1.4 Managing People

Question 1

When employers see staff as assets they are more likely to?

Answer 1

Provide good remuneration packages 
Give reasonable holiday and sick pay 
Invest in working conditions 
Provide workers with job security 
See training as an important investment 
Delegate responsibility 
Take care in developing policies that motivate staff

Question 2

When employers see staff as a cost they are more likely to?

Answer 2

Pay workers the minimum
Provide the minimum legal sick/holiday pay
Provide basic working conditions
Find ways to maximise output while minimising staff costs
See training as an unnecessary cost and one of the first things to be cut when in financial difficulty
Centralise decision making
Give little thought to employee motivation

Question 3

Why is flexible working important?

Answer 3

It’s important to adapt to the changing demands of business environment in order to survive

Question 4

What are 4 approaches to flexible working?

Answer 4

Part time and temporary contracts
Flexible hours and homeworking
Multiskilling employees so that they can carry out multiple roles
Outsourcing- getting other specialist businesses to complete a particular task or business function

Question 5

Evaluate flexible working?

Answer 5

+ able to respond to short term changes in demand
+ specialist jobs can be done by experts who don’t have to be permanently employed
+ easier to manage staffing costs
- staff may not feel committed to the company if they don’t have a permanent contract
- communication can be a problem
- outsourced work may be of a lower quality

Question 6

What is the difference between dismissal and redundancy?

Answer 6

Dismissed- staff fail to meet the required standard or through misconduct
Redundant- no work, not enough work or the position no longer applies

Question 7

What are 3 forms of employee representation?

Answer 7

Trade unions- organisation established to protect and improve the economic and working conditions of workers
Works council- forum within a business where workers and managers meet to discuss issues relating to conditions,pay and training
Employee committees- a group of employees meeting together to focus on specific issues within the workforce

Question 8

What are the two types of bargaining methods where employees can bargain with employers to determine wages, working conditions etc. ?

Answer 8

Collective bargaining- negotiated process where trade unions and businesses discuss and agree on conditions for the benefit of trade union members so that workers have more power and influence when negotiating as one body
Individual bargaining- more appropriate for small businesses. Individuals negotiate their own pay and conditions so agreements may differ from one worker to the next

Question 9

What are 5 influences on employee representation in decisions?

Answer 9

1) nature of the work carried out by employees, low skilled workers are less likely to have a significant input into decision making
2) leadership and management style of the boss, autocratic mangers may want to limit the input of employees
3) the corporate objectives of the business and mission statement, business in crisis I may want quick decisions thus avoid consulting staff
4) history of the business, what’s happened in the past
5) employment legislation, may dictate that employees are consulted on certain aspects of work and employment

Question 10

What is the recruitment and selection process?

Answer 10

Process of attracting, identifying and selecting the best workers for a role. The effectiveness of this process will help a business recruit people who can provide a strategic advantage for the company

Question 11

What is the 7 stages in the R+S process?

Answer 11

1) decision is made as to whether recruitment is necessary
2) job description and person specification are prepared
3) plans are made on how and when to advertise
4) applicants are short listed
5) references are requested
6) candidates are invited for interviews and selection tests
7) the successful candidate is offered the job and signs the contact of employment

Question 12

What is internal recruitment and what are the advantages?

Answer 12

When a role is filled by promoting employees from within the organisation
+ cheaper than external recruitment
+ managers know their staff so there is less risk as to how they’ll perform
+ may require less training
+ promotion opportunities are good for staff motivation and retention

Question 13

What is external recruitment and what are the advantages?

Answer 13

Involves bringing new employees in from outside the organisation using job adverts, employment agencies, government training schemes, headhunting
+ may attract a wider number of applicants
+ brings in new skills and ideas
+ helps increase the capacity within the business

Question 14

What is training?

Answer 14

The process of developing employees by improving their knowledge and skills so they can perform their duties better

Question 15

What is on the job training and what are the advantages/disadvantages of it?

Answer 15

Train on the job eg. Mentoring, job rotation, apprenticeships, graduate training
+ output may continue as learning is through actually doing the job
+ it may be easier and cheaper to organise
- it can be disruptive for others and mistakes are possible

Question 16

What is off the job training and what are the advantages/disadvantages of it?

Answer 16

Train outside the workplace eg.training centres, external courses
+ mistakes reduced because training isn’t on site
+ safer
+ more motivating
- costly
- may not always be relevant if not directly linked to the job

Question 17

What’s is induction training?

Answer 17

Part of the recruitment and selection process as new employees need to be trained up so they can do their job effectively
Eg. Learn the rules, systems, procedures

Question 18

What are the benefits of training specifically for managers, owners, employees and customers?

Answer 18

Managers- better motivated workers
Owners- higher levels of productivity
Employees- reduces anxiety so make able to do their job and increases potential for promotion
Customers- better quality products and better customer service

Question 19

When is training required?

Answer 19

New employees join a company
New technology/equipment is introduced
New health and safety legislation
New working practices

Question 20

Explain the costs of training?

Answer 20

Productivity falls if staff are away from the workplace
Produce goods and services at a slower place often with mistakes
Can be one of the first expenses cut when a business needs to save money
Investment in training is a long term strategy
BUT the investment is lost if the employee leaves the organisation

Question 21

What is a hierarchy?

Answer 21

Organisation structure that dictates how workers relate to and work with one another in relation to the professional relationship, responsibilities and authority between employees

Question 22

What is authority?

Answer 22

Powers in terms decision making that a worker has, the higher up the organisation chain the greater the authority the employee has

Question 23

What is a subordinate?

Answer 23

Someone who is directly below the person above them

Question 24

What are the roles of directors, managers, supervisors and team leaders in an organisation?

Answer 24

Directors- run the business
Managers- responsible for managing and controlling an aspect of the business and make day to day decisions
Supervisors- monitor and regulate work of other employees via delegated responsibility from a manager
Team leaders- members of a team who take a leadership role to guide the work of the team and ensure staff are motivated and work effectively together

Question 25

What are 5 key factors in organisation designs?

Answer 25

Levels of hierarchy 
Span of control 
Decision making process
Authority 
Delegation

Question 26

What is meant by chain of command?

Answer 26

Levels in the hierarchy

Question 27

What is meant by span of control?

Answer 27

The number of employees that a manager is directly responsible for

Question 28

What is meant by delegation?

Answer 28

The process of passing down authority through the organisation
Can lighten the workload of key personnel
May not be suitable in certain situations where junior employees don’t have the skills or in a crisis situation

Question 29

What is meant by centralisation and what are the advantages/disadvantages of it?

Answer 29

Decision making where majority of decisions are led by senior managers
+ works well where standardisation is required
+ appropriate for situations where managers have the knowledge and workers are low skilled
+ suited to authoritarian leadership styles
+ more suitable in times of crisis
+ effective at cost minimisation and achieving EOS

Question 30

What is meant by decentralisation and what are the advantages/disadvantages of it?

Answer 30

Decision making is delegated to managers in charge of regions, functions and product categories
+ effective where local teams are best placed to make decisions to meet the customer needs
+ appropriate where business is spread over a wide geographic area and local trends/needs are important
+ effective at reducing workload of senior managers and promoting autonomy and the skills of subordinates
+ allows for flexible working conditions and supports job enrichment

Question 31

Describe a tall organisation structure? What are the advantages/disadvantages of it?

Answer 31

Many levels in the chain of command
Narrow span of control 
Add more levels as they grow
Communication takes longer
Less delegation and empowerment 
More opportunities for promotion
\+ mangers have together control 
\+ clear promotional route 
- slow communication
- slow decision making 
- tight control may be demotivating
- lots of mangers, expensive

Question 32

Describe a flat organisation structure? What are the advantages/disadvantages of it?

Answer 32

Few levels in the chain of command
Few middle managers
Wide span of control 
More flexible
Broader job roles
Faster decision making 
Less control and fewer opportunities for promotion 
\+ good communication 
\+ quick decision making 
\+ staff more motivated, less controlled by managers 
- managers may lose control of workforce
- cheaper, fewer managers

Question 33

Describe a matrix structure? What are the advantages/disadvantages of it?

Answer 33

Workers are organised by a project and business function, teams are formed to carry out a specific project such as the development of a new product or opening a new branch 
\+ motivational
\+ flexible
- can be expensive
- can be difficult to coordinate

Question 34

What’s motivation?

Answer 34

The willingness to work and a chive a given target or goal

Question 35

Explain Taylor’s theory?

Answer 35

People are motivated solely by money
Focuses on efficiency and improved competitiveness
Incentivise work with financial rewards
Improve efficiency through standardisation and division of labour
Staff are given elementary training and clear instructions on how to complete a task
Application of Taylor’s principles reduces the need for as many workers as productivity is raised

Question 36

Explain Mayo’s theory?

Answer 36

Employees have social needs and these must be fulfilled through their work
Informal working groups are recognised as having a positive influence on productivity
Social interactions outside of working hours are important, staff aren’t simply motivated by financial incentives
Efficiency can be achieved through teams and team working
Focus on the needs of the employees rather than the needs of the organisation

Question 37

Explain Maslow’s hierarchy of needs?

Answer 37

People are driven to achieve personal needs
Basic needs- physiological/security
Higher needs- social, self esteem, self actualisation
Can motivate staff by giving them the opportunity to satisfy these needs at work

Question 38

Explain Herzberg’ s two factor theory?

Answer 38

Hygiene factors- don’t motivate staff but without them they become demotivated eg.poor pay, lack of promotions, poor work conditions, lack of job security,
Factors that do lead to satisfaction- personal growth, advancement, recognition, feedback and support, good manger relationship/leadership

Question 39

Financial methods of motivation- what is commission, what are the advantages/disadvantages of it?

Answer 39

A bonus paid based on achieving a sales target
+ appropriate for sales jobs
+ incentive to increase sales revenue
- focus taken away from other areas of the job eg. customer service
- little attention to aspects of the job that don’t directly impact commission earned

Question 40

Financial methods of motivation- what is piecework, what are the advantages/disadvantages of it?

Answer 40

Payment based on the number of units of output produced
+ appropriate for production jobs
+ incentive to increase output
- staff may ignore factors eg. quality

Question 41

Financial methods of motivation- what is performance related pay, what are the advantages/disadvantages of it?

Answer 41

Salary/bonus scheme linked to job related targets/performance which is reviewed every 6month/annually
+ links pay to measurable targets specific to the nature of the job
+ encourages review of employee performance
- can be expensive if a large proportion of the workforce achieve their targets
- some areas of performance can be subjective
- hard to ensure PRP is fair across the organisation

Question 42

Financial methods of motivation- what is profit sharing/bonus schemes, what are the advantages/disadvantages of it?

Answer 42

Distributing a percentage of net profit across the workforce
+ reward linked to the overall success of the company
- depends on profitability of the business

Question 43

Non-financial methods of motivation- what is delegation/consultation/empowerment, what are the advantages/disadvantages of it?

Answer 43

Gives staff autonomy, authority, and the power to influence key business decisions
+ staff feel involved, are able to make their own decisions and are able to influence the business
- may slow down decision making and consistency across the business
- some employees may not have the skills/experience to make important decisions/contribute their own ideas

Question 44

Non-financial methods of motivation- what is team working, what are the advantages/disadvantages of it?

Answer 44

Organise the workforce into teams in order to benefit from the social aspects of motivation
+ meets staff’s social needs and encourages a sense of belonging
+ helps staff develop a connection to their organisation to the organisation through their colleagues
- individual performance is harder to identify in a team situation, ineffective workers may not be identified

Question 45

Non-financial methods of motivation- what is flexible working, what are the advantages/disadvantages of it?

Answer 45

Adopting flexible contracts and approaches that don’t require employees to work in an office every day from 9am to 5pm

• hard to keep control of staff and ensure they’re being productive
• difficult to build team spirit if staff aren’t together all the time

Question 46

Non-financial methods of motivation- what is job rotation/enrichment/enlargement, what are the advantages/disadvantages of it?

Answer 46

Encourages staff to work across a range of roles, develop understanding of different areas of the business and develop new skills
+ staff are motivated through increased variety and personal development
- can be disruptive and reduce productivity short term as staff develop their skills and learn new roles

Question 47

What are 5 things to consider when choosing methods of motivation?

Answer 47

1) costs, if profits are low a business will be unable to offer bonuses, training and investment in job design may also have to be cut
2) attitudes, whether managers have a soft or hard approach
3) skill level of managers, skill and training will determine the effectiveness of the method especially if they are trained in motivational theory
4) skill level of employees, more skilled may require more delegation and job enrichment

Question 48

How can you assess methods of motivation?

Answer 48

If customer service, labour productivity, employee engagement, product quality, good relationship with managers has improved
If absenteeism, labour turnover, labour cost per unit, recruitment costs fall

Question 49

What’s a leader?

Answer 49

Set a vision for the future and put in place strategies to get there. Change the status quo, devise strategy, inspire, empower, think laterally, proactive, have vision, confidence, good communication, decisiveness, motivation

Question 50

What’s a manger?

Answer 50

Build consistency, implement strategy, instruct, control, think logically, reactive

Question 51

What is an autocratic leadership style, what are the advantages/disadvantages of it?

Answer 51

+ focused on getting the task done
+ high levels of control are suitable for unskilled workforce
+ speeds up decision making process, important in time of crisis
+ suitable for implementing a clear vision held by the leader
- low levels of motivation if staff don’t feel respected or valued
- no opportunity for staff to be involved in decision making
- staff don’t feel as though they have a stake in the business

Question 52

What is a democratic leadership style, what are the advantages/disadvantages of it?

Answer 52

+ develops team spirit
+ opportunity for staff to buy in to the task if they have a say
+ allows a manager to collect ideas and opinions from the whole workforce
- decision making can be slow when done by committee
- staff may not see the bigger picture and vote for decisions that benefit them

Question 53

What is a laissez-faire leadership style, what are the advantages/disadvantages of it?

Answer 53

+ allows employees autonomy to make their own decisions
+ can lead to higher levels of creativity and motivation among workers
- lack of control over the work force, deadlines and targets may be missed
- tasks may not be coordinated very well

Question 54

What is a paternalistic leadership style, what are the advantages/disadvantages of it?

Answer 54

+ attention given to employee welfare
+ staff feel as though they’re being looked after
- staff are given no powers to make decisions]
- low levels of motivation
- staff have no stake in the business
- leader may come across as unsure