1.4 Managing People

Question 1

Staff as an Asset

Answer 1

Treating staff as an asset means that they are developed and seen as a benefit to the business.

Question 2

Staff as a Cost

Answer 2

The cost of wages, sickness, holidays need to be budgeted for. Staff need to be recruited at a cost, training costs.

Question 3

Forms of Flexible Workforces: Multi-Skilling

Answer 3

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.

Question 4

Forms of Flexible Workforces: Part Time Work

Answer 4

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

Question 5

Forms of Flexible Workforces: Temporary Work

Answer 5

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.

Question 6

Forms of Flexible Workforces: Flexible Work

Answer 6

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.

Question 7

Forms of Flexible Workforces: Home Working

Answer 7

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.

Question 8

Advantages of a Flexible Workforce

Answer 8

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.

Question 9

Disadvantages of a Flexible Workforce

Answer 9

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

Question 10

How to reduce staff costs: Zero Hour Contracts

Answer 10

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.

Question 11

How to reduce staff costs: Outsourcing

Answer 11

Less complicated for them
Simplify the roles of the business
Can decrease the workload on employees and workers of the business

Question 12

How to reduce staff costs: Redundancy

Answer 12

Business no longer has to pay wages of the employee
Will have to pay a redundancy fee to those let go

Question 13

Differences between Redundancy and Dismissals: Dismissal

Answer 13

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

Question 14

Differences between Redundancy and Dismissals: Redundancy

Answer 14

Workers job no longer exists possibly due to lack of business or restricting
Redundancy is sometimes voluntary

Question 15

Impact on Worker of a dismissal

Answer 15

No pay out
Poor reference

Question 16

Impact on Worker of a redundancy

Answer 16

Compensation payments based on years of work
Help with finding a new job

Question 17

Impact on Business from a dismissal

Answer 17

Become short staffed
Need to recruit/ retrain more employees to fill in the gap

Question 18

Impact on Business from a redundancy

Answer 18

Re organise staff due to less workers

Question 19

Individual bargaining

Answer 19

Workers and managers sit face to face to discuss terms and conditions of the workers contract

Question 20

Collective Bargaining

Answer 20

Representative of all workers meeting with managers to discuss terms and conditions of employment
May be a union rep who speaks to the managers

Question 21

Advantages and Disadvantages of Individual Bargaining

Answer 21

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

Question 22

Advantages and Disadvantages of Collective Bargaining

Answer 22

Ad: Reps speak for all the workforce so have greater power to get action
Dis: Collective bargaining may lead to strikes or industrial action

Question 23

Potential costs of recruitment

Answer 23

Costs of advertising
Costs to recruitment agency to cover the position
Hidden Costs

Question 24

Matrix Structure

Answer 24

Company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy

Question 25

Centralised Structure

Answer 25

A hierarchy decision-making structure where all decisions and processes are handled strictly at the top or executive levels

Question 26

Decentralised Structure

Answer 26

A structure in which daily operations and decision making responsibilities are delegated to middle and lower level managers

Question 27

Businesses organised by function

Answer 27

The organisation is divided into smaller groups based on specialised functional areas, such as IT, finance, marketing.

Question 28

Businesses organised by project

Answer 28

The organisation is divided into teams of workers with different skills who focus on one product or project

Question 29

What does the Matrix structure do?

Answer 29

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

Question 30

Advantages of Matrix structure

Answer 30

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

Question 31

Disadvantages of Matrix structure

Answer 31

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

Question 32

A centralised structure means...

Answer 32

Decision making held firmly at the top senior management

Question 33

Advantages of a centralised structure

Answer 33

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

Question 34

Disadvantages of a centralised structure

Answer 34

Less flexibility Does not take account of local difference/ customs Reduces manager motivation

Question 35

A decentralised structure means...

Answer 35

Decisions making delegated to middle, lower-level managers

Question 36

Advantages of a decentralised structure

Answer 36

Decisions are made closer to customers Improved customer care Local managers have more authority which is good for motivation

Question 37

Pros of a Flat structure

Answer 37

Easier communication between management and workers Less bureaucracy and easier decision making

Question 38

Cons of a Flat structure

Answer 38

May limit growth of the organisation Structure limited to small organisations e.g sole trader, partnership

Question 39

Pros of a Tall structure

Answer 39

Clear progression and opportunities of a promotion Narrow span of control so employees can be closely supervised

Question 40

Cons of a Tall structure

Answer 40

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

Question 41

Advantages of a Narrow Span of Control

Answer 41

Less responsibilities not too much to focus over Feedback from workers are more effective/ easier Allows close supervision of workers

Question 42

Disadvantages of a Wide Span of Control

Answer 42

Everyone listens to one person and does the same thing Workers are given more independence Reduces the no. managers

Question 43

Financial Motivators

Answer 43

Bonus Profit Share Performance related pay Piecework Commission

Question 44

Non-financial Motivators

Answer 44

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

Question 45

Purpose of Financial Motivators

Answer 45

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.

Question 46

Purpose of Non-Financial Motivators

Answer 46

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.

Question 47

Bonus

Answer 47

Lump some paid on top of wages

Question 48

Piecework

Answer 48

Employees are paid for finishing an item or unit.

Question 49

Commission

Answer 49

Based on the percentage of sales, given some money

Question 50

Profit Share

Answer 50

A percentage of the companies profits divided amongst the employees

Question 51

Flexible Working

Answer 51

Employees may be more motivated to work if they can pick out their own times

Question 52

Job Enrichment

Answer 52

Making the job more important and interesting

Question 53

Job Rotation

Answer 53

Doing multiple roles which require similar skilled employees, rotating them frequently.

Question 54

Importance of Motivation

Answer 54

Better Productivity- leads to lower CPU Lower Levels of Absenteeism Lower levels of Staff Turnover Improved industrial relations with trade unions

Question 55

Taylor's Scientific Management

Answer 55

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

Question 56

Mayo's Theory of Human Relations

Answer 56

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

Question 57

Maslow's Hierarchy of Needs

Answer 57

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

Question 58

Qualities of a Leader

Answer 58

Emotional stability, Dominance, Social Boldness, Tough Mindedness, Self assurance

Question 59

Types of Leadership

Answer 59

Autocratic, Democratic, Laissez-Faire, Paternalistic

Question 60

Autocratic Leadership

Answer 60

Full control on decision making Employees have little to no input Good in crisis situations Motivation through rewards

Question 61

Democratic Leadership

Answer 61

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

Question 62

Paternalistic Leadership

Answer 62

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

Question 63

Laissez Faire Leadership

Answer 63

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