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Business Studies > Section 2 - People in Business > Flashcards

Section 2 - People in Business Flashcards

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1
Q

Define motivation

A

factors that influence the behavior of workers towards achieving set business goals

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2
Q

Benefits of a Well-Motivated Workforce (5)

A
  • Higher productivity/efficiency
  • Lower rate of absenteeism
  • Lower rate of labour turnover/attrition
  • Better quality goods and services
  • More competitive
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3
Q

Maslow’s hierarchy (5)

A
  • physical needs: to survive
  • safety needs: safe from physical danger & job security
  • social needs: loved and accepted
  • esteem needs: respected & recognized
  • self actualization: reaching their full potential
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4
Q

F.W. Taylor- Scientific Management Theory

A
  • Theory of Economic Man: view that humans = only motivated by money.
  • The piece-rate method was developed by Taylor’s research, but supervision is required.
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5
Q

Fredrick Herzberg – Two-factor Theory (5-5)

A

1) Hygiene factors: prevents job dissatisfaction
Working conditions – safe, clean, facilities at workplace
Relationships with others- good relationships with others & feel belonging
Salary & Wage – being paid enough to encourage workers
Supervision – leadership style & how closely workers are supervised
Company policy & Administration – rules & procedures
2) Motivators: factors that influence a person to increase their efforts
Work – needs to be varied & challenging
Responsibility – showing that managers trust and value workers
Advancement – opportunity for promotion
Achievement – workers feel they have reached challenging goals
Recognition of achievement

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6
Q

Financial rewards and methods (7)

A

> Hourly wage rate - time not number of output
Salary (fixed annual payment) – not based on hours and not linked to worker effort
Piece-rate – not linked to quality, just quantity
Commission (based on value of items they sell) – linked to value, workers never certain about earn
Bonus scheme – linked to performance but if target is unrealistic, can become a demotivator
Fringe benefits (non-cash rewards) – e.g. health insurance, discounts, company cars and free housing. Can help in recruitment and retention of workers, but is often linked to status and not performance
Profit-sharing – motivates workers, attracts more employees, increases loyalty, decreases attrition and absenteeism rate and higher acceptance towards change but less dividend

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7
Q

Non-financial factors of motivation (7)

A

> Job rotation – increasing variety/switching tasks
Job enlargement – more tasks but same difficulty
Job enrichment – harder tasks but same number
Job redesign
Quality circles – discuss work-related problems
Team-working
Delegation – Passing responsibility to do tasks to subordinates

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8
Q

Define hierarchy

A

number of levels in an organizational structure

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9
Q

Define chain of command

A

route through which authority is passed down through an organisation

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10
Q

Define span of control

A

number of subordinates reporting to each supervisor/manager

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11
Q

Factors affecting the span of control (5)

A

> Difficulty of task (simple 🡪 wide)
Skills of workers ( more skilled 🡪 wide)
Size (small 🡪 wide –as there are less managers-)
Levels of hierarchy (flat 🡪 wide)
Management style (less control 🡪 wide)

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12
Q

Tall hierarchies (5)

A

Many levels of hierarchy
Each level is management (except bottom level)
More managers = narrow span of control
Long chain of command
Communication and decision-making are slower

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13
Q

Flat hierarchies (4)

A

Few levels of hierarchy
Chain of command is short
Span of control is wide
Communication and decision-making are much faster

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14
Q

Define delayering

A

Reducing the size of the hierarchy by removing one or more levels (often middle management)

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15
Q

Advantages of delayering (5)

A
  • reduces costs
  • reduces chain of command
  • communication/decision making = faster + more effective
  • Wider span of control 🡪 motivates employees as they are given more trust by managers
  • Senior managers are more informed of what is happening in the business
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16
Q

Disadvantages of delayering (4)

A
  • Increased workload on managers 🡪 tasks may not be completed or poor quality
  • May have to make redundancy payments
  • Employees fear redundancy = reduces job security
  • Wider span of control 🡪 reduce effective management of subordinates
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17
Q

Define centralized

A

all important decisions made at Head Office or centre

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18
Q

Define decentralized

A

decision-making is passed down to lower levels

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19
Q

Advantages of centralized organisations (3)

A

Faster decision making
Decision benefits whole business
Specialist staff improve decision-making

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20
Q

Disadvantages of centralized organisations (3)

A

Slower communication
Slow response to changes in the market
Reduces employee motivation

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21
Q

Advantages of decentralized organisations (3)

A

Decisions based on local needs
Can train junior managers
Delegation motivates employees

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22
Q

Disadvantages of decentralized organisations (2)

A

Decisions may not interest the whole business

Poor decisions can be made due to lack of skills and experience

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23
Q

Responsibilities of Directors (4)

A

> Setting strategy
Make sure resources are available to achieve objectives
Reviewing the performance of managers, protecting the interests of shareholders and other stakeholders
Providing leadership

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24
Q

Responsibilities of Managers (5)

A

> Making sure the decisions of directors are carried out
Delegating tasks to members of their department
Taking decisions to achieve departmental objectives
Motivating workers
Solving day-to-day problems

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25
Responsibilities of Supervisors (3)
> Giving out tasks to workers > Making sure they carry out the tasks > Checking the quality of the work
26
Functions of management (5)
> Planning – setting clear objectives and actions required to achieve them > Organising – preparing & organising resources needed to achieve planned goals & objectives > Commanding – control, supervision & motivating workers > Coordinating – make sure all employees are working together to achieve business’s goals > Controlling – make sure that plan is working, if not, taking action to correct it
27
Managers must: (5)
- Understand people who work for them - Set a good example - Treat subordinates fairly - Delegate tasks - Communicate effectively
28
Advantages of delegation (4)
> Managers have time to focus on more important things > Can motivate workers to take responsibility > Develops skills of workers & increases flexibility of workforce > Quality of work is often improved
29
Advantages of democratic leadership (4)
- Motivates workers - Workers gain authority - Feel significant & important - Workers get trained & learn to be responsible
30
Choosing a leadership style (3)
1. Time available 2. Personality of manager 3. Task to be completed
31
Define trade unions
An organisation of workers aimed at improving pay and working conditions and providing other services, such as legal advice, for members
32
Roles of trade unions (4)
- Negotiating with employers to improve pay and working conditions - Resolving conflict - Providing legal support and advice - Providing support for members
33
Benefits of being a member of a trade union (4)
- Greater power when dealing with employers (than if doing it as an individual) - Support and legal advice for workers who are being unfairly treated by employers, or who have been injured at work - Improved environment where people work - Improved communications between workers and management
34
Effects on employers of trade unions (4)
- Single point of contact = less time consuming - Unions improve working conditions = improve employee motivation and reduce the level of absenteeism/turnover - High wage demands = increases business costs + reduce competitiveness & profitability of businesses. - Strikes to force the employers to meet their demands, disrupts production = loss of orders = reduces profitability.
35
Advantages of internal recruitment (4)
- Vacancy filled more cheaply and quickly - Business already knows the strengths and weaknesses of applicants - Applicants already know how the business works - Can motivate employees when they see that there is a change of promotion
36
Disadvantages of internal recruitment (4)
> Better candidate may have been available from outside the business > Can cause conflict in the workplace if other internal candidates feel they should have got the job (jealousy) > Does not bring any new ideas or skills > There will still be a vacancy to fill, unless worker’s previous job has been made redundant
37
Advantages of external recruitment (3)
> Can bring new ideas and improve effectiveness and efficiency of business > Wider choice of applicants > Avoids upsetting workers if someone internal is promoted
38
Disadvantages of external recruitment (3)
> Takes longer to fill the vacancy > More expensive than internal recruitment (advertising costs, time spent) > Will need induction training, increases expenses
39
Recruitment process (9)
1. Identify vacancy and carries out job analysis 2. Job description is produced 3. Person specification is produced 4. Job is advertised (internal or external) 5. Send out application forms & job details 6. Receive applications 7. Create a shortlist from all the applicants 8. Interview shortlisted candidates 9. Select the right candidate
40
Benefits of part time workers (7)
> Can attract well-qualified workers > Help business keep experienced staff > Provides greater flexibility > Work hours flexible = allow changes in demand > Workers are more motivated as they are less tired > 2 part-time instead of 1 full-time increases skills > Doesn’t need to take time off for appointments
41
Limitations of part time workers (3)
> Increases in induction and training costs > Communication problems > Quality of service may not be as good as full-time staff, as part-time workers are usually less dedicated to the business
42
Benefits of training (7)
> Trained workers are more efficient > Management training improves quality of decisions & reduces cost of mistakes > Helps workers develop their abilities 🡪 motivation > Easier to recruit new workers & keep existing workers > Can improve customer service > Health & safety training = reduces accidents > Well-trained workforce = competitive
43
Methods of training (3)
- induction - on the job - off the job
44
Advantages of on the job training (3)
- Relatively cheap - Workers learn the way the business wants job done - Workers are producing while training
45
Disadvantages of on the job training (4)
- Workers may pick up experienced worker’s bad habits - Might not learn most up-to-date methods - Make more mistakes while learning 🡪 increases waste - Slows down production of experienced worker
46
Advantages of off the job training (2)
- Workers learn latest methods and techniques | - Does not disrupt the production of other workers
47
Disadvantages of off the job training (2)
- Can be expensive | - Worker does not produce any output during training
48
Methods for reducing the size of the workforce (4)
- resignation - redundancy - retirement - dismissal
49
Reasons for downsizing the workforce (3)
- Fall in demand for the product the worker produces - New technology automates the work that workers do - If business relocates
50
Methods for deciding which workers to make redundant (4)
- Last in first out method - How productive workers are - Days that workers were late/absent in the past year - Age of workers
51
Legal controls over employees (5)
- Contract of Employment - unfair dismissal - discrimination - health & safety - legal minimum wage
52
Contents of a Contract of Employment (9)
``` Name of employer Name of employee Date of commencement of contract Amount employee will be paid Number of hours employee is expected to work Job title & main responsibilities Number of days of holiday Period of notice Grievance and disciplinary procedure ```
53
Benefits of a contract of employment (3)
Removes any misunderstanding If worker breaks terms of contract = dismissal If employer ignores any terms = legal action
54
Define internal communication
where employees communicate with each other, upwards, downwards or horizontal
55
Define external communication
communicating with external stakeholders, not a part of organisation
56
Define communication media
the methods used to communicate a message
57
Effective communication (4)
> Message is sent using correct communication media > Message is sent to & received by the correct person > Receiver understands message > Receiver provides feedback to sender to confirm they have received & understood message.
58
Benefits of effective communication (6)
Reduces risk of mistakes Faster decision making Quicker responses to market changes Improves coordination between departments Improves motivation and morale of workforce Improves customer relationships
59
Methods of communication
- oral - written - visual
60
Advantages of oral communication (4)
Quick 2 way communication 🡪 feedback Personal contact Language can be altered
61
Disadvantages of oral communication (3)
No way of know if everybody is listening No permanent record Can cause distortion
62
Advantages of written communication (4)
Permanent record Can be looked at more than once Quick and cheap way to communicate with a great number of people Message can’t be altered
63
Disadvantages of written communication (5)
``` One way 🡪 no feedback Not easy to check if message was received No body language Time consuming Letter can be too long or complex ```
64
Advantages of visual communication (4)
Greater impact than spoken or written word Can simplify complex data Often easier to understand than words Creates interest
65
Disadvantages of visual communication (3)
No feedback Can be difficult for some people to interpret Some detail might be lost
66
Choosing the best method of communication (9)
``` Urgency of message Length and complexity of message Number of receivers Distance between sender and receiver Importance of receiving message at the same time Cost of media Importance of having a permanent record If message requires discussion How confidential the message is ```
67
Main causes of communication barriers (6)
``` > Channel of communication Wrong medium Language is too complex > Senders and receivers Lack of trust Demotivated 🡪 not listening properly > Physical environment Noise Distance ```
68
Problems caused by communication barriers (6)
``` Tasks not completed/completed incorrectly Reputation of business damaged Workers morale and motivation falls Higher risk of accidents Poor sales Recruitment and selection problems ```
69
How to remove communication barriers (6)
Use appropriate language Keep channel of communication as short as possible Sender must insist on receiving feedback Use appropriate medium Physical barriers (noise) should be removed Management must build a culture of trust and respect between employees
70
Reasons communication within large business is difficult (4)
No direct contact Opportunity for feedback limited Too many people to inform Work at different times (shift workers)
71
Reasons for using bonuses to pay staff (5)
``` Industry norm Motivation Performance related / hit targets / recognition Can help increase output Retention of workers / loyalty ```
72
Define organisational structure
refers to levels of management and division of responsibilities within an organisation and the relationships between them
73
Reasons managers/workers meetings benefit the business (6)
interchange of ideas better understanding of other people’s points of view/opinions improves communications increases sense of unity of purpose and motivation better decision-making Problem-solving
74
Define chain of command (ms)
structure within an organisation through which orders are passed down from senior management to the lower levels of management
75
Disadvantages of a wide span of control (5)
difficult to control so many people = less work done communication problems as too many subordinates to inform/ask = harder to get feedback about work + messages lost workers may not have skills to cope with extra responsibility = more mistakes supervisors might not have the right skills to manage so many people fall in productivity as hard to motivate so many people
76
Define job description
Document that outlines the responsibilities and duties expected to be done by someone employed to do a specific job
77
Features of a person specification (5)
``` Qualifications Experience Skills Personal qualities Age/gender ```
78
Issues of business growing too quickly (10)
High demand + growing quickly = expand to meet customer requirements Depends on objectives of business Can business afford to pay costs of expansion Management issues Recruitment problems Finance issues Diseconomies of scale Quality may suffer in rush to meet demand Sales could fall as quickly as they had risen Problems of excess stock
79
Define on-the-job training
Training that involves watching more experienced worker doing job in workplace.
80
Define autocratic management style
decisions are made by the management without consultation and discussion
81
Disadvantages of one way communication (3)
No feedback = unsure whether message was received & understood No new ideas generated internally, as workers aren’t encouraged to do so Wider gap between management/employees = tension & mistrust
82
Reasons to ignore health & safety (7)
Legislation incurs costs / they don’t have to spend money Management doesn’t care about employee welfare Laws not enforced Cheaper to pay fines To increase production Workers can be easily replaced Some countries do not have laws for health and safety
83
Benefits of an organisational chart (5)
Clear structure so everyone knows their roles Clear chain of command = everyone knows who to report to + orders passed effectively between directors and employees Can show where possible problems of control/communication might be Helps retention of workers Allows for effective delegation

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