1.4 Managing People Flashcards
Staff as an Asset
Treating staff as an asset means that they are developed and seen as a benefit to the business.
Staff as a Cost
The cost of wages, sickness, holidays need to be budgeted for. Staff need to be recruited at a cost, training costs.
Forms of Flexible Workforces: Multi-Skilling
Means having a workforce that can be moved around from one to another. Fewer staff are needed as they can fill in many roles in a business. Variety makes it more of an interesting job, costs are reduced whilst increasing efficient.
Forms of Flexible Workforces: Part Time Work
No specific set hours of work- Allows the firm to be flexible with hours to meet the planned workload. Use them to fill in hours not done by full time workers. Some may only be available as part time
Forms of Flexible Workforces: Temporary Work
Employed on a seasonal basis to cover busy periods of the year. Can be used to fill posts that will be phased out due to business reorganisation. Temp staff can sometimes be paid more when the post is essential.
Forms of Flexible Workforces: Flexible Work
Staff can be scheduled to fit the peak times. Can increase productivity and attract more qualified workers. Makes commuting easier but can complicate the daily schedule for a business.
Forms of Flexible Workforces: Home Working
Benefits: Office running costs and overheads are reduced. Travel costs are decreased and related problems may be reduced. May tempt better staff to come and work for the company.
Advantages of a Flexible Workforce
Businesses can expand and contract their workforce quickly in response to changes in demand.
Temp staff are cheaper to employ.
Temp staff will have the acquired skills at no costs to the business currently employing them.
Disadvantages of a Flexible Workforce
Temp workers are not always as committed
Workers may have a short term view and will therefore have a poorer standard
Communicating with a flexible workforce can be an issue
How to reduce staff costs: Zero Hour Contracts
Allow business to bring in workers last minute to keep up with increased demand of workers.
Not paying when people aren’t working
Poor worker morale if business exploits it.
How to reduce staff costs: Outsourcing
Less complicated for them
Simplify the roles of the business
Can decrease the workload on employees and workers of the business
How to reduce staff costs: Redundancy
Business no longer has to pay wages of the employee
Will have to pay a redundancy fee to those let go
Differences between Redundancy and Dismissals: Dismissal
Occurs when:
Absenteeism makes it impossible to work
Theft of company money/property
Gross misconduct
Not having a driving license or refused to complete training for new technology
Differences between Redundancy and Dismissals: Redundancy
Workers job no longer exists possibly due to lack of business or restricting
Redundancy is sometimes voluntary
Impact on Worker of a dismissal
No pay out
Poor reference
Impact on Worker of a redundancy
Compensation payments based on years of work
Help with finding a new job
Impact on Business from a dismissal
Become short staffed
Need to recruit/ retrain more employees to fill in the gap
Impact on Business from a redundancy
Re organise staff due to less workers
Individual bargaining
Workers and managers sit face to face to discuss terms and conditions of the workers contract
Collective Bargaining
Representative of all workers meeting with managers to discuss terms and conditions of employment
May be a union rep who speaks to the managers
Advantages and Disadvantages of Individual Bargaining
Ad: No compromise because its just the views of one worker being discussed
Dis: Manager might not take any action as its only one worker
Advantages and Disadvantages of Collective Bargaining
Ad: Reps speak for all the workforce so have greater power to get action
Dis: Collective bargaining may lead to strikes or industrial action
Potential costs of recruitment
Costs of advertising
Costs to recruitment agency to cover the position
Hidden Costs
Matrix Structure
Company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy
Centralised Structure
A hierarchy decision-making structure where all decisions and processes are handled strictly at the top or executive levels
Decentralised Structure
A structure in which daily operations and decision making responsibilities are delegated to middle and lower level managers
Businesses organised by function
The organisation is divided into smaller groups based on specialised functional areas, such as IT, finance, marketing.
Businesses organised by project
The organisation is divided into teams of workers with different skills who focus on one product or project
What does the Matrix structure do?
Combines the traditional departments seen in functional structures with project terms.
Individual work across teams and projects as well as within their own department or function
Advantages of Matrix structure
Can help to break down traditional department barriers and improve communication
Allows individuals to use particular skills within a variety of contexts
Avoids need for several departments to meet regularly, reducing costs and coordination
Greater motivation amongst the team members
Disadvantages of Matrix structure
May not be a line of accountability due to complex structure
Difficult to coordinate
It takes time for team members to get used to working in the structure
Team members may neglect their functional responsibility
A centralised structure means…
Decision making held firmly at the top senior management
Advantages of a centralised structure
Consistency across the business
Easier to coordinate activities e.g. marketing campaigns
Easier to achieve economies of scale
Easier to make changes across the business
Disadvantages of a centralised structure
Less flexibility
Does not take account of local difference/ customs
Reduces manager motivation
A decentralised structure means…
Decisions making delegated to middle, lower-level managers
Advantages of a decentralised structure
Decisions are made closer to customers
Improved customer care
Local managers have more authority which is good for motivation
Pros of a Flat structure
Easier communication between management and workers
Less bureaucracy and easier decision making
Cons of a Flat structure
May limit growth of the organisation
Structure limited to small organisations e.g sole trader, partnership
Pros of a Tall structure
Clear progression and opportunities of a promotion
Narrow span of control so employees can be closely supervised
Cons of a Tall structure
Poorer communication as it goes through many
High management costs because managers are generally paid more than subordinates
Long time to make decisions as it goes through many layers
Advantages of a Narrow Span of Control
Less responsibilities not too much to focus over
Feedback from workers are more effective/ easier
Allows close supervision of workers
Disadvantages of a Wide Span of Control
Everyone listens to one person and does the same thing
Workers are given more independence
Reduces the no. managers
Financial Motivators
Bonus
Profit Share
Performance related pay
Piecework
Commission
Non-financial Motivators
Empowerment
Job enlargement
Job enrichment
Consultation
Flexible Working
Team working
Job rotation
Delegation
Purpose of Financial Motivators
Pay systems designed to motivate employees. Designed so that workers gain a monetary reward for their performance. Businesses need to be careful to ensure that rewards are given fairly and not to encourage unethical behaviour.
Purpose of Non-Financial Motivators
Workers need intrinsic rewards to boost motivation. Studies say that money has a limited influence on motivation. Non-financial incentives inspire and engage employees in ways that money cannot do. Could lead to higher pay in the end.
Bonus
Lump some paid on top of wages
Piecework
Employees are paid for finishing an item or unit.
Commission
Based on the percentage of sales, given some money
Profit Share
A percentage of the companies profits divided amongst the employees
Flexible Working
Employees may be more motivated to work if they can pick out their own times
Job Enrichment
Making the job more important and interesting
Job Rotation
Doing multiple roles which require similar skilled employees, rotating them frequently.
Importance of Motivation
Better Productivity- leads to lower CPU
Lower Levels of Absenteeism
Lower levels of Staff Turnover
Improved industrial relations with trade unions
Taylor’s Scientific Management
A fair days pay for a fair days work
Employee would do the minimum amount of work if not supervised
Carried out time and motion studies
Mayo’s Theory of Human Relations
Just by being studied, employees level of motivation increased
Working in teams was more important than money
Non-Financial motivators were the most important
Boring and repetitive work can be de-motivating
Maslow’s Hierarchy of Needs
SELF ACTUALISATION- Release and reach our potential
ESTEEM NEEDS- Responsibilities and promotion
LOVE/BELONGING NEEDS- Teamwork and social job
SAFETY NEEDS- Security while at the job
PHYSIOLOGICAL NEEDS- Food and water
Qualities of a Leader
Emotional stability, Dominance, Social Boldness, Tough Mindedness, Self assurance
Types of Leadership
Autocratic, Democratic, Laissez-Faire, Paternalistic
Autocratic Leadership
Full control on decision making
Employees have little to no input
Good in crisis situations
Motivation through rewards
Democratic Leadership
Encourage everyone to participate in decision making
Strong coaching listening and motivating skills
Teamwork and communication is important
Prepared to make final decision earn agreement can’t be reached
Paternalistic Leadership
Decisions made in ‘father like’ style with best interest of workers in mind
Workers will feel supported at part of the family
Leader doesn’t expect decisions to be questioned
Laissez Faire Leadership
Gives employees as much freedom as possible
Managers communicate the goals to the employees but allows them to choose how to complete objectives, make decisions and resolve problems on their own
