1.4- Managing People Flashcards
What is the definition of staff/ staffing
Staff is the employees in a business
Staffing is the process of hiring, training and supervising employees in an business.
What advantages of treating staff as an asset in a business
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
What are the factors that cause staff to be seen as a cost
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
What is multi skilling
This means having a workforce that can be moved around from one job to another
What are advantages of multiskilling
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
Disadvantages of having a multiskilling workforce
Workers become a “Jack of all trades master of none”
Businesses lose the benefits of having specialist staff
What are advantages of full time work
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
Disadvantages of full time work
Less flexible than part-timers, no-one to cover late nights and weekends
Increase cost to a business
Advantages of having part time work
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
Disadvantages of having part time work
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
Advantages of temporary work
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
Disadvantages of offering temporary work
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
What is temporary work
This is work where the employee only needs extra staff to cover a seasonal period
Advantages of permanent work
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
Disadvantages of permanent work
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
Advantages of flexible hours contracts
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
Disadvantages of flexible hours contract
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
Advantages of zero hour contracts
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
Disadvantages of a zero hour contract
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
Advantages of working from home
- Fit a business round a family, gives a good work-life balance
- The owner can work hours that suit their lifestyle
- No commute, so reduction in costs of travelling
- No expensive premises to pay for, so a reduction in fixed costs
- Less stress from travelling and tension with colleagues
Disadvantages of working from home
No socialisation with other workers, so business owner may not have anyone to bounce ideas off
- Work is all around the business person so they may find it hard to switch off
- 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
- Needs lots of self discipline to avoid distractions
- Too easy to be lazy and not work
What is outsourcing
This is a third party company that specialises in the role and can be hired on a contract (rather than permanent basis).
Examples where a business outsources
Production
Payroll
Purchasing
Delivery
Why might a worker get dismissed - fired
• 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
What is being made redundant
Worker’s job no longer exists possibly due to lack of business or restructuring
What’s a trade union and what do they do
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
What is the definition of recruitment
Recruitment is the process of finding people to work for a company or become a new member of an organisation
What’s the 9 stages of recruitment
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
What’s examples for costs of recruitment
Advertising
Agency fees
What are the different types of training
Induction
On the job
Off the job
Advantages of induction training
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
Disadvantages of induction training
Induction training can cause information overload for an employee trying to find their feet in a new organisation
Advantages of on the job training
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
Disadvantages of on the job training
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
Advantages of off the job training
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
Disadvantages of off the job training
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
Definition of organisational design
Organisational design refers to a diagram or chart which shows the lines of authority and layers in the hierarchy of the business.
What is a chain of command
The chain of command in a business is the flow of information power and authority through the organisation
What is a span of control
This is the number of subordinates that they can delegate to
What is decentralisation
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
What is centralisation
where a business has its organisation of management and administration at one central head office. The business has one central shared budget
What are the different types of organisational structures
Tall
Flat
Matrix
What are advantages of a tall structure
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
Disadvantages of a tall hierarchical structure
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
Advantages of a flat structure
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
Disadvantages of a flat structure
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
What is a matrix structure
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
Advantages of the matrix structure
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
Disadvantages of a matrix structure
Possible co-ordination problems between departments
• Conflict of interest across projects
• Staff stretched across different projects, not spending time in their own departments
What are the motivation theories
Taylor - scientific management .
Mayo - human relations theory
Maslow - hierachy of needs
Herzberg -two factor theory
What is Taylor’s scientific management
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
What is mayo’s human relations theory
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
What’s Maslow hierarchy of needs
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
What’s Herzberg - two factor theory
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
What are financial motivation methods
- piecework
- commission
- bonus
- profit share
- performance-related pay
What are advantages of piece work
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
Disadvantages of piece work
As workers speed up they may cut corners
Quality may suffer
Slower workers may fall under the national minimum wage
Advantages of commission
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
Disadvantages of commission
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
Advantages of pay bonuses
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.
Disadvantages of pay bonuses
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
Advantages of profit sharing
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
Disadvantages of profit sharing
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
What are advantages to performance related pay
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
Disadvantages to performance related pay
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
What are non financial motivation methods
- delegation
- consultation
- empowerment
- team working
- flexible working
- job enrichment
- job rotation
- job enlargement
Advantages of delegation
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
Disadvantages of delegation
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
Advantages of consultation
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
Disadvantages of consultation
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
Advantages of empowerment
• 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
Disadvantages of empowerment
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
Advantages of flexible working
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
Disadvantages of flexible working
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
