Section 2: People in business Flashcards

Question

What is induction training? What are some common elements?

Answer 1

Induction training is usually delivered as soon as new workers join a business. It introduces employees to the organization, its culture, policies, procedures and their job roles and responsibilities Induction training usually consists of: - Tour of the premises - Role-specific duties - Meeting key colleagues - IT & finance policies - Issuing equipment - HR & security procedures - Company store & culture - Heath & safety policy

Answer 2

Advantages: - Helps new employees to understand their job role and responsibilities - Improves employee confidence and motivation - Reduces time for new employees to become productive Disadvantages: - Can be time-consuming and expensive to organize - May not cover all aspects of the job role - May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates

Answer 3

On-the-job training takes place while employees are working in their job roles. Employees learn skills and knowledge from colleagues while performing their job duties. Advantages: - Employees learn new skills and knowledge while performing their job duties - Training is tailored to the employee's specific job role and responsibilities - Training is often practical and relevant to the employee's job duties - Can be cost-effective as it takes place during working hours Disadvantages: - Employees may make mistakes while learning or trainers could pass on bad habits which may impact productivity and quality - Can be disruptive to the workplace as it requires the trainer to devote time to training the employee (therefore, business will receive lower productivity from the trainer and trainee) - May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates

Answer 4

Off-the-job training takes place away from or outside of the workplace. It can be in the form of workshops, seminars, conferences or online courses. Advantages: - Employees learn new skills and knowledge outside of the workplace, which can bring fresh ideas and perspectives to the workplace - Training can be tailored to the employee's specific needs and interests - Training can be used as a reward or incentive for high-performing employees (leading to employees feeling valued since employer is spending money to train them, higher motivation and productivity) - Can be cost-effective if training is provided online or through webinars Disadvantages: - Can be expensive to organize, especially if travel and accommodation are required - Employees may miss work while attending training, which can impact productivity - The training may not be directly applicable to the employee's job role or the needs of the firm (not specific to the firm's protocols/operations)

Answer 5

Motivation refers to the inner desire or willingness that drives a person to take action and achieve a specific goal or outcome. Importance of motivation: - Motivated employees are more productive and efficient. They are also likely to be engaged in their work and use their initiative to solve problems. Therefore, they generate higher levels of output and quality. This (increased productivity) results in higher profits for the business. - Labour turnover rates are often lower when a workforce is well motivated. Motivated employees are more likely to stay with the company long-term. This (lower turnover rates) reduce the need for costly recruitment and training. - The reliability and loyalty of motivated workers are likely to be high. Motivated employees take pride in their work, show up on time, meet deadlines and take fewer sick days. This leads to increased trust between the business and its employees and encourages a positive organisational culture. *Bonus: since they stay long-term, they can get to know regular customers and their preferences and provide better service, increasing customer satisfaction which increases how much customers are willing to spend at the business.

Answer 6

Taylor's scientific management: - Workers are motivated mainly by pay - They need tightly-defined tasks and close supervision Maslow's Hierarchy of Needs: - People move through levels of needs that motivate them - Once a need is met, it no longer serves to motivate Herzberg's Two Factor Theory: - Money is not a motivator but a lack of money leads to dissatisfaction - Workers are motivated by factors such as the opportunity to develop their skills

Answer 7

It focuses on breaking down complex tasks into simpler ones, standardising work processes and providing workers with clear instructions and training to achieve maximum efficiency. Many manufacturing businesses use Taylor's principles to structure their staff benefits. 1. Study and analyse the work process - Each step of the work process is carefully analysed - Complex tasks are broken down into simpler ones 2. Standardise the work process - The most efficient and effective way to perform each task is identified - Detailed procedures and instructions are written, which workers follow consistently 3. Select and train workers - Workers are carefully selected based on their skills and abilities - Training supports them to perform their tasks efficiently and effectively - Training includes both technical skills and the proper attitudes/behaviours required to be successful (e.g. patience in a repetitive task) 4. Provide incentives for performance - Financial incentives (such as bonuses or piece-rate pay) are used to motivate workers

Answer 8

How do businesses use Taylor's motivational theory: - Workers are trained to perform only ONE task, which they become very skilled at. - Workers are usually paid for the completed work (piece rate pay) Advantages: - Increased efficiency lowers costs - Standard procedures that everyone follows reduce inconsistencies - Specialisation of labour leads to greater efficiency and productivity - Clear hierarchy and lines of authority lead to efficient decision-making - Better training and development improves employee performance and job satisfaction Disadvantages: - Overemphasis on efficiency reduces worker satisfaction and creativity - Workers may disengage from work if they work in a machine-like system - Limited application to roles that require high levels of creativity, problem-solving or interpersonal skills - Potential for exploitation of workers, e.g. many 'sweat shop' labourers get paid using this method

Answer 9

Maslow's Hierarchy of Human Needs outlines five tiers of human needs that must be met for individuals to reach their full potential Once a tier of needs has been met, it is unlikely to continue to motivate Here's the typed out list in accordance with the pyramid - employees work their way UP the pyramid (starting at number 5): 1. Self-actualization - morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts 2. Esteem - self-esteem, confidence, achievement, respect of others, respect by others 3. Love / Belonging - friendship, family, love 4. Safety - security of body, of employment, of resources, of morality, of the family, of health, of property 5. Physiological - Breathing, food, water, sex, sleep, excretion Here's how employers can MEET those needs: 1. Physiological - Provide necessities for their employees (such as comfortable work environment, access to clean water and food, and adequate rest breaks). 2. Safety - Provide job security, fair pay, benefits, and safe working conditions. 3. Love and Belonging - Encourage teamwork and generate a sense of community and belonging within the workplace. 4. Esteem - Provide recognition for employees' accomplishments, and provide a positive work culture that values individual contributions. 5. Self-Actualisation - Offer opportunities for employees to pursue their passions and interests.

Answer 10

Advantages: - Meeting employees' needs establishes a satisfying work environment. This can lead to increased productivity and lower staff turnover rates. - Offering incentives that match their specific needs and desires can improve staff loyalty. - Employees who feel valued and supported by their employers are more likely to perform at a higher level. Disadvantages: - Businesses need to tailor their approach to meet the individual needs of their employees, as one size does not fit all. - Meeting many individual needs can be expensive, especially when offering costly perks such as a company car - Determining the best way to motivate requires significant effort from management to connect individually with workers.

Answer 11

Herzberg's Two-factor theory suggests that two influencers determine employee motivation and job satisfaction: hygiene factors and motivators. - Hygiene factors do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction, which decreases motivation (such as poor teamwork in the workplace). - Motivators are elements that lead to job satisfaction and motivation (such as increased responsibility) The two factors: - Job dissatisfaction: Influenced by hygiene factors like working conditions, coworker relations, policies and rules, supervisor quality, base wage/salary. - Job satisfaction: Influenced by motivator factors like achievement, recognition, responsibility, work itself, advancement, personal growth. Improving motivator factors increases job satisfaction while improving hygiene factors decreases job dissatisfaction.

Answer 12

Using Hygiene Factors to Decrease Dissatisfaction: - Pay fair wages/salaries: If an employee is not paid a fair wage for their work, they may become dissatisfied and demotivated. - Offer excellent working conditions: If the workplace is dirty, unsafe or uncomfortable, employees may become dissatisfied and demotivated. - Offer employment contracts which provide job security: If employees feel that their job is not secure, they may become anxious and demotivated and contribute less to the business's goals. Using Motivating Factors to Increase Satisfaction: - Build a recognition and rewards culture: When employees are recognised and rewarded for their hard work, they are motivated to continue performing well (examples include salesperson of the month award and regular staff social events). - Offer opportunities for growth and development: When employees are given opportunities to learn new skills and advance in their careers, they are motivated to continue working for the company (examples may include personalised growth plans, which help workers achieve professional goals or sabbaticals, which allow workers to periodically pursue a valued interest). - Provide challenging work which requires problem-solving: When employees are given challenging work that allows them to use their skills and abilities, they are motivated to continue performing well (examples may include job rotation or job enlargement through delegation).

Answer 13

1. Renumeration: - Basic wages or salary that a worker receives for their labour. - Employees who work on an hourly rate are paid wages and accrue benefits such as annual leave according to the hours they work. - Salaries are paid to full-time staff and usually accompanied by benefits such as a fixed number of days of annual leave. 2. Commission: - A percentage of sales revenue is paid to workers who sell the products or services. - Commonly used in sales roles to motivate staff to sell more and upsell. 3. Bonus: - An additional payment given to staff for achieving specific goals, completing projects on time or exceeding performance expectations. - The opportunity to earn more money may motivate staff to work harder and achieve better results. 4. Promotion: - Promotion usually demands a higher level of responsibility from an employee in the job role. Higher pay is usually offered to reflect the increased responsibility. - A clear promotion pathway can act as a motivator to improve productivity and staff performance. 5. Fringe benefits: - These are additional benefits usually offered to salaried employees. Fringe benefits could include the use of a company car, private healthcare or gym membership. - Employees can be motivated to work hard in order to keep their job and the associated fringe benefits.

Answer 14

1. Autonomy: - Involves giving staff the authority and resources to make decisions and take action without first receiving management approval. Increases staff sense of ownership and responsibility, leading to improved productivity. 2. Job enrichment: - Involves adding more challenging or meaningful tasks to a job. - Staff feel more motivated and engaged, leading to improved productivity. 3. Job rotation: - Involves moving staff between broadly similar but varied roles in the business. - Exposes staff to new challenges and experiences, which can increase motivation, understanding and skill

Answer 15

Hierarchical: - Multiple levels of management - A long chain of command and narrow span of control Advantages: - Provides a clear structure of authority and defined roles and responsibilities - Promotes specialisation and expertise within each department or function Disadvantages: - Can create communication barriers between upper and lower levels of the hierarchy - Decision-making can be slow as information must pass through multiple layers of management Flat: - Few levels of management - A short chain of command and wide span of control Advantages: - Promotes a culture of collaboration and open communication - Decision-making can be faster and more efficient Disadvantages: - Employee roles and management may not be clearly defined - May require employees to take on multiple roles and responsibilities, leading to burnout and stress

Answer 16

Centralized: - A centralised organisation structure is where authority for decision-making rests with senior management at the centre of a business Advantages: - Effective co-ordination and control of business operations from the centre - Fast and decisive decision-making can increase competitiveness - Consistency across the whole organisation Disadvantages: - Middle managers' lack of autonomy can impact their motivation - Highly bureaucratic, slowing communication of decisions - Ignores insights of lower-level staff who are likely to be closer to customers Decentralized: - A decentralised structure is where authority for decision-making is delegated further down the hierarchy towards functional or middle managers Advantages: - Better able to respond to local market conditions and meet customer needs - Staff able to contribute to decision-making may be more fulfilled and loyal - Prepares junior management for career development Disadvantages: - Diseconomies of scale such as the duplication of staff roles may emerge - May be difficult to tightly control budgets - During times of crisis, leadership may not be clear

Answer 17

The role of directors: Larger businesses often have a board of directors who make key strategic business decisions such as - Implementing new corporate policies - Investment of retained profit and share capital - Growth objectives The board normally consists of a senior employee from each department, officers (such as treasurer or secretary) and the owner or chief executive officer (CEO) of a business. The role of managers: Managers have many responsibilities in the business and help it to operate effectively on a day-to-day basis Senior Manager: - Plan to achieve the business’ overall goals - Set long-term plans and targets for the business - Contribute to strategic decisions Functional Manager: - Work to achieve the short and long-term targets set by the directors and senior managers - Responsible for running a function within the business, e.g. marketing or finance - Make operational decisions - Use employees and other resources in the best possible ways Supervisor/Team Leader: - Help managers achieve their targets by reporting any problems and passing on instructions - Take simple decisions such as allocating jobs among different employees The role of Operational & Support Staff: - Operational staff complete tasks to which they are directed by their manager(s). E.g. In a department store operational staff include customer service representatives, sales assistants and security staff. - Support staff assist with the non-core operations of a business. E.g. In a bank support staff may include cleaners, IT technicians and human resources assistants.

Answer 18

Delegation is the process where responsibility for specific tasks is given to subordinates by managers. It usually involves transferring authority from manager to subordinate. Delegation is particularly important in businesses with a flat organisational structure, where managers have wide spans of control

Answer 19

For managers: - Allows managers to concentrate on more important tasks. - Helps managers to measure the performance of their staff as they can judge how well subordinates carry out these tasks. - Can help to reduce errors if managers delegate. Workers may be skilled in certain areas and have sufficient time to complete the task to a higher standard. For workers; - Delegation allows workers to feel empowered in decision making. This can motivate as staff are trusted to perform a job well. - Provides a form of training as workers learn on the job thus increasing job opportunities to progress within the organisation. - Makes employees work more interesting and rewarding. This could reduce absenteeism and labour turnover.

Answer 20

- Some managers are reluctant to delegate as they lose some control over decision-making. - While some workers may see delegation as a non-financial incentive/motivator, others may become anxious/stressed about the extra responsibility or they might simply lack the skills required and therefore be dissatisfied which can cause motivation to decrease. Explanation: Managers may need support to be able to balance trust and control to delegate appropriate tasks. Autocratic leaders may not be willing to give authority to others. Some managers may feel threatened by highly skilled subordinates seeking promotion.

Answer 21

Human Resources: - Managing workers in the organisation and ensuring their welfare - Overseeing employment processes related to recruitment and selection, training, industrial relations and health and safety Finance: - Recording money coming into and going out of the business, collecting debts and paying bills - Setting and managing budgets, financial forecasting, managing banking and preparing the annual report Marketing: - Finding out the needs and wants of existing and potential customers (market research), planning suitable products and their distribution - Persuading customers to purchase a business' products or services through advertising and other promotional or pricing techniques Production: - Making the product or providing the service sold by the business - Ensuring quality, buying raw materials and components, designing and testing new products and managing inventory

Section 2: People in business Flashcards

(45 cards)