THEME 1, Managing people

Question 1

Explain employees as an asset

Answer 1

They have skills and abilities which add value to the business/product.

Businesses should treat their employees like a valued asset and invest in them, through training which will motivate them, increasing productivity.

Question 2

Explain employees as a cost

Answer 2

Employees get paid for the work they do, so they are also a cost.

NMW means can help motivate employees, however its an increasing cost for business as it usually increases each year

Question 3

What are the benefits and drawbacks of flexible working? Name some examples.

Answer 3

Flexible workforces can be multi-skilled meaning they have to employ fewer workers= lower cost.

Can increase employee motivation due to the variety in their job.

Can have high initial costs due to training.

Zero hours contract, home working, flexitime

Question 4

What are the pros and cons of internal recruitment?

Answer 4

PROS-
Candidates know business and its ethos, business knows candidates
Short, cheap process
Motivates workers to go for promotion

CONS
Leaves vacancy in another department
Can cause tension

Question 5

What are the pros and cons of external recruitment?

Answer 5

PROS
Brings in new ideas
Brings experience from other organisations
Larger number of applicants to choose from

CONS
Long, expensive process
Candidates need training
Have only seen candidate at recruitment-may not be a true representation of thrm

Question 6

What are the pros and cons of on the job training?

Answer 6

PROS
Easy to organise
Lower cost
Job specific

CONS
Trainers aren’t fully productive during training
Bad practises passed on
No new ideas

Question 7

What are the pros and cons of off the job training?

Answer 7

PROS
Trainers ae specialists
New ideas
No job distractions

CONS
Can be expensive
No benefit to business while training
May not be job specific

Question 8

What are the pros and cons of a flat organisational structure?

Answer 8

PROS
Employees given more responsibility +freedom=motivation
Quick decision making=good in dynamic market
Lower management costs

CONS
Slow horizontal communication
Wide spans of control of managers, if too wide may find it hard to manage effectively=demotivational
Not much room for promotion=demotivational

Question 9

What are the pros and cons of a tall organisational structure?

Answer 9

PROS
Clarity and control for managers, narrower control spans
Close supervision, ensures high efficiency

CONS
Higher management costs
Potential reduced employee motivation due to lack of freedom
Slow communication +slow decision making

Question 10

What is a centralised organisation?

Answer 10

All decisions made by senior managers at the top of a business

Question 11

What is a decentralised organisation?

Answer 11

Authority to make decisions shared by more junior employees eg branch managers

Question 12

What are the pros and cons of centralised organisation?

Answer 12

PROS
Business leaders have lots of experience=likely to make a good decision
Managers get an overview of whole business=consistent decisions
Dont make biased decisions
Can make big decisions quickly as they dont have to consult to another person

CONS
Not many are expert enough to make decisions about all aspects of the business
Excluding employees form decision making=demotivational
Slow reaction to change=competitors can overtake(dont spend time on shop floor so may not know consumer trends

Question 13

What was Taylors theory?

Answer 13

Scientific management, he worked to make employees tasks much simpler to increase their efficiency.

Piece pay rate to economically incentivise more efficient and productive employees by motivating them with money.
Theory X approach to management of staff.

Question 14

What is McGregor’s theory of motivation?

Answer 14

Theory X and Theory Y are management concepts that create contrasting assumptions about employee motivation.

Theory X=views employees as an inherently lazy workforce who require constant supervision, by an autocratic style leader.

Theory Y=assumes employees are self motivated to work as they enjoy it. More lasseiz faire approach to management of this workforce

Question 15

What is Maslow’s theory of motivation?

Answer 15

Hierarchy of needs.
1. Physiological(minimum wage)
2. Safety(job security)
3. Love and belonging(social work gatherings)
4. Esteem(recognition for work/promotions)
5. Self actualisation(reaching full potential)

Hard for managers to judge where employee is on scale, are they in the right order?

Question 16

What is Hertzberg’s theory of motivation?

Answer 16

The 2 factor theory.
Hygiene factors, if not present are demotivational but if present do not necessarily motivate, eg pay, company policies, fringe benefits, status, physical working conditions, interpersonal relations.

Motivation factors, eg recognition, sense of achievement, growth opportunities, responsibility, meaningfulness of work.

Not everyone is the same, what motivates one person may not motivate another. Depends on the job type, doesn’t apply to factory workers. Sometimes the factors mix, eg promotion leading to more pay and recognition.

Question 17

What is mayo’s theory of motivation?

Answer 17

Human relations.
He said people work better when they feel cared for, and that motivation comes from being part of a team feeling heard etc,
Theory Y approach to management of staff

But this assumes everyone likes being part of a team and values social aspects of work over money eg, also not all jobs are social friendly.