2 Human Resource Management: Organisational Structure, Leadership and Management, Motivation

Question 1

Delegation

Answer 1

The process of entrusting a subordinate to perform a task for which the manager or superior retains overall responsibility.

Question 2

Span of control

Answer 2

Refers to the number of subordinates under the control of a supervisor. Large spans require strong inclusive leadership and clear communication.

Question 3

Bureaucracy (in business context)

Answer 3

The administrative system of a business, which relies on a set of rules and procedures, separation of functions and a hierarchical structure in implementing controls over an organization (clear lines of responsibility).

Question 4

Centralisation

Answer 4

A method of organizational process where the formal power (authority) and responsibility of a s_mall group higher up in the hierarchy influences both tactical and strategic decision-making_. It allows for little if any discussion or involvement with subordinates and has been term “top-down” management, popular in government organizations. Decentralisation = opposite: problem-solving focused.

Question 5

Most effective use of “flat or horizontal” ( “tall or vertical”) hierarchical structure

Answer 5

flat - in small- to medium-sized enterprises (SMEs) tall - in large or multinational corporations (may provide clarity and clear clines of responsibility)

Question 6

Handy’s Shamrock organization

Answer 6

Handy identified the need to have a flexible workforce to allow firms to adjust faster to changing external environments. Core – full time, trusted, small-in-size workers Contract – short term for specific tasks Peripheral – flexible workers on part-time basis due to seasonal operations Today, fewer core members are needed and an increased importances of flexibility.

Question 7

Management versus leadership

Answer 7

Leaders do the right thing: managers do things right. Leaders focus on people Managers on tasks Effective leadership requires the setting of *clear aims and strategic goals* while the role of an effective manager is to ensure that objectives are met in pursuit the overall aim.

Question 8

Five key functions for a manager

Answer 8

• planning a suitable course of action given the overall vision of the CEO • organizing the human and material resources to achieve this vision • - manpower planning including recruitment and selection of key workers and specific tasks to achieve tactical objectives (or staffing, or commanding) • motivation to achieve goals once a plan of action has been put in place (or coordinating) • controlling, monitoring and maintaining performance to ensure that the vision is SMART

Question 9

Autocratic leadership style

Answer 9

The decision-making process is determined solely by the leader or chief authority figure – little or no consultation. + Autocratic leaders can be effective in crisis situations. – It can be demotivating for some workers not to have an input. Example: armed forces

Question 10

Democratic leadership style

Answer 10

Group decisions and consultations. + Increased motivation and productivity may result from some key skilled workers. – Decisions by committee can be time-consuming and expensive. – May not be effective in crisis situations. Example: media industries like adverting and public relations

Question 11

Laissez-faire leadership style

Answer 11

Effectively there is no leadership. Groups are unsupported and let to decide for themselves. Clear communication and mission is vital. + Creative freedom may bring innovative ideas. – Given no formal leadership, new employees may find the workplace environment confusing as they lack the knowledge of such leadership. – Setting overall organisation objectives may be difficult without formal leadership. Example: many universities

Question 12

Paternalistic

Answer 12

“Fatherly” towards employees. + The leader will demand loyalty in return for his influence, which is beneficial in crisis. – This loyalty demand could lead to resentment especially when they see themselves as “outsiders” of the family. – May lead to jealously and favoritism. – May be too inward-looking and only rewarding bloodlines rather than ability. Example: family businesses

Question 13

Situational leadership approach

Answer 13

It takes the view that it is *the situation* in which the leader is trying to lead that is important, rather than any character attributes the leader may have. The nature of the task itself is to achieve a “group atmosphere”. The leader is followed and obeyed not because of rank or power but due to positive group emotions such as loyalty, liking, trust and respect.

Question 14

Daniel Pink motivation theory

Answer 14

Three key motivators to the drive theory: • mastery (getting batter at the activity) • purpose • autonomy (modern ICT have allowed this, also allows intrapreneurship) (most recent attempt to find key drivers of motivation)

Question 15

Motivation theories (five)

Answer 15

Taylor – scientific management or “economic man” approach Maslow – hierarchy of needs Herzberg – two-factor of motivation Adams – equity theory Pink – mastery, purpose, autonomy (drive theory)

Question 16

Maslow – hierarchy of needs

Answer 16

From top to bottom: Transcendence: helping others to achieve self-actualization Self-actualization: personal growth, self-fulfillment Aesthetic needs: beauty, balance, form Cognitive needs: knowledge, meaning, self-awareness Esteem needs: achievement, status, responsibility, reputation Belongingness and love needs: family, affection, relationships, work group Safety needs: protection, security, order, law, limits, stability Biological and physiological needs: basic life needs: air, food, drink, shelter, warmth, sex, sleep

Question 17

Frederick Taylor motivation theory

Answer 17

scientific management or economic management Based on the idea that a unit of wok carried out by a factor of production should be measured and a performance standard be created which was “fair and acceptable”. To set the standard, a performance measurement should be carried out once the worker has been shown the demands of the unit of work and trained how to complete it. Those who achieved performance standard would be paid living wage; those who exceed would be paid more. The idea is to produce greater outcomes for all employees.

Question 18

John Adams motivation theory

Answer 18

equity theory motivation is a function of workers perceiving that the reward they are receiving for their efforts fully reflects their contribution to the organisation. This reward is not limited to capital but can also be intellectual enjoyment. However, workers’ contribution cannot always be measured objectively. Examples: giving a worker time off for compassionate reasons or allowing flexible working for part-time workers can create an environment of “fairness” and motivating.

Question 19

Herzberg motivation theory

Answer 19

two-factor of motivation dissatisfaction/hygiene & satisfaction/motivation Hygiene’s *presence* allows the motivators to work.

Question 20

Types of financial rewards

Answer 20

1. Profit-related pay 2. Commission 3. Performance-related pay (PRP) 4. Benefits such as share options or company share 5. Fringe benefits / perks (eg. company car, health insurance) 6. Salary 7. Wages (piece rate or time rate)

Question 21

Types of non-financial rewards

Answer 21

1. Job rotation 2. Purpose/the opportunity to make a difference 3. Job enrichment 4. Job enlargement 5. Empowerment 6. Teamwork

Question 22

Job rotation

Answer 22

Used in systems that are have compartmentalized production processes and all workers are trained to complete all task but rotate to reduce boredom, especially if the task are repetitive (mass production). This also increases productivity and provides an automatic over for absent workers, though training must be extensive.

Question 23

Job enrichment

Answer 23

Vertical loading, where an employee is offered more challenging work with increased levels of responsibility to stop boredom and increased satisfaction through increased purpose. • It is personal and psychological growth. • Meaningful work and self-checking of this work provides the individual to be responsible and have a degree of autonomy, which will lead to motivation. Possible problems are the lack of “meaningful work” and insufficient, costly training.

Question 24

Job enlargement

Answer 24

Horizontal loading, where an employee is challenged by preforming more tasks at the same level of responsibility , to stop boredom and increased satisfaction through increased purpose. Critics see it as offering workers “more of the same” and not really developing an opportunity to develop talents.

Question 25

Empowerment

Answer 25

The individual is given more control over their daily work routine with minimal supervision, creating a sense of trust. Also, it cuts costs by removing managing and management layers, in the case of successful handling of the empowered employee.

Question 26

Teamwork

Answer 26

That motivation can take many forms, depending on the nature of the team, task and reward offered. • can reduce boredom • meet the social needs of employees • create a sense of belonging • thereby reduce absenteeism and labour turnover • whilst boost productivity. • lead to greater flexibility and multitasking as workers learn from other members • hence, workers can cover for on another without delaying the production process or reducing the quality of the service being delivered Teamwork may be like a band, where everyone does their own thing, different specialities, limitations but together make a great music. However, as Peter Drucker stated, unless we work out, and fast, what a given team is suited for, and what a given team is not suited for, teams will become discredited as just another fad.

Question 27

labour turnover

Answer 27

the rate at which employees leave an organization, expressed as percentage per annum • High turnover can mean difficult working conditions or poor management • Low turnover can mean stable labour force. However other factors have an impact on labor turnover:, e.g. - depending on business type (law-firm have low turnover compared to retail-salesmen) - if the econony is growing fast employees get more alternatives and change more often then in a recession

Question 28

traditional training methods (three)

Answer 28

• induction allows the employer to set expectations of the new employee; employee is given clear guidelines; costly and time intensive • on the job lower costs; minimal disruption to the working day; narrow experiences for the employee; not suitable for fast-moving tech industries • off the job expensive; wide perspective for employee; takes time to put into practice

Question 29

modern training methods - not directly related to job, but to personal skills (two)

Answer 29

• cognitive training (psychological testing and ability to think creative and fast • behavioral training (helping to develop skills for employees, which, according to Herzberg, makes them more motivated)

Question 30

appraisal and its positive consequences

Answer 30

assessment of performance; if done effectively it can following consequences: • the employer has the opportunity to restate objectives and vision for the company • the employer can praise high-performing workers and reaffirm their role in the future of the organisation • employees may get a chance to voice their concerns

Question 31

types of appraisal

Answer 31

FORMATIVE occurs when employees are being monitored to see wether they have acquired a particular skill as their job is proceed SUMMATIVE a formal interview to present evidence to justify a particular point, leading to new goals and personal growth 360 FEEDBACK AND SELF-APPRAISAL surveys are taken to receive feedback from all workers; any employee can give feedback about any other employee or manager

Question 32

Instrinsic Motivation

Answer 32

motivation which comes from the satisfaction of carrying out a particular activity (not motivated by external factors such as money)

Question 33

Extrinsic Motivation

Answer 33

motivation derived from external factors, such a money

Question 34

Define Offshoring. What are the benefits?

Answer 34

a business outsources outside the countries - cheaper, outsourced to countries with lower wages - raw materials could be closer, labor legislation less strict.