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Business Theme 1 Marketing and people > 1.4 Managing People > Flashcards

1.4 Managing People Flashcards

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People You Should Know flashcards
1
Q

Define Cost in terms of staffing

A

Treat employees simply as a resource of the business, costs associated with: hiring & training, wages & salaries, fringe benefits etc

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2
Q

Define Asset in terms of staffing

A

Treat employees as the most important resource in the business and a source of competitive advantage

Employees treated as individuals and their needs are planned accordingly

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3
Q

Describe Flexible Working

A

Working arrangements here there are a variety of option offers to employees in terms of working time, working location and the pattern of working

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4
Q

Examples of flexible working

A

Part time working
flexitime
job sharing
Working from home

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5
Q

Benefits of a flexible workforce

A

-Saving on costs
-Helps with recruitment and staff retention
-Reflect the changing profile of the UK workforce
-Take advantage of developments in technology

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6
Q

Drawbacks of flexible working

A

-Loss of customers if key employees reduce their working hours
-Lower employee productivity
-Managers finding it difficult to manage or administer flexibility

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7
Q

Define Multiskilling

A

Where staff are allowed to carry out a variety of task rather than specialise
-Enables greater use of job rotation
-puts greater requirement on training

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8
Q

Define Outsourcing

A

Hiring a third party business to do the work for you

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9
Q

Define Off-shoring

A

The work is done overseas

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10
Q

Name business objectives

A

-Quality
-Cost
-Speed
-Flexibility

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11
Q

Define dismissal

A

Employee dismissed because of break of contract or other unacceptable behaviour or performance

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12
Q

Define Redundancy

A

Employee loses job because job is no longer required by the business, requires consultation and redundancy payments

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13
Q

Define Employee Representation

A

Arises when employees are part of a formal structure for involving them in the decision-making process of a business

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14
Q

What needs to be consulted with employees for redundancy?

A

-Redundancy programmes
-On changes to pension arrangements
-Proposed changes to working time arrangements

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15
Q

Reasons for a Formal System of Employee Representation

A

-Make employees views known to management
-Help strengthen both managers and employees understanding of workplace issues
-Helps create mutual trust between employees a management and therefore improve workplace relations

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16
Q

Benefits of Employee Representation

A

-Increased empowerment and motivation
-Better decision making because employee experience and insights taken into account
-Lower risk of industrial disputes

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17
Q

Drawbacks of Employee Representation

A

-Time consuming (potentially slows decision making)
-Conflicts between employer and employee interests
-Managers may feel their authority is being undermined

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18
Q

What are the two main functions of a Trade Union?

A

Represent and negotiate

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19
Q

Define Represent in terms of Trade Unions

A

Represent & protect interest of employees

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20
Q

Define Negotiate in terms of Trade Unions?

A

Negotiate on behalf of employees with employer

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21
Q

Main Role of a Trade Union?

A

-Provide or improve job security
-Protect workers against unfair dismissal
-Better working conditions

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22
Q

Advantages for an Employer of a good relationship with Trade Union

A
  1. Negotiating with trade unions saves time and cost
  2. Employees morale and motivation may be improved if they know that their interests are being protected by a union.
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23
Q

Define Internal recruitment

A

When a business chooses only to advertise a job within their company or only make it available to current employees

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24
Q

Advantages of Internal Recruitment

A

-Cheaper and quicker to recruit
-Already familiar with business and how it operates
-Opportunities for promotion

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25
Q

Disadvantage of Internal Recruitment

A

-Limits number of potential applicants
-No new ideas can be introduced from outside
-May cause resentment amongst candidates not appointed
-Creates another vacancy which needs to be filled

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26
Q

Define External recruitment

A

Opening a job vacancy to a wider pool of candidates outside the business

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27
Q

Advantages of External Recruitment

A

-People can bring in new ideas
-Larger pool of workers from which to find best candidate
-People have a wider range of experiences

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28
Q

Disadvantages of External Recruitment

A

-Longer process
-More expensive process due to advertisement/ headhunting required
-Selection process may not be effective enough to reveal best candidates

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29
Q

Why are most employers prepared to incur costs to train staff?

A

Business will benefit from employees development and progress in long term

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30
Q

Potential benefits of training (For the business)

A

-Better productivity
-Higher quality
-More flexibility through better skills
-Improved motivation
-Less supervision required

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31
Q

Why do businesses need to train staff?

A

-To support new employees
-Support high standards of customer service and production quality
-Support employee progression and promotion

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32
Q

What issues can training not solve?

A

-Poor management
-Poor job design
-Ineffective or inefficient equipment
-Recruitment

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33
Q

Reasons why businesses neglect training?

A

-Fear of employees being poached by competition
-Desire to minimise short term cost
-Training takes time to have desired effect

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34
Q

Define On-the-job training

A

An employee receives training whilst remaining in the workplace

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35
Q

Name methods of On-the-job training?

A

-Demonstration
-Coaching
-Job rotation
-Projects

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36
Q

Benefits of On-the-job training

A

-Cost-effective
-Employees are actually productive
-Oppotunity to learn whilst doing
-Training alongside real colleagues

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37
Q

Drawbacks of On-the-job training

A

-Quality depends on ability of trainer and time available
-Bad habits might be passed on
-Learning environment may not be productive
-Potential disruption to production

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38
Q

Define Off-the-job training

A

Employee training that takes place away from the work place

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39
Q

Benefits of Off-the-job training

A

-Brings wider range of skills and fresh ideas
-Can learn from outside specialists or experts
-Employees can be more confident when starting job
-Tailored training

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40
Q

Drawbacks of Off-the-job training

A

-Expensive
-Lost working time and potential output from employee
-New employees may still need some induction training
-Employees may leave for better jobs with new skills

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41
Q

Outcomes if training is effective

A

-Employees feel more loyal to firm
- Shows that business is taking a interest in its workers
-Provides employees with greater promotional opportunities

42
Q

Define organisational structure?

A

Outlines the reporting relationships, roles of employees in the organisation.

43
Q

How does the size of the business influence its organisational structure?

A

-Small businesses tend to have flat organisational structures
-Larger businesses have more tall structures involving more layers, departments and functions.

44
Q

Define span of control

A

The number of employees a manager is responsible for.

45
Q

Describe a narrow span of control

A

More layers of management

46
Q

Describe Wide span of control

A

Few layers of management

47
Q

Define Chain of command

A

The lines of authority within a business

48
Q

Define Centralised organisational structures

A

Decision making authority is concentrated at the top of the organisation - can promote consistency & control

49
Q

Define De-centralised organisational structures

A

Decision making authority is distributed throughout the organisation - promotes flexibility & innovation

50
Q

Describe a Tall organisational structure

A

-Multiple layers of management and a more centralised decision making process.
-Long chain of command

51
Q

Describe flat organisational structures

A

-Fewer levels of management and a more decentralised decision making process.
-Short chain of command

52
Q

Advantages of Tall Structures

A

-Provides clear hierarchy of authority
-Promotes specialisation and expertise in each department
-Clear progression and promotion ladder

53
Q

Disadvantages of Tall Structures

A

-Can create communication barriers
-Slows decision making
-Can lead to bureaucracy and excessive levels of management

54
Q

Advantages of Flat Structures

A

-Promotes a culture of collaboration
-Faster and efficient decision making
-More democratic

55
Q

Disadvantages of Flat Structures

A

-Can lead to role ambiguity and lack of clear hierachy
-May not provide clear promotional opportunities
-May require employees to take on multiple roles & responsibility which can lead to a burnout.

56
Q

Define Matrix Structures

A

Structure usually built around specific products or projects, combines the functional areas of a business with a specialist team that operates inside the business.

57
Q

Why do businesses change the organisational structure?

A

-Growth of the business
-Reduce costs and complexity
-Employee motivation
-Customers service/ and quality improvements

58
Q

Challenges to changing the organisational structure

A

-Employee resistance
-Disruption and demotivating
-Costs
-Negative impact on customer service or quality

59
Q

Benefits of Matrix structures

A

-Promotes cross functional collaboration
-Allows for specialisation & expertise
-Enables efficient location of resources and coordination of multiple projects

60
Q

Drawbacks of Matrix Structures

A

-Conflicts over priorities and resources
-Creates confusion over roles when multiple managers are involved.
-Requires a high degree of communication.

61
Q

Define Delegation

A

The assignment to others of authority for particular functions, task and decisions

62
Q

Advantages of delegation

A

-Reduces management workload
-Subordinates empowered
-Good method of on-the-job training

63
Q

Disadvantages of delegation

A

-Depends on quality/ experience of subordinates
-Harder in a smaller firm
-May increase workload and stress subordinates

64
Q

Define employee empowerment

A

Giving employees the power to do their job

65
Q

What are the two ways to motivate employees?

A

-Financial methods
-Non-financial methods

66
Q

What are the advantages of having a well motivated workforce?

A

-Better productivity
-Better quality
-Lower levels of absenteeism
-Lower levels of staff turnover

67
Q

Describe Taylors Theory of Motivation

A

-Workers motivated by money
-Piece-rate payment (pay based on how much they produce)
-Autocratic style of leading (manager makes all decisions)

68
Q

Describe Maslows Theory of Motivation

A

-Five levels of human needs which need to be fulfilled
-Businesses should offer different incentives to workers to help them fufill each need and progress up the hierarchy

69
Q

What are Maslow’s 5 needs?

A
  1. Self-actualisation
  2. Esteem
  3. social
  4. Safety
  5. Psychological
70
Q

Describe Herzberg’s Theory of Motivation

A

-Believed in two-factor theory
1. Motivators (factors motivating employees to work harder)
2. Hygiene (maintenance) factors - Factors that can demotivate if not present but don’t motivate employees to work harder

71
Q

Describe Mayo’s Theory of Motivation

A

-Workers not just motivated by money but by having human/social needs met
-Businesses should introduce team working and personnel departments to look after employee interests

72
Q

What are the main financial incentives to motivate employees?

A

-Bonus systems
-Commision
-Fringe benefits

73
Q

Advantages of Piece-Rate Payment

A

-Encourages high speed production
-Provides good incentives for workers motivated by pay

74
Q

Disadvantages of Piece-Rate Payment

A

-Workers focused on quantity not quality
-Repetitive and can be demotivating
-Workers may be resistant to change
-Requires lots of supervision

75
Q

Define Overtime

A

Additional hours worked over and above normal working hours

76
Q

Define bonus pay

A

Given out when certain performance targets have been met

77
Q

How are bonuses used?

A

-Used to motivate employees to work harder in order to meet a realistic yet challenging targets, only effective if bonus payment is a significant sum

78
Q

Define Commission

A

A financial incentive linked to achievement of sales

79
Q

Define profit sharing

A

a system where employees receive a proportion of business profits

80
Q

Advantages of profit sharing

A

-Creates a direct link between pay and performance
-Sense of team spirit
-Improves employee loyalty
-Employees more likely to accept change

81
Q

Define performance related pay

A

Paid to those employees who meet certain targets

82
Q

Advantages of Performance related pay

A

-Can easily monitor and assess individual employee performance
-Setting targets ensures employees are closely focused on company objectives

83
Q

Disadvantages of Performance Related Pay

A

-Discourages a team based approach
-Difficult to accurately measure performance
-Incentives may not be large enough to motivate employees

84
Q

Define Fringe benefits

A

Items an employee receives in addition to their normal wage or salary e.g company car, gym membership, private health care.

85
Q

What are the main non-financial incentives

A

-Empowerment
-Praise
-Promotion
-Job enrichment/enlargement
-Team Working

86
Q

Define Job enrichment

A

-Giving workers more interesting and challenging tasks
-Seen as more motivating

87
Q

Define Job enlargement

A

-Giving workers more tasks to do of a similar nature of complexity

88
Q

Define Leadership

A

Having a vision and providing strategic direction, influencing behaviours an actions of people.

89
Q

What makes a good leader?

A

-Has followers
-Generates ideas
-Takes risks
-Motivates
-Inspires

90
Q

What is a manager?

A

The day to day organiser of the business: dealing with staff and recourses

91
Q

What are the three traditional levels of management in business?

A

-Senior management
-Middle management
-Junior management

92
Q

Define a Leadership style

A

Different approaches to managing a team or business.

93
Q

Key differences between a manager and leader?

A

Vision vs Execution
Influence vs Control
People vs Processes
Long term vs Short Term

94
Q

What are the 4 traditional classifications of leadership style?

A
  1. Autocratic
  2. Paternalistic
  3. Democratic
  4. Laissez-faire
95
Q

Describe a Authoritarian leadership style

A

Leaders has complete control over decision making

96
Q

Describe a Paternalistic leadership style

A

Leader takes on a parental role, makes decisions in best interest of their staff.

97
Q

Describe a Democratic leadership style

A

Leader involves the team in decision making, appropriate for larger firms where decisions require input from multiple stakeholders.

98
Q

Describe a Laissez-faire leadership style

A

Leader takes a hands off approach and allows team to manage their own world, appropriate when staff are experienced, requires minimal supervision.

99
Q

Factors affecting leadership style

A

-Personal values
-Managers experience
-Confidence in subordinates
-Nature of the business

100
Q

When does an Autocratic leadership style make sense to use?

A

When business needs quick decision making, effective for small businesses where owner has complete control.

101
Q

Why are leadership styles changing in modern society?

A

-Changes in societal values
-Better educated workforce
-Greater workplace legislation

Business Theme 1 Marketing and people (5 decks)

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