Unit 3.4 Effective People Managment

Question 1

What does organisational structure shows

Answer 1

How people and management are organised in a business

Question 2

What is a organisation chart and what does it show

Answer 2

A diagram which shows the internal structure of an organisation.
Shows the management hierarchy in a business.
Illustrates the key concepts e.g span of control, line management,chain of command.

Question 3

What does organisational structure determine

Answer 3

Authority and responsibility, individual job roles and titles, people who others are accountable for, formal routes through which communication flows into the business

Question 4

What is authority

Answer 4

Power or right to give orders, make decisions and enforce obedience

Question 5

What is subordinates

Answer 5

W person under the authority or control of another within an organisation

Question 6

What is divisional structure

Answer 6

As a business grows and becomes more complicated it often organised itself along business units or divisional lines.

Question 7

Why do we use divisions

Answer 7

Makes sense to grow similar businesses/ products together. Specialist/ expert management can be employed and shared to help budgetary control. Used to manage a business in the same area.

Question 8

What is the span of control

Answer 8

The number of employees who a manager is responsible for

Question 9

What is the characteristics of a narrow span of control (e.g only 3)

Answer 9

Helps more effective communication

Allows for closer supervision of employees

Question 10

Characteristics of a wide span of control (e.g 7)

Answer 10

More appropriate if labour costs are significant - reduces number of managers
More Layers in the hierarchy acquired
Gives subordinates more chances for independence

Question 11

What is a chain of command

Answer 11

Describes the lines of authority within a business.

                 Sam
                 |       |
    Brenda       Chris
                               |
                             Sharon

Question 12

What are the difficulties arising from a long chain of command

Answer 12

Distortion of message as it needs to go through more people so could change and be given wrong

Managing change as if it’s long chain so has to get to everyone and is a lot of effort to move around all those people

De-motivated workers as they won’t feel as if they have important jobs and are constantly watched

‘Tribe mentality’ as if an employee in the chart think to do something e.g strike the rest in the layer will follow disrupting business

Question 13

What is delayering

Answer 13

Removing layers of management from the hierarchy of the organisation

Question 14

What are the benefits of delayering (5)

Answer 14

Lower labour costs

Better drive mentality and motivation as staff get more important jobs

Shortening the chain of commands increases communication

Builds better relationship with staff as they have more responsibility

Better teamwork

Question 15

What are the disadvantages to delayering (6)

Answer 15

Stresses lower people out - more work for no extra pay

It takes away jobs from people who need them

People may complain they aren’t getting any extra money

May need to retain people which could cost

Could be demotivating - what if I’m next?

Employees aren’t as closely supervised so more chance of errors

Less production

Question 16

What is employee empowerment

Answer 16

Giving employees the power to do their jobs

Question 17

How does employee empowerment help employees

Answer 17

The employees feel their actions count

Question 18

What does empowerment cover

Answer 18

• giving authority to make decisions to front line staff
• encouraging employee feedback
• showing more trust in employees

Question 19

What way could a business give authority to employees

Answer 19

By training the staff in decision making ad they would feel more confident in actually deciding on things and therefore have more authority

Question 20

How might a business be able to encourage employee feedback

Answer 20

By having an employee suggestion box which would make them feel more comfortable in saying what’s wrong with the business do they could suggest improvements

Question 21

How could a business show more trust in employees

Answer 21

Giving them more power and authority as this would make them feel important and trusted

Question 22

Why might a business want to empower its employees

Answer 22

So they can have better communication and a relationship within the business to help strengthen trust and make the business improve itself with employee suggestions.increases motivation and productivity.

Question 23

What is motivation

Answer 23

The will to work which comes from enjoyment of work itself and or from desire to achieve certain goals

Question 24

What are the advantages of a well motivated workforce

Answer 24

Better productivity 
Better quality
Lower levels of absenteeism 
Lower levels of staff turnover (employees leaving the business)
More flexibility

Question 25

What are the stages to Maslows hierarchy of needs

Answer 25

Self acculisation - intellectual needs, fufilling potential or goal Self esteem - self respect, level of status Love and belonging - feeling wanted, sense of belonging, team Safety - safe working envionment,job security Physiological - basic needs START FROM THE BOTTOM AND IF IT DOESNT FIT THE MOTIVATION OF THE JOB GO UP UNTIL IT DOES

Question 26

What are the financial methods of motivating staff

Answer 26

``` Competitive salary Bonuses Commission Profit sharing Share scheme ```

Question 27

What are the non financial ways businesses motivate staff

Answer 27

``` Social aspect Career progression Clear goals Job satisfaction Support ```

Question 28

Applications of Maslow

Answer 28

- money alone is not always enough to motivate - non financial rewards are better incentives as employees work up the needs hierarchy - job security is seen as an important motivator as is being part of a team - it is important for businesses to recognise employee achievements and status

Question 29

What is communication

Answer 29

The process by which a message or information is exchanged from a sender to a receiver

Question 30

What is the general circle for communication

Answer 30

Sender e.g customer -> communication e.g a loan application form -> receiver e.g loan department at bank -> feedback e.g confirmation that it has been granted -> sender.

Question 31

Why do businesses need effective communication

Answer 31

Motivate employees Easier to control and coordinate business activities Makes successful decision making easier Better communication with customers will increase sales Improve relationship with suppliers Improve chances of obtaining finance

Question 32

Explain internal communication

Answer 32

When communications occur between employees of w business Links together all activities in business Ensures all employees are working together to a goal

Question 33

Explain external communication

Answer 33

Where a business communicates with people and organisations outside a business e.g press release, adverts, publishing financial information , letters and emails with customers and suppliers

Question 34

What is a channel of communication

Answer 34

The path taken by a message e.g horizontal , vertical or grapevine

Question 35

What is a horizontal channel of communication

Answer 35

One on the same level

Question 36

What is a vertical channel of communication

Answer 36

Up and down the hierarchy

Question 37

What is a formal channel of communication

Answer 37

Recognised and approved channels

Question 38

What is an informal or grapevine channel of communication

Answer 38

Not formally recognised

Question 39

What are six barriers to effective communication

Answer 39

1. Language - too much jargon 2. Noise - poor connection, background noise, distractions 3. Overload - too much information 4. Emotion - relationship between sender and receiver 5. Gaps - too many layers in hierarchy so could get distorted 6. Inconsistency - may ignore

Question 40

What is remuneration

Answer 40

The reward (usually finance) that is offered to an employee for providing their service

Question 41

What is salary

Answer 41

Pay usually of non manual workers, expressed as a yearly figure but paid monthly

Question 42

What is basic pay

Answer 42

Pay earned for working the basic working week

Question 43

What is a bonus

Answer 43

Addition to the basic wage or salary often for achieving targets

Question 44

What is commission

Answer 44

Payment system usually used with sales staff where their earnings are determined by how much they sell e.g car dealership

Question 45

What is freelance

Answer 45

Tend to be self employed and do particular pieces of work for a business as a supplier

Question 46

What is a part time worker

Answer 46

Employees who only work of fraction of the working week

Question 47

What is piece rate

Answer 47

Workers who are paid for every item they product; the more produced the more they get paid e.g fruit pickets

Question 48

What is a full time worker

Answer 48

Employees that work the whole of the working week

Question 49

What is fringe benefits

Answer 49

Payments in kind over and above the wage or salary, such as a company car

Question 50

What is the difference between a salaried worker and a freelance worker

Answer 50

Salaried work within a business getting a steady income whereas freelance workers are usually self employed working on a contract base earning a varied amount each time they work. Salaries can not be added to if they work overtime but freelance can have extra. Salary has set hours but freelance work their own hours and those who don't meet the deadline don't get paid but salary is guaranteed. Freelance don't get paid if it's a holiday or have legal benefits like sick pay.

Question 51

Why do businesses need structure

Answer 51

They need to be organised whether that structure is simple or complicated