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Business Studies Theme 1 (A- Level) > 1.4 managing people > Flashcards

1.4 managing people Flashcards

1
Q

What is the Mcgregor theory

A

There is a hard (theory x) and soft (theory y) approach to

managing

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2
Q

What is the hard approach (theory x) of management and give an example of an industry we would see this

A

Sees staff as an input and a cost who need to be controlled and supervised

May be suitable in manufacturing where staff are controlled to produce a certain amount of output

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3
Q

What is the soft approach (theory y) to management and give an example of what industry it would be used in

A

Sees staff as an asset with a source of innovation for improvement. They can give a competitive advantage

A soft approach is seen in more creative job where innovation is promoted

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4
Q

What are the advantages and disadvantages of a hard approach

A

A
Cost effective workforce
Decision making is quicker and focused on senior managers

D
Level of labour turnover may be high
High absenteeism
Low levels of motivation and therefore productivity

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5
Q

What are the advantages and disadvantages of a soft approach

A 
A
Gain a good reputation 
Recruitment is better and easier 
Develop a more creative workforce 
High rates of motivation
Higher productivity levels

D
High level of expenditure to build motivation
Decision making will take longer
Staff may lower productivity levels if there is a lack of management

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6
Q

Define staff turnover

A

Is the proportion of staff that leave a business during a year

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7
Q

What is labour productivity

Give the formula

A

The output per worker per period of time

= Total output / number of workers = unit per worker

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8
Q

Define labour retention

A

Is the rate at which staff are kept in the business

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9
Q

Why does labour retention matter for a business

A 
Recruitment costs can be high 
Cost for training new employees 
Decreased productivity if top employees leave 
Decreased motivation 
Can lead to a bad reputation 
Less appealing to potential new staff
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10
Q

What is the formula for labour retention rate

A

Employees remaining / original workforce x 100%

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11
Q

What is the formula for labour turnover rate

A

Employees left / original workforce x 100%

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12
Q

What is the formula for absenteeism

A 
Number of days missed 
/
Total period of days or number of employees 
X 
100%
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13
Q

Define flexible working

A

Describes the range of employment options designed to help employees balance home and work life

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14
Q

What are the the types of flexibility in business

Give a brief explanation of each one

A

Multi-skilling - training staff to perform a range od different roles in the business

Part time and temporary : brings people into the workforce who have the skills and experience but are unable to commit full time.

Flexible hours and home working : technology has made it possible to communicate digitally

Outsourcing : contracting another business to perform certain business functions

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15
Q

Define outsourcing

What are the drawbacks and benefits

A

Means contracting another business to perform certain business functions, when capacity is needed.

A
Fixed costs kept low
Sudden surges in demand can be met quickly

D
Variable costs are high
Outsourcing arrangements can take time to work effectively

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16
Q

What are the advantages of flexible working

A

Can lead to reduced costs for the business . Elg less office space needed if staff work from home

Can lead to high staff retention rates and recruitment

Can lead to higher levels of motivation

Cost effective for employees to communicate digitally

Allows business to minimise redundancies if staff work part time

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17
Q

What are the disadvantages of flexible working

A

Additional costs of setting up flexible working
Potential loss of customers if key employees reduce their working hours
Lower labour productivity
Managers can find it difficult to manage flexibility

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18
Q

Where is flexible working most likely to be seen

A

Large businesses
Public sectors
A business in a less competitive market

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19
Q

What can flexible working cause

A

Comes with an element of uncertainty

Can use the uncertainty to their advantage or it could harm how the business operates and their profits could be effected if flexible working is not implemented effectively

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20
Q

Define Redundancy

A

Happens when your job disappears when the worker has done nothing wrong

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21
Q

Why may a business need to use redundancy

A

Cut costs
Close down or relocate
The worker is no longer needed

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22
Q

Explain the impact on costs of redundancy

A

Reduces costs in the long term as there are less variable costs

Increases cash outflows in the short term as redundancy payments were made

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23
Q

What must an employer do when making an employee redundant

A

Give adequate warning
Consult with the employee about why they are being made redundant
Consider alternatives to redundancy

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24
Q

What is statutory redundancy

A

Occurs if an employee worked for the business for 2 or more years and are made redundant
Redundancy pay is based on age (older people are paid more)

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25
Define Dismissal
Occurs when an employee is not operating effectively (not up to the job)
26
# Define unfair dismissal Give examples
Occurs when the employer has not followed the fair dismissal process. ``` Age Gender Race Religion Disability ```
27
What is a gig economy
A market where part time work is common, with the job designed for part time employees
28
Explain collective bargaining
Occurs when an employer deals with a trade union which represents the whole workforce when discussing problems. Trade unions give employees power in negotiation.
29
Explain the individual approach
Where individual workers represent themselves in negotiations with their employers.
30
What are the advantages of collective bargaining for the business
Increased motivation for employees (higher productivity and lower unit costs) Less likely to be sued for unfair dismissal Less time consuming and faster negotiation Better labour retention rates and less recruitment costs
31
What are the disadvantages of collective bargaining for a business
Weaker negotiation power - potential higher costs Potential for strikes Slower decision making Potential reduced profit margins (depends on elasticity of demand, inelastic means higher price can be charged and profit margin is maintained)
32
Define recruitment
Is the process of filling a job vacancy
33
Why may a business need to recruit
Existing staff leaving Growth of the business New activities need new skills
34
# Define internal recruitment Define external recruitment
Means filling a job vacancy with somebody who already works for the business Means filling a job vacancy with somebody who does not work for the business
35
What are the advantages and disadvantages of internal recruitment
A Quicker and cheaper than external recruitment Chance of promotion may boost motivation The work environment will be known by the employee D Limits the number of potential applicants Fails to bring new ideas outside the business Still a cost of recruitment as a vacancy needs filling for the employee being promoted
36
What are the advantages and disadvantages of external recruitment
A Wide range of high skilled applicants available Brings new ideas to the business D Can be costly and time consuming Cost of an external agency Their would be less motivation as there is less chance of promotion inside the business - lower productivity
37
What does the type of recruitment used depend on
Cost of the recruitment method Size of the recruitment budget Characteristics of the candidate
38
What are the methods of selection when recruiting for a business
Interviews - ask candidates questions about their characteristics and the job description Testing and profiling - uncovers a candidates skill level and identifies their personality Assessment centres - assesses candidates abilities and performance in a situated environment
39
Define motivation
Is the ways in which a business encourages its employees
40
What are the benefits of increased motivation
Increased productivity and reduced average costs Improved customer service Higher sales Improved quality Improved brand image and customer loyalty
41
What was Taylors theory of motivation (scientific management) What does it include Is it in effect today
Had an approach that people only work in order to maximise their own income He said to design a payment system that pays every time an individual completes their task Used today, seen as commission and piece rate. Unpopular as workers have a lack of security
42
What is Mayo’s theory of motivation (human relations) What are examples of this
He discovered that there were more factors that effect motivation than money Workers gain motivation from : freedom and control over their working environment, working in a team, managers taking an interest in their employees
43
What is Maslow’s theory of motivation (hierarchy of needs) What is the hierarchal system (give business examples)
Believed all humans have a fixed set of needs , with the most basic needs at the bottom ``` Hierarchy of needs : Physical needs (pay levels and working conditions) Safety needs (job security and stability) Social needs (team work and social facilities) Esteem needs (recognition for work and power) Self actualisation (scope to develop new skills and challenges) ```
44
Define Herzberg’s theory of motivation (two factor theory)
Believed motivation is doing something because you want to do it, not because you seek rewards from it
45
What are the two factors in Hezberg’s theory of motivation
``` Motivators : Achievement Responsibility Recognition Advancement (growth) Meaningful work ``` ``` Hygiene factors (factors which demotivate if not present) Supervision Pay Personal relations Working conditions ```
46
What is the monetary method of piecework Advantages and disadvantages
Paying each employee every time they repeat a task A: encourages speed and high productivity D: likely to lead to quality problems as production is rushed
47
What is the monetary method of commission Advantages and disadvantages
Paying employees a % of the revenue they generate on top of a basic wage A : Incentivises to sell (high sales) D: Can lead to poor customer service
48
What is the monetary methods of a bonus Advantages and disadvantages
Where a lump sum is paid to employees as an additional reward A : Encourages employees to have greater productivity than other employees (high productivity) D: Can cause bad relations between employees
49
What is the monetary method of profit sharing Advantages and disadvantages
Where a proportion of the profits are shared amongst employees A : Aligns employee goals and business goals D: Can create tension as some employees may feel they were more productive than others
50
What is the non monetary method of delegation Advantages and disadvantages
Where decision making is passed down the structure to a subordinate A: meets esteem needs (Maslow) D : employees may not have the skills and experience needed
51
What is the non monetary methods of consultation Advantages and disadvantages
Seeking employees opinion before making a decision A: meets esteem needs (Maslow) D: Can be time consuming and cause conflict
52
What is the non monetary method of team working Advantages and disadvantages
Where employees are allowed to work in a group A: meets social needs (Maslow) D: May lower productivity of more productive individuals
53
What is the non monetary method of flexible working Advantages and disadvantages
Working conditions designed to balance home and work life A: meets physical needs (maslow) of good working conditions D: coordination can be hard to achieve
54
What is the non monetary method of job enrichment Advantages and disadvantages
Involves giving employees extra responsibility A: Allows employees to develop new skills (self actualisation) D: Employee may not want extra responsibility
55
What is the non monetary method of job rotation Advantages and disadvantages
Involves moving employees between different tasks A- Reduces boredom (high productivity and staff retention) D: reduces productivity from specialisation
56
Define delegation
Means passing decision making power down the organisational structure to a lower level
57
What are business functions
The main departments working within a business | These include finance, marketing, operational management and human resources management
58
What is span of control What are the problems of too large a span of control
Describes the number of subordinates directly answerable to one manager Too large span of control can lead to a lack of control and lower productivity
59
What is a centralised structure
An organisational structure where most major decisions are made at the top by senior managers
60
What are the advantages and disadvantages of a centralised structure
A Easier to implement decisions Easier to control and coordinate Quicker decision making D Senior managers are not close to customers needs Lack of authority may reduce employee motivation Lack of new ideas and innovation
61
What is a decentralised structure
Is where decision making is passed lower down the organisational structure through delegation
62
What are the advantages and disadvantages of a decentralised organisational structure
``` A Reduces the burden on senior managers Allows innovation and new ideas Decisions are more suited to customer needs Promotes motivation ``` D Time consuming Can cause conflicts
63
What is delayering
Involves removing a layer from the organisational structure , to decrease costs and increase efficiency
64
What is a tall organisational structure
An organisational structure with many levels of hierarchy
65
What are the advantages and disadvantages of a tall organisational structure
A Allows close supervision of staff Promotion opportunities increase motivation Clear sense of hierarchy D Employees may feel over supervised Communication takes longer to reach senior managers
66
What is a flat structure
An organisational structure with fewer levels of hierarchy but wider spans of control
67
What are the advantages and disadvantages of a flat organisational structure
A Communication is quicker Gives employees responsibility D Less scope for promotion (decreased motivation) Too many subordinates for managers (lack of control
68
What is a matrix structure
An organisational structure that combines traditional departments (business functions) into project teams
69
What are the advantages and disadvantages of a matrix structure
A Learning from employees in different departments gives employees new skills Communication is very easy Efficient use of limited human resources D Conflict between employees from different functional areas
70
What impact can the wrong organisational structure have on motivation and efficiency
Poor communication leading to mistakes Tasks not being done Poor productivity
71
What impact can the right organisational structure have on motivation and efficiency
High productivity High levels of motivation Good organisation of tasks
72
What is the chain of command
The path of authority and delegation within a business
73
Define Leadership
The action of leading a group of people or an organisation, to be in charge and to show direction
74
Define management
The process of dealing with or controlling people, the responsibility for and control of a company
75
What is the difference between a manager and a leader
A manager is transactional - help complete a process to control and manage change A leader is transformational - helps change the process to inspire others and innovate
76
What are the types of leadership style
Autocratic Democratic Paternalistic Laissez - Faire (leave to do)
77
Explain a autocratic leadership style Where is the style derived from
A style used when leaders tell their employees what they want done and how they want it accomplished , with no consultation A style derived from Taylor (staff are just an input)
78
Explain a democratic leadership style
A style where the leaders allow input from employees. Tye employees have a higher degree of participation and collaborate on the decision making process
79
Explain a paternalistic leadership style
A leader who makes the right decision for the employees they are responsible for . There is a dominant authority figure who expects loyalty and trust from employees , taking their welfare into account when making a decision
80
Explain a Laissez-faire leadership style What are the advantages and disadvantages
A style where employees can carry out activities and make decisions freely , in a relaxed environment with little direction and guidelines A: Meets esteem needs (power) D: Less productivity and a lack of motivation
81
What is training
Is designed to enhance employees existing skills or develop new skills
82
What are the advantages and disadvantages of training
A Increases motivation and innovation Wider range of skills gained D Is a cost for the firm Can disrupt normal operations of the firm
83
What is it induction training
Is the initial training to familiarise employees with the workplace and the business
84
What are the advantages and disadvantages of on the job training
A Tailored to the business Less time consuming Less costly than off job D Less ideas brought to the firm May not be done properly as employees have other priorities
85
Define an entrepreneur
Is a person who is willing to take the risks involved in starting a business , because they believe the risks will be worth the reward

Business Studies Theme 1 (A- Level) (7 decks)

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