1.4- Managing People

Question 1

What is the definition of staff/ staffing

Answer 1

Staff is the employees in a business

Staffing is the process of hiring, training and supervising employees in an business.

Question 2

What advantages of treating staff as an asset in a business

Answer 2

Staff are allowed to participate more in decision making

The business is more able to respond quickly to market changes

Staff have more control over their work, which is more motivating for the staff and will increase retention rates and reduce absenteeism

Question 3

What are the factors that cause staff to be seen as a cost

Answer 3

1.Cost of recruitment
2. Cost of training
3. Cost of paying minimum wages
4. Cost of paying staff salaries and wages
5. Cost of staff welfare
6. Cost of redundancy

Question 4

What is multi skilling

Answer 4

This means having a workforce that can be moved around from one job to another

Question 5

What are advantages of multiskilling

Answer 5

Less staff are needed, those that are employed are used to capacity not standing around

More interesting jobs for the workers as there are a variety of tasks

This can increase efficiency, quality and productivity while reducing costs

Question 6

Disadvantages of having a multiskilling workforce

Answer 6

Workers become a “Jack of all trades master of none”

Businesses lose the benefits of having specialist staff

Question 7

What are advantages of full time work

Answer 7

May be more highly paid per hour than part-time

Access to more holiday entitlement

Employees are committed to the business and may be more productive

Loyalty to the business

Question 8

Disadvantages of full time work

Answer 8

Less flexible than part-timers, no-one to cover late nights and weekends

Increase cost to a business

Question 9

Advantages of having part time work

Answer 9

Good way to keep costs down while a business is growing

Part-time jobs attract a wide pool of applicants with experience and skills who might not want a full-time job

Flexible to respond to seasonal changes in demand

Part-time employees have the same employment rights as full-time employees

The availability of part-time work can attract skilled workers who are unable to work full-time

Question 10

Disadvantages of having part time work

Answer 10

Employees might not give the business the commitment and loyalty that a full-time worker would

Employee may work more than one job which would make them inflexible

Employee might leave if they find a full-time job

Question 11

Advantages of temporary work

Answer 11

Ideal for a business that needs extra workers for a special project

Useful to meet seasonal demands, and work fluctuations

Useful to meet employee shortages

Agencies may complete all the paperwork

Question 12

Disadvantages of offering temporary work

Answer 12

Agency staff may be expensive but it may be cheaper than hiring permanent staff

• Injury rates are higher in temp workers

• All staff will need some kind of training to get them started, this costs time and money

Question 13

What is temporary work

Answer 13

This is work where the employee only needs extra staff to cover a seasonal period

Question 14

Advantages of permanent work

Answer 14

Staff will be very focussed on the business, they will look to the long- term to build up their professional development profile with the business.

• Higher staff morale as they know they have a secure job

• Employees have loyalty to the business which reduces absenteeism and increases produtivity

Question 15

Disadvantages of permanent work

Answer 15

Permanent staff can develop negative attitudes to work, or get involved in office politics and so may become lazy, uncooperative or disinterested in the business

Question 16

Advantages of flexible hours contracts

Answer 16

From a business perspective flexible working can keep valuable staff from leaving and can also cover busy periods

Can accommodate the work life balance needs of employees with busy lives and families

Question 17

Disadvantages of flexible hours contract

Answer 17

Can sometimes confuse suppliers or customers who may want to speak to the same member of staff

The business may need extra staff to cover unmanned periods

Question 18

Advantages of zero hour contracts

Answer 18

Great for a business where work can be unpredictable

Ideal where staff are needed at short notice

Gives the employer great flexibility, no staff standing around with nothing to do

Question 19

Disadvantages of a zero hour contract

Answer 19

Employees might not give the business the commitment and loyalty that a full-time worker would

Employees may become unhappy with the zero hours and leave to find more permanent work

Question 20

Advantages of working from home

Answer 20

1. Fit a business round a family, gives a good work-life balance
2. The owner can work hours that suit their lifestyle
3. No commute, so reduction in costs of travelling
4. No expensive premises to pay for, so a reduction in fixed costs
5. Less stress from travelling and tension with colleagues

Question 21

Disadvantages of working from home

Answer 21

No socialisation with other workers, so business owner may not have anyone to bounce ideas off

2. Work is all around the business person so they may find it hard to switch off
3. The business owner may find that they work more hours than a regular job as they don’t keep track of the time that they work
4. Needs lots of self discipline to avoid distractions
5. Too easy to be lazy and not work

Question 22

What is outsourcing

Answer 22

This is a third party company that specialises in the role and can be hired on a contract (rather than permanent basis).

Question 23

Examples where a business outsources

Answer 23

Production

Payroll

Purchasing

Delivery

Question 24

Why might a worker get dismissed - fired

Answer 24

• Absenteeism
• Gross misconduct (showing up
drunk)
• Theft of company money or property

Worker is not entitled to a pay- out from the business if dismissed

Question 25

What is being made redundant

Answer 25

Worker’s job no longer exists possibly due to lack of business or restructuring

Question 26

What’s a trade union and what do they do

Answer 26

A trade union is an organisation with members who are usually workers or employees. It looks after their interests at work by doing things like: negotiating agreements with employers on pay and conditions discussing big changes like large scale redundancy discussing members’ concerns with employers going with members to disciplinary and grievance meetings

Question 27

What is the definition of recruitment

Answer 27

Recruitment is the process of finding people to work for a company or become a new member of an organisation

Question 28

What’s the 9 stages of recruitment

Answer 28

Stage 1: Identify the vacancy • Stage 2: Write a job description • Stage 3: Write a person specification • Stage 4: Advertise the vacancy • Stage 5: Candidates apply • Stage 6: Candidates shortlisted • Stage 7: Shortlisted candidates interviewed • Stage 8: Other recruitment activities • Stage 9: Successful candidate is offered the job

Question 29

What’s examples for costs of recruitment

Answer 29

Advertising Agency fees

Question 30

What are the different types of training

Answer 30

Induction On the job Off the job

Question 31

Advantages of induction training

Answer 31

Many employees make their mind up if they are staying – the first week of employment • Induction training will help to inspire the employees and integrate them with the company culture • Good induction training will help reduce the numbers of employees that leave – thus increasing retention numbers

Question 32

Disadvantages of induction training

Answer 32

Induction training can cause information overload for an employee trying to find their feet in a new organisation

Question 33

Advantages of on the job training

Answer 33

Specific training needed for the job (a full time trainer may not know all jobs methods to an up to date standard) Less expensive than off-the-job training Learning can be put in to practise immediately Trainees can see relevance to job more clearly when skills are taught in the workplace

Question 34

Disadvantages of on the job training

Answer 34

Taking time away from employees job to be trained Reduces efficiency of both teaching worker and new employee Some workers have bad habits they could pass on to the trainee The new worker may not pick up the skills straight away/misunderstand/not ask for help Workers which are badly trained may make expensive mistakes or be a safety hazard

Question 35

Advantages of off the job training

Answer 35

More focused environment with less distractions Increases a workers motivation as they feel valued by the company to have money spent on their improvement Less stressful compared with on the job (don't have to learn skills and do tasks as going along) Individuals teaching the courses are trained to train • More chance to gather specialist skills

Question 36

Disadvantages of off the job training

Answer 36

More expensive than on-the-job training Employees may fail to see link between training and workplace Employees are taken away from production so the business loses their productivity for that day

Question 37

Definition of organisational design

Answer 37

Organisational design refers to a diagram or chart which shows the lines of authority and layers in the hierarchy of the business.

Question 38

What is a chain of command

Answer 38

The chain of command in a business is the flow of information power and authority through the organisation

Question 39

What is a span of control

Answer 39

This is the number of subordinates that they can delegate to

Question 40

What is decentralisation

Answer 40

where a business divides up the organisation of its business into areas for example: north, south, east, west or UK, Europe, and Africa. The business will have separate budgets for each area

Question 41

What is centralisation

Answer 41

where a business has its organisation of management and administration at one central head office. The business has one central shared budget

Question 42

What are the different types of organisational structures

Answer 42

Tall Flat Matrix

Question 43

What are advantages of a tall structure

Answer 43

Lots of opportunity for promotion Work is shared among more people so less stress Supervisors normally have a small span of control so they can get to know their subordinates really well Knowing subordinates means they can delegate the right tasks and make sure their team is well trained

Question 44

Disadvantages of a tall hierarchical structure

Answer 44

Lots of layers and a long chain of command can mean that the business is very inflexible It can also mean that communications within the organisation are slow This is expensive as there are more managers and supervisors

Question 45

Advantages of a flat structure

Answer 45

Fewer layers of hierarchy between the bottom and the top of the organisation may mean that communication is fast • Lots of delegation means that staff are given greater responsibility, which might mean more opportunities to use their abilities

Question 46

Disadvantages of a flat structure

Answer 46

Staff can be overstretched or overworked in a flat structure as there is less supervision, this can cause stress and demotivation • Can create a power struggle if the manager is rarely around as subordinates jostle for roles and responsibilities • Wide span of control means managers have too many staff to manage and may lose touch with them

Question 47

What is a matrix structure

Answer 47

In a business where there are more than one product or more then one project running at a time a matrix structure is more suitable than a standard hierarchy

Question 48

Advantages of the matrix structure

Answer 48

Matrix structure is ideal for a business that works on a project-by-project basis • Very flexible structure means that staff from different departments can jump in and out of different job roles • Perfect to exploit the specific skills of staff

Question 49

Disadvantages of a matrix structure

Answer 49

Possible co-ordination problems between departments • Conflict of interest across projects • Staff stretched across different projects, not spending time in their own departments

Question 50

What are the motivation theories

Answer 50

Taylor - scientific management . Mayo - human relations theory Maslow - hierachy of needs Herzberg -two factor theory

Question 51

What is Taylor’s scientific management

Answer 51

You should be paid for what you do - piece rate Workers must be supervised at all times Managers need to tell them what to do Main motivators were high wages

Question 52

What is mayo’s human relations theory

Answer 52

He changed the working conditions such as break times and duration of the ladies who worked in the relay assembly room at the factory • Found that just by being studied - the employee’s levels of motivation increased • Working in teams was more important than money • Non-financial motivators were the most important • Boring and repetitive work can be a demotivator

Question 53

What’s Maslow hierarchy of needs

Answer 53

Maslow’s theory was that we all have a pyramid of needs. Starts with: Physiological needs Safety needs Love/belonging needs Esteem needs Self actualisation needs

Question 54

What’s Herzberg - two factor theory

Answer 54

His theory was that employees have motivating factors; interesting work, recognition and personal achievement, responsibility and scope to develop there were hygiene factors which if not met would dissatisfy the employees, but if they were met did not motivate them any more than they were already. These were; good working conditions, pay, relationships with other employees

Question 55

What are financial motivation methods

Answer 55

1. piecework 2. commission 3. bonus 4. profit share 5. performance-related pay

Question 56

What are advantages of piece work

Answer 56

Experienced and efficient workers can earn more Incentive to complete the work Employees may work more hours to get the job done Home workers can start and finish when they want which means the work fits round a family

Question 57

Disadvantages of piece work

Answer 57

As workers speed up they may cut corners Quality may suffer Slower workers may fall under the national minimum wage

Question 58

Advantages of commission

Answer 58

Skilled salespeople can make very good money Employer is not paying for down time when the employee is not selling Motivates employees to sell more

Question 59

Disadvantages of commission

Answer 59

Salespeople on commission only could earn no money at all Not a steady income Risky in a recession Employees are selling rather than meeting needs of customers Temptation to pressure sell or oversell

Question 60

Advantages of pay bonuses

Answer 60

A bonus payment to an employee can be used as an incentive, especially in a field where employees must make sales or meet specific goals. • A bonus payment can also be used as a means of appreciation for an employee’s hard work throughout the year or in a specified amount of time in the year.

Question 61

Disadvantages of pay bonuses

Answer 61

A cash bonus can be costly for any company, so a business may offer gift cards instead • When an employee receives a bonus, it becomes part of his total income at the end of the year, the employee will also be paying taxes on the bonus they receive

Question 62

Advantages of profit sharing

Answer 62

Brings employees together to work towards a common goal. Their sole aim will be the success of the company • Motivation levels will be high and it encourages teamwork • The employee focus will be on profitability • Increases commitment to the organisation among the employees • Employee can identify with the company. He or she will feel part of it • Bridges the gap between the employee and employer

Question 63

Disadvantages of profit sharing

Answer 63

The salaries of the individual employees go up equally, not on the basis of merit or promotion, this does not necessarily motivate individuals • The focus of the employee may be on the profit share rather than on quality customer service

Question 64

What are advantages to performance related pay

Answer 64

Advantage is there is a direct link between the performance of an employee and how much they are paid • Easy for the business to rank their staff when look at who to promote

Question 65

Disadvantages to performance related pay

Answer 65

Critics say it causes jealousy and unrest Those that don’t meet the targets blame the line manager and can become demotivated. Bonuses are often too low to act as an incentive to work towards targets

Question 66

What are non financial motivation methods

Answer 66

1. delegation 2. consultation 3. empowerment 4. team working 5. flexible working 6. job enrichment 7. job rotation 8. job enlargement

Question 67

Advantages of delegation

Answer 67

Gives managers self confidence, empowers managers to make decisions and allocate tasks to the most appropriate member of staff • Makes sure the team’s potential is maximised • Builds trust between the manager and the employees

Question 68

Disadvantages of delegation

Answer 68

Managers sometimes allocate tasks when overloaded with work and not when they want to motivate an employee • Managers may not always choose the most suitable employee to delegate to

Question 69

Advantages of consultation

Answer 69

Effective consultation can help avoid any minor issues in the business becoming larger e.g. lack of air conditioning • Consultation can help avoid a union action • Consultation can help the employees feel motivated as their views are asked for on certain matters • Quality circles are a useful way to motivate workers in a production environment

Question 70

Disadvantages of consultation

Answer 70

Employees may not know what it needs o run a successful business, keeping costs low • Employees may come up with grudges against the company or amongst themselves

Question 71

Advantages of empowerment

Answer 71

• Staff that are recognised for their ability, trusted and given control over decisions, therefore are less frustrated with the business and have increased productivity levels • Empowered employees are close to issues and problems, may be more effective at problems solving at that level • Great involvement means greater loyalty to the business

Question 72

Disadvantages of empowerment

Answer 72

Sometimes regarded as a cost cutting, a way of delayering, making management redundancies, makes managers insecure and has an associated cost of training • Some see this as giving employees more to do for the same pay, so that mangers can be made redundant • Lack of experience in the job can increase risk of mistakes being made

Question 73

Advantages of flexible working

Answer 73

Greater cost effectiveness and efficiency, such as savings on overheads when employees work from home or less downtime for machinery when 24- hour shifts are worked • The chance to have extended operating hours • More job satisfaction and better staff motivation • Reduced levels of sickness absence

Question 74

Disadvantages of flexible working

Answer 74

It can be difficult to to fit shifts and schedules to suit everyone • Some staff may take advantage of the flexible system and not work as hard or when they should e.g. working from home the temptation may be to do something else