1.4 Managing People Flashcards
Definition of Business size
Number of workers a business has
Small 1 - 49
Medium 50 - 249
Large 250+
Definition of Assets
A resource with economic value that someone owns
Definition of Costs
The monetary value of expenditures for raw materials, equipment, supplies, services labour, products etc
What happens if staff are treated as assets
Reasonable holidays, sick leave, maternity/paternity leave
Good working conditions
Opportunities for training/development
Recognition
Chances for promotion
Opportunities to work in different ways
What happens if staff are treated as costs
Only pay minimum wage
Use zero hour contracts
Neglect training
Use financial incentives to increase productivity
Provide minimum legal rights
Penalties for being late or breaking rules
Use cheap and interior recruitment methods
Pros of treating workers as assets
Increase staff loyalty
Lower staff turnover - owner recruitment costs
More motivated staff - productive increases efficiency
Better customers service
Definition of a flexible workforce
A workforce that can change in response to market demand
Methods of a flexible workforce
Multi skilling
Part time and temporary staff
Flexible hours and home working
Outsourcing
Zero hours contacts
Definition of Multi skilling
The process of enhancing the skills of employees
Definition of Part time and temporary staff
Staff who work less than 30 hours a week
Only employed for a limited time
Definition of flexible hours and home working
Workers can work whenever they are needed
Working from home can reduce travel time and save office costs
Definition of Zero hour contracts
Workers are only employed when employers need them
Often at short notice
Definition of Outsourcing
Some work is given to people outside the business
Allowing the business to focus on more important activities
Pros and cons of a flexible workforce
Cons:
Allows business to expand or decline quickly accordingly to demand
Specialist jobs can be done
May be cheaper to employ
Can allow a business to operate more efficiently
Pros:
Less loyal workers
Problems with communication and availability
Some workers could be expensive
Definition of Dismissal
Occurs when the employee is incapable of doing their job properly or they have done something which has negatively impacted the business
Definition of Redundancy
When a business needs to reduce the number of staff or changes the roles of the their staff maybe because operation have changed or costs need to be cut
Causes of conflict
Rates of pay
Introduction of new technology
Flexible working
Work conditions
Changes to working practices
Definition of Trade unions
Created for the purpose of securing improvements in pay, benefits, working conditions or social and political statute through collective bargaining
Pros and cons of collective bargaining
Pros:
North parties can engage in discussions
Establishes workable bilateral relationships between the staff and the management
Protection of everyone’s rights and welfares
Cons:
Can create further rifts between employers and employees
Time consuming
Stages of the recruitment process
Identify the type of number of staff needed
Prepare job description and person specification
Advertise the job
Evaluate applicants and select a shortlist for interview
Carry out interviews
Evaluate interviews and make appointment
Provide feedback for unsuccessful candidates
Definition of Internal Recruitment
Recruitment from within the business
Pros and cons of Internal Recruitment
Pros:
Cheaper as no adverts have to be placed
Recruits are familiar with the working environment
Qualities and abilities are better know by the employer
Can motivate staff
Cons:
No new skills or ideas are brought into the business
Definition of External Recruitment
Someone is appointed for the job outside of the company
Pros and cons of External Recruitment
Pros:
Bring in new ideas
Able to chose from a wider pool of applicants
May be able to get a better qualified candidate
Cons:
Expensive and time consuming
Costs associated with recruitment
Time
Interview process
Evaluating the candidates
Legal formalities/contracts
Salary of new employee
Cost of training new employee
Cost of loss of employee
Definition of Training
The process of increasing the skills of your workers so they can perform their jobs efficiently and effectively
Definition of Induction Training
Training when you start the job
Definition of Off the Job Training
Training that takes place outside the organisation
Definition of On the Job Training
Training that takes place inside the organisation
Definition of Hierarchy
The way authority and power is organised within an organisation
Definition of Chain of Command
The order or levels of responsibility within an organisation from lowest to highest
Definition of Span of Control
The number of people a person is directly responsible for in a business
Definition of Authority and Responsibility
The right to command and make decisions and the duty to complete a task or job
Definition of Directors
Run the business focus on strategy
Definition of Managers
Control or manage the business on a day to day basis
Definition of Team Leaders
Ensure teams work effectively together, resolving issues and coordinating the team
Definition of Supervisors
Monitor and regulate work being done in a designated area
Definition of Professionals
Staff with high levels of qualifications and experience
Definition of Operatives
Skilled workers involved in the production process or in service delivery
Definition of General Staff
Positions that may require a range of non-specific skills
What is a Flat structure hierarchy
Few layers
Short chain of command
Wide span of control
Employees have more freedom and responsibilities and empowered
Mangers may lose control of the workforce
What is a Tall structure hierarchy
Long chain of command
More levels
Narrow span of control
Managers have tighter control
Management costs are high
Potential room fro promotion
Potential for poor communication
Definition of Matrix Structures
Work on a project basis at any one time people with specialist skills will get together to work on projects together
Definition of Weak matrix structure
The team lead has limited authority over the project
Definition of Balanced matrix structure
The team lead and leadership have equal authority
Definition of Strong matrix structure
The team lead has the most authority over the project
Pros and cons of matrix organisation
Pros:
Clear project objectives
Efficient use of resources
Free flowing information
Training for project managers
Retention of teams
Cons:
Complex reporting style
Slow response time
Conflicting guidance
Potential power struggles
Juggling priorities
Definition of Centralisation structure
Decision making is kept firmly at the top of the hierarchy
Definition of Decentralisation structure
Decision making is spread out
Definition of Motivation
The desire to act in the service of a goal
What are the 4 theories of Motivation
Taylor’s Scientific Management
Mayo’s Theory of Human Relations
Maslow’s Hierarchy of Needs
Herzberg’s Two Factor Theory
What is Taylor’s
Carried out time and motion studies using a stop watch to find the most efficient way to do a job
He believed in the division of labour
Each job was broken down into smaller tasks that where repeatable
What is Mayo’s
Concluded that the concept that people purely work to earn money and living is totally false
Production failed to increase because of the environment
What is Maslow’s
Every person os capable and has the desire to move up the hierarchy of needs towards level self actualisation
Everyone’s hierarchy of needs is different
You need to meet the lower needs before they could progress to the higher up needs
What is Herzberg’s
Two different factors that affect worker’s motivation hygiene and motivators
Improving the motivators factors increases job satisfaction
Improving the hygiene factors decrease job dissatisfaction
Hygiene factors don’t cause motivation but are needed there for motivation to occur
Financial Motivators
Bonus
Profit share
Piecework
Commission
Performance related pay
Non financial motivators
Job enlargement
Job enrichment
Empowerment
Flexible working
Team working
Job rotation
Delegation
Consultation
Definition of Leadership
The action of leading a group of people or an organisation or the ability to do this
Definition of Management
Process of dealing with or controlling things or people and/or the responsibility for and control of a company or organisation
Definition of Autocratic Leadership
Tell their employees what they want done how they want it doing without any input from their followers
Definition of Paternalistic Leadership
Decides what is best for employees
Softer form of authoritarian but there is still little delegation
Employees are consulted
Leader makes final decision
Definition of Democratic Leadership
Offers guidance to group members but the also participate in the group and allow input from other group members
Employees have greater involvement in decision making
Definition of Persuasive leader
Leader as made decision and then persuades subordinates into the best option
Definition of Consultative leader
The leader consults with the subordinates then makes a decision
Definition of Laissez-fairs leadership
Employees can carry out activities and make decisions freely
Very relaxed environment
Little direction and guidelines
