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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
Q

Define Dismissal

A

Occurs when an employee is not operating effectively (not up to the job)

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26
Q

Define unfair dismissal

Give examples

A

Occurs when the employer has not followed the fair dismissal process.

Age
Gender
Race
Religion
Disability
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27
Q

What is a gig economy

A

A market where part time work is common, with the job designed for part time employees

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28
Q

Explain collective bargaining

A

Occurs when an employer deals with a trade union which represents the whole workforce when discussing problems. Trade unions give employees power in negotiation.

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29
Q

Explain the individual approach

A

Where individual workers represent themselves in negotiations with their employers.

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30
Q

What are the advantages of collective bargaining for the business

A

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

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31
Q

What are the disadvantages of collective bargaining for a business

A

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)

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32
Q

Define recruitment

A

Is the process of filling a job vacancy

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33
Q

Why may a business need to recruit

A

Existing staff leaving
Growth of the business
New activities need new skills

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34
Q

Define internal recruitment

Define external recruitment

A

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

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35
Q

What are the advantages and disadvantages of internal recruitment

A

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
Q

What are the advantages and disadvantages of external recruitment

A

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
Q

What does the type of recruitment used depend on

A

Cost of the recruitment method
Size of the recruitment budget
Characteristics of the candidate

38
Q

What are the methods of selection when recruiting for a business

A

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
Q

Define motivation

A

Is the ways in which a business encourages its employees

40
Q

What are the benefits of increased motivation

A

Increased productivity and reduced average costs
Improved customer service
Higher sales
Improved quality
Improved brand image and customer loyalty

41
Q

What was Taylors theory of motivation (scientific management)

What does it include

Is it in effect today

A

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
Q

What is Mayo’s theory of motivation (human relations)

What are examples of this

A

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
Q

What is Maslow’s theory of motivation (hierarchy of needs)

What is the hierarchal system (give business examples)

A

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
Q

Define Herzberg’s theory of motivation (two factor theory)

A

Believed motivation is doing something because you want to do it, not because you seek rewards from it

45
Q

What are the two factors in Hezberg’s theory of motivation

A 
Motivators : 
Achievement 
Responsibility 
Recognition
Advancement (growth)
Meaningful work  
Hygiene factors (factors which demotivate if not present)
Supervision 
Pay 
Personal relations 
Working conditions
46
Q

What is the monetary method of piecework

Advantages and disadvantages

A

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
Q

What is the monetary method of commission

Advantages and disadvantages

A

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
Q

What is the monetary methods of a bonus

Advantages and disadvantages

A

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
Q

What is the monetary method of profit sharing

Advantages and disadvantages

A

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
Q

What is the non monetary method of delegation

Advantages and disadvantages

A

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
Q

What is the non monetary methods of consultation

Advantages and disadvantages

A

Seeking employees opinion before making a decision

A: meets esteem needs (Maslow)
D: Can be time consuming and cause conflict

52
Q

What is the non monetary method of team working

Advantages and disadvantages

A

Where employees are allowed to work in a group

A: meets social needs (Maslow)
D: May lower productivity of more productive individuals

53
Q

What is the non monetary method of flexible working

Advantages and disadvantages

A

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
Q

What is the non monetary method of job enrichment

Advantages and disadvantages

A

Involves giving employees extra responsibility

A: Allows employees to develop new skills (self actualisation)
D: Employee may not want extra responsibility

55
Q

What is the non monetary method of job rotation

Advantages and disadvantages

A

Involves moving employees between different tasks

A- Reduces boredom (high productivity and staff retention)
D: reduces productivity from specialisation

56
Q

Define delegation

A

Means passing decision making power down the organisational structure to a lower level

57
Q

What are business functions

A

The main departments working within a business

These include finance, marketing, operational management and human resources management

58
Q

What is span of control

What are the problems of too large a span of control

A

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
Q

What is a centralised structure

A

An organisational structure where most major decisions are made at the top by senior managers

60
Q

What are the advantages and disadvantages of a centralised structure

A

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
Q

What is a decentralised structure

A

Is where decision making is passed lower down the organisational structure through delegation

62
Q

What are the advantages and disadvantages of a decentralised organisational structure

A 
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
Q

What is delayering

A

Involves removing a layer from the organisational structure , to decrease costs and increase efficiency

64
Q

What is a tall organisational structure

A

An organisational structure with many levels of hierarchy

65
Q

What are the advantages and disadvantages of a tall organisational structure

A

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
Q

What is a flat structure

A

An organisational structure with fewer levels of hierarchy but wider spans of control

67
Q

What are the advantages and disadvantages of a flat organisational structure

A

A
Communication is quicker
Gives employees responsibility

D
Less scope for promotion (decreased motivation)
Too many subordinates for managers (lack of control

68
Q

What is a matrix structure

A

An organisational structure that combines traditional departments (business functions) into project teams

69
Q

What are the advantages and disadvantages of a matrix structure

A

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
Q

What impact can the wrong organisational structure have on motivation and efficiency

A

Poor communication leading to mistakes
Tasks not being done
Poor productivity

71
Q

What impact can the right organisational structure have on motivation and efficiency

A

High productivity
High levels of motivation
Good organisation of tasks

72
Q

What is the chain of command

A

The path of authority and delegation within a business

73
Q

Define Leadership

A

The action of leading a group of people or an organisation, to be in charge and to show direction

74
Q

Define management

A

The process of dealing with or controlling people, the responsibility for and control of a company

75
Q

What is the difference between a manager and a leader

A

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
Q

What are the types of leadership style

A

Autocratic
Democratic
Paternalistic
Laissez - Faire (leave to do)

77
Q

Explain a autocratic leadership style

Where is the style derived from

A

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
Q

Explain a democratic leadership style

A

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
Q

Explain a paternalistic leadership style

A

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
Q

Explain a Laissez-faire leadership style

What are the advantages and disadvantages

A

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
Q

What is training

A

Is designed to enhance employees existing skills or develop new skills

82
Q

What are the advantages and disadvantages of training

A

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
Q

What is it induction training

A

Is the initial training to familiarise employees with the workplace and the business

84
Q

What are the advantages and disadvantages of on the job training

A

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
Q

Define an entrepreneur

A

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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