1.4 Managing People Flashcards
Define Cost in terms of staffing
Treat employees simply as a resource of the business, costs associated with: hiring & training, wages & salaries, fringe benefits etc
Define Asset in terms of staffing
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
Describe Flexible Working
Working arrangements here there are a variety of option offers to employees in terms of working time, working location and the pattern of working
Examples of flexible working
Part time working
flexitime
job sharing
Working from home
Benefits of a flexible workforce
-Saving on costs
-Helps with recruitment and staff retention
-Reflect the changing profile of the UK workforce
-Take advantage of developments in technology
Drawbacks of flexible working
-Loss of customers if key employees reduce their working hours
-Lower employee productivity
-Managers finding it difficult to manage or administer flexibility
Define Multiskilling
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
Define Outsourcing
Hiring a third party business to do the work for you
Define Off-shoring
The work is done overseas
Name business objectives
-Quality
-Cost
-Speed
-Flexibility
Define dismissal
Employee dismissed because of break of contract or other unacceptable behaviour or performance
Define Redundancy
Employee loses job because job is no longer required by the business, requires consultation and redundancy payments
Define Employee Representation
Arises when employees are part of a formal structure for involving them in the decision-making process of a business
What needs to be consulted with employees for redundancy?
-Redundancy programmes
-On changes to pension arrangements
-Proposed changes to working time arrangements
Reasons for a Formal System of Employee Representation
-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
Benefits of Employee Representation
-Increased empowerment and motivation
-Better decision making because employee experience and insights taken into account
-Lower risk of industrial disputes
Drawbacks of Employee Representation
-Time consuming (potentially slows decision making)
-Conflicts between employer and employee interests
-Managers may feel their authority is being undermined
What are the two main functions of a Trade Union?
Represent and negotiate
Define Represent in terms of Trade Unions
Represent & protect interest of employees
Define Negotiate in terms of Trade Unions?
Negotiate on behalf of employees with employer
Main Role of a Trade Union?
-Provide or improve job security
-Protect workers against unfair dismissal
-Better working conditions
Advantages for an Employer of a good relationship with Trade Union
- Negotiating with trade unions saves time and cost
- Employees morale and motivation may be improved if they know that their interests are being protected by a union.
Define Internal recruitment
When a business chooses only to advertise a job within their company or only make it available to current employees
Advantages of Internal Recruitment
-Cheaper and quicker to recruit
-Already familiar with business and how it operates
-Opportunities for promotion
Disadvantage of Internal Recruitment
-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
Define External recruitment
Opening a job vacancy to a wider pool of candidates outside the business
Advantages of External Recruitment
-People can bring in new ideas
-Larger pool of workers from which to find best candidate
-People have a wider range of experiences
Disadvantages of External Recruitment
-Longer process
-More expensive process due to advertisement/ headhunting required
-Selection process may not be effective enough to reveal best candidates
Why are most employers prepared to incur costs to train staff?
Business will benefit from employees development and progress in long term
Potential benefits of training (For the business)
-Better productivity
-Higher quality
-More flexibility through better skills
-Improved motivation
-Less supervision required
Why do businesses need to train staff?
-To support new employees
-Support high standards of customer service and production quality
-Support employee progression and promotion
What issues can training not solve?
-Poor management
-Poor job design
-Ineffective or inefficient equipment
-Recruitment
Reasons why businesses neglect training?
-Fear of employees being poached by competition
-Desire to minimise short term cost
-Training takes time to have desired effect
Define On-the-job training
An employee receives training whilst remaining in the workplace
Name methods of On-the-job training?
-Demonstration
-Coaching
-Job rotation
-Projects
Benefits of On-the-job training
-Cost-effective
-Employees are actually productive
-Oppotunity to learn whilst doing
-Training alongside real colleagues
Drawbacks of On-the-job training
-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
Define Off-the-job training
Employee training that takes place away from the work place
Benefits of Off-the-job training
-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
Drawbacks of Off-the-job training
-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
Outcomes if training is effective
-Employees feel more loyal to firm
- Shows that business is taking a interest in its workers
-Provides employees with greater promotional opportunities
Define organisational structure?
Outlines the reporting relationships, roles of employees in the organisation.
How does the size of the business influence its organisational structure?
-Small businesses tend to have flat organisational structures
-Larger businesses have more tall structures involving more layers, departments and functions.
Define span of control
The number of employees a manager is responsible for.
Describe a narrow span of control
More layers of management
Describe Wide span of control
Few layers of management
Define Chain of command
The lines of authority within a business
Define Centralised organisational structures
Decision making authority is concentrated at the top of the organisation - can promote consistency & control
Define De-centralised organisational structures
Decision making authority is distributed throughout the organisation - promotes flexibility & innovation
Describe a Tall organisational structure
-Multiple layers of management and a more centralised decision making process.
-Long chain of command
Describe flat organisational structures
-Fewer levels of management and a more decentralised decision making process.
-Short chain of command
Advantages of Tall Structures
-Provides clear hierarchy of authority
-Promotes specialisation and expertise in each department
-Clear progression and promotion ladder
Disadvantages of Tall Structures
-Can create communication barriers
-Slows decision making
-Can lead to bureaucracy and excessive levels of management
Advantages of Flat Structures
-Promotes a culture of collaboration
-Faster and efficient decision making
-More democratic
Disadvantages of Flat Structures
-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.
Define Matrix Structures
Structure usually built around specific products or projects, combines the functional areas of a business with a specialist team that operates inside the business.
Why do businesses change the organisational structure?
-Growth of the business
-Reduce costs and complexity
-Employee motivation
-Customers service/ and quality improvements
Challenges to changing the organisational structure
-Employee resistance
-Disruption and demotivating
-Costs
-Negative impact on customer service or quality
Benefits of Matrix structures
-Promotes cross functional collaboration
-Allows for specialisation & expertise
-Enables efficient location of resources and coordination of multiple projects
Drawbacks of Matrix Structures
-Conflicts over priorities and resources
-Creates confusion over roles when multiple managers are involved.
-Requires a high degree of communication.
Define Delegation
The assignment to others of authority for particular functions, task and decisions
Advantages of delegation
-Reduces management workload
-Subordinates empowered
-Good method of on-the-job training
Disadvantages of delegation
-Depends on quality/ experience of subordinates
-Harder in a smaller firm
-May increase workload and stress subordinates
Define employee empowerment
Giving employees the power to do their job
What are the two ways to motivate employees?
-Financial methods
-Non-financial methods
What are the advantages of having a well motivated workforce?
-Better productivity
-Better quality
-Lower levels of absenteeism
-Lower levels of staff turnover
Describe Taylors Theory of Motivation
-Workers motivated by money
-Piece-rate payment (pay based on how much they produce)
-Autocratic style of leading (manager makes all decisions)
Describe Maslows Theory of Motivation
-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
What are Maslow’s 5 needs?
- Self-actualisation
- Esteem
- social
- Safety
- Psychological
Describe Herzberg’s Theory of Motivation
-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
Describe Mayo’s Theory of Motivation
-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
What are the main financial incentives to motivate employees?
-Bonus systems
-Commision
-Fringe benefits
Advantages of Piece-Rate Payment
-Encourages high speed production
-Provides good incentives for workers motivated by pay
Disadvantages of Piece-Rate Payment
-Workers focused on quantity not quality
-Repetitive and can be demotivating
-Workers may be resistant to change
-Requires lots of supervision
Define Overtime
Additional hours worked over and above normal working hours
Define bonus pay
Given out when certain performance targets have been met
How are bonuses used?
-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
Define Commission
A financial incentive linked to achievement of sales
Define profit sharing
a system where employees receive a proportion of business profits
Advantages of profit sharing
-Creates a direct link between pay and performance
-Sense of team spirit
-Improves employee loyalty
-Employees more likely to accept change
Define performance related pay
Paid to those employees who meet certain targets
Advantages of Performance related pay
-Can easily monitor and assess individual employee performance
-Setting targets ensures employees are closely focused on company objectives
Disadvantages of Performance Related Pay
-Discourages a team based approach
-Difficult to accurately measure performance
-Incentives may not be large enough to motivate employees
Define Fringe benefits
Items an employee receives in addition to their normal wage or salary e.g company car, gym membership, private health care.
What are the main non-financial incentives
-Empowerment
-Praise
-Promotion
-Job enrichment/enlargement
-Team Working
Define Job enrichment
-Giving workers more interesting and challenging tasks
-Seen as more motivating
Define Job enlargement
-Giving workers more tasks to do of a similar nature of complexity
Define Leadership
Having a vision and providing strategic direction, influencing behaviours an actions of people.
What makes a good leader?
-Has followers
-Generates ideas
-Takes risks
-Motivates
-Inspires
What is a manager?
The day to day organiser of the business: dealing with staff and recourses
What are the three traditional levels of management in business?
-Senior management
-Middle management
-Junior management
Define a Leadership style
Different approaches to managing a team or business.
Key differences between a manager and leader?
Vision vs Execution
Influence vs Control
People vs Processes
Long term vs Short Term
What are the 4 traditional classifications of leadership style?
- Autocratic
- Paternalistic
- Democratic
- Laissez-faire
Describe a Authoritarian leadership style
Leaders has complete control over decision making
Describe a Paternalistic leadership style
Leader takes on a parental role, makes decisions in best interest of their staff.
Describe a Democratic leadership style
Leader involves the team in decision making, appropriate for larger firms where decisions require input from multiple stakeholders.
Describe a Laissez-faire leadership style
Leader takes a hands off approach and allows team to manage their own world, appropriate when staff are experienced, requires minimal supervision.
Factors affecting leadership style
-Personal values
-Managers experience
-Confidence in subordinates
-Nature of the business
When does an Autocratic leadership style make sense to use?
When business needs quick decision making, effective for small businesses where owner has complete control.
Why are leadership styles changing in modern society?
-Changes in societal values
-Better educated workforce
-Greater workplace legislation
