MOC 11yr Flashcards
What are the five needs in Maslow’s hierarchy of needs?
Lower level needs:
1. Physical needs – food, drink, sleep, sex, air.
2. Safety needs – job, house, family, health.
Higher level needs:
3. Psychological needs – love, friendship, belonging.
4. Esteem needs – achievement, confidence, respect.
5. Self-actualisation – self-fulfilment i.e. a feeling that one has fulfilled their potential from a moral, spiritual and creative viewpoint.
What is Taylorism/Taylor’s theory?
- All tasks should be done individually in which the employee would be given one task and would be trained in it till mastered as the main objective was to improve labour productivity.
- Employees follow strict rules on how to execute their task as Taylor thought that employees were not able to fully understand their task. He thought that there was ‘one best way’ of doing things, therefore, implementing standardisation.
- The only motivation Taylor gave to workers was increased pay based on how efficient they were for example if a worker did their task efficiently while following the rules they would be given increased pay, however, if a worker wasn’t doing their task to a required level they would be given unlivable wages or fired.
What is the Two-factor theory?
- Satisfaction – this occurs because of motivator factors – achievement, recognition, work, responsibility, promotion and growth.
- Dissatisfaction – this occurs because of hygiene factors - pay in the workplace, and benefits, company policy, relationships in the workplace, work conditions, status and job security. If these are absent they can cause dissatisfaction. However, the presence of hygiene factors does not create satisfaction.
How to Expand a Business?
- Internal Growth: Opening new stores, increasing product range, moving to new markets, internet sales. This is easy to manage due to familiarity; low risk can be financed through retained profit however growth is slow but steady yet limited/opportunities.
- External Growth: Growth via integrating with another business.
What is a Merger?
Two businesses agree to join together and operate as one; this benefits both in which the managers make decisions together.
What is a Takeover?
One business buys another, often hostile; benefits the main one in which the main business manager will be in control.
What is a Sole trader and what are the pros/cons?
An individual who runs a business - the simplest form of business.
Pros:
- Cheap/easy to set up
- All profits go to you
- Competitors can’t see your accounts
- Highly motivated
- You are your own boss!
Cons:
- Unlimited liability: All on you! Business goes bankrupt and so do you
- Limited finance: Harder to loan from the bank
- Difficult to find cover when ill
- Small range of expertise: the owner has to do everything or buy expertise.
What is a Partnerships and what are the pros/cons?
Two or more people run a business. each partner takes share of the profit, share decision making yet sleeping partners can exist (ie. invest but don’t run).
Pros:
- Responsibilities are shared
- More expertise
- Simple and flexible
- Competitors can’t see your accounts
- Easier to raise finance than sole trader
Cons:
- Unlimited liability
- Arguments between partners
- If a partner dies/resigns/goes bankrupt the partnership fails
- Trust is a key element
What is a Private limited company (ltd.) and what are the pros/cons?
Consists of one or more members (shareholders) - shaves can be only sold to family or friends - Incorporated - owners, and company are separate legal entities (if the business goes bankrupt, the owner won’t).
Pros:
- Limited Liability: separate from business loans
- Increased sources of finance
- Wide range of expertise
- Difficult for hostile takeovers to occur
Cons:
- Competitors CAN see financial information
- Difficult for individuals to sell shares; other shareholders must agree
- Greater Legal constraints
- Can’t sell shares to the public
What is a Public limited company (plc.) and what are the pros/cons?
Shares can be sold on the stock exchange (public). Otherwise defined similarly to Ltd - flotation: Ltd to Plc (conversion).
Pros:
- Limited liability
- Increased sources of finance
- Wide range of expertise
- Can sell shares to the general public
- Can list themselves on Stock Exchange
Cons:
- Expensive process: not guaranteed success, at least £50k worth of shares in which at least 25% needs to be paid up
- Open to takeover: General public can buy shares
- Financial information is available for anyone to see including competitors
- Stricter rules and regulations
Methods of Communication?
Internal Communication - Between people within a Business:
- Emails
- Meetings
- Training
- Phone calls
External Communication - Between Business and other individuals:
- Articles
- Podcast
- Media Announcements
Conferences
When to use certain methods of communication?
- Speed:
For quick information, opt for telephone calls or text messages. If speed is less critical, letters or emails are more appropriate. - Cost:
To minimize costs, consider using letters or face-to-face meetings.
Otherwise, use methods like telephone calls or posters. - Message Details:
Detailed messages are best conveyed through written and visual methods.
-Leadership Style:
Democratic leadership favors two-way communication, such as verbal methods. Autocratic leadership may prefer notices and announcements.
-The Receiver:
For a single receiver, choose personal face-to-face or telephone communication. For a broader audience, use notices or emails.
Importance of Feedback:
- For crucial feedback, employ direct verbal or written communication methods, especially for quick queries.
What is lean production?
Technique that can be used to increase efficiency of a firm but reduce costs e.g. Kaizen or Just in time.
- Reduces waste of resources in production process
What is Just in Time technique?
To Minimize stock holding at each stage of the production process e.g. from delivery of raw material to meeting customer demand.
Pros:
- Stock holdings kept at zero/minimum: Money is saved as stock wont become old, damaged or no longer of value.
- Good relations with Supplier needed: Must know correct quantity, quality and deliver on time. Needs to respond fast to demand changes.
Flaw:
-If materials don’t arrive on time
-If costs more to buy small but frequent amounts from supplier.
-If customer wants product now
-If there is a unexpected rise in demand
What is the Kaizan technique (continous improvement)?
Involves all workers trying make small frequent improvements by suggesting small things that could be done better.
Pros:
- Lots of small improvements add up to saved costs.
- Easy to do compared to big management change etc.
Cons
- Relies on commitment of employees.
- Relies on willingness of managers to listen.
