1.4 - Managing people

Question 1

Define motivation

Answer 1

refers the willingness to work and achieve given target or goal

Question 2

4 main theories of motivation

Answer 2

1. scientific management
2. hierarchy of needs
3. two factor theory
4. human relations

Question 3

Taylor’s theory of scientific managemn

Answer 3

• theory based on work study and improving productivity and efficiency of the workforce
• focused on efficiency and productivity
  -approach to management based on:
  1. measurement of what can be done better and how
  2. monitoring to ensure targets are met
  3. control though analysis

Question 4

Taylor’s view on what motivated people

Answer 4

Financial rewards
- based on targets
- reward those who meet
- piece rate

Question 5

Drawbacks of Taylor’s theory of motivation

Answer 5

• managers should maintain close control and supervision over their employees
• autocratic style of management and leadership
• motivate workers using piece rate payment

Question 6

Mayo’s human relations school

Answer 6

theory based on the fact that employees have social needs and these must be fulfilled through their work

Question 7

Maslow’s hierarchy of needs

Answer 7

focuses on the psychological aspects of motivation and the fact that motivation comes from within an individual. The role of managers is to unlock this motivation

Question 8

Hierachy of needs

Answer 8

1. self-actualisation
2. esteem
3. social
4. safety
5. physiological

Question 9

Drawbacks of Maslow’s hierarchy of needs

Answer 9

1. not everyone has the same needs
2. our perception of what is important at work will vary
3. not realistic that most employees will reach the top of the hierarchy

Question 10

Herzberg’s 2 factor theory

Answer 10

• disagreed with Taylor about the importance of financial rewards
  -much more convinced about the importance of non-financial factors

Question 11

Define motivators

Answer 11

factors that directly motivate people to work harder

Question 12

Define hygiene factors

Answer 12

factors that can de-motivate if not present but do not actually motivate employees to work harder

Question 13

examples of motivators and hygiene factors

Answer 13

motivators:
- responsibility at work
- meaningful, fulfilling work
- achievement and recognition
hygiene:
pay & other financial rewards
- working conditions
- appropriate supervision & policies

Question 14

Commission

Answer 14

• a bonus based on achieving a sales target
  benefits:
• appropriate for sales jobs
• incentive to increase sales for the business
  drawbacks:
• focus taken away from other aspects of the jo e.g. customer service
• little attention to areas of the job that don’t directly impact commission earned

Question 15

Piecework

Answer 15

payment based on the number of units of output produced
benefits:
- appropriate for production jobs
- incentive to increase output
drawbacks:
- employees may ignore factors such as quality

Question 16

Performance related pay

Answer 16

a salary or bonus scheme linked to job related targets
benefits:
- links pay to measurable targets specific to the nature of the job
- encourages review of employee performance
drawbacks:
- can become quite expensive if large proportion of the workforce achieve their targets, some areas may be subjective
- difficult to ensure PRP is fair across the organisation

Question 17

Bonus and profit sharing

Answer 17

paid when certain targets have been achieved
a proportion of the business’ profits are shared amongst some or all employees
benefits:
- reward linked to the overall success of the company
drawbacks:
- depends on the profitability of the business

Question 18

Key factors in organisational design

Answer 18

• authority
• delegation
• levels of hierarchy
• span of control
• decision making process

Question 19

Chain of command

Answer 19

• refers to the levels in the hierarchy
• organisations are called tall if they have many levels

Question 20

Span of control

Answer 20

refers to the number of employees a manager is responsible for

Question 21

Delegation

Answer 21

is the process of passing down authority through the organisation

Question 22

Centralisation

Answer 22

refers to a decision making process where most decisions are made at the top of the hierarchy, usually senior management
Benefits:
-easier to implement common polices and practices for the whole business
- suitable for when managers have more knowledge and workers are low skilled
- suited to authoritarian leadership styles
- suitable in times of crisis
- effective at cost minimisation and achieving economies of scale

Question 23

Decentralisation

Answer 23

refers to the decision making process where most decisions are delegated to managers in charge of regions, functions and product categories
Benefits:
- effective where local teams are best placed as they can meet customer needs
- appropriate for when the business is spread over a wide geographical area
- reduces workloads of senior managers and promotes autonomy/skills of subordinates
- allows flexible working conditions and supports job enrichment

Question 24

Job rotation

Answer 24

changes are made to an employee’s role on a regular basis
benefits:
- aims to make the job less repetitive and promotes the development of new skills, knowledge and experience
- creates a multi-skilled and flexible workforce with increased quality standards and levels of productivity
drawbacks:
- employees may become demotivated and disengaged if they are rotated onto repeat roles which they don’t like
- lead to employees becoming less productive, which means a reduction in quality due to employees being unskilled initially

Question 25

Job enrichment

Answer 25

employees are given additional responsibilities and authority within their role
benefit:
- can lead to increased productivity and employee loyalty
drawback:
- not everyone wants extra responsibility and this can become overwhelming and demotivating

Question 26

job enlargement

Answer 26

involves the addition of extra, similar tasks to the job. These jobs are at the same level and in the same job area.
benefit:
- employee’s motivation should increase due to them facing greater challenges and variety in work
- short term solution that can demotivate employees, decrease job satisfaction and productivity

Question 27

empowerment

Answer 27

provides employees with more responsibility to work on their own behalf without handing down their tasks and projects
benefits:
- increases employees sense of worth and leads to them feeling valued
- employees become more productive, focused, and loyal to the business
drawback:
not as effective on new or unskilled employees

Question 28

consultation

Answer 28

employees are involved in the decision making process and are encouraged to give their own opinions
benefit:
- employees feel more valued and respected by the business
- increased levels of motivation and commitment to the business
drawback:
- employees may start to doubt the consultation process if their views are not implemented.

Question 29

Team working

Answer 29

employees are placed into groups to work with each other and are given specific targets