1.4 Business key terms (part 3) Flashcards
bonus
a payment in addition to the basic wage for reaching targets or in recognition for service
commission
percentage payment on a sale made to the salesperson
consultation
listening to the views of employees before making key decisions that affect them
delegation
the passing of authority further down the managerial hierarchy
empowerment
giving official authority to employees to make decisions and control their own work activities
Hawthorne effect
the idea that workers are motivated by recognition given to them as a group
Hygiene (or maintenance) factors - Herzberg’s
things at work that result in dissatisfaction if they were unkempt, but will not result in any change of productivity if improved
- payment
- work environment
job enlargement
giving an employee more work to do of a similar nature; horizontally extending their work role
job enrichment
giving employees greater responsibility and recognition by vertically extending their work role
job rotation
periodically changing an employees’ job or tasks
Maslow’s hierarchy of needs
the order of employees’ needs:
1) (bottom) physiological needs: obtaining food, drink, air, rest and activity
2) safety needs: - protection from potential work related accidents (physical)
- job security
- protection from psychological threats
3) love and belonging: - teamwork and communication
- being part of a supportive group and feeling included and loved
4) esteem needs: - given recognition for work ethics
- feeling competent
5) (top) self actualisation: realising your full potential
which Maslow argued that very few reach this level, almost figuratively unreachable
motivated
the desire to take action and achieve goals
motivators (Herzberg’s)
things at work that result in job satisfaction
recognizing employees’ efforts and work
payment by results
payment methods that reward workers for the quantity and quality of work they produce
performance related pay (PRP)
a payment system designed for non manual workers where pay increases are given in performance targets are met
piece rates
a payment system where employees are paid an agreed rate for every item produced
profit sharing
where workers are given a share of the profits, usually as a part of their pay
scientific management
a theory that suggests there is a “best way” to perform work tasks developed by Frederick W. Taylor:
- employees’ main motivation is simply - money
- pay should be linked to output through piece rates
- exceeding target -> receiving more bonuses
- not meeting target -> resulting in loss of earnings
self actualisation
a level in Maslow’s hierarchy where people realise their full potential
teamworking
organising people into working groups that have a common aim
autocratic leadership
a leadership style where a manager makes all the decisions without consultation:
- very little delegation
- most likely to be used when subordinates are unskilled, not trusted and their ideas are not valued
- communication is top-down & one-way
- use of rewards and penalties
democratic leadership
a leadership style where managers allow others to participate in decision making:
- focus of power is more with the group as a whole
- likely to be most effective when used with skilled, free-thinking and experienced subordinates
- results in positive emotional connotations
- emphasis on delegation and consultation – but the leader still has the final say
laissez-fair leadership
a leadership style where employees are encourage to make their own decisions, within certain limits:
- effective when staff are ready and willing to take on responsibility, they are motivated, and can be trusted to do their jobs
- delegation of power
paternalistic leadership
a leadership style where the leader makes decisions but takes into account the welfare of employees:
- leaders decide what is best for employees
- little delegation
- softer form of autocratic leadership, which often results in better employee motivation and lower staff turnover
