1.4 Managing people

Question 1

What does it mean to treat staff as an asset?

Answer 1

Permanent contracts

Develop staff skills with training

Pay staff a salary

Builds loyalty from staff

Question 2

What does it mean to treat staff as a cost?

Answer 2

Flexible contracts e.g zero hours

Minimal training offered

Low pay often at an hourly rate

Often leads to a high staff turnover rate

Question 3

What is a zero hours contract?

Answer 3

An employment contract that has a minimum of zero hours a week

Question 4

What is staff turnover?

Answer 4

The proportion of staff who leave a business during a year

Question 5

What is a flexible workforce?

Answer 5

The ability of a business to adapt it’s operations to changes in patterns of demand

Question 6

What is multi skilling?

Answer 6

Using training to ensure that staff can perform a range of different roles within the business brings greater workforce flexibility

Question 7

Advantages of a multi-skilled staff:

Answer 7

Productivity rises as staff are used more fully

Reduced disruption from staff absence

More motivated staff

Question 8

Drawbacks of multi-skilled staff:

Answer 8

Loss of production as employees switch between jobs

Increased training budget required

Staff may feel more is being asked of them

Question 9

What is a part time worker?

Answer 9

A worker who works less than full time hours which is 35 hours or more in a week

Question 10

What is a temporary worker?

Answer 10

Staff employed on short-term contracts meaning that if the employer no longer needs them the contract is not renewed

Question 11

What are the strengths of home working?

Answer 11

Staff can work from the comfort of their own home

No time wasted travelling/no travel costs

Office running costs/overheads can be reduced

Question 12

What are the weaknesses of home working?

Answer 12

Less opportunity to meet people/share ideas

May be more temptation to spend time on non work related ideas

Employees have less control over staff

Question 13

What is outsourcing?

Answer 13

Contracting another business to perform certain business functions, allowing significant increases in capacity when needed

Question 14

Benefits of outsourcing:

Answer 14

Ongoing fixed costs can be kept at a low level within the business

Sudden surges in demand can be met quickly

Companies to whom work is outsourced can offer high quality services

Question 15

Weaknesses of outsourcing:

Answer 15

The company to whom work is outsourced needs to make it’s own profit, adding to costs

Outsourcing arrangements may take time to work out

The company to whom work is outsourced may not reach the required quality standards

Question 16

What is dismissal?

Answer 16

When a worker is dismissed or fired from a job

Question 17

What is redundancy?

Answer 17

A worker’s job no longer exists possibly due to lack of business or restructuring

Question 18

What is individual approach?

Answer 18

When the worker and manager sit face to face to discuss terms and conditions of the workers contract which includes pay, hours or responsibilities

Question 19

Strengths of individual approach:

Answer 19

Allows employees to be treated on an individual basis

Question 20

Weaknesses of individual approach:

Answer 20

Time consuming for the employer

Question 21

What is collective bargaining?

Answer 21

Involves a representative who carries out bargaining with the employer on behalf of all the members

Question 22

Benefits of collective bargaining:

Answer 22

Greater power to get action since representative is speaking on behalf of all workers

Saves time

Question 23

Weaknesses collective bargaining:

Answer 23

Not an individual view being expressed so not all workers will agree.

Question 24

Why may a business need to recruit?

Answer 24

Existing staff leaving

Growth of the business

New activities needing new skills

Question 25

What is internal recruitment?

Answer 25

Means filling a job vacancy with someone who already works for the business

Question 26

Advantages of internal recruitment:

Answer 26

Quicker/cheaper than external recruitment Chance of promotion may boost morale within a business that frequently recruits internally The skills and attitudes of internal candidates will already be known by the business

Question 27

Disadvantages of internal recruitment:

Answer 27

Limits the number of potential applicants Fails to bring in new ideas from outside the business Creates a vacancy elsewhere in the business that will still need to be filled externally

Question 28

What is external recruitment?

Answer 28

Means filling a job vacancy with somebody who does not currently work for the business

Question 29

Advantages of external recruitment:

Answer 29

Fresh candidates bring new ideas/enthusiasm to the business External candidates have not become tired or bored with the business and are enthusiastic meaning they are more likely to work harder

Question 30

Disadvantages of external recruitment:

Answer 30

More costly/ time consuming

Question 31

What are the costs of recruitment?

Answer 31

Cost of advert Cost of wage for the new employee Loss of productivity while new employee is inducted Loss of management time taken up within the recruitment process

Question 32

What is induction training?

Answer 32

The term that specifically describes initial training when an employee begins a job that is designed to familiarise them with the workplace and the business

Question 33

Strengths of induction training:

Answer 33

Higher skill levels can boost productivity and innovation A wider range of skills can enhance the business' flexibility Motivates staff who feel they have been invested in by the business

Question 34

Weaknesses of induction training:

Answer 34

Providing training can carry a large financial cost While training is being provided the normal operations of the business can be disrupted Better trained staff are more attractive to other businesses who may try to poach them

Question 35

What is on the job training?

Answer 35

Coaching or mentoring while doing the job

Question 36

Advantages of on the job training?

Answer 36

Less expensive/time consuming Tailored to the company's own ways of working After a mistake, can get instant advice from fellow workers

Question 37

Disadvantages of on the job training?

Answer 37

Less knowledge acquired on methods used elsewhere May take a lower priority, as staff focus on production targets

Question 38

What is off the job training?

Answer 38

Involves work at home or courses a company training centres/colleges

Question 39

Advantages of off the job training:

Answer 39

More focused environment with less distractions More chance to gather specialist skills Less stressful compared to on the job

Question 40

Disadvantages of off the job training:

Answer 40

More expensive Company lose money as employees are taken away from production Employees may fail to see the link between training and workplace

Question 41

What is hierarchy?

Answer 41

A system in a business where employees are ranked due to their status and authority

Question 42

What is chain of command?

Answer 42

The flow of information, power and authority through the organisation Those at the top have the power/authority and can delegate tasks to those subordinate to them in the hierarchy

Question 43

What is span of control?

Answer 43

The term used to describe the number of subordinates directly answerable to one manager

Question 44

What is a centralised structure?

Answer 44

An organisational structure where most major decisions are taken at tho very top of the organisation by the most senior managers

Question 45

What is a decentralised structure?

Answer 45

An organisation where decision making is passed lower down the organisation structure through the process of delegation

Question 46

What is delegation?

Answer 46

Passing decision making power down the organisational structure to a lower level

Question 47

What is a tall structure?

Answer 47

One with many layers/ narrow spans of control

Question 48

Advantages of a tall structure:

Answer 48

Allows close supervision of staff Communication within the immediate team is likely to be excellent Many layers of hierarchy means plenty of opportunities for promotion to the next level

Question 49

Disadvantages of a tall structure:

Answer 49

Staff may feel over-supervised and not trusted by their management Communication as a whole may be poor as there are so many layers for messages to pass through With narrow spans, there may be little scope for staff to use their own initiative

Question 50

What is a flat structure?

Answer 50

An organisation that has few levels within the hierarchy, but wider spans of control

Question 51

Advantages of a flat structure:

Answer 51

Communication as a whole may be better since there are fewer layers Senior managers may be able to understand the day-to-day challenges faced by staff e.g dealing with customers Can lead to far greater motivation from staff who are expected to use their own initiative

Question 52

Disadvantages of a flat structure:

Answer 52

Managers are unable to closely supervise their subordinates which may result in more mistakes

Question 53

What is a matrix structure?

Answer 53

Staff may have two or more line managers

Question 54

Advantages of a matrix structure:

Answer 54

Working together allows expertise from each department to be immediately available, preventing possible delays in projects The focus of the project should be on success of the project, rather than making their functional department more important than others Learning from the views of colleagues in other departments helps to develop each team member

Question 55

Disadvantages of a matrix structure:

Answer 55

Each project team member will have a least two bosses Two bosses means it can be unclear whose orders should take priority Getting staff from different functional areas to agree can be difficult

Question 56

How can structure effect efficiency:

Answer 56

Poor communication leading to mistakes Duplication of tasks Tasks being overlooked and not done Departments failing to work together effectively

Question 57

How can structure affect motivation:

Answer 57

Scope to show initiative Delegation Responsibility Opportunities for promotion Gathering of all information required to perform a job

Question 58

What financial rewards can improve employee performance?

Answer 58

Piecework Commission Bonus Profit share Performance related pay

Question 59

What non-financial techniques can help improve employee performance?

Answer 59

Delegation Consultation Empowerment Team working Flexible working Job enrichment Job rotation Job enlargement

Question 60

What is leadership?

Answer 60

The action of leading a group of people or an organisation, or the ability to do this

Question 61

What is management?

Answer 61

The process of dealing with or controlling things/people The responsibility for control of a company or organisation

Question 62

What is an autocratic leadership?

Answer 62

When leaders tell their employees what they want to happen and how without getting advice from their followers Most common in factories/fast food

Question 63

What is a democratic leadership?

Answer 63

Leaders offer guidance to group members but also participants in the group/allow input from other group members Employees have greater involvement in decision making

Question 64

What is a paternalistic leadership?

Answer 64

Leader decides what is best for employees A softer from of authoritarian leadership Employees are consulted but leader makes the final decision

Question 65

What is Laissez-faire leadership?

Answer 65

Managers leave staff alone to get on with things, generally without even providing a clear sense of direction