1.4-managing people Flashcards
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what is chain of command?
the movement of information, power and authority throughout an organisation
what is a hierarchy?
the levels that a business has, based on how much authority and power each employee has
those at the top are more important than those at the bottom
employees can gain a promotion to move up a hierarchy
What is span of control?
the number of employees that a manager is directly responsible for
in a flat structure- wide
in a tall structure- narrow
What is a tall structure?
a organisation with many layers of management
it has a long chain of command, but a narrow span of control
+ve
more promotional opportunities
narrow span of control means managers can keep close eye on employees
-ve
long chain of command makes sending and receiving messages more time consuming and inefficient- takes longer to make decisions and implement changed
higher labour costs as there is more managers and employees
what is a flat structure?
an organisation with few layers of management
has a short chain of command but wide span of control
+ve
short chain of command means quicker communication, so decisions made quicker
employees delegated more tasks to do- increases motivation
-ve
staff may feel overstretched and overworked
lack of supervision means no motivation
no promotion opportunities
What is a matrix structure?
this is where employees report to multiple leaders when there is more than one project at the same time
+ve
departments are specialised in certain areas so increased efficiency
creates a multi skilled workforce as employees from each department can jump in when needed
-ve
can be coordination problems as chain of command is hard to identify
What is delayering?
is where you remove a number of layers in the hierarchy
-can be to reduce costs- save on salaries
-may cost in the short term to retrain staff
-too much delayering can mean managers and employees are overworked
what is a centralised structure?
this is where all decisions are made by managers at the top of the hierarchy- head office-decisions such as sales, products, recruitment, accounts
only rotas and stock levels are decided on branch level
+ve
leaders making decisions are experienced and not biased towards one branch
decisions stay consistent throughout whole business
quicker decisions as managers dont need to consult with employees
-ve
employees may feel demotivated as they are excluded from decision making
managers making decisions dont work on shop floor so may take longer to notice consumer trends
What is motivation?
having motivated staff means that they are more productive and work harder, which meets business objectives and creates higher profitability
What is importance of employee motivation?
motivated employees are:
-creative
-accurate
-productive
-better customer service
motivated employees are more reliable and loyal to the business- less likely to be absent and leave which reduces absenteeism and turnover which reduces costs or recruitment and training
What is Taylors scientific management motivational theory?
he believed the only way of motivating employees is by paying them
employees get paid based on output produced- the more produced the higher the pay
he believed the managers job was to tell employees what to do, whilst employees job is to do what they are told and get paid accordingly
he also used time=-motion study where he examines how long it takes to do a task and eliminates the time consuming tasks
What is Maslows hierarchy of needs theory?
The idea that everyone has a pyramids of needs- you need to meet the omnes at the bottom and your work your way up where you start to self-actualise and reach your full potential
1-physical needs
basic needs of life eg, food, water, shelter
business does this by paying its employees
2-safety needs
health and safety: business does this by providing a safe working environment and job security
3-social - love and belonging needs:
you seek love and frienships
you want to be part of social clubs and community groups
business does this by organising team outings
4-self esteem needs:
where you seek respect, status and recognition
you create a good working image
business does this by giving employee recognition
5- self actualisation:
only met when all others are met
where you are creative, inspiring and problem solving.
you reach your full potential and develop new skills and take responsibility
what is mayos human relation theory?
he realised money wasn’t the only motivating factor, there were non-financial factors too.
he didn’t believe that the employer and employees had different job roles
he created better working conditions, team working and social clubs to increase employee motivation
What is hertzbergs two factor theory?
interviewed accountants and engineers to find out what motivates them
found out that there are 2 groups of motivating factors:
1- motivating factor- interesting work, personal achievement, responsibility and development
2-hygiene factors- good working conditions, pay, relationships with employers.
What are the 5 financial motivation methods?
1- piecework
2-commission
3-bonuses
4-profit share
5-performance related pay
what is piecework?
this is where employees are paid based on unit produced- they dont get paid a fixed salary
-employer can either pay minimum wage or fair peace rate- paid according to how long it took to produce a product
+ve:
-efficient employees can earn more
-motivates employees to produce more
-employees may work longer hours
-ve:
quality may suffer if employees cut corners
employees may get tired
what is commission?
money paid to employees for meeting targets
often used in sales roles as a reward of selling products
can be commission only, or low basic salary and commission
commission is paid as a %of unit price or unit sold
+ve
-motivates sales person to sell more-sales person can earn good money
-ve
not a steady income
if employee on commission only they may not earn anything
what is a bonus?
lump sum of money added onto annual salary
can be for meeting sales targets or performance targets
+ve
seen as an incentive to work harder
can be seen as a mean of appreciation
-ve
tax on bonus
can be costly so business may use girft cards instead
what is profit share?
where employees are paid an annual dividend based on how much profit the firm makes
employees spend less to make more profit
they become more loyal to the firm
+ve
employees work together towards a goal
increases motivation
increased commitment to the business
-ve
salaries increase yearly so profit share may not motivate them
may be focused on profit rather than customer service
what is performance related pay?
employees and manager decide on objectives for employee and targets are set. if targets are met, employee gets a bonus
+ve
motivates employees to work harder as there is a direct relationship between performance and pay
employees can see who to promote
-ve
if targets arent met, may be demotivated
bonus may be seen as too low of an incentive
