewards
Define Job Rotation
Job rotation involves workers swapping around and doing each specific task for only a limited time and then changing around again
State one pro and one con of Job Rotation
Pro: More variety for workers so they will not get bored as easily
Pro: If people are ill its easier to cover these workers as other employees are skilled to cover the job
Con: Expensive to train all staff in different tasks
Define Job Enrichment
Involves looking at jobs and adding tasks that require more skill and responsibility
State one pro and one con of job enrichment
Pro: Workers given more responsibility will make them feel more empowered and trusted which leads to motivation
Con: Employees may be unhappy if they have extra responsibilities with no extra pay
State one pro and one con of employees working in a team
Pro: Working as a team can give better sense of belonging to the company, leading to an increased motivation
Con: Employees may clash, leading to arguments and disagreements which distracts them from working
What is a Promotion
Promotion is the advancement of an employee in an organisation, for example to a higher level in the organisation structure
Explain one pro and one con of promoting employees
Pro: A promotion will lead to employee feeling recognised and given more challenging work > leads to motivation and is supported by Maslow’s top level (self actualisation)
Con: Conflict may occur if one employee is promoted and another is not
Define Span of Control
The number of subordinates working directly under a manager
Define Chain of Command
Allows instructions to be passed down from senior management to lower levels
What is a tall organizational structure?
An organizational structure with many levels of hierarchy.