1.4 - Managing people Flashcards
Define motivation
refers the willingness to work and achieve given target or goal
4 main theories of motivation
- scientific management
- hierarchy of needs
- two factor theory
- human relations
Taylor’s theory of scientific managemn
- 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
Taylor’s view on what motivated people
Financial rewards
- based on targets
- reward those who meet
- piece rate
Drawbacks of Taylor’s theory of motivation
- managers should maintain close control and supervision over their employees
- autocratic style of management and leadership
- motivate workers using piece rate payment
Mayo’s human relations school
theory based on the fact that employees have social needs and these must be fulfilled through their work
Maslow’s hierarchy of needs
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
Hierachy of needs
- self-actualisation
- esteem
- social
- safety
- physiological
Drawbacks of Maslow’s hierarchy of needs
- not everyone has the same needs
- our perception of what is important at work will vary
- not realistic that most employees will reach the top of the hierarchy
Herzberg’s 2 factor theory
- disagreed with Taylor about the importance of financial rewards
-much more convinced about the importance of non-financial factors
Define motivators
factors that directly motivate people to work harder
Define hygiene factors
factors that can de-motivate if not present but do not actually motivate employees to work harder
examples of motivators and hygiene factors
motivators:
- responsibility at work
- meaningful, fulfilling work
- achievement and recognition
hygiene:
pay & other financial rewards
- working conditions
- appropriate supervision & policies
Commission
- 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
Piecework
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
Performance related pay
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
Bonus and profit sharing
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
Key factors in organisational design
- authority
- delegation
- levels of hierarchy
- span of control
- decision making process
Chain of command
- refers to the levels in the hierarchy
- organisations are called tall if they have many levels
Span of control
refers to the number of employees a manager is responsible for
Delegation
is the process of passing down authority through the organisation
Centralisation
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
Decentralisation
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
Job rotation
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
Job enrichment
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
job enlargement
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
empowerment
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
consultation
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.
Team working
employees are placed into groups to work with each other and are given specific targets
