Unit 6 Flashcards

Question

Drawbacks of Delegation

Answer 1

-Harder in a smaller business - fewer people! -Cannot / should not delegate responsibility -Depends on quality / experience of subordinates -May increase workload and stress of subordinates

Answer 2

Decision-making is about authority. A key question is whether authority should rest with senior management at the centre of a business (centralised), or whether it should be delegated further down the hierarchy, away from the centre (decentralised)

Answer 3

Businesses with a centralised structure keep decision-making firmly at the top of the hierarchy (amongst the most senior management)

Answer 4

-Easier to implement common policies and practices for the whole business -Prevents other parts of the business from becoming too independent -Easier to co-ordinate and control from the centre - e.g. with budgets -Economies of scale and overhead savings easier to achieve -Quicker decision-making (usually) - easier to show strong leadership

Answer 5

-More bureaucratic - often extra layers in the hierarchy -Local or junior managers are likely to be much closer to customer needs -Lack of authority down the hierarchy may reduce manager motivation -Customer service: lost flexibility and speed of local decision-making?

Answer 6

In a decentralised structure, decision-making is spread out to include more junior managers in the hierarchy, as well as individual business units or trading locations

Answer 7

-Decisions are made closer to the customer -Better able to respond to local circumstances -Improved level of customer service -Can enable a flatter hierarchy -Good way of training and developing junior management -Facilitates empowerment: should improve staff motivation

Answer 8

-Decision-making not necessarily "strategic" -Harder to ensure consistent practices and policies at each location -May be some diseconomies of scale - e.g. duplication of roles -Who provides strong leadership when needed (e.g. in a crisis)? -Harder to achieve tight financial control - risk of cost-overruns

Answer 9

• American engineer & management consultant (1856 - 1917) • Focused on efficiency and productivity • Approach to management based on: - Measurement of what can be done better and how - Monitoring to ensure targets are met - Control through analysis

Answer 10

Work study • Identify most efficient methods of production Identify • Spot the most efficient workers and see why they are so good Train • Train the remaining workers to work like the best Reward • Pay workers based on productivity (e.g. piece rates)

Answer 11

Financial rewards -Based on targets -Reward those who meet -Piece rate

Answer 12

• Managers should maintain close control and supervision over their employees. • Autocratic style of management & leadership ("them and us") • Motivate workers using piece-rate payment (pay based on how much they produce)

Answer 13

• An American psychologist (like Herzberg) • 1943 published A Theory of Human Motivation • People have five sets of needs, which come in a particular order • Hugely influential (and still)

Answer 14

• Five levels of human needs which employees need to have fulfilled at work • Only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied • A business should therefore offer different incentives to workers in order to help them fulfill each need in turn and progress up the hierarchy of needs

Answer 15

• Not everyone has the same needs • Our perception of what is important at work will vary • Not realistic that most employees will reach the top of the hierarchy

Answer 16

• American psychologist (1923 - 2000) • Specialism in business management • Disagreed with Taylor (Scientific Management) about importance of financial rewards (e.g. wages) • Much more convinced about importance of non-financial factors

Answer 17

Factors that directly motivate people to work harder

Answer 18

Factors that can de-motivate if not present but do not actually motivate employees to work harder

Answer 19

• Responsibility at work • Meaningful, fulfilling work • Achievement & recognition

Answer 20

• Pay & other financial rewards • Working conditions • Appropriate supervision & policies

Answer 21

1. Motivate by using motivators 2. Ensure Hygiene factors are met

Answer 22

Job Enrichment • Wider variety of tasks • Greater complexity & challenge • Manage own workload • Greater sense of achievement

Answer 23

Empowerment • More responsibility & more autonomy • Allow employees to make decisions independently • Less supervision • Demonstrates trust

Answer 24

-Employment Legislation -Extent to which pay should be linked to performance -Recruitment & Retention -Individual v Team Incentives

Answer 25

• Proposed redundancy programmes • When employees are transferred from one employer to another (e.g. the sale of the business) • On changes to pension arrangements • Proposed changes to working time arrangements

Answer 26

Where employees are part of a formal structure that involves them in business decision-making

Answer 27

Where employees are part of a formal structure that involves them in business decision-making

Answer 28

• Make employees' views known to management • Help strengthen both management's and employees' understanding of workplace issues and other matters affecting the business • Help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations

Answer 29

-Increased empowerment and motivation of the workforce -Employees become more committed to the objectives and strategy of the business -Better decision-making because employee experience and insights taken into account -Lower risk of industrial disputes

Answer 30

-Time-consuming - potentially slows decision-making -Conflicts between employer and employee interests may create resistance to necessary change in the business -Managers may feel their authority is being undermined

Answer 31

EU legislation makes these mandatory for firms that operate in two or more EU countries and have more than 1,000 employees

Answer 32

• Business objectives and performance • Workforce planning issues (e.g. recruitment, staffing levels) • Employee welfare issues (working conditions, health & safety) • Training and development programmes • Compliance with legislation (e.g. discrimination)

Answer 33

• Protect and improve the incomes of their members • Provide or improve job security • Protect workers against unfair dismissal and other issues relating to employment legislation • Lobby for better working conditions • Offer work-related services (e.g. legal support)

Answer 34

• Negotiating with trade unions (ideally a single union) saves time and cost rather than dealing with employees individually • Unions are part of the communication process between the business and employees • Employee morale and motivation may be improved if they know that their interests are being protected by a union • The trade union can be a supportive partner in helping a business undergo significant change

Answer 35

A specific goal or target of relating to the human resource management of a business

Answer 36

-Recruitment & selection -Training -Talent development -Employee engagement & involvement -Motivating & rewarding employees -Managing diversity -Developing corporate culture

Answer 37

A specific goal or target of relating to the financial performance, resources and structure of a business

Answer 38

-A focus for the entire business -Important measure of success or failure for the business -Help reduce the risk of business failure -Provide transparency for shareholders about their investment -Help coordinate the different business functions -Key context for making investment decisions (investment appraisal)

Answer 39

-revenue (Revenue growth (% or value) ,Sales maximisation, Market share) -costs (Cost minimisation, Unit costs) -profit (Specific level of profit (in absolute terms), Rate of profitability (% of revenues), Profit maximisation)

Answer 40

Delegation Empowerment Consultation

Answer 41

-TEAM WORKING -FLEXIBLE WORKING

Answer 42

Human resource management is about managing people

Answer 43

The purpose of human resource management is to ensure that business achieve the maximum benefit from its employees at the minimum cost. The human resources department needs to make sure that the business has the right number of employees with the right skills, qualifications and qualities.

Answer 44

Human resource objectives are the targets that the function of a business responsible for all employer related issues want to achieve in the given time period

Answer 45

- Employee engagement and involvement - talent development - training - diversity - alignment of values - number, skills and location of employees

Answer 46

Alignment of values is bringing the core values or beliefs of all employees together to focus on achieving a common aim, this can lead to a strong corporate culture where all employees fit into 'the way we do things around here' mindset

Answer 47

- Time - budget - correct resources - objectives of the business - objectives of other departments

Answer 48

- Workforce skills and availability - technological change - market conditions - political factors - current ethical and environmental issues - Social factors

Answer 49

Staff are treated as a resource that must be managed in order for the business to control costs and output

Answer 50

Staff are treated as an asset to the business that can contribute and help the business achieve its objectives

Answer 51

- Managers motivate employees through empowerment and development and think that working is natural for employees - Opportunities for development including training, talent development, internal promotion - consultation - greater autonomy and responsibility due to a flat organisational structure

Answer 52

- Managers believe that employees are mainly motivated by money and think they will do as little work as possible - Training is only done to meet production needs - there are many control mechanisms in place, for example, judgemental appraisals, centralised decision-making and tall organisational structure - Fixed term contracts - minimum wage - external recruitment

Answer 53

Labour productivity = Output per period —————————— Number of employees

Answer 54

Labour cost per unit = Total labour cost ———————————- Number of units produced

Answer 55

Employee costs as a % of turnover = Employee costs ——————————X 100 Sales turnover

Answer 56

External causes of high labour turnover include changes in regional unemployment levels, and the growth of other local firms using staff with similar skills.

Answer 57

Internal causes of high labour turnover include poor motivation of staff, low wages, and a lack of opportunities for promotion. Staff will join other firms to increase their pay and job responsibilities.

Answer 58

- Constant stream of new ideas through new staff - firms can recruit staff who have already been trained by competitors which saves money - if sales fall, firm can reduce workforce through natural wastage rather than a costly redundancy - enthusiasm of new staff influences other workers

Answer 59

- Lack of loyal and experienced staff who know the business - firm loses staff it has trained, often to direct competitors - training costs money and productivity drops when new staff get trained - recruitment costs are high

Answer 60

The higher the labour turnover the lower the labour retention rate

Answer 61

Delegation is where the responsibility for carrying out a task or role or decision making is passed onto someone else in a business

Answer 62

+ Reduces management stress + Subordinates are empowered + Good method of on-the-job training

Answer 63

- Depends on experience of subordinates - harder in a smaller firm - may increase workload of subordinates

Answer 64

Delayering is there a removable of one or more layers of hierarchy from the management structure of an organisation

Answer 65

+ Better delegation, empowerment and motivation + Improved communication (smaller chain of command) + Encourages innovation

Answer 66

- Not all organisations suit a flat organisational structure - can cause job losses - causes disruptions

Answer 67

Authority is the power of a person to use and allocate the resources efficiently, to take decisions and to give orders.

Answer 68

Centralised structures keep authority for decisions at the top and all decisions are made by senior managers

Answer 69

+ Business leaders have lots of experience of making business decisions + Managers get an overview of the whole business, so decisions are consistent throughout the business + Senior managers aren't biased towards one department so they can make the best decisions for the whole business

Answer 70

- Not many people are expert enough to make decisions about all aspects of the business - excluding employees from decision-making can be demotivating - the organisation reacts slowly to change, allowing its competitors to get ahead. This is because the senior managers who make the decisions don't spend time on the shopfloor, so they are slow to notice consumer trends

Answer 71

Decentralised structure is share out the authority to make decisions to more junior employees.

Answer 72

+ Involvement in decision-making motivates employees + Employees can use expert knowledge of the sector + Day-to-day decisions can be made quickly without having to ask senior managers

Answer 73

- Junior employees may not have enough experience to make decisions - inconsistencies may develop between the divisions in a business - junior employees may not be able to see the overall situation and needs of an organisation

Answer 74

Recruitment is the process of actively seeking out, finding in hiring candidates for specific position a job

Answer 75

Selection is the process of choosing the most suitable candidate for the vacant position in the organisation

Answer 76

Internal recruitment takes place when a business looks to fill the vacancy from within the existing workforce

Answer 77

External recruitment occurs when a business invites applicants for vacant posts from any suitably qualified candidates

Answer 78

+ Candidates already know the business and the business now is the candidates + Short and cheap process + Motivate workers to go for a promotion

Answer 79

- Leaves a vacancy in another department - can cause resentment among colleagues who aren't selected

Answer 80

+ Brings in fresh new ideas + Brings an experience from other organisations + Large number of applicants

Answer 81

- Long and expensive process - candidates will need a longer induction process - have only seen a candidate at recruitment - might not be representative of what they're like at work

Answer 82

1) Identify vacancy 2) Write a person specification and job description 3) Draft in place advertisement of job 4) Issue application forms/requesting CVs and letter of application 5) Shortlist the most suitable candidates 6) Interview most suitable candidates 7) Appoint and select the most suitable candidate

Answer 83

Job descriptions relate to the position rather than the person. Typically, job descriptions might contain the following information: job title, job purpose, responsibilities, location and hours, and company details

Answer 84

A person or job specification sets out the qualifications and qualities required by an employee these include: qualification requirements, experience and skills required, sensory demands and personal attributes

Answer 85

- Radio advertisements/TV adverts - posters - social media - job fairs - billboards - websites - newspapers - recruitment agencies

Answer 86

- Easy to organise - lower cost of training - training is job specific

Answer 87

- Trainer and trainee are not productive during training - bad practices are passed on - no new ideas are brought to the business

Answer 88

- Trainers are specialised - new ideas about the business - No job distractions during training

Answer 89

- Can be expensive - no benefit to the business while training - training might not be specific to their day-to-day job

Answer 90

- Can be expensive - no benefit to the business while training - training might not be specific to their day-to-day job

Answer 91

- Corporate, marketing and production plans. For example if production is expanding they will need to recruit more staff and offer more training - changes in production style may lead to retraining, recruitment or redeployment of staff

Answer 92

- Employment legislation protects employees rights and restricts companies ability to dismiss or transfer workers - new technology might change the number of staff and the skills needed - businesses might have to re-train their staff - labour market trends like migration and the ageing population have an affect on the supply of workers

Answer 93

- Employment legislation protects employees rights and restricts companies ability to dismiss or transfer workers - new technology might change the number of staff and the skills needed - businesses might have to re-train their staff - labour market trends like migration and the ageing population have an affect on the supply of workers

Answer 94

Job enrichment attempts to give employees greater responsibility by increasing the range and complexity of tasks they are called upon to complete and giving them the necessary authority

Answer 95

Job enlargement involves the addition of extra and similar tasks to a job

Answer 96

Empowerment involves giving people greater control over their working lives

Answer 97

Empowerment involves giving people greater control over their working lives

Answer 98

A way of organising work that involves people working in separate teams to do different tasks

Answer 99

- Job enlargement - job enrichment - empowerment - team working

Answer 100

- Job enlargement - job enrichment - empowerment - team working

Answer 101

Staff are paid according to the number of items they produce

Answer 102

A financial reward to employees whose work is considered to have reached a required standard and/or above average. Performance related pay is generally use where employee performance cannot be appropriately measured in terms of output produced or sales achieved

Answer 103

Profit sharing refers to any system whereby employees receive a proportion of the businesses profits

Answer 104

Share ownership is a program in which a business distribute shares to its employees

Answer 105

A salary is a fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to employee, especially professional or white-collar worker.

Answer 106

- Piecework - performance related pay - profit sharing - share ownership - fringe benefits - salary

Answer 107

Taylor believed that people work for one reason only: money.

Answer 108

This approach is called scientific management

Answer 109

Taylor believed in paying workers according to the quantity they produced - the most productive workers got a better rate. He believed that financial incentives would motivate workers and raise productivity.

Answer 110

Maslow's theory was based on a hierarchy of needs. Maslow said that people start by meeting the needs of the bottom of the pyramid. Once they have sorted out those needs, they can move on to the next level up.

Answer 111

1) Physiological - food, water, shelter, clothes 2) Safety - safe work environment with job security 3) Social needs - friendship, teamwork 4) Self-esteem - achievement, self-respect, level of status 5) Self actualisation - intellectual needs, fulfilling potential, achieving targets

Answer 112

Hertzberg believed in a two factor theory of motivation. He argued that there were certain factors that a business could introduce that would directly motivate employees to work harder these are known as motivators. However, there are also other factors that would demotivate an employee if they are not met, these are called hygiene factors.

Answer 113

Workers have experienced meaningfulness of work

Answer 114

Workers have experienced responsibility for work outcomes

Answer 115

Workers have experienced responsibility for work outcomes

Answer 116

Employees know how well they are performing and aim to improve

Answer 117

Autonomy means giving work as the freedom to make their own decisions

Answer 118

A flexible workforce is a workforce that can perform a variety of different functions due to different types of employment within the business

Answer 119

Outsourcing is the delegation of one or more business processes to an external provider, who then owns, manages and administers the selected processes to an agreed standard

Answer 120

Downsizing is the reduction of the size of a firm to make it more responsive to market conditions

Answer 121

- Increase productivity and effectiveness - talent retention and engagement - more employment opportunities for greater talent diversity - resource efficient

Answer 122

- It is hard to organise meetings and conferences - it is harder to train employees as each role is different - employees may be less cohesive as they may not be together much

Answer 123

A successful employer-employee relationship maximise is the cooperation and minimises potential for conflict between these two groups. It is built on a culture of trust between the two groups.

Answer 124

- The business will develop a great reputation among prospective employees, so it will attract the very best candidates during recruitment - if relations are good then productivity and efficiency are increased as new ideas and ways of working are picked up quickly by the employees, this allows the business to be more competitive - good communication will mean that the objectives of the employees are more aligned with the objectives of the business

Answer 125

- Employees will feel involved in the business which will give them a sense of job security - the views of the employee are considered during decisions so they will feel valued and motivated and this will increase their job satisfaction - employees are able to communicate their personal objectives to the employer, which will help the employee develop skills and further their career

Answer 126

Works councils are committees made up of employer and employee representatives that are usually elected. They meet regularly to discuss general work issues and share ideas and information in a relatively relaxed atmosphere to improve relations.

Answer 127

Works councils are committees made up of employer and employee representatives that are usually elected. They meet regularly to discuss general work issues and share ideas and information in a relatively relaxed atmosphere to improve relations.

Answer 128

There is one representative per 50 employees

Answer 129

A trade union is an organisation with members who are usually workers or employees that pay to join in order to gain greater power and security at work. Trade unions act on behalf of groups of employees in the workforce when negotiating rates of pay and working conditions etc with the employer.

Answer 130

A trade union is an organisation with members who are usually workers or employees that pay to join in order to gain greater power and security at work. Trade unions act on behalf of groups of employees in the workforce when negotiating rates of pay and working conditions etc with the employer.

Answer 131

By joining with others and belonging to a union, an employee strengthens their bargaining power in a way that wouldn't be possible if they tried to bargain as an individual. If the union is formally recognised by an employer, it can negotiate with the employer over terms and conditions. This is known as collective bargaining.

Answer 132

Recognition is fundamental to the legal position of a trade union; management must recognise the unions right to bargain on behalf its members.

Answer 133

Industrial action is taken by employers or employees to settle workplace dispute about working conditions.

Answer 134

- It's often more effective to approach an organisation as a group. Groups have a bigger influence and can be more forceful - collective bargaining can help achieve long-term aims because employers may sign contracts which lock them into agreements - it can be helpful for management to have a small representative group of workers to negotiate with rather than consulting every individual - senior management can get a direct insight into the concerns of the workforce

Answer 135

- It's often more effective to approach an organisation as a group. Groups have a bigger influence and can be more forceful - collective bargaining can help achieve long-term aims because employers may sign contracts which lock them into agreements - it can be helpful for management to have a small representative group of workers to negotiate with rather than consulting every individual - senior management can get a direct insight into the concerns of the workforce

Answer 136

- Employee representation can lead to industrial action. This can take the form of deliberately decrease productivity or strike action - Strike action can get out of hand or turn violent - industrial action leads to lost profits - the majority votes within a trade union may overrule the demands of the individual. The individual is then denied the opportunity to represent themselves as they might want to - industrial action can undermine the trust between employer and employee. A breakdown in communication will damage the relationship

Answer 137

- Employee representation can lead to industrial action. This can take the form of deliberately decrease productivity or strike action - Strike action can get out of hand or turn violent - industrial action leads to lost profits - the majority votes within a trade union may overrule the demands of the individual. The individual is then denied the opportunity to represent themselves as they might want to - industrial action can undermine the trust between employer and employee. A breakdown in communication will damage the relationship

Answer 138

A single union agreement is an agreement between an employer and a union such that the union will represent all the workers at a particular workplace.

Answer 139

A no-strike agreement is an agreement between an employer and the trade union in which the latter undertakes not to initiate or support strike action by employees of the company