1.4 Flashcards
What does treating staff as an asset involve?
- valuing employees
- concern for their welfare
- recognising their efforts help the business to perform more effectively
What may employers who treat their staff as an asset provide?
- acceptable remuneration
- reasonable holidays, sick leave, maternity e.t.c.
- a safe and comfortable working environment
- training
- job security and opportunities to interact with colleagues
- recognition
- chances of promotion
- clear and effective leadership
Advantages of treating staff as an asset?
- highly motivated staff
- employee performance may improve
- could give business a good reputation
- fewer staff may be needed
Disadvantages of treating staff as an asset?
- can be expensive
- too much autonomy could lead to slacking
- time consuming
- opportunity cost
What does treating staff as a cost involve?
- another cost for the business which needs to be minimised
- minimum remuneration
- staff easily replaced
- not nurtured
What may employers who treat their staff as a cost do?
- national minimum wage
- zero hour contracts
- neglect investment in training
- minimum legal employee rights
- cheap recruitment methods
- penalties for employees who are late or break rules
Advantages of treating staff as a cost?
- cheaper so leaves more money for products and other areas of the business
- decreased staff autonomy increases productivity
- more supervision over staff
Disadvantages of treating staff as a cost?
- possible negative reputation
- staff turnover increased - expensive to recruit new staff all the time
- low staff morale (could impact customer service)
- high absenteeism
- may leave workers feeling exploited, neglected, stressed and unhappy in their work
Define a flexible workforce
Providing employees with various options and contracts of employment, for example part-time
Develops employee satisfaction whilst enabling the business to adopt quickly to changes in demand/supply
What is multi-skilling?
Describes the process of enhancing the skills of employees
Benefits to multi-skilling?
- wider range of skills allows business to respond more quickly to problems
- fewer staff needed - staff used to capacity
- job has variety
- can increase efficiency, quality and productivity whilst reducing costs
Drawbacks to multi-skilling?
- more skills mean staff are expected to work harder for no extra pay
- if staff aren’t trained adequately for new roles, then business will not have staff who are specialised to one area - work may not be carried out to a high standard
What is part-time staffing?
- no specific set amount of hours
- can be employed to fit around a child
- may be evening
- may just be weekends to cover busy periods
- entitled to the same sick pay, pay rates, carrier breaks as full-time
- may be employed on a permanent basis
Benefits to part-time staffing?
- good way to keep costs down whilst a business is growing
- part-time jobs attract a large pool of applicants
- flexible and respond to seasonal changes in demand
- same employment rights as full-time
- the availability of part-time work can attract skilled workers who are unable to work full-time
Drawbacks to part-time staffing?
- employees may not give the business commitment and loyalty that a full-time worker would
- employee may work more than one job which would make them inflexible
- employee may leave if they find a full-time job
What is temporary staffing?
- staff employed for a fixed time period
- can be full-time
- can be employed on a contract basis which has a time limit e.g. maternity cover for 6 months
- can be employed on a seasonal basis e.g. Christmas
Benefits of temporary staffing?
- ideal for businesses that need extra workers for a specific period
- useful to meet seasonal demands
- useful to meet employee shortages
- if using agencies to hire temporary staff, it saves time for the business
Drawbacks to temporary staffing?
- if hired through an agency, workers can be expensive - although would be cheaper in the long run as hiring permanent staff is more costly
- all staff will need training which is expensive and time-consuming
Benefits of flexible hours?
- can keep valuable staff from leaving and can also help cover busy periods
- can accommodate the work-life balance needs of employees with busy lives or families
Drawbacks of flexible hours?
- the business may need extra staff to cover unmanned periods e.g. if everyone works extra hours other days to have Friday off, then no employees would be in on Fridays
What does home working include?
-farmers, shop owners, writers, musicians
-may be full or part-time and may also be self-employed
Benefits to home working for the business?
- lower bills
- more workers can be hired
- extra finances available can be used for marketing purposes
Benefits of home working for the employee?
- don’t have to commute to work
- improved well-being of the employee
- can fit work hours around children if parent
- less stress from travelling
Drawbacks to home working for the business?
- may not be able to meet deadlines if employees don’t respond / slack off
- hard to keep in touch and have a fast flowing business
Drawbacks to home working for the employee?
- no socialisation
- work is all around them so it may be hard to switch off + step away from the work mindset
- may not have the correct resources
What are zero-hour contracts?
- workers only employed when employers need them and often at short notice
- provides flexibility for the business
- does not guarantee financial security
- e.g. sports direct
Benefits to zero-hour contracts?
- great for a business when work can be unpredictable
- ideal where staff are needed at short notice
- gives employees greater flexibility - no staff standing around with nothing to do
Drawbacks to zero-hour contracts?
- employees may not give the business the loyalty and commitment that a full-time worker would
- employees may become unhappy with zero hours and leave to find more permanent work (which require the business to go through the recruitment process again - high cost, time consuming, inconvenience for the business)
What is outsourcing?
- involves getting other people or businesses to carry out tasks that were originally carried out by people employed by the business
- introduces flexibility
- allows a business to focus on it’s core capabilities
- e.g. aircraft manufacturers may outsource payroll / IT work
Benefits to outsourcing?
- costs are lower and capacity can be increased
- specialists employed = work carried out more effectively
Drawbacks to outsourcing?
- loss of control
- reliance on suppliers (e.g.supply chain could be disturbed if they fail to deliver, holding up the whole process)
What are the 7 stages of the recruitment process?
- Identify the type and number of staff needed
- Prepare the job description and person specification
- Advertise the job using appropriate media
- Evaluate applicants and select a shortlist for interviews
- Carry out interviews
- Evaluate interviews and make appointments
- Provide feedback for unsuccessful applicants
Define recruitment
The process of finding people to work for a company or become a new member of an organisation
What is a job description when applying for a job?
- states job title and outlines the tasks, duties and responsibilities associated with that job
- shows what is expected of employee
- extracts from the JD may be used for the job advert after
- may be used during an appraisal to see how well the employee has performed in relation to what is expected of them
What is the person specification when applying for a job?
- provides details of the qualifications, experience and skills that would be expected of a person appointed for the position available
- used to ‘screen’ applicants when sorting through applicants
- common to involve whether a particular requirement is ‘essential’ or ‘desirable’
- usually presented in a table
What are internal methods of advertising?
- company newsletter
- on a noticeboard in the office
- via e-mail
- announced in meetings
What are external methods of advertising?
- newspaper
- speciality magizines
- online
- jobsite
- job centre
What is shortlisting?
-Short listing makes the recruitment process easier as the business can focus on fewer people
Candidates are short listed according to how well their application fit the person specification and the job description
What are the drawbacks of advertising?
- expensive
- will add to business cots which can mean that the business is less competitive
A mix of internal and external advertising may be best to attract the largest pool of candidates
Why may a business use an agency to recruit?
If the human resources department is small or the business does not have one at all
Disadvantages of using an agency to recruit?
- opportunity cost
- very expensive BUT employees may be more likely to stay
- may not be a trusted agency
What is induction training?
- happens when an employee starts working for a new business
- may involve training on how to use fire extinguishers, or shown around the building
includes: health + safety, company policies, job specific training
Why would a new employee need induction training?
- to become familiar with the workplace
- to ensure they are able to do their job
- to ensure they feel apart of the organisation
- to ensure they quickly become productive for the business
What is on-the-job training?
- coaching or mentoring while doing the job
- assistance and advice is provided by those more experienced
- may include work shadowing or learning to use a specific machine
Advantages of on-the-job training?
- specific training needed for the job
- less expensive than off-the-job
- learning can be put into practice immediately
- trainees can see relevance to job more clearly
Disadvantages of on-the-job training?
- takes time away from employees to train others
- reduces efficiency of both teaching worker and new employee
- some workers may pass on bad habits
- the new worker may not pick up skills straight away
- workers who are poorly trained may be expensive mistakes or even a safety hazard
What is off-the-job training?
- involves work at home or courses at company training centres
- learning through demonstration talks and lectures
- may also be practical courses to learn ICT or machinery
Advantages of off-the-job training?
- more focussed environment with fewer distractions
- increases a workers motivation as they feel valued by the company to have money spent on their improvement
- less stressful
- individuals teaching the courses are trained to train - gather specialist skills
Disadvantages of off-the-job training?
- more expensive
- employees may fail to see link between training and workplace
- employees are taken away from production so the business loses productivity for that day
Benefits of internal recruitment?
- already know if employee is reliable
- quicker and less time consuming
- cheaper as there are no advertising costs
Benefits of external recruitment?
- wider pool of candidates
- specialist agencies can ensure the best quality participants
Drawbacks of internal recruitment?
- narrows the number of potential applicants - may miss out on good people
- current staff may not be as motivated to do well as new staff
- business may miss out on a fresh/different perspective
Drawbacks of external recruitment?
- expensive
- time consuming
- may not be reliable if an agency is used
- training will be required as well as induction training
What does the organisational structure define?
- The workforce roles of employees and their job titles
- The route through which decisions are made
- Who is responsible and who is accountable to whom, and for what activities
- The relationship between positions of a business
- How employees communicate with each other and how information is passed on
Define organisational design
Refers to the way in which employees are organised within a business so that the lines of authority and layers in the hierarchy of the business are clear
What is an organisational chart?
A diagram which illustrates the internal structure of the business and the workforce roles of people employed in the business
Define hierarchy
The order of levels of responsibility in an organisation, from lowest to highest
What is a subordinate?
People in the hierarchy who work under the control of a senior worker
What is the span of control?
The number of people a person is directly responsible for in a business
What is the chain of command?
The flow of information, power and authority through the organisation
Define delayering
Removing layers of management from the hierarchy of an organisation
Define authority
The right to command and make decisions
Define delegation
Authority to pass down from superior to subordinate
What is responsibility?
The duty to complete a task
What is a centralised business?
One where authority rests with senior management at the centre of a business
What is a decentralised business?
One where authority is delgated further down the hierarchy, away from the centre
What does centralisation/decentralisation refer to?
The extent to which authority is delagated in a business
Advantages of centralisation?
- decison making is quicker
- authority have more experience in making decisions and know what is best for the business
- less stress for subordinates - have less accountability
- dont have to worry about other views
- decisions are more consistent across all locations
Disadvantages of centralisation?
- less autonomy for managers - may feel they are a cost to the business
- difficult to manage all locations without relying on managers
- lack of relationship between senior management and the rest of the business
- some good ideas aren’t heard
Advantages of decentralisation?
- staff may feel like an asset to the business
- more diverse range of ideas - could position business ahead of competition
- increased autonomy for managers
- easier to manage multiple locations
Disadvantages of decentralisation?
- too many ideas may slow down decision making
- may be hard to manage and credit ideas
- subordinates - increased stress - doing more work for the same pay
- could lead to some locations being more enhanced than others
Advantages of delayering?
- increased communication
- wider span of control
- decrease management costs
- increased autonomy - staff feel treated as an asset
- increased money to invest into business
- shorter chain of command
- cheaper- the business can price more competitively
Disadvantages of delayering?
- may lead to staff losing their job position
- higher pressure for managers
- fewer chances of promotion
- wider span of control - may be overwhelming - staff may slack off if not constantly watched
What is involved in tall structures?
- lots of layers (long chain of command)
- lots of opportunity for promotion
- work shared among more people
- everyone knows where they are in the hierarchy - very orderly and organised
Advantages of tall structures?
- supervisors have a small span of control
- increase production
- clear route for promotion - may motivate staff
- tighter control over subordinates
Disadvantages of tall structures?
- long chain of command- inflexible
- communication is slow
- messages can be distorted if they have been passed through several layers
- decision making is slow
- expensive - more managers and supervisors
- lack of autonomy - demotivate staff
- one thing wrong - whole team affected
- lots of responsibility for CEO
What is involved in flat structures?
- fewer layers in the hierarchy
- wide span of control and short chain of command
- employees have more freedom and responsibility
Advantages of flat structures?
- fewer layers means better communication
- lots of delegation - allows opportunities for employees to show their abilities
- high autonomy - staff motivated
- management costs lower
Disadvantages of flat structures?
- managers lose control of workforce - power struggle
- less discipline - may lead to lazy staff
- co-ordination issues - managers may feel overburdened
- fewer promotion opportunities - may lead to higher staff turnover
What is involved in matrix structures?
- connecting people with particular and specialist skills
- getting people together from different areas to form a project team
- individuals within the team have their own responsibility
- often used to solve small, temporary problems in the business
Advantages of a matrix structure?
- equal creative control
- variety of skills/opinions/ideas
- opportunities for subordinates to show off skills
- cost-effecive solution to problems in the business
- provide short-term job - expand individuals CV
- opportunities to work with others
- more job rotation - less chance of boredom
Disadvantages of a matrix structure?
- staff may feel they are treated as a cost due to increased work but no more pay
- disputes + conflict as there is no hierarchy or chain of command
- disrupts employees from everyday job
- opportunity cost - not sure how it will turn out
What is Taylor’s theory of scientific management?
- The idea that workers are motivated mainly by pay
- Workers need close supervision and control
- Managers should break down production into a series of small tasks
- Workers should be given appropriate training
- Should be paid according to the number of items they produce in a set period of time - piece-rate-pay
- As a result workers are encouraged to work hard an maximise their productivity
Has close links with the concept of an autocratic management style
Drawback of Taylor’s theory?
Workers only given repetitive tasks - firms may lay off workers as productvity levels increase
This led to strikes and other forms of industrial action
What is Mayo’s human relations theory?
- Better motivated by social needs at work
- Believed staff are motivated by:
Better communication between managers and workers , greater manager involvement, working in groups or teams, adequate breaks
Theory fits a paternalistic style of management
Summary: It’s the recognition and appreciation that increase the internal job satisfaction of any person and as a result overall productivity is increased
What does Maslow’s hierarchy of needs suggest?
- Should focus of the psychological needs of the employees
- Needs are structured into a hierarchy and only once a lower level of need has been fully met would a worker bra motivated by the opportunity of having the next need up in the hierarchy satisfied
- A business should offer different incentives to workers in order to help them fulfil each need in turn and progress up the hierarchy
The stages include : Psychological (needs), Safety, Social, Esteem, and Self-actualisation
In business this would relate to..
Starting by meeting our needs - Look for a secure job - Teamwork + social job - responsibility and promotion - this is when we start to self actualise
What does Herzberg’s two-factor theory suggest?
- There are certain factors a business could introduce that would directly motivate employees to work harder (motivators)
- But, there are also factors that would de-motivate an employee if not present, but would not in themselves actually motivate employees to work harder (hygiene factors)
Motivating facors - more concerned with actual job itself - e.g. how interesting it is
Hygiene factors - ‘surround the job’ rather than the job itself - e.g. a worker will only turn up if they are being given a reasonable level of pay and good working conditions
Examples of hygiene factors?
- salaries
- wages
- other employee benefits
- job security
- working conditions
- work-life balance
Examples of motivators?
- status
- regognition
- responsibility
- challenging work
- promotion
- growth
Examples of financial incentives?
- performance related pay
- comission
- piece rate pay
- bonuses
- profit share
Examples of non-financial incentives?
- delegation
- consultation
- empowerment
- team working
- flexible working
- job roatation
- job enrichment
- job engagaement
What is involved in performance related pay?
- used when employee performance cannot be measured in terms of output produced or sales achieved
- individual performance is reviewed regularly against agreed objectives or performance standards (performance appraisal)
- after appraisal - put into performance groups - determines reward
- reward may vary - usually cash bonus and/or increase in wage/salary
:) - Down to the individual
:( - May be easier for some to gain evidence than others
What is involved in commission?
- payment to employees based on value of sales achieved
- form of ‘incentive pay’
- in most cases- employee paid flat percentage of the value of the good or service that is sold
- rate of commission depends on selling price and effort required in making the sale
- could range from 5% to 30% depending on product
:) - May have an unlimited earnings potential
:( - Unstable and unsecure as income can fluctuate greatly
What is involved in piece rate pay?
- payment for each item produced - ensures employees are paid for the amount of work they do
- sometimes refered to as : ‘payment results system’ and ‘output workers’
- employers can choose to pay either the minimum wage or a fair piece rate based on average times taken to complete the product
- e.g. knitted hats - emplloyee would be paid per hat they knit
:) - Employees work effectively for money
:( - May be unfair if some staff have more training/developed skills than others , may become tedius and so boring
What is involved in bonuses?
- lump sum is paid to employee on top of their usual salary or wages
This can be for :
meeting sales targets, meeting performance targets (e.g. output or quality targets), christmas yearly bonus
:) - encourages employee loyalty
:( - expensive for business, not directly linked to their performance
What is involved in profit sharing?
- all employees receive a share of the firms profits - called a dividend
- employees will receive the same % of the companies overall profits
- the higher the business’ profits in a year, the higher the dividend each employee is paid
:) - good reputation for business - may increase customer service as staff want to increase profits made an so therefore dividends
:( - not performance related , doesn’t suit some businesses - for example schools cannot benefit from this
What is delegation?
- It involves allocating tasks to employees
- Manager or supervisor delegating needs tohavt the authority to delegate
:) - promotes efficiency, helps devlop employee skills ,encourages open communication, collaboration and trust
:( - risk of quality decreasing if employees lack knowledge
What is consultation?
- involves giving an employee a chance to be a part of the decision making process
- means involving employees in discussions with management on topics such as how to improve productivity, cut costs and problem solve
:) - improves decision making - makes employees feel involved
:( - may be hard in a business with a tall structure as it takes a long time for the message to be passed down
What is empowerment?
- involved allowing employees more authority to delegate tasks to others
- the person most suitable to make the decision gets the responsibility of taking it and can be held accountable for it
:) - benefits the business as decisions made are suited to the people with the best skills in the area - could put them ahead of competitiors
:( - giving employees more work to do for the same pay , could make managers redundant
What is team working?
- involves grouping employees into teams
:) - facilitates creativity, boots employee morale and motivation , may relieve stress for subordinates
:( - labour may be divided unequally, could spark potentil conflicts
What is flexible working?
- involves offering a variety of working patterns so that employees can achieve a work-life balance
e.g. part-time, home working, term-time only, job share and compressed hours
:) - reduces burnout and increases job satisfaction
:( - procrastination, possibly decrease career progression and so motivation
What is job rotation?
- involves moving employees from one task to another
- most common in production or in a factory
:) - allows staff to develop skills in different areas and prevents boredom
:( - employees may enjoy some tasks more than others which could create inconsistency in the business
What is job enrichment?
- involves giving the employee a greater variety of tasks of a higher responsibility
(vertical extension of a job)
:) - lower employee turnover , workload of the upper management is shared
:( - employees taking on tasks may need increased monitoring which may be time-consuming and reduce efficiency of the business
What is job enlargement?
- giving an employee a variety of tasks of the same level of responsibility
(horizontal extension of a job)
Define leadership
The way in which one person influences the behaviour or actions of other people
What was traditional leadership associated with?
command and control
What is modern leadership about?
- inspiring employees
- creating a vision - clear sense of purpose + direction
- shaping the core values + culture of the business
- building effective teams
What are the 4 types of leadership?
- Autocratic (authoritarian) leadership
- Democratic leadership
- Paternalistic leadership
- Laissez - faire
What is autocratic leadership?
- when leaders hold onto as much power and decision making as possible
- focus of power is with the manager
- communication is top-down and one way
- formal systems of command and control
- minimal consultation
- use of rewards and penalties
- very little delegation
- most likely used when subordinated are unskilled/ not trusted/ ideas on valued e.g. supermarkets, cleaning services, retail
Advantages of autocratic leadership?
- decisions made quickly - improved service and quality
- less stress for subordinates - better position to complete main tasks
- productivity increased - closely managed and may fear for their job - lead to increased sales
Disadvantages of autocratic leadership?
- staff may feel like a cost - low staff morale - could increase turnover
- good ideas may not be heard
- lack of relationship and communication with leader and staff - could lead to misunderstandings
What is democratic leadership?
- focus of power is more with the group as a whole
- leadership functions are shared within the group
- employees have greater involvement in decision-making
- emphasis on delegation and consultation - leader still has final say
Advantages of democratic leadership?
- employees feel more involved due to increased delegation + consultation - may feel treated as an asset and so have increased motivation and drive
- increased trust in the business
Disadvantages of democratic leadership?
- too much delegation may be stressful and overwhelming - may feel micromanaged
- takes a long time for decisions to be made - hard to keep up with competition, large pool of ideas
- if staff are low-skilled and inexperienced they may not know what is best for the business
- expensive - may need more managers, increased time away from main job/task
What is paternalistic leadership?
- leader decides what is best for employees
- links to Mayo - addressing employee needs
- akin to a parent/child relationship - leader is ‘father figure’
- a softer form of authoritarian leadership
- explain why certain actions have been taken
- employees are consulted but leader makes the final decision
Advantages of paternalistic leadership?
- increased job satisfaction - could improve quality of work done, more loyal to business
- good reputation - easier to recruit new staff so saves time generating a large pool of applicants
Disadvantages of paternalistic leadership?
- can be time-consuming - hard to suit everyones individual needs like Mayo
- employees may feel they are being treated like a child - may not feel trusted, little responsibility and freedom , few motivators
- may feel the leader is making the wrong decisions on their behalf - may decrease loyalty
What is laissez-faire leadership?
- means to ‘leave alone’
- leader has little input into day-to-day decision-making
- employees can carry out activities and make decisions freely
- work in a relaxed environment and have little direction and guidelines
Advantages of laissez-faire leadership?
- more relaxed
- lots of autonomy - increases motivation
Disadvantages of laissez-faire leadership?
- may lead to workers slacking off - decrease productivity
- little control
- some staff aren’t self-motivated
- business may be too flexible
- employees aren’t always working towards a common goal
