Unit 2: Human Resource Management Flashcards
(126 cards)
1
Q
Define human resource management
A
The strategic approach to the effective management of employees so that they help the business gain a competitive advantage.
2
Q
HRM key focuses
A
- Workforce planning to plan how many employees, and what skills, are needed for the business in the future.
- Recruitment & selection of employees.
- Training & staff development.
- Preparing employment contracts.
- Dismissal and redundancy.
- Managing workforce relations.
- Monitoring and improving employee morale and welfare.
- Payment & incentive systems.
- Monitoring employee performance.
3
Q
Define workforce planing
A
Forecasting the numbers of workers and the skills that will be required by the organization to achieve its objectives.
4
Q
Define workforce audit
A
A check on the skills and qualifications of all existing workers/managers.
5
Q
Factors that influence the number of employees required
A
- Forecast demand for the product: influenced by market and external conditions, competitors’ actions and changes on consumer trend.
- Productivity level: If this is forecast to increase, then fewer workers are needed to produce same lvl of output.
- The objectives of the business: If business expands, then employee numbers have to rise. Or if business aims to increase customer-service levels, more workers need to be recruited.
- Changes in law regarding workers’ rights.
- The labour turnover and absenteeism rate: The greater this number is, the greater the need to recruit employees.
6
Q
Requirements of the skills needed by workers depend on:
A
- The pace of technological change in the industry.
- The need for flexible and multi-skilled workers to avoid excessive specialization. Businesses often choose workers with more than one skill who can be used in a varierty of different ways. This gives the business greater felxibility to meet changing market conditions and can make the employee’s job more rewarding.
7
Q
Define labour turnover and how it is measured
A
- Measures the rate at which employees leave the business.
- Formula:
no. of employees leaving in 1 year / average no. of employees employed x 100
8
Q
Costs of high labour turnover
A
- Costs of recruiting, selecting and training new staff.
- Difficult to establish team spirit.
- Difficult to establish customer loyalty due to a lack of regular, familiar contact.
9
Q
Benefits of high labour turnover
A
- Low-skilled and less-productive staff might be leaving and could be replaced with more carefully selected workers.
- New ideas and practices brought into an organization by new workers.
- Can help a business plan to reduce employee numbers, as workers who leave won’t be replaced.
10
Q
Define recruitment
A
The process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, and attracting suitable candidates for the job.
11
Q
Define selection
A
The series of steps by which candidates are interviewed, tested and screened to choose the most suitable person to a vacant post.
12
Q
Define recruitment agency
A
A business that offers the service of recruiting applicants for vacant posts.
13
Q
What is meant by a job description
A
A detailed list of the key points about the job to be filled, stating all its key tasks and responsibilities.
This attracts the right type of people to apply for the job, as it gives them an idea whether they are suited to the job or not.
- Job title
- Details of the tasks to be performed
- Responsibilities
- Place in hierarchal structure
- Working conditions
- How the job will be assessed and how performance will be measured.
14
Q
Define person specification
A
A detailed list of the qualities, skills and qualifications that a successful applicant will need to have.
15
Q
Purpose of job advertisements
A
- The job advert reflects the requirements of the job and the skills required. It can be displayed in business premises, job centers, recruitment agencies, and online job adverts.
- Can be completed in an application form online.
16
Q
Define application form
A
A set of questions answered by a job applicant to give a potential employer information about the applicant, such as educational background and work experience.
17
Q
Define curriculum vitae (CV)
A
A detailed document highlighting all of a person’s professional and academic achievements, work experience and awards.
18
Q
Define resume
A
A less detailed document than a CV, which itemises work experience, educational background and special skills relevant to the job being applied for.
19
Q
Define reference
A
Comment from a trusted person about an applicant’s character or previous work performance.
20
Q
Define assessment centre
A
A place where a range of tests are used to judge job applicants on their potential ability to perform a particular role.
21
Q
Define internal recruitment
A
When a business aims to fill a vacancy from within its existing workforce.
22
Q
Define external recruitment
A
When a business aims to fill a vacancy with a suitable applicant from outside of the business.
23
Q
Advantages and disadvantages of internal recruitment
A
Advantages:
- Applicants will already know the organization and its internal methods so there is no need for induction training and this makes the process less time-consuming and reduces costs.
- Applicants are already known to the selection team.
- Culture of organization will be understood by applicants.
Disadvantages:
- It does not bring in any new ideas as another better candidate may have been available outside the workplace.
- Could cause conflict within the workplace if other internal candidates feel that they should have got the job.
24
Q
Advantages and disadvantages of external recruitment
A
Advantages:
- External applicants will bring in new ideas and practices to the business, which helps to keep existing employees focused on the future rather than the past.
- There is a wider choice of applicants, not just limited to internal staff.
Disadvantages:
- It is more expensive due to advertising costs and the time spent interviewing candidates.
- External candidates will need induction training, which increases their expenses.
25
Define employment contract
A legal document that sets out the terms and conditions governing a worker's job.
They contain:
- The employee's work responsibilities and main tasks to be undertaken.
- Whether the contract is permanent or temporary.
- Working hours and the level of flexibility expected.
- Holiday entitlement and benefits such as pensions.
26
Define redundancy
When a job is no longer required, the employee doing this job becomes unnecessary through no fault of their own. This occurs when workers' jobs are no longer required due to fall in demand, change in technology or the need to cut costs.
27
Define dismissal
Being dismissed or fired from a job due to incompetence or breach of discipline.
- When employee does not meet the obligations set in the contract of employment.
28
Define unfair dismissal
Ending a worker's employment contract for a reason that the law regards as being unfair.
29
Define employee morale
Overall outlook, attitude and level of satisfaction of employees when at work.
30
Define employee welfare
Employees' health, safety and level of morale when at work.
31
Define work-life balance
A situation in which employees are able to allocate the right amount of time and effort to work and to their personal life outside of work.
- HR departments use methods to allow workers to have a work-life balance which reduces stress and increases efficiency.
Methods include:
- Flexible working
- Teleworking - working from home
- Job sharing - allows two people to fill one full-time vacancy (but each worker will receive a proportion from the full-time pay).
- Sabbatical periods - extended period of leave of up to 12 months.
32
Define equality policy
Practices and processes aimed at achieving a fair organization where everyone is treated the same way without prejudice and has the opportunity to fulfill their potential.
33
Define diversity policy
Practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workplace.
34
Impacts of promoting equality in the workplace
- Creating an environment with high employee morale and motivation.
- Developing a good reputation and the ability to recruit top talent based on fairness.
- Measuring employee performance by their achievements at work, not by any discriminatory factor.
35
Impacts of promoting diversity in the workplace
- Capturing a bigger market share as consumers are attracted by a diverse sales force.
- Employing a more qualified workforce as selection is based on merit and not on discrimination.
- Increasing creativity because individuals from different backgrounds approach problem solving in a different way.
- Achieving cultural awareness. leading to improved knowledge about foreign markets.
- Promoting diverse language skills, which allows businesses to provide products and services internationally.
36
Define training
Work-related education to increase workforce skills and efficiency.
37
Define induction training
Introductory training program to familiarize new recruits with the systems used in the business and the layout of the business site.
38
Define on-the-job training
Instruction at the place of work on how a job should be carried out.
- It is cheaper than sending recruits on external training courses and the content of the training is controlled by the business itself.
39
Define off-the-job training
Training away from the workplace, potentially in a specialist training centre, a course, college, university, etc.
- Outside training has the added potential of being a source to new ideas. These courses are expensive.
40
Impact of training on a business and its employees.
- Training can be expensive.
Can lead to well-qualified employees leaving for a better-paid job once they have gained qualifications from a business with a good training program.
- Workers can be less productive during training program.
- The costs of not training are substantial as untrained employees will be less productive, flexible and adaptable. Poorly trained workers give unsatisfactory customer service.
- Without being trained to achieve a higher standard of skills, workers become bored and demotivated.
- Training to be multi-skilled is a huge benefit for the business.
41
Define multi-skilling
The training of an employee in several skills to allow for greater flexibility within the business.
42
Define employee appraisal
The process of assessing the effectiveness of an employee judged against pre-set objectives.
- This allows the future performance of the worker to be linked to the objectives of the business.
43
Employees can demonstrate intrapreneurship if they are:
- Encouraged to be independent thinkers and creative.
- Given opportunities to mix and work with other skilled employees from different departments.
- Empowered with the authority and resources they need to introduce innovations.
- Assured that some failure is expected and acceptable.
- Encouraged to start with small ideas and innovations - before moving on to bigger issues.
44
Benefits of cooperation between management and the workforce
- Fewer days are lost through strikes and other forms of industrial action.
- It will be much easier for management to introduce change in the workplace.
- Agreement on more efficient operations will increase the competitiveness of the business.
45
Define industrial action
Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favor of employees.
46
Impact of trade union involvement in the workforce
- Trade unions have a power of solidarity as trade unions engage in collective bargaining, negotiating on behalf of all the other members in the business. This puts workers in a stronger position than if they negotiated individually to gain higher pay deals and better working conditions.
- Unions provide legal support to employees who claim unfair dismissal or poor working conditions.
- Collective industrial action should result in more influence over employers during industrial disputes.
47
Define collective bargaining
The process of negotiating terms of employment between an employer and a group of workers who are usually represented by a trade union official.
48
Define trade union recognition
When an employer formally agrees to conduct negotiations on pay and working conditions with a trade union rather than bargain individually with each worker.
49
Benefits of collective bargaining
- Employers can negotiate with one trade union officer rather with individual workers. This saves time and prevents workers from feeling that one individual has obtained better pay and working conditions.
- Union officials can provide a useful channel of communication with workers. This two-way communication through trade unions allows workers' problems to be raised with management and employers' plan can be discussed with workers.
50
Disputes between trade union and management
Trade union leaders can use several forms of industrial action during a dispute with employers over improvements in pay and working conditions:
- Continue collective bargaining.
- Go slow - a form of industrial action in which workers keep working but at the minimum pace demanded by their contract of employment.
- Work-to-rule - A form of industrial action in which employees refuse to do any work outside the precise terms of employment contract.
- Overtime bans.
- Strike action - most extreme form of industrial action in which employees totally withdraw their labour for a period of time. Strike action leads to production stopping and the business shutting down during industrial action.
51
What methods employers may use to resolve an industrial dispute
- Negotiations to reach a compromise solution with the aim of avoiding industrial action.
- Threats of redundancies to pressurize unions to agree to settle the dispute.
- Changes of contract, which require workers to work overtime, accept more flexible working or agree not to take industrial action.
- Closure of the business, leading to redundancy of all workers.
All these actions are damaging to industrial relations in the long-term. It's much more beneficial for the long-term interests of the business and employees if effective cooperation takes place between the management and the workforce.
52
Define motivation
The internal and external factors that stimulate the desire in workers to be continually interested in and committed to doing a job well.
53
Benefits of well-motivated workers
- Lowe absenteeism and labour turnover.
- High productivity which increases competitiveness of the business.
- Workers will make suggestions for improvements for business to achieve its objectives.
- Work hard to seek promotion and prepared to accept responsibility.
54
What are the factors of satisfying human needs at work?
- Social connection: by working in groups/teams.
- Significance: by praising and recognizing performance.
- Challenge: by providing different work tasks and chance of promotion.
- Certainty: by providing employment contracts and some job security.
55
What is Taylor's scientific approach (theory of the economic man) about?
The economic man theory suggests that people are motivated by money alone and the only factor that could stimulate further effort is the chance of earning more money.
- Wage levels are based on output from workers.
- The amount paid should be directly linked to output through piece-rate.
- To encourage high output, a low rate per unit can be set for the first units produced. Higher rates then become payable if output targets are exceeded.
- Taylor's emphasis on increasing efficiency and productivity can be the route to achieving greater profits.
56
Define piece-rate
Payment to a worker for each unit produced.
57
Evaluation of the relevance of Taylor's views and methods are today
- Economic man - Apart from money motivating workers, employees have a wider range of needs to be met from work.
- Select the right people for each job - The importance of this today is reflected on the emphasis on effective employee selection in all businesses.
- Observe and record the performance of workers - This was viewed with suspicion by workers as a way of making them work harder. It is still used today but with cooperation and involvement of employees.
- Establish the best method of doing a job - Still considered important as efficiency depends on using the best ways of working. However, Taylor's use of managers to give instructions to workers with no discussion is demotivating. Nowadays, worker participation is one of the best working methods.
- Piecework payment systems - It is difficult to measure the output of each individual worker in service industries.
58
Mayo and human relations theory
- Best known for his Hawthorne effect conclusions. Firstly, he assumed that working conditions, such as lighting, heating and rest periods had a significant impact on workers' productivity.
- Result of experiment: As conditions of work improved/worsened, productivity rose in all groups. The is due to workers acknowledging that they were being observed, which altered their performance.
Mayo has shown that:
- Working conditions in themselves were not important in determining productivity levels.
- Other motivational factors needed to be investigated before conclusions could be drawn.
59
The Hawthorne effect: the conclusions of Mayo's work
- Changes in working conditions and pay levels have little or no effect on productivity.
- Consultation with workers improves motivation.
- Working in teams and developing a team spirit can improve productivity.
- Giving workers some control over their working lives, such as deciding when to take breaks, improves motivation.
- Groups can establish their own targets, and these can be greatly influenced by the informal leaders of the group.
60
Evaluation of Mayo's research
- There has been more importance in giving workers more of a role in business decision-making (worker participation).
- HRM departments have been established to put the Hawthorne effect into practice.
- Team or group working is applied in many types of business organizations. It offers the greatest opportunities for workers and businesses to benefit from the Hawthorne effect.
61
What is Maslow's concept of human needs about
- Our needs determine our actions - we will always try to satisfy them, and be motivated to do so.
- If work can be organized so that some/all needs of employees can be satisfied. then they will become more productive and satisfied.
62
Define self-actualization
A sense of self-fulfillment reached by feeling enriched and developed by what one has learned and achieved.
63
How the different levels of need of Maslow's hierarchy can be satisfied at work
Self-actualization - Challenging work that stretches the individual will give a sense of achievement' opportunities to develop and apply new skills will increase potential.
Esteem needs: Recognition for work done - status, advancement and responsibility - will gain the respect of others.
Social/belonging needs - working in teams or groups and ensuring good communication to make workers feel involved.
Safety needs - a contract of employment with some job security; a structured organization that gives clear lines of authority to reduce uncertainty; ensuring health and safety conditions are met.
Physical needs: income from employment high enough to meet essential needs.
64
Limitations of Maslow's approach
- Not everyone has the same needs, it is assumed by the hierarchy.
- It is difficult to identify which need has been met and which level a worker is on.
- Money is necessary to satisfy physical needs, yet it might also play a role in satisfying the other levels of needs. High incomes can increase status/esteem.
- Self actualization is never permanently achieved. Jobs must continually offer challenges and opportunities for fulfillment, or regression occurs.
65
What is Herzberg's two-factor theory
- Job satisfaction results from: achievement - recognition for achievement - the work itself - responsibility -advancement. (The motivators).
- Job dissatisfaction results from: company policy and administration - supervision - salary - relationships - working conditions. (Hygiene factors).
- Herzberg emphasized how hygiene factors has to be addressed by management to prevent dissatisfaction, however these hygiene factors themselves don't create a well-motivated workforce.
66
Define motivators (motivating factors)
Aspects of a worker's job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work, responsibility, and advancement at work.
67
Define hygiene factors
Aspects of a worker's job that have the potential to cause dissatisfaction, such as pay, working conditions, status and over-supervision by managers.
68
Limitations of Herzberg's two factor theory
- Offering higher pay, improved working conditions and less heavy-handed supervision at work only reduce dissatisfaction, however, they will be taken for granted.
- Motivation to do the job well will only exist if the motivators were in place.
- The work needs to be interesting, rewarding and challenging for workers to be satisfied/motivated to offer their full potential. This does not change depending on their pay level.
- If job enrichment is incorporated, motivators exist.
69
Define job enrichment and its features, according to Herzberg to motivate workers
Aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work.
Features:
- Complete units of work - Herzberg says that complete and identifiable units of work should be assigned to workers. Could involve teams of workers rather than individuals on their own. (Example: sub-assemblies of manufactured goods, or in service industries: it could mean a small team of multi-skilled people, such as waiters, chefs, etc).
- Feedback on performance - Regular two-way communication between workers and managers should give recognition for work well done and provide incentives to workers to achieve more.
- A range of tasks - To stretch out beyond the workers' current experiences (self-actualization).
70
Evaluation of Herzberg's work for todays businesses
- Teamworking is more widespread, with whole units of work being delegated to these groups.
- Workers tend to be made much more responsible for the quality of their own work rather than being closely supervised by quality-control inspectors.
- Most firms are continually looking for ways to improve effective communication, and group meetings allowing two-way communication.
71
What job enrichment does in the workplace nowadays:
- Have a considerable variety of tasks to test/improve skillsets of workers.
- Require high knowledge and skills.
- Give workers more autonomy.
- Require workers to show responsibility.
- Create chances for personal development.
- Produce a meaningful unit of work.
72
McClelland and motivational needs theory
Achievement motivation - Will seek to reach realistic and challenging goals and job advancement. There is a constant need for feedback regarding progress and achievement. This sense of achievement is common for successful business people.
Authority/power motivation - A person with a dominant need is motivated by having authority. The desire to control others is a powerful motivating force. Includes the need to be influential, to be effective and to make an impact. They value the personal status and prestige gained.
Affiliation motivation - This kind of person will have a need friendly relationships and is motivated by interaction with people. They tend to be good team members as they need to be liked and popular.
- These motivational theories are found in varying degrees in all workers and managers.
- Achievement motivated people are the ones who make things happen and get results. However, they may demand too much of their staff in achieving targets and prioritise this over the other varying needs of workers.
73
Explain the Vroom and expectancy theory - how do workers get motivated and what is the expectancy theory based on?
- Vroom emphasized how individuals choose to behave in ways which they believe will lead to results that they value.
Individuals can get motivated if they believe that:
- There is a positive link between effort and performance.
- Favorable performances will result in a desirable reward.
- The reward will satisfy an important need.
- The desire to satisfy the need is strong enough yo make the effort worthwhile.
High expectancy theory is based on:
- Valence - the depth of the desire of an employee for an extrinsic reward: money, or an intrinsic reward: satisfaction.
- Expectancy - The degree to which people believe that putting effort into work will lead to a given level of performance.
- Instrumentality - the confidence of employees that they will actually get what they desire.
74
Financial motivator: Time-based wage rate - Advantages and Disadvantages
- Paying per hour weekly.
Advantages:
- Offers security over pay levels.
- Different rates can be offered to different types of workers.
Disadvantages:
- No incentive, as pay lvl is not linked to output.
- Labour cost per unit will depend on output.
75
Financial motivator: Piece-rate - Advantages and Disadvantages
- Fixed for production of each unit.
Advantages:
- It motivates workers to increase output.
- It is easy to calculate the labour cost per unit.
Disadvantages:
- Quality might fall.
- No security over lvl of pay.
- Workers may feel stressed/pressured by trying to earn more.
76
Financial motivator: Salary - Advantages and disadvantages
Advantages:
- Offers the security of a pay level to employees.
- Different salary levels for different grades of workers.
- Suitable for jobs where output is not measurable.
- Fixed for one year, so labour costs are easier to forecast.
Disadvantages:
- Not linked to output, complacency may be a problem.
- May lead to low achievement/motivation if effort and achievement of employees are not checked with appraisal.
77
Define salary
Annual income that is usually paid on a monthly basis.
78
Define time-based wage rate
Payment to a worker made for each period of time worked (e.g. 1 hour).
79
Financial motivator: Commission - Advantages and Disadvantages
Advantages:
- It creates the incentive to increase sales.
- It may be in addition to a basic salary so it offers security of pay too.
Disadvantages:
- Discourages teamwork amongst sales employees.
- May lead to pressurized selling which damages customer relationships.
80
Define commission
A payment to a salesperson for each sale made.
81
Financial motivator: Bonus - Advantages and Disadvantages
Advantages:
- Paid to individuals for outstanding work or to teams for reaching targets.
- Creates the incentive for employees to do well.
- In addition to basic salary, offers security.
Disadvantages:
- Can cause resentment in bonus is not achieved.
- Damages team spirit if some members receive a bonus and others don't.
- It reduces motivation if no bonuses are paid.
82
Define bonus
A payment made in addition to the contracted wage or salary.
83
Define performance-related pay
A bonus scheme to reward employees for above-average work performance.
84
Financial motivator: Performance-related pay - Advantages and Disadvantages
Advantages:
- Individual bonuses for meeting predetermined targets encourages workers to work hard to achieve those targets.
- Target setting can form part of the hierarchy of objectives to meet the company's aims.
Disadvantages:
- It requires frequent target setting and appraisal interviews.
- If the bonus is low, it may not lead to greater effort as motivation will not be increased.
- Managers may show favoritism to specific employees.
85
Define profit sharing
A bonus for employees based on the profits of the business, usually paid as a proportion of basic salary.
86
Financial motivator: Profit sharing - Advantages and Disadvantages
Advantages:
- Aims to increase the commitment of the workforce to make the business profitable.
- Can lead to suggestions for cost cutting/ways to increase sales.
Disadvantages:
- Might only be a small proportion of profits (not motivating).
- Shareholders may object as it can reduce profit for them.
- Reduces profit retained.
87
Define share-ownership scheme
A scheme that gives employees shares in the company they work for or allows them to buy those shares at a discount.
88
Financial motivator: Share-ownership scheme
Advantages:
- Reduces conflict of objectives between owners or workers.
- It encourages an increased sense of belonging and commitment.
- Workers are more likely to participate in decision making aimed at business success.
Disadvantages:
- May be a very small number of shares so is not motivating.
- Shares might be sold so there is no long-term commitment.
- Managers receive more shares so workforce may feel resentment.
89
Define fringe benefits
Benefits given, separate from pay, by an employer to some or all employees.
90
Examples of fringe benefits
- Company cars.
- Free insurance.
- Pension schemes.
- Private health insurance.
- Discounts on company products.
- Low interest rate loans.
91
Define job rotation
A scheme that allows employees to switch from one job to another.
92
Non-financial motivator: Job rotation - Advantages and Disadvantages
Benefits:
- Rotation relieves the boredom of doing one task.
- Can give the worker several skills, makes the workforce more flexible.
- Workers are able to cover for colleague's absence.
Limitations:
- More limited in scope than job enrichment.
- It does not increase empowerment or responsibility for the work performed.
- Does not give the worker a complete unit of work to produce.
93
Define job enlargement
An attempt to increase the scope of a job by broadening or deepening the tasks undertaken.
94
Unfinancial motivator: Job enrichment - Advantages and Disadvantages
- Involves a reduction of direct supervision as workers take more responsibility for their own work.
Benefits:
- Complete units of work are produced so that the worker's contribution can be identified and more challenging work can be offered.
- Direct feedback on performance.
- Challenging tasks are offered as part of a range of activities, some of which are beyond the worker's recent experience.
Disadvantages:
- Lack of employee training/experience to cope with the greater depth of tasks can result in lower productivity.
- Employees may see the enrichment process as just an attempt to get them to do more work.
- Employees may feel frustrated or demotivated if they aren't able to cope with challenges imposed by job enrichment.
95
Define job redesign
The restructuring of a job to make the work more interesting, satisfying and challenging.
96
Define development
The gaining of new or advanced skills and knowledge as well as opportunities to apply what is gained.
97
Non-financial motivator: Training and development - Advantages and Disadvantages
Advantages:
- Improving and widening the skills of employees can increase productivity and flexibility of workforce.
- Training and development increase the status of workers and give them access to more challenging and better paid jobs in the business.
- Developing employees/encouraging them to reach their full potential leads to self-actualization.
Disadvantages:
- Training is expensive.
- Training & developing programmes take employees away from the workplace so other employees need to cover for them.
- Training could lead to employees leaving a business as they become better qualified to gain employment.
98
Define employee promotion
The advancement of an employee within a business to a higher level of responsibility and status.
98
Define employee status
The level of recognition offered by an employer to a worker in terms of pay, level of responsibility and benefits.
98
Define employee participation
Active encouragement of employees to become involved in decision-making within an organization.
99
Benefits and limitations of employee participation
Benefits:
- Job enrichment.
- Improved motivation.
- Greater opportunities for workers to show responsibility.
- Better decisions result from worker involvement due to in-depth knowledge of operations.
Limitations:
- Time-consuming to involve workers in every decision.
- Difficult to adapt to the idea of asking workers for their opinions.
100
Define teamworking
Production is organized so that groups of workers undertake complete units of work.
101
Non-financial motivator: Team-working - Advantages and disadvantages
Advantages:
- Teams are empowered by being given decision-making authority over their work and the planning of it.
- Absenteeism will fall as workers do not want to disappoint their team.
- More likely to be motivated as social & esteem needs are being met.
- Increased productivity.
- Reduced labour turnover.
Disadvantages:
- Not everyone is a team player - some prefer to work alone.
- Teams can develop a set of values/attitude which conflict with those of the organization. They need clear goals so they are working towards the objectives of the organization.
- The introduction of teamworking will require training to improve employee flexibility which is costly.
102
Define empowerment
The giving of skills, resources, authority and opportunity to employees so that they can take decisions and be accountable for their work.
103
Non-financial motivator: Empowerment - Benefits & Limitations
Benefits:
- Empowerment leads to quicker problem solving.
- Increased motivation/morale as workers are given challenging work and are recognized for it.
- Higher levels of involvement and commitment improve two-way communication and reduce labour turnover.
Limitations:
- Lack of experience increases risk, so employees must be trained.
- Reduced supervision and control might lead to poor decisions.
- May be a lack of coordination between teams.
- Some employees may be reluctant to accept more accountability but feel that they should to keep their job secure.
104
Define quality circle (QC)
A voluntary group of workers who meet regularly to discuss, and try to resolve, work-related problems and issues.
105
Non-financial motivator: Quality circles - Advantages & disadvantages
Advantages:
- Workers have hands-on experience with work problems and they often suggest the best solutions.
- The results of the quality circle meetings are presented to management. The most successful ideas are often adopted.
- Quality circles are an effective method of allowing the participation of all employees.
Limitations:
- Quality circle meetings can be time-consuming and reduce the time available for production.
- Not all employees will want to be involved in quality circles.
- They may not have the management power to make the changes that they recommend.
106
Define manager
The person responsible for setting objectives, organizing resources and motivating workers so that the objectives of the business are met.
107
Define management
The organisation and coordination of activities in order to achieve the defined objectives of the business.
108
Explain the 5 functions of management by Fayol
Planning - Setting goals and deciding how to achieve them.
Organizing resources to meet objectives - Arranging resources and tasks to work efficiently.
Commanding - Guiding and motivating employees to do their best so business objectives are met.
Coordinating - Ensuring all parts of the organization work together smoothly.
Controlling - Monitoring progress and making progress to stay on track.
109
Describe Mintzberg's management roles:
1 Interpersonal roles:
- Figurehead: symbolic leader of organisation.
- Leader: motivating, selecting, training managers/workers.
- Liaison: linking with other managers/leaders.
2 Informational roles:
- Monitor (receiver): collecting data relevant to the business's operations.
- Disseminator: sending info collected from internal/external sources.
- Spokesperson: communicating info abt the organisation to other groups & ppl.
3 Decisional roles:
- Entrepreneur: Looking for new opportunities to develop business.
- Disturbance handler: responding to changing situations that may put the business at risk.
- Resource allocator: deciding on the spending of the organisation's financial resources and the allocation of its physical and human resources.
- Negotiator: representing the organisation in important negotiations.
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What are key indicators that managers are having a positive effect on business performance
- The business regularly meets its objectives.
- High levels of customer satisfaction.
- High employee motivation levels and low labour turnover.
- A respected brand image.
- High regard from external stakeholder groups (environmental/social pressure groups).
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Who is a CEO
A CEO is the highest-ranking executive in a company.
Responsibilities: making major corporate decisions, managing overall operations, managing company resources.
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What is a Director
An appointed or elected member of the board of directors of a company, who, with other directors, has the responsibility for determining and implementing the company's policy. They report to the CEO.
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What is a Manager
Any individual responsible for people resources or decision-making. They have authority over other employees below them in the hierarchy. They direct, motivate and discipline employees in their section of department.
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What is a supervisor
These watch over the work of others. They have responsibility for leading and controlling a team of people in working towards pre-set goals.
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Define autocratic management
A management style where one manager takes all decisions with very little or not input from others.
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Define democratic management
A management style that encourages the active participation of workers in taking decisions.
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Define paternalistic management
A management style based on the view that the manager is in a better position than the workers to know what is best for an organisation.
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Define laissez-faire management
A management style that leaves much of the business decision-making to the workforce.
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Autocratic leadership: Features, limitations & applications
Features:
- Leader takes all the decisions.
- They give little info to workers.
- They supervise workers closely.
- one-way communication.
- workers are given limited info about the business.
Limitations:
- Demotivates workers who want to contribute and accept responsibility.
- Decisions do not benefit from employee input.
Applications:
- Defense forces & police.
- In times of crisis - decisive actions needed to limit damage to the business.
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Democratic leadership: Features, limitations & applications
Features:
- Participation encouraged.
- two-way communication w/ feedback from workers.
- Workers are given info about the business to allow their full involvement.
Limitations:
- Consultation with workers is time-consuming.
- Quick decision may need to be required at times.
- Some business issues too sensitive/secretive to allow for worker involvement.
Applications:
- Useful in businesses that expect workers to contribute to production and decision-making processes.
- Benefits an experienced & flexible workforce.
- Employee input can be valuable in situations that demand a new way of thinking/solutions.
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Paternalistic leadership: Features, limitations & applications
Features:
- Managers do what they think is best for workers.
- Consultation may take place - final decisions are taken by managers and no participation in decision-making.
- Managers want workers to be happy in their jobs.
Limitations:
- Workers may be dissatisfied with attempt to consult (as they don't have influence on decision-making).
- Demotivation to more experienced workers who would like to have more influence over decision-making.
Applications:
- Used by manager who is concerned of workers' interests but feel that managers know best at the end.
- Used when workers are unskilled, untrained or newly appointed.
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Laissez-faire leadership: Features, limitations & applications
Features:
- Managers delegate virtually all authority & decision-making powers.
- Limited criteria established for staff to work within.
Limitations:
- Workers may not appreciate the lack of structure and direction in their work - leads to loss of security.
- Lack of feedback - no supervision - this is demotivating and leads to poor decisions.
Applications:
- When managers are too busy/lazy to intervene.
- Appropriate in research institutions so experts are likely to arrive at more efficient solutions.
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Define Theory X
The view that some managers believe that employees are lazy, fear-motivated and in need of constant direction.
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Define Theory Y
The view that some managers believe employees are internally motivated, enjoy their work and are prepared to take on additional responsibilities.
