Internal Business Environment Flashcards

Question

Drucker's opinion on organising

Answer 1

an organized business runs more efficiently and should then make better decisions. Managers should organize the work into manageable activities which will allow the workers to perform better.

Answer 2

Drucker believed in the power of teamwork. Communicating success should improve performance as motivated and empowered employees perform better.

Answer 3

Drucker believed in analyzing and appraising performance by measuring success of decisions. Then communicating this success further motivated employees to work harder.

Answer 4

Drucker valued workers and encouraged them to develop their skills.

Answer 5

management by objectives. This involves setting clear objectives for each person at every level of the organization – linking in again with the motivational aspect.

Answer 6

Mintzberg claims that if you ask a manager what he does he describes it in Fayol’s terms, ie planning, organising, commanding, co-ordinating and controlling. However, if you watch them in practice it is quite different. Mintzberg identified ten roles that managers fulfil. He argued that everything a manager does fits into one or more of these ten roles.

Answer 7

The figurehead’s role is to represent the organisation to the outside world e.g., at a conference. This can help others recognise the importance attached by the firms to various activities and assist the firm in gaining co-operation in pursuit of its objectives.

Answer 8

The leaders role is to inspire and motivate employees. Workers will want to work hard to please their leader, thus meeting company objectives more effectively. The leadership role may require the manager not perform staff training and set up teams.

Answer 9

The liaison role involved developing relationships both within and out with the organisation. Managers can foster relationships with those who could later provide favours and important information to assist the running and success of the firm.

Answer 10

Monitoring checks progress at each stage. If problems are identified, managers can take corrective action to keep organisations on track and meet objectives.

Answer 11

Disseminating involves informing staff and others of objective so that everyone is clear what is expected and less likely to go off course in meeting objectives.

Answer 12

The spokesman's role is to let members of the wider community know what the company is doing. If a manager has displayed effective presentations skills this may win support for the firms objectives.

Answer 13

The entrepreneur role is to come up with ideas and decisions. Good quality decisions are essential to meeting company objectives. An entrepreneur should have the ability to take necessary risks on return for associated rewards.

Answer 14

The disturbance handler deals with any problems that arise; failure to do so may lead to delays in achieving objectives. This may involve dealing with disciplinary, industrial action, grievance and complex management issues. The disturbance handlers role aims to minimise inefficiency to ensure tasks are on track and deadlines are being met.

Answer 15

Decides how the company's resources should be used; if a company does not have the right place at the right time it cannot meet its objectives. Providing budgets and financial control is central to this role along with allocation of staffing and machinery.

Answer 16

They believed in a formal hierarchical structure with clearly defined tasks in the hope of finding the best way of doing things.

Answer 17

American mechanical engineer who sought to improve industrial efficiency The ‘father’ of scientific management A fair day’s pay for a fair day’s work Introduced a piece rate system Introduced specialisation and division of labour Examined the way the workers did the job in order to maximise efficiency through motion studies

Answer 18

Efficiency - increasing output per worker, maximise resources and offer the best rate of pay through division of labour. Standardisation - creating consistent job performance by dividing tasks up into small, specified tasks. Discipline - establishing hierarchical authority and introducing a system whereby all management policy decisions could be implemented.

Answer 19

Work study should be done by managers while the operational tasks should be carried out by workers. The scientific Analysis of tasks and functions to find the one best way of performing each task. The use of Piecemeal Incentive pay systems so that the more workers produced the more they were paid.

Answer 20

Monetary rewards for working is now thought to be naïve as they are not the only reason people work. This theory ignores social and psychological needs of workers. This theory is seen to treat workers like machines and it cannot be applied to creative jobs where piece rate would not be acceptable.

Answer 21

Bureaucratic

Answer 22

Webber is a German sociologists, politician and economist who studied the processes and features of bureaucracy. He believed in rules, power, authority and process. He believed that workers needed expert training and testing so that only the employees who 'passed' and gained technical qualifications would be able to progress in an organisation.

Answer 23

This theory emphasises an impersonal approach to running a firm, where rules, authority and power were central to effective management. Weber was of the opinion that managers are responsible for thinking whereas wormers should follow instructions. The terms 'Bureaucratic' and 'Bureaucracy' are still used today but not in the way that Weber intended.

Answer 24

Money will always have some positive effect on workers motivation. Piecemeal incentive rewards workers who produce quickly and accurately. Hierarchical structures often provide many promotion routes for employees within them. High level of supervision reduces the chance of slacking within the firm. Decision-making tends to be quick as the leadership style is often autocratic in nature. Divisions of labour produce a high output and specialisation can increase the quality of work.

Answer 25

Demotivating for workers as it treats them like machines who often never see an end product. Division of labour can result in boring and repetitive work. Workers become inflexible as they do not have an opportunity to multi-skill as job rotation is discouraged. Workers can feel alienated and undervalued as they are seen as labour and not part of a team. Assumes workers are only interested in financial rewards and that is the only source of their motivation. Authoritarian work environment and management style can be intimidating and stressful for workers.

Answer 26

This approach to management theory was based on the findings of Elton Mayo and recognised the importance of non-financial methods of motivation. Mayo conducted research projects that included studying 6 workers with a friendly supervisor and experimented to see if changes in working conditions would improve their productivity i.e. changing lighting. Before the study was conducted, Mayo assumed that if the conditions were improved, the output level would also improve, and if the conditions worsened the output level would also worsen. So the workers has modified their behaviour because they were being observed.

Answer 27

Belonging to a group which appreciates you is a stronger motivator that money. The social support offered has a strong influence on motivation. People are motivated by feeling specially selected by management. This study is now called the Hawthorne effect. Whereby the positive effect of being made to feel valued and part of a team.

Answer 28

All the workers were Female (1930s so probably accustomed to obeying male authority) Experiment was carried out in a very narrow area (6 people) Not transferable to all organisations as was conducted in a factory setting. It thinks of only employees feelings and ignores the needs of the organisation.

Answer 29

Useful in industries where initiative is important. Promotes the use of team working - works well for collaborative tasks. Hard to use in industries where work is difficult to measure e.g., nursing, teaching. Led to the development of HR departments to support workers.

Answer 30

Neo means new. This theory was written by Abraham Maslow and Frederick Herzberg 40 years after Mayo wrote the Human Relations School theory. They share his belief that social and psychological factors must also be taken into account to ensure effective management. The Hawthorne experiment was significant in highlighting the importance of social aspects, it did not show how working practices should be modified in order to improve worker satisfaction and productivity. Maslow, an American psychologist, suggested that management methods need to be appropriate to the level of needs a worker has. Therefore he created his own theory of the 'hierarchy of needs' The model is used to determine how to motivate workers based on what needs are already being met.

Answer 31

Self-actualisation - achieving ones full potential, including creative activities. Esteem needs - prestige, feeling of accomplishment. Belongingness and love needs - intimate relationships, friends. Safety needs - security, safety. Physiological needs - food, water, warmth, rest. It is important to remember you cant motivate someone with Esteem needs e.g., recognition if they have not got their basic needs met e.g., food and warmth. It is a progression and managers must first establish where their workers are on the scale before they can motivate them to progress to the next level.

Answer 32

Herzberg is an American Psychologist. In the 60s he interviewed accountants and engineers to find out what gave them satisfaction and dissatisfaction at work. The things that he found to motivate employees were called motivators. If present, these result in job satisfaction. The things he found to make employees unhappy he called hygiene factors. If present, reduce satisfaction.

Answer 33

Recognition Achievement Responsibility Promotion opportunities Challenging work

Answer 34

Poor working conditions Low wages Low status Lack of job security Bad relationships with managers Herzberg concluded that hygiene factors must firstly be adequate before employees can be motivated.

Answer 35

He only studied skilled workers, so his theory is not easily transferable into other industries. His theory ignored the motivational effects of teamwork.

Answer 36

Douglas McGregor argued that managers have w ways of looking at their subordinates - Theory X and Theory Y. And whether managers take a Classical or Human Relations approach to managing their staff will depend on which theory they believe in. McGregor believed that that Theory Y would lead to higher motivation and thought that Theory X was limiting and unrealistic as it relies on authority as the primary means of control which is likely to generate resistance.

Answer 37

Similar to classical approach - management assume employees are lazy, lack ambition and shy from responsibilities. Assumes workers will resist change. Managers need to lead and control - high levels of supervision, policy and control. Emphasis on incentivising, forcing, threatening and coercing employees to work. With a strict discipline policy if they fail to do so. Often used in hierarchical structure with narrow span of control. Managers believe employees only work for financial reasons. A blame culture may be present.

Answer 38

Assumes workers will be eager to respond to increased responsibilities and empowerment. Becoming more productive as a consequence. Assumes workers enjoy their duties as they are self motivated. Managers are happy for employees to participate in decision making. Management should provide the right environment for employees to achieve both personal and organisational objectives. Effective use of teams and interdisciplinary groups are encouraged. Emphasis on recognition, achievement and empowering workers.

Answer 39

Assumes that happy and satisfied workers always produce more. The tasks and objectives may be neglected in favour of social benefits. McGregor has been criticised for only presenting 2 extremes of managerial behaviour. Theories neglect the impact of external impacts e.g., impact of recession on workers motivation.

Answer 40

The contingency theory tries to get the best fit of management between task, people and environment. It stresses 3 factors - organisations objectives, organisations strengths & weaknesses and the external factors. The challenge for managers is to develop an approach that best suits a particular situation. This implies that in an organisation there may be elements of bureaucracy, human relations and scientific management. The only criteria for the 'correct design' is that there is task performance and individual & group satisfaction.

Answer 41

Size Type Technology available Staff available Finance available Skills of staff Management experience Market environment

Answer 42

Leadership style - organisations need to ensure they match suitable managers to relevant areas of work e.g., a laid back approach would not suit a formal working environment. Organisation structure - the structure of an organisation can directly effect employee relations. There is no 'correct' structure but each structure will suit a specific environment better e.g., a tall structure = more control but a flat structure = more relaxed environment Staff skill - new workers may require a more direct approach Nature of work - manufacturing firms my use a combination of scientific management and classical approaches as tasks are routine and repetitive. Service sector firms may use a more decentralised approach to empower employees when they have direct contact with customers as it gives flexibility to deal with non-routine situations. Organisations which combine production and service may adopt a combination approach e.g., a restaurant - bureaucratic approach in the kitchen but a human relations approach in front of house. External environment - Economic conditions such as recession may result in downsizing and fewer layers of management as a result. Rise in e-commerce means firms need to be more flexible to ensure they are adapting to changing market demands.

Answer 43

All organisations exist within an environment that is constantly changing. The pressure to change

Answer 44

All organisations exist within an environment that is constantly changing. The pressure to change can come from within an organisation or out with. If the pressure comes from within the business, this can be due to changes to employees, decisions, money available or the culture of the business. If the pressure comes from out with a business, this can be due to external factors (PESTEC)

Answer 45

Political - changes in laws, budgets available, terrorism Economic - inflation/taxation, exchange rates, recession Social - Ageing population, Fashion changes, Modern culture and outlook Technological - Increase in -commerce/social media, automation, portable technology Environmental - Natural disasters, extreme weather, pressure to recycle and reduce emissions Competitive - rivals lower prices/new products, development of new innovations, mergers

Answer 46

Unfreezing - breaking down the beliefs and assumptions that currently exist and opening an acceptance of the need for change. At this point, if there are staff that are resisting change, they must be confronted. Ensures that employees are ready for change. Changing - Implementing the process of change to achieve the desired outcome. Policies are changed, staff are briefed and the culture of the business has changed. Execute the intended change. Refreezing - Consolidation of the new state once changes have been implemented successfully. Ensures that the change becomes permanent. Evaluation - Managers must question if the change has had the desired effect - are there further adjustments required?

Answer 47

Identify possible changes/problems Consultation for idea generation for effective solution Requires trust and reassurance Breaking down beliefs and assumptions - getting staff used to the new ideas.

Answer 48

Introduction of new technology/work patterns/attitudes etc Allow employees to express their opinions Reward staff for changing Development of new behaviours and values.

Answer 49

The 'new' becomes familiar Consolidate the new state Prevent regression - ensure resources and support are provided to sustain the change Use evaluation techniques.

Answer 50

Smooth transition to new working environment - drivers increased and resisters minimised. The organisations will support the changes and the new concepts will be better understood Individuals will know how the changes affect them and the role they have to play – supported staff are less stressed and more productive Employees are less likely to resist change if they are involved Everyone will be more likely to be motivated Good communication can reduce the circulations of rumours, resistance and increase speed The success will be evaluated so errors can be quickly identified then resolved The change should make the organisation more competitive

Answer 51

Management commitment Constant communication Employee involvement at all levels Understanding of the need for change

Answer 52

Most change programmes will meet resistance in some form. Unless employees are involved, prepared and committed to change, they will likely resist for a number of reasons: -Lack of trust -Different viewpoints of the benefits -Disruption to workplace and social relationships -Fear of redundancy -Loss of control/status -Inability to cope with change - stress and fear -Changes on jobs leading to retraining

Answer 53

-Negotiation and agreement -Invest in training -Communication -Participation and involvement – quality circles -Staff welfare – counselling, KIT (keeping in touch) days -Support – appraisals, mentoring -Gradual introduction -Rewarding staff/incentives to motivate

Answer 54

This approach is achieved when management decide what to do. It is imposed on the business and its employees and is therefore associated with an autocratic management style. Communication is directed from the top and little or no attention is paid to the ideas of employees. This strategy is normally used for large, one-off changes, in response to an emergency or when change needs to be brought in quickly, e.g. in response to a change in legislation.

Answer 55

Similar to negotiated, this change is the result of discussion and consensus among all those involved. This is shown by complete confidence and trust between managers and employees. Employees are free to discuss their jobs and their ideas are welcomed. There is a lot of communication and co-operation within the team. Feedback of information is used for problem solving and so the people who participate will be committed to implementing the change. Motivation increases as employees feel empowered through their part of the process.

Answer 56

The opposite of top-down, change is reached through a bargaining process between employees, employers and other stakeholders. Communication flows both ways with managers making use of employees' ideas and opinions. Trade unions may be involved to ensure the voice of all employees is heard or change may be directed as a result of works councils.

Answer 57

Change can also be implemented in a piecemeal fashion, which means small incremental changes being made over time. This can build confidence within the business as taking small steps is seen as less risky. If a change is not working out it can be reversed before the whole change is complete.

Answer 58

This is a practical approach to change that is driven by finding a solution to a problem. Once a problem is identified possible solutions are discussed. Businesses will pilot one solution in a targeted small area and, depending upon its success, either implement that solution on a more widespread basis or pilot an alternative solution until success is achieved.

Answer 59

Top level management have a holistic overview so can make the change in line with the businesses objectives; This method works best in a crisis as decision making time is short and the survival of the business may be at risk; If a change is inevitable this is an efficient method of implementation; this is especially true when the main drive to change is an external factor, such as a political or economic decision made by government.

Answer 60

Staff resistance can be high if they feel they are being overlooked, undervalued or not listened to; Employees' working on the ground have the skills, knowledge and experience but this method does not take these views into account; This may result in high levels of staff turnover or absenteeism if motivation is low; In turn this may create a culture of low morale.

Answer 61

he change is more likely to be successful as everyone has been involved; This fosters trust between management and employees; Reduces staff resistance and improves morale; Allows for staff skills, knowledge and experience to contribute to the strategy in the hope for a more effective and competitive change.

Answer 62

hese methods are time consuming as they involve lengthy discussions and consolation through the use of focus groups and quality circles; Trust can be easily damaged if either management retract the empowerment or employees abuse it; Not effective in a situation of urgency/crisis or where there is an unnegotiable outcome as too many people need to be consulted and they all might have differing views.

Answer 63

Allows a business to try out possible solutions on a small scale for a limited time before making a permanent change; Explores many different options and therefore contingency strategies are often formed; Allows employees to have an input and pilot aspects of change which leads to better decisions being made.

Answer 64

This methods does not work when the change is being driven by an external factor, such as a change in government legislation; Piloting ideas can be a lengthy and expensive process; Often used as part of continuous improvement and may not be suitable for large changes.

Answer 65

Employees become accustomed to the change as it is gradually introduced which can build confidence for the future; Smaller changes are less likely to result in staff resistance; Gradual change is easier to manage and control so reduces risk.

Answer 66

A sense of overall direction may be lost as the change is 'bitty'; The smaller components of the changes may be in conflict with each other; Decentralised changes may not be fairly rolled out across the firm upsetting staff in different departments.

Answer 67

Change agents are the people responsible for bringing about change. They can be individuals, groups of employees, external experts or a combination of the above. Internal change agents - have experience within the firm so understands the firms culture and processes External change agents - experience of change across many firms and will have specialist knowledge on techniques and processes.

Answer 68

-Diagnosing issues - potential drivers and resistors -Educating and inspiring employees about the reasons for change -Managing employees expectations to reduce the fear of the unknown -Establishing the targets and strategies -Defining the roles and responsibilities of key players -Coordinating change activities, performance and incentives for positive behaviour -Monitoring progress and providing feedback.

Answer 69

-Changes to legislation -Quality of specialist -Availability of finance -Organisational culture

Answer 70

Age Gender Disability Race Religion Pregnancy/maternity Marriage Sexual orientation Gender reassignment

Answer 71

When someone is treated less favourably than another person because of a protected characteristic. e.g., Advertising a job to recruit a female. e.g., Not hiring a potential employee because they are pregnant.

Answer 72

discrimination against someone because they associate with another person who possesses a protected characteristic. e.g., An employee being refused a promotion because they have a disabled parent. e.g., An employee being mistreated at work because they have a partner of a different race.

Answer 73

Discrimination against someone because others think they possess a particular protected characteristic. e.g., Refusing to hire an individual because they look like they follow a certain religion based on their clothing. e.g., Turning down an application because the person is suspected to be transgender.

Answer 74

Occurs when you have a rule or policy that applies to everyone but disadvantages a particular protected characteristic. e.g., A condition that employees must wear a skirt to the office which discriminates against men. e.g., An employer changing longer shift patterns to work longer but fewer days is indirect discrimination.

Answer 75

Harassment can take the form of jokes, negative stereotyping, hostile acts or simple thoughtless comments. It can have a negative effect on individuals such as emotional stress, low morale and reducing productivity. Under the Equality Act employees can complain about behaviour even if its not directed at them.

Answer 76

This is where someone is treated badly because they made or supported a complaint. e.g., An employee can be victimised if they have made a complaint about an employee displaying harassing behaviour. If employees feel their complaint has not been dealt with effectively, they have the right to make a claim to the Employment Tribunal.

Answer 77

Businesses must ensure their recruitment and selection methods are prejudice-free to ensure the best possible person for the job is hired. Job adverts should avoid gender-specific job titles such as “waitress”, “handyman” etc as these discriminate by gender. Unless justified, job adverts should not include age ranges so adverts should avoid phrases such as ‘young and dynamic’, ‘mature’, ‘recent graduate’. Unless there is a legal requirement e.g. 18 and over for working within an alcohol setting. Application forms should also not discriminate against disabled people e.g., braille, audio and large font formats

Answer 78

Physical access should be considered when planning interviews – making sure it is wheelchair accessible. Disabilities should be considered when testing candidates, Extra time can be given in certain circumstances. Organisations must be prepared to make any reasonable adjustments to ensure that it does not discriminate against disabled people. E.g. widening door access, moving toilet facilities to the ground floor of the office. In the interview process, the employer is not permitted to request details on a candidates health or disability in the initial recruitments stages. Only if their health would impede them carrying out the duties of the post – climbing scaffolding if applying to a construction company. EXCEPTIONS An applicant can be chosen due to their protected characteristic over another who is equally suitable if that particular characteristics is under represented in the workforce – this is known as ‘Positive Action’. Or if it is an occupational requirement e.g., a woman being required to fit bras in a lingerie store.

Answer 79

-A minimum number of days off -Paternity and maternity leave -Adoptive leave -Parental leave -Family emergency leave -Public duties -Trade union responsibilities

Answer 80

-Who, when and how much time off -If the leave is paid or unpaid -The method of recording absence – this is important as absences are taken into account when making decisions on promotion, bonuses and writing references. Therefore it is important that people are not at a disadvantage if their absence is linked to a protected characteristic e.g., a pregnant woman taking time off.

Answer 81

Create, publicise and follow set procedures to avoid discrimination complaints Reasonable adjustments must be made to disabled people can work effectively without barriers Leave for gender reassignment must be given Pregnancy related leave must be given and recorded separately than sickness leave KIT days and communication should be given to employees who are on leave so they know what to expect when they return Providing phased return periods for employees returning to work

Answer 82

Salary decisions and financial rewards often take into account the level of skill and qualifications for the post. Businesses must ensure that the criteria for awarding payment do not discriminate against protected characteristics.

Answer 83

Conduct an equal pay audit to ensure jobs of equal responsibility are paid equally (age bands are permitted as they justify the ability to make it easier for younger workers to find jobs) To have a fair and transparent pay and benefit scheme Have a clear procedure for investigating complaints regarding payment and handle them sensitively Review non-financial benefits such as health insurance and pension schemes to ensure they ae not indirectly discriminating

Answer 84

Providing training opportunities to develop employee’s skills, confidence and capability can boost loyalty, morale and productivity while strengthening internal candidates who may be suitable for promotion. These opportunities must be offered in a non-discriminatory way and any reasonable adjustments must be made so training can be completed successfully by the employee.

Answer 85

Offering training to woman on maternity leave. Reasonable adjustments such as offering on the job training rather than external training at a far away location. Use a panel interviews for promotion to ensure fairness. Publicise promotion adverts to everyone and ensure it is accessible e.g., language, size of font, audio format etc.

Answer 86

Facilities in the workplace must be suitable for all. These include: -Ventilation -Layout and workspace -Washing facilities -Kitchen facilities -Parking -Prayer rooms -Breastfeeding areas -Technology

Answer 87

Acquire or modify equipment e.g., adjustable chairs Washing facilities should be gender neutral Specifically equipped disabled toilets Provide separate fridge for religious food that need to be kept separate Take into account dietary requirements in food hall i.e., halal meat Dress code requirements must take into account gender and religion requirements

Answer 88

The disciplinary process must take into account the 9 protected characteristics. Disciplinary documentation should be provided in different formats: written, verbal or in large print Meetings must be held in accessible rooms with suitable facilities An interpreter may be used before dismissal, consider if there are any reasonable adjustments could allow them to return to work i.e., redeployment or job rotation Cannot force someone to retire as this is discriminatory against age Cannot give an employee a poor reference on the grounds of a protected characteristics. Organisations may defend certain discriminatory allegations by arguing their practice is necessary and reasonable. E.g. the health and safety and welfare of individuals, running an efficient and profitable service or the requirements of the business. Financial reasons are not enough to justify discrimination but can be taken into account. An organisation can also receive funding from the Governments Access to Work programme to help with the employment of people who have protected characteristics.

Internal Business Environment Flashcards

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