2. People in business Flashcards
A larger span of control will mean less control for the manager or leader as they will have more subordinates to supervise.
A larger span of control usually leads to more delegation of authority to subordinates. The manager or leader will not be able to directly control many subordinates.
Money = main motivator
Scientific management - work is broken down
> More money paid means increase in level of productivity
Training all workers using the same method
What is ‘motivation’?
The reasons why people work and ways business can encourage their staff.
Why do people work?
Have a better standard of living
Be secure
Gain experience and status
Have job satisfaction
What does Herzberg’s motivational theory suggest?
Hygiene factors:
factors that demotivate if not present but don’t actually motivate employees to work harder
e. g. working conditions, salary and wage
Motivators:
factors that directly motivate employees to work harder
e. g. giving responsibility, recognition for good work, sense of achievement, opportunities for promotion
What are the different types of needs according to Maslow’s hierarchy?
Physiological needs: basic requirements for survival
Security needs: to be physically safe
Social needs: to belong and have good relationships with co-workers
Esteem needs: self-respect and to be respected by others
Self-actualisation needs: reach your full potential and be promoted
What are ‘financial rewards’?
Cash paid to workers often used to motivate them to increase their efforts
What are the financial methods and how do they work?
Hourly wage rate/Time rate: payment to workers based on a fixed amount for each hour worked
Salary: fixed annual/monthly payment to certain grades and types of staffs (not based on hours worked or output)
Piece-rate: payment according to output number produced
Commission: pay based on the value of sales made by the staff (retail/salespeople)
Performance-related pay: payment for reaching an agreed target
Profit-sharing: additional payment to workers based on business’ profits
Bonus scheme: additional reward, often paid for reaching a target
Fringe benefits: non-cash incentives given to employees (e.g health insurance, discounts)
What are some non-financial rewards and how do they work?
Job rotation: workers swapping round, doing a specific task for a specific time then changing again (improves boredom and flexibility)
Job enlargement: adding tasks of a similar level to a worker’s job, helps reduce boredom
Job enrichment: adding tasks of a higher level to a worker’s job, organised so workers able to use more of skills and abilities
Name the advantages + disadvantages of hourly wage rate / time rate.
Ads: Only pays workers for time they are at work, encourages longer hours
Disads:
Only pays workers for time they are at work, encourages longer hours
Does not link to quality or quantity of output
Name the advantages + disadvantages of salary.
Ads: Measurable, applicable, suitable to most jobs
Disads: Does not link to their efforts
Name the advantages + disadvantages of piece-rate.
Ads: Incentive for employees to produce higher output
Disads: Not quality related, lead to poor quality of work + only production jobs
Name the advantages + disadvantages of commission.
Ads: Pay is linked to value of goods
Disads: Workers are not certain about income, unreliable
Name the advantages + disadvantages of bonus scheme.
Ads: Linked to performance targets, rewards high level performance
Disads: Becomes expectation quickly, depends on profit
Name the advantages + disadvantages of fringe benefits.
Ads: Useful to make employees’ needs, motivating, make job attractive
Disads: More cost + time effective than financial rewards + admin (can be unsuitable)
Name the advantages + disadvantages of profit-sharing
Ads: Enables to see direct link between their efforts + company profits
Disads: Company loses amount of revenue + retained profit for growth
Name the advantages + disadvantages of performance-related pay
Ads: Directly links pay to meeting/exceeding target
Disads: Not measurable, can lose money
What is an ‘organisational structure’?
Levels of management and division of responsibilities within a business
Hierarchy
management levels within an organisation
Line managers
people responsible for overseeing work of other staff
Authority
power managers have to direct subordinates and make decisions
Delegation
when managers entrust tasks or decisions to subordinates
Span of control
number of subordinates reporting directly to a manager
Chain of command
path of authority which instructions are passed, from highest downwards
Lines of communication
routes messages travel along
Directors
most senior, sets out strategies, makes sure resources available, reviews performances of managers, provide leadership to ensure success
Managers
Day-to-day running of a department, delegation, motivation, solving problems that may arise within department
Workers
complete tasks efficiently at require quality standard set by managers
What are the features + advantages + disadvantages of tall organisations?
Tall organisations have many levels of hierarchy - span of control is narrow
Ads:
Opportunities for promotion → motivational
Managers not overstretched, effective workload
Disads:
Lines of communication long → firm unresponsive to change
Have to pay a large range of salary to motivate workers to try to get promoted
What are the features + advantages + disadvantages of flat organisations?
Flat organisations have few levels of hierarchy
Ads:
Lines of communication narrow → responsive to change
Salary range = narrower → less competition
Disads:
Wide span of control → managers can feel overstretched
Not many opportunities for promotion → demotivating
Planning
managers should have a clear plan of what employees need to follow (aims, tasks, objectives)
Organising
Managers expected to organise by setting up systems, procedures and structures in efficient way
Coordination
related to organisation, making sure interrelated activities are integrated and carried out in a structured way
Commanding
give direction, ensures directions are followed
Controlling
create effective control system to make sure on track
Why is delegation important?
Managers cannot do all tasks (overstretched)
Can be delegated if they can be completed correctly
Enables more work to be completed + motivating
Features of democratic
Encourages participation in decision making
Strong coaching, listening + motivating skills
Teamwork + communication important
Features of autocratic
Leader has full control of decision making.
Employees have little/no input
Good in crisis situations
Features of laissez-faire
Gives employees much freedom as possible (art)
Managers communicate goals employees, allow them to choose how to complete objectives
Features of bureaucratic
Done by the books/policy
Reinforces rules
What are ‘trade unions’?
Pressure groups that have ability to influence business activity, improving working conditions
What are the aims of trade unions?
Defend employees rights and jobs
Improve pay + other benefits e.g. holiday entitlement, sick pay
Influence government policies
Negotiate wages and other non-wage benefits
Develop skills of union members by providing training/educational courses
What are the benefits of being union member?
Strength in numbers
Improved working conditions
Improved sickness benefits, pensions, and retrenchment benefits
Improved job satisfaction and encourage training
Advice/Financial support if a worker is dismissed unfairly/made redundant or is asked to do something not part of their job
Improved fringe benefits
Describe the methods of recruiting and selecting workers.
Identify job vacancy
Have a job analysis (what does the job entail), write job description
Write person specification (what type of person is needed to fill the job)
Advertise job and send out details + application forms on request
Compare job applications with person specification to select a shortlist of best applicants to interview
Send invitations to attend interviews to shortlisted applicants/If not shortlisted, send letter of regret
Prepare and conduct job interviews
Send best application formal job offer
Draw up contract of employment
Internal recruitment
Vacancy filled by employee already in business
External recruitment
Vacancy filled by someone not in business/new
Name the advantages + disadvantages of internal recruitment.
Ads:
Knows employee, monitored on close level
Save time/Less training
Motivation
Disads:
Reduces range of employment skill
Opportunity cost
Unhappiness within organisation
Name the advantages + disadvantages of part-time workers.
Ads:
Less pay/salary required
More dynamic if there are more part time workers
Allows employer to assess before working full time
(for employee) Does not require much time
(for employee) Flexibility
Disads:
- Less fluidity and cohesion in work
- Unable to give large assignments
- (for employee) less experience gained
(for employee) less job security
- Less commitment from employee
- Overstretched management
Name the advantages + disadvantages of full-time workers.
Ads:
Know business better than part-time workers
May be more experienced
More loyal to business
Available for longer hours
Can carry out more tasks/bigger projects
Disads:
More expensive than part-time workers
Reduces diversity of skill set/experience
(for employees) requires much time
(for employees) not flexible
Why is training needed?
Helps to increase efficiency, quality, productivity, customer service, safety and overall, success of business.
What is ‘induction training’?
Training programme to help new recruits become familiar with workplace, people they work with and procedures they need to follow
Benefits + limitations of induction training
Benefits:
Workers feel more familiar → more motivated + willing
Specific to business, relevant to what business requires
Limitations:
Increases business costs
Induction trainers receive wage/salary but don’t contribute to output
What is on-the-job training?
Training at the place of work (Watching an experienced worker)
Benefits + limitations of on-the-job training.
Benefits:
Relatively cheap
Workers learn how business wants job done
Workers are producing output while training
Limitations:
Slows down production of experienced worker
Workers may pick up bad habits from experienced workers
May not learn the most up-to-date methods
What is off-the-job training?
Training that takes place away from the workplace
Benefits + limitations of off-the-job training.
Benefits:
Workers learn latest methods, techniques
Doesn’t disrupt production of other workers
Limitations:
Expensive
Worker doesn’t produce output in training
Training may not be specific to the business’ requirements
What is ‘dismissal’?
Termination by the employer because the worker has broken company rules or is not performing work to the required standard
What is ‘redundancy’?
Termination of employment by the employer because the job is no longer needed
→ may be given recompense
What are situations where downsizing the workforce is necessary?
When there is a fall in demand for product that worker produces → business may need to reduce size of its workforce
When new technology is introduced
Relocation
Unfair dismissal
laws that protect worker from unfair dismissal, employers must have good reason to dismiss the employee
-> if the employee feels he/she has been unfairly dismissed,can take legal action against the employer
Discrimination (treating one person/group less favorably than others, irrelevant to their work)
Laws protect workers from discrimination when recruiting new workers
> Laws prevent discrimination from age, gender, race, colour, religion and disability
Trade unions also provide legal advice to support any of their members
Health and safety
Health and safety laws enforced to ensure that environment of the workplace is
safe to work in
workers feel comfortable working there
Legal minimum wage
Law prevent employers from exploiting workers by paying very low wages
Why is communication important?
Communication ensures that all parts of business’s operations run smoothly + employees understand what they need to do
Why is effective communication important?
Reduce the risk of mistakes
Enable faster decision-making
Enable quicker responses to market changes
Improve coordination between departments
Improve morale and motivation of the workforce
Improve customer relationships
Oral communication
Appropriate when more than two people need to discuss things
Benefits + limitations of oral communication
Ads:
Easy to communicate
Direct feedback
Help build relationships between employees/ customers
Personal contact
Disads:
Hard to schedule (busy)
Takes up time
No permanent record
Receiver might not listen
What is written communication?
Provide a permanent record of message
Benefits + limitations of written communication
Ads:
Message cannot be changed
Information is clear + can be looked at more than once
Can be sent to many receivers
Disads:
Messages may be lost or destroyed
No personal contact
Time consuming
Main types of written communication
Purchase order
Minutes of meeting
Agenda (Order for the conduct of a meeting)
Memorandum
Invoice (Official form sent to customer requesting payment for goods)
Company magazine/newsletter
What is visual communication?
Includes presentations using graphs, charts, videos etc
Benefits + limitations of visual communication.
Ads:
Information more interesting
Photographs or videos have greater impact than just words
Pictures + charts easier to understand
Disads:
Takes time for preparation
Costs money to create visual communication
Details may be lost
What are some factors to consider when choosing the best method of communication?
Urgency
Location
Security issues and concerns
Personal preference
Cost
How do communication barriers arise?
Accents
Channel of communication is too long
Demotivated workers don’t listen to the message properly
Poorly disciplined workers
Technological issues
Language barrier
What are the problems of communication barriers?
Tasks are not completed → increases waste
Damaged reputation of the business
Higher risk of accidents
Poor sales
Recruitment problems
How to reduce or remove communication barriers?
Make sure the language used is appropriate to the receiver
Keep the channel of communication as short as possible
Sender asks to receive a feedback so they know it has been read and understood
Physical barriers such as noise should be removed
Define motivation.
Motivation is the reason why employees want to work hard and work effectively for the business.
What are the five reasons why people work?
Money.
Security.
Job satisfaction.
Esteem needs (self-importance).
Social needs (affiliation).
Why would money be a reason why people work?
To pay for necessities and some luxuries.
Why would job satisfaction be a reason why people work?
Enjoyment is derived from feeling that you have done a good job.
Why would esteem needs (self-importance) be a reason why people work?
Feeling important, feeling that the job you do is important.
Why would security be a reason why people work?
A sense of security, i.e. knowing that your job and pay are safe - you are not likely to lose your job.
Why would social needs (affiliation) be a reason why people work?
Feeling part of a group or organisation, meeting people, making friends at work.
What is the main benefit of a well motivated workforce?
High productivity - high output per worker - in a business usually comes from a workforce that is motivated to work effectively and from this comes increased profits.
A well-motivated workforce gives benefits to a business, including:
High output per worker - which helps to keep costs low and increase profits.
Willingness to accept change, for example, new methods of working.
Two-way communication with management, for example, suggestions for improving quality.
Low labor turnover - a loyal workforce - this reduces the cost of recruiting workers who leave.
Low rates of absenteeism - reducing the disruption caused by absence from work.
Low rates of strike action - avoiding damage to customer relations.
What leads to high profits?
well-motivated workers → high productivity (employees work more effectively) → increased output → higher profits.
What leads to lower/ no profits?
unhappy workers → do not work very effectively → low output → lower/no profits.
Abraham Maslow proposed a heirarchy of needs. From the top going down, what were these needs?
Self-actualisation.
Esteem needs.
Social needs.
Safety/security needs.
Physiological needs.
What are the two points to remember for self-actualisation?
Succeeding to your full potential, feeling that you have done a good job not just for financial and personal reward.
Being promoted and given more reponsibilty.
What are the two points to remember for esteem needs?
Having status and recognition, achievement, independence.
- Being given recognition for a job well done.
What are the two points to remember for social needs?
Friendship, a sense of belonging to a team.
- Work colleagues who support you at work.
What are the two points to remember for safety/security needs?
Job security.
- Protection against danger, protection against poverty, fair treatment.
What are the two points to remember for physiological needs?
Wages high enough to meet weekly bills.
- Food, rest, recreation, shelter.
What did Maslow suggest about level advancement?
Maslow also suggested that each level in the hierarchy must be achieved before an employee can be motivated by the next level.
What is one problem associated with Maslow’s hierarchy?
There are problems in that some levels do not appear to exist for certain individuals, while some rewards appear to fit into more than one level.
FOR EXAMPLE: Money allows basic needs to be purchased, but high pay can also be a good status symbol or indicator of personal worth.
What should managers do regarding Maslow’s hierarchy?
Managers must identify the level of the hierarchy that a particular job provides and then look for ways of allowing the employees to benefit from the next level up the hierarchy.
What is one of the tasks of managers?
One of the tasks of management is to encourage the workforce to contribute fully to the success of the business.
Compare how people who work for themselves (entrepreneurs) and people who work for someone else work?
When people work for themselves, for example, entrepreneurs, they tend to work hard and effectively as they see the direct benefits of their efforts. However, once people work for someone else then they may not work as effectively.
What did Frederick Taylor base his ideas on?
Taylor based his ideas on the assumption that all individuals are motivated by personal gain and therefore if they are paid more, they will work more effectively.
What were the three criticisms of Taylor’s ideas?
His ideas were too simplistic - employees are motivated by many things and not just money.
A practical problem arises if you cannot easily measure an employee’s output.
You can pay an employee more money, but if they are unfilled by their work in some way, there will be no increase in their effectiveness at work and there will be no productivity gains.
What was Frederick Herzberg’s theories?
According to Herzberg, humans have two sets of needs; one is for the basic needs, which he called ‘hygiene’ factors or needs, and the second is for a human being to be able to grow psychologically which he called ‘motivational’ needs or ‘motivators.’
What are the five motivators according to Herzberg?
Achievement.
Recognition.
Personal growth/development.
Advancement/ promotion.
Work itself.
What are the seven ‘hygiene’ or ‘maintenance’ factors?
Status.
Security.
Work conditions.
Company policies and administration.
Relationship with the supervisor.
Relationship with subordinates.
Salary.
According to Herzberg, the ‘hygiene’ factors must be satisfied; Why?
According to Herzberg, the ‘hygiene’ factors must be satisfied; if they are not satisfied, they can act as demotivators to the worker.
NOTE - They do not act as motivators, as once satisfied the effects of them quickly wear off.
What are the methods of payment or financial reward used to provide?
The methods of payment or financial reward are used to provide incentives to employees to encourage them to work hard and effectively.
What are the five most frequently used methods of financial reward?
Commission.
Profit sharing.
Bonus.
Salary.
Wage.
What is profit sharing?
Profit sharing is a system whereby a proportion of the company’s profits is paid out to employees.
Why would profit sharing motivate employees?
This additional payment should motivate the workers to work hard as they all receive a share of the profits earned by the business.
Where is profit sharing often used?
Profit sharing is often used in the service sector where it is difficult to identify an individual employee’s contributions to the increased profits, but they will all benefit from more productive work.
What are the two possible limitations of profit sharing?
If the business makes very little or no profits, them no profit share will be possible, leading to employee disappointment.
The profit share is usually calculated on the basis of an additional percentage of a workers existing wage or salary (higher paid workers will receive a higher profit share) leading to a bad feeling among lower paid workers.
What is commission?
The commission is a payment relating to the number of sales made (often paid to sales staff).
NOTE - Commission is paid in addition to the existing wage or salary.
What encourages sales staff on a commission salary to sell as many products as possible and why is this good for a business?
For sales staff, the more sales they make the more money they are paid leading to an increase in sales for a business.
What are the three possible limitations for a commission based salary?
If the sales staff are very persuasive and encourage people to buy goods they don’t really want, then the business may see its sales increase only in the short term and then fall again as it gets a bad reputation.
It can be stressful for the sales staff because, if they have a bad month, their pay will fall.
There might be too much competition between sales staff.
What is a wage?
A wage is a payment for work, usually paid weekly.
What is time rate?
Time rate is the amount paid to an employee for one hour of work.
What are the two drawbacks of wages?
As the wages are paid weekly, they have to be calculated every week, which takes time and money.
Wage clerks are often employed to perform this task.
What are the two benefits of wages?
The worker gets paid on a regular basis and does not have to wait long for some money.
If the employee works longer than their normal hours, they can usually be paid overtime.
When calculating the wages to be paid, they can be worked out in a number of different ways. What are the two main ways?
Time rate and piece rate.
What is the benefit of time rate?
This makes it easy to calculate the worker’s wages and the worker knows exactly how much they will be paid for working a certain period of time.
What are the four possible limitations of time rate wages?
The hours are often recorded on a timesheet which must be filled in and used the calculate the wages by the Accounts department (takes time).
Good and bad workers get paid the same amount of money.
A clocking-in system is needed to determine the number of hours worked by the employees.
Often supervisors need to make sure the workers keep working and producing a good quality product (expensive because more supervisors are needed).
Where is time rate used?
Time rate is used where it is difficult to measure the output of the worker (bus driver or hotel receptionist for example).
What is piece rate?
Piece rate is an amount paid for each unit of output (the more they make, the more they get paid).
What is the advantage of piece rate?
The advantage of this system is that it encourages workers to work faster and produce more goods.
What are three possible limitations of piece rate?
Workers are often paid a guaranteed minimum amount of money in the case that the machinery breaks down.
Workers who are careful in their work will not earn as much as those who rush, which may not be seen as fair.
Workers may concentrate on making a large number of products and ignore quality, producing goods that may not sell very well because they are of poor quality. NOTE - a quality control system is needed and this is expensive.
What is a salary?
A salary is a payment for work, usually paid monthly straight into a bank account.
NOTE - It is usual for office staff or management to be paid salaries.
What are the two possible limitations of salaries?
Workers may prefer to be paid weekly.
- No payment for extra time worked - workers may be reluctant to worklonger.
What are the benefits of salary payments?
The payment has to be calculated only once a month instead of at least four times a month.
The employer has the money in their bank account for longer than if they were paying their workers’ wages, as salaries are paid only once a month.
A salary is divided into 12 monthly amounts meaning it is easy to calculate salary costs for the business.
What is a bonus?
A bonus is an additional amount of payment above basic pay as a rewards for good work.
Why does being paid a bonus have a positive motivating effect?
Workers often consider themselves to be recognised and special if they are paid a bonus.
What are two possible limitations of bonuses?
Bonuses can become expected every year and if they are not paid then employee disappointment can be difficult to manage.
If only one or a small number of workers are paid bonuses, then bad feelings can be caused as other workers resent this and question why they did not receive one.
Give five examples of fringe benefits or perks.
Company vehicle.
Discounts on the business’s products.
Health care is paid for.
Children’s education fees paid.
Free accommodation.
Share options.
Generous expense accounts (for food and clothing).
Pension paid for by the business.
Free trips abroad/holidays.
Define job satisfaction?
Job satisfaction is the enjoyment derived from feeling that you have done a good job.
What are five examples of ways in which a business can increase the job satisfaction?
Job rotation.
Job enrichment.
Autonomous work groups or team working.
Training.
Opportunities for promotion.
Define job rotation.
Job rotation involves workers swapping around and doing each specific task for only a limited time and then changing around again.
What does job rotation increase?
This increases the variety in the work itself and also makes it easier for the managers to move workers around the factory if people are ill and their jobs need covering.
What is job enrichment?
Job enrichment involves looking at jobs and adding tasks that require more skill and/or responsibility.
NOTE - Additional training may be necessary.
What is a promotion?
Promotion is the advancement of an employee in an organization, for example, to a higher job/ managerial level.
Promotion is the advancement of an employee in an organization, for example, to a higher job/ managerial level.
Employees offered promotions will feel recognized, have a higher status, and will be given more challenging work to perform.
What is training?
Training is the process of improving a worker’s skills.
How will workers feel if they have been selected by management for training?
Workers can also feel as if they have been selected by management for training courses and this can give them a feeling that their good work has been recognized.
Improving a worker’s level of skills through training can have beneficial effects of motivation levels. What are the two benefits?
First, workers can feel a great sense of achievement if they successfully gain and apply new work-based skills.
Second, they could now be given more challenging and rewarding work to perform.
Define the term teamworking.
Teamworking involves using groups of workers and allocating specific tasks and responsibilities to them.
NOTE - Teamworking involves a group of workers being given responsibility for a particular process, product or development.
The workers of a team can become more involved in the decision-making and take responsibility for this process. What does this give?
This gives a feeling of control over the jobs/tasks and the employees feel more committed, therefore increasing job satisfaction.
What is an organisational structure?
Organisational structure refers to the level of management and division of responsibilities within an organisation.
What is an organisational chart?
Organisational chart refers to a diagram that outlines the internal management structure.
What is a hierarchy?
Hierarchy refers to the levels of management in any organisation, from the highest to the lowest.
What is a hierarchy?
Hierarchy refers to the levels of management in any organisation, from the highest to the lowest.
What is a level of hierarchy?
A level of hierarchy refers to managers/ supervisors/ other employees who are given a similar level of responsibility in an organisation.
How is an organisational structure presented?
This structure is often presented in the form of an organisational chart with several levels of hierarchy.
What are the two advantages of writing a job description?
People applying for the job could see if they were suitable for the work expected of them.
Once the job, the new employee would know exactly what their duties and responsibilities were.
What is a chain of command?
Chain of command is the structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.
What are the three important features of an organisational chart?
It is a hierarchy meaning that there are different levels in the organisation, and each level has a different degree of authority.
It is organised into departments and each department has a particular job or function.
As there are different levels of management, there is a chain of command. Bigger businesses are likely to have many more levels of hierarchy and there a longer chain of command.
What are the 3 advantages of an organisational chart?
Every individual can see their own position in the organisation. They can identify who they are accountable to, who they have authority over, and who they should take orders from.
Shows the links and relationships between different departments within the organisation.
Everyone is in a department and this gives them a sense of belonging.
What is the span of control?
The span of control is the number of subordinates working directly under a manager.
What are the two terms of the span of control?
The longer the chain of command, the ‘taller’ will be the organisational structure and the ‘narrower’ the span of control.
The shorter the chain of command, the ‘shorter’ will be the organisational structure and the ‘wider’ the span of control.
What is delayering?
Removing a layer of management to have a shorter chain of command and a wider the structure.
What are the 3 advantages of short chains of command?
Communication is quicker and more accurate because they are fewer levels for information to pass through before reaching the intended person.
These top managers should be more in touch with people below them as there are fewer management levels to get to know.
Spans of control will be wider and this means that each manager is responsible for more subordinates.
Spans of control will be wider and this means that each manager is responsible for more subordinates. What are the 2 advantages of this statement?
If superiors have more people to manage, it will encourage managers to delegate more.
There will be less direct control of each worker and they will feel more trusted and therefore obtain more job statisfaction.
What is a disadvantage of wider spans of control?
Wider spans of control, with more people to be directly responsible for, could mean that the managers lose control of what their subordinates are doing leading to the subordinates making mistakes because of poor training.
What are the 3 key feature of large business organisational charts?
It is still largely arranged into functional departments.
Regional division responsible for stores in other countries.
They are other departments which do not have a typical function and which employ specialists in particular areas.
It is still largely arranged into functional departments. What is a disadvantage of this?
Workers may feel more loyalty to their department than to the organisation as a whole leading to conflict between departments.
The regional division responsible for stores in other countries. What is the advantage of this department?
This department has the advantage of being able to use specialist knowledge to help it run the stores abroad, such as knowledge of local cultures and customs.
What are directors?
Directors are senior managers who lead a particular department or division of a business.
What are line managers?
Line managers have direct responsibility for people below them in the hierarchy of an organisation.
What are supervisors?
Supervisors are junior managers who have direct control over the employees below them in the organisational structure.
What are staff managers?
Staff managers are specialists who provide support, information, and assistance to line managers.
What are the 5 main roles and functions of managers?
Plan for the future.
Organise and delegate.
Coordinate departments.
Command and guide others.
Control and assess the work of departments.
What does planning for the future of an organization involve?
Planning for the future of an organization involves setting aims or targets and the resources which will be needed.
What is the benefit of planning for the future of an organization by setting aims and targets?
These aims or targets will give the organization a sense of direction or purpose. There will be a common feeling in the organization of having something to work towards.
A manager cannot do everything meaning that an effective manager will organize people and resources very carefully indeed.
What can be done to organize people and what is the effect of this?
An organizational chart can help to show who has the authority to do different jobs. It also helps to make sure that specialization occurs and that two people do not end up doing the same task.
Coordinating means ‘bringing together.’
How can a good manager make sure that all departments in the organization work together to achieve the plans originally set by the manager?
This could be done by regular meetings between people in the different departments.
Managers have to make sure that all supervisors and workers are keeping to targets and deadlines.
What must managers provide to ensure this?
Instructions and guidance must be provided by managers and it is also their responsibility to make sure that the tasks are carried out by people below them in the organization.
Controlling is a never-ending task of management. What must managers do to make sure that groups and individuals are on target?
Managers must try to measure and evaluate the work of all individuals and groups to make sure that they are on target.
Without clear and effective management, a business is going to lack: 4 objectives.
A sense of control and direction.
Coordination between departments, leading to wastage of effort.
Control of employees.
Organisation of resources, leading to low output and sales.
Define delegation.
Delegation means giving subordinates the authority to perform particular tasks.
FURTHER NOTICE - It is the authority to perform a task that is being delegated - not the final responsibility and if the job is done badly by the subordinate then it is the manager who has to accept the responsibility for this.
What are the three advantages of delegation for the manager?
Delegation allows managers to concentrate their time on other important management tasks.
Managers are less likely to make mistakes if some of the tasks are performed by their subordinates.
Managers can measure the success of their staff more easily.
What are the three advantages of delegation for the subordinate?
The work becomes more interesting and rewarding.
The employee feels more important and believes that trust is being put in them to perform a job well.
Delegation helps to train workers and they can then make progress in the organization giving them career opportunities.
What does delegation mean in terms of what must be increased and what must be reduced?
There needs to be an increase in trust in order to reduce control over workers.
A good manager should: 5 objectives.
Motivate employees.
Give guidance and advice to employees they manage.
Inspire employees they manage to achieve more than they thought possible.
Manage resources effectively and keep costs under control.
Increase the profitability of the business.
What are the six qualities of managers?
Intelligence.
Self confidence.
Determination.
Initiative.
Good communication skills.
Enthusiasm.
Define leadership styles.
Leadership styles are the different approaches to dealing with people and making decisions when in a position of authority - autocratic, democratic, or laissez-faire.
What is autocratic leadership?
Autocratic leadership is where the manager expects to be in charge of the business and to have their orders followed.
What direction is communication in an autocratic leadership business?
Communication in the business is mainly one way, downward or top-down and the workers have little to no opportunity to comment on anything.
What is a potential advantage of autocratic leadership?
Quicky decision making.
What is a potential disadvantage of autocratic leadership?
No opportunity for employee input into key decisions, which can be demotivating.
What is democratic leadership?
Democratic leadership gets other employees involved in the decision making process.
What direction is communication in an democratic leadership business?
Communication is both downward or top-down, and upward and bottom-up.
What is a potential advantage of democratic leadership?
Better decisions could result from consulting with employees and using their experience and ideas - as well as being a motivating factor.
What is a potential disadvantage of democratic leadership?
Unpopular decisions such as making workers redundant, could not effectively be made using this style of leadership.
What is laissez-faire leadership?
Laissez-faire leadership makes the broad objectives of the business know to employees, but then they are left to make their own decisions and organise their own work.
What is a possible advantage of laissez-faire leadership?
Encourages employees to show creativity and repsonsiblity.
What is a possible disadvantage of laissez-faire leadership?
Unlikely to be appropriate in organisations where a consistent and clear decision-making structure us needed.
What is a trade union?
A trade union is a group of employees who have joined together to ensure their interests are protected.
What are the 9 advantages of a trade union?
Strength in numbers.
Improved working conditions.
Services such as insurance, and social facilities.
Possible influence in government decisions.
Employment if there is closed shop.
Improved conditions of employment.
Advice if unfairly treated.
Improved pay.
Improved communications between employees and management.
Advice if dismissed (unfairly or made redundant.
Representation in grievances with management.
What is a closed shop?
A closed shop is when all employees must be a member of the same trade union.
What are the two disadvantages for an employee of trade union memberships?
It costs money to be a member.
Workers may be required to take industrial action even if they don’t agree.
What are the two advantages of trade unions to employers?
They can help improve communications between workers and management.
Wage agreements will be easier to negotiate with trade union than with many many individual workers.
What are the two disadvantages of trade unions to employers?
Trade unions can organize strikes if they do not receive the pay levels and work conditions they demand.
Wages are likely to be higher.
Define recruitment.
Recruitment is the process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business.
Define employee selection.
Employee selection is the process of evaluating candidates for a specific job and selecting an individual for employment based on the needs of the organisation.
What are the 6 responsibilities of the Human Resources department?
Recruitment and selection.
Wages and salaries.
Industrial relations.
Training programs.
Health and safety.
Redundancy (retrenchment) and dismissal.
When do business need to start the process of recruitment and selection?
An employee leaves their job and needs to be replaced.
It is a new business starting up and needs employees.
It is a successful business and wants to expand by employing more people.
What are the 8 levels of the recuitment process?
Vacancy arises.
Job analysis.
Job description.
Job specification.
Job advertised in appropriate media.
Application forms and shortlisting.
Interviews and selection.
Vacancy filled.
What is a job analysis?
A job analysis identifies and records the responsibilities and tasks relating to a job.
What is a job description?
A job description outlines the responsibilities and duties to be carried out by someone employed to do a specific job.
What is a job specification?
A job specification is a document that outlines the requirements, qualifications, expertise, physical characteristics, etc., for a specified job,
Once the job has been analysed, a job description will be produced. A job description has several functions:
It is given to the applicants for the job so they know exactly what it entails.
It will allow a job specification to be drawn up.
Once someone has been employed, it can show whether they are carrying out the job effectively.
Job descriptions often also contains information about:
The conditions of employment - salary, hours of work, pension scheme, and staff welfare.
training that will be offered.
opportunities for promotion.
The requirements stated on a job specification will usually include:
The level of educational qualifications.
The amount of experience and type of experience.
Special skills, knowledge, or particular aptitude.
Personal characteristics, such as type of personality.
Define internal recruitment.
Internal recruitment is when a vacancy is filled by someone who is an existing employee of the business.
What are the four advantages of internal recruitment?
It is quicker and cheaper than external recruitment.
The person is already known to the business and their reliability, ability, and potential are known.
The person also knows how the organization works, its structure and what is expected from its employees.
It can be very motivating for employees to see their fellow workers being promoted.
What are three disadvantages of internal recruitment?
The quality of internal candidates might be low.
There may be rivalry among existing employees and jealousy towards the worker who gains promotion.
No new ideas or experience come into the business.
Define external recruitment.
External recruitment is when a vacancy is filled by someone who is not an existing employee and will be new to the business.
External recruitment is when a vacancy is filled by someone who is not an existing employee and will be new to the business.
Local newspapers.
National newspapers.
Specialist magazines.
Online recruitment sites.
Recruitment agencies.
Centres run by the government.
What three questions will a business need to ask itself when drawing up a job advertisement?
What should be included in the advert?
Where should the advertisement be placed?
How much will the advertising cost and is it within the budget of the Human Resouces department?
A job advertisement will require the applicant to apply in writing. How could this be done?
This can either be by filling in an application form, or by writing a letter of application and enclosing a curriculum vitae (CV) and resume.
What is a CV (curriculum vitae)?
A CV is a summary of a persons qualifications, experience and qualities and is written in standard format.
A curriculum vitae should be well laid out and clear. It should usually contain the following details:
Name.
Address.
Telephone number.
Email address.
Nationality.
Education and qualifications.
Work experience.
Positions of responsibility.
Interests.
Names and addresses for referees (for references).
The letter of application should outline briefly:
Why the applicant wants the job?
Why the applicant feels he/she would be suitable?
The main purposes of an interview are to assess, in the shortest possible time:
the applicant’s ability to do the job.
any personal qualities that are an advantage or disadvantage.
the general character and personality of the applicant.
Some businesses include tests in their selection process, for example:
Skills tests.
Aptitude tests.
Personality tests.
Group situation tests.
The final decision of which workers to employ depends on several factors:
Work experience.
Education and other qualifications.
Age.
Internal.
External.
What is part-time?
Part-time employment is often considered to be between 1 and 30-35 hours a week.
What is full-time employment?
Full-time employees will usually work 35 hours or more a week.
The 6 benefits to a business of employing part-time employees are:
more flexible in the hours of work.
easier to ask employees just to work at busy times.
easier to extend business opening/operating hours by working evenings or at weekends.
fits in with looking after children and therefore the employee is willing to accept lower pay.
reduces business costs compared to employing and paying a full-time employee.
in some countries, it is easier to make part-time workers redundant.
NOTE - The advantages of part-time employees are the disadvantages of full-time employees.
The 5 limitations to a business of part-time employees are:
takes long to recruit two part-time workers than one full-time employee.
less likely to seek training because the employees may see the job as temporary.
more difficult to communicate with part-time employees when they are not at work.
less likely to be promoted because they will not have gained the same skills and experience as full-time employees.
part-time employees can be less committed to the business and may be more likely to leave to get another job.
NOTE - The disadvantages of part-time employees are the advantages of full-time employees.
Training is important to a business as it may be used to: 6 reasons.
introduce a new process or new equipment.
improve the efficiency of the workforce.
provide training for unskilled workers to make them more valuable to the company.
decrease the supervision needed.
improve the opportunity for internal promotion.
decrease the chances of accidents.
Training is usually trying to achieve one or more of the following:
to increase skills.
to increase knowledge.
to improve employees’ attitudes.
There are three main types of training:
induction training.
on-the-job training.
off-the-job training.
Define induction training.
Is an introduction given to a new employee, explaining the business’s activities, customs, and procedures and introducing them to their fellow workers.
Define on-the-job training.
Occurs by watching a more experienced worker doing the job.
Define off-the-job training.
Involves being trained away from the workplace, usually by specialist trainers.
The 3 advantages of induction training are that it.
helps new employees to settle into their job quickly.
may be a legal requirement to give health and safety training at the start of a job.
this means workers are less likely to make mistakes.
The 3 disadvantages of induction training are that it.
is time-consuming.
means wages are paid but no work is being done by the worker.
delays the start of the employee commencing their job.
The 4 advantages of on-the-job training are that it.
individual tuition is given.
it ensures there is some production from the worker while they are training.
it usually costs less than off-the-job training.
it is training tailored to the specific needs of the business.
The 3 disadvantages of on-the-job training are that it.
the trainer will not be as productive as usual.
the trainer may have bad habits and they may pass these on to the trainee.
it may not lead to training qualifications recognised outside the business.
The 5 advantages of off-the-job training are that it.
a broad range of techniques can be taught using these techniques.
if these courses are taught in the evening after work, they are cheaper for the business.
the business will only need to pay for the course and it will not also lose the output of the employee.
employees may be taught a variety of skills.
it often uses expert trainers.
The 3 disadvantages of off-the-job training are that it.
costs are high.
-it means wages are paid but no work is being done by the worker.
the additional qualifications mean it is easier for the employee to leave and find another job.
What is workforce planning?
Workforce planning is establishing the workforce needed by the business for the foreseeable future in terms of the number and skills of employees required.
If a business needs to reduce the number of employees, this can be done in one way of two ways:
dismissal.
redundancy.
Define dismissal.
Dismissal is when employment is ended against the will of the employee, usually for not working in accordance with the employment contract.
Define redundancy.
Is when an employee is no longer needed and so loses their job. It is not due to any aspects of their work being unsatisfactory.
Why else would a worker leave their job besides dismissal or redundancy?
retire.
resign.
The following factors help a business to decide which workers to make redundant and which to retain:
some workers may volunteer and be happy to be made redundant.
length of time employed by the business.
workers with essential skills that are needed.
employment history of the worker.
which departments of the business need to lose workers and which need to retain workers.
the most important employment issues affected by legal controls are:
employment contracts.
unfair dismissal.
discrimination.
health and safety.
legal minimum wage.
What is a contract of employment?
A contract of employment is a legal agreement between an employer and employee listing the rights and responsibilities of workers.
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
What is an industrial tribunal?
An industrial tribunal is a type of law court that makes judgements on disagreements between companies and their employees.
What are the four impacts of unfair dismissal on employer and employee?
-employer must keep accurate records.
- employees have the security of employment.
- allows employees to take their employer to an industrial tribunal.
- makes the business less likely to treat employees unfairly.
What are the five main examples of when workers are treated differently?
are of a different race of color.
belong to a different religion.
are of the opposite sex.
are considered too old/young for the job.
are disabled in some way.
What are the three impacts of discrimination on employers and employees?
employees should be treated equally in the workplace regardless of gender or disability.
employers have to be careful when wording an advertisement for a job.
when selecting an employee for a job an employer must treat all applicants equally.
In most countries, there are now five laws that make sure that all employers:
protect workers from dangerous machinery.
provide safety equipment and clothing.
maintain reasonable workplace temperatures.
provide hygenic conditions and washing facilities.
do not insist on excessively long shifts and provide breaks in the work timetable.
Impact of four health and safety on employers and employees:
Cost to the employer of meeting the health and safety regulations.
Time needs to be found to train workers in precautions.
Workers feel ‘safer’ and more motivated at work.
Reduces accident rate and cost of compensation for injured workers.
Define ethical decision.
An ethical decision is a decision taken by a manager or a company because of the moral code observed by the firm.
There should be a legal agreement between worker and employer (contract of employment) which will contain details not only of the hours of work and the nature of the job but also of:
The wage rate to be paid.
How frequently wages will be paid.
What deductions will be made from wages.
Impact of five legal minimum wage on employers and employees:
It should prevent strong employers from exploiting unskilled workers.
As many unskilled workers will now be receiving higher wages.
It will encourage more people to seek work.
It increases business costs.
Some employers will not be able to afford these wage rates.
What is communication?
Communication is the transferring of a message from the sender to the receiver, who understands the message.
What is a message?
A message is the information or instructions being passed by the sender to the receiver.
What are the three important things about a message or information being sent?
This means that the information or message being sent is received, understood and acted upon in the way intended.
What is internal communication?
Internal communication is between memebers of the same organisation.
Why would management suffer without communication?
The tasks of management in guiding, instracting, warning and encouraging workers would become impossible.
Give three examples of internal communication.
‘Please do not smoke in this area.’ (notice on a table).
‘How many hours did you work last week?’ (manager asks a worker).
‘Keep this door locked at all times.’ (sign on a door).
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
What is external communication?
External communication is between the organisation and other organisations or individuals.
What are four main examples of external communication?
External communication is very important to the image and efficiency of a business.
FOR EXAMPLE: If a company communicates ineffectively with suppliers, it may be sent the wrong materials.
Effective communication involves the following four features:
A transmitter or sender of the message.
A medium of communication.
A receiver of the information.
Feedback.
What is a transmitter or sender?
The transmitter or sender of the message is the person starting off the process by sending the message.
What is the medium of communication?
The medium of communication is the method used to send a message.
What is the receiver?
The receiver is the person who receives the message.
What is feedback?
Feedback is the reply from the receiver which shows whether the message has arrived, been understood and if necessary, acted upon.
What is one-way communication?
One way communication involves a message which does not call for a require a response.
What is two-way communication?
Two way communication is when the receiver gives a response to the message and there is a discussion about it.
What are the two advantages of two-way communication?
It should become absolutely clear to the sender whether or not the person receiving the message has understood it and acted upon it.
Both people are now involved in the communication process. This may help to motivate the reciever.
What are the three forms of communication methods?
Verbal methods of communication (speaking).
Written methods of communication include letters and notices.
Visual methods of communication include methods such as diagrams, charts, and videos.
There are several factors that the sender of a message should consider before choosing the most appropriate method to use to communicate with the receiver:
Speed.
Cost.
Message details.
Leadership style.
The receiver.
Importance of a written record.
Importance of feedback.
What are the four methods of verbal communication?
Face to face/ one-to-one talks/ meetings.
Telephone conversations.
Videos conferencing.
Meetings and team briefing.
What are the three advantages of verbal communication?
What are the three advantages of verbal communication?
What are three disadvantages of verbal communication?
In a big meeting, there is no way of telling whether everybody is listening or has understood the message.
It can take longer to use verbal methods when feedback occurs.
When an accurate and permanent record of the message is needed, a verbal method is inappropriate.
Written methods of communication include the following:
Business letters.
Memorandums.
Reports.
Notices (no certainty that they are read).
Text messages.
Email.
What are the four advantages of written communication?
There is hard evidence of the message which can be referred to in the future.
It is essential for certain messages involving complicated details which might be misunderstood.
A written message can be copied and sent to many people.
Electronica communication is quick and cheap way to reach a large number of people.
What are the four disadvantages of written communication?
Direct feedback is not always possible.
It is not so easy to check that the message has been received and acted upon as with verbal messages.
The language used can be difficult for some receivers to understand.
There is no opportunity for body language to be used to reinforce the message.
Visual methods of communication include the following:
Films, videos, and Microsoft PowerPoint displays.
Posters.
Charts and diagrams.
Photographs and cartoons.
What are the two advantages of visual communication?
These methods can present information in an appealing and attractive way.
They can be used to make a written message clearer by adding a chart or diagram to illustrate the point being made.
What are the two disadvantages of visual communication?
There is no feedback and the sender of the message may need to use other forms of communication.
Charts and graphs are difficult for some people to interpret.
What is informal information?
Informal information is when information is sent and received casually using everyday language.
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
What is formal communication?
Formal communication is when messages are sent through established channels using professional language.
What are communication barriers?
Communication barriers are factors that stop effective communication of messages.
What are the four parts of any successful communication?
Sender, receiver, medium used and feedback.
Why is have employees motivated a good thing
Productivity
Lower labour turnover
Better quality products
Leadership styles, examples and their meanings
Leadership style - Different approaches to dealing with employees and making decisions when in authority
Autocratic - when the manager expects to be in charge of the business and the decision making
Democratic - when other employees are involved in the decision making process
Lassiter farriez - makes broad objectives for the business and lets the employees do most of the decision making
Advantages autocratic
Decisions made quicker
Clear instructions
More experience
Disadvantages autocratic
Less motivation
Ideas are not considered
Advantages democratic
Highly motivated
Employees are more accepting of change
Creative thinking
Disadvantages democratic
Longer decision making
Arguments
Advantages laissez fairies
Motivated by the responsibilities
Allows innovative thinking
Disadvantages laissez fairies
Poor performance/inexperienced decisions
More work
May feel directionless/I dont know what to do
Financial methods motivation, examples and their meanings
Salary - the pay yearly
Commission - a payment relating to the amount of sales made
Profit sharing - where a proportion of the company’s profit is paid out
Fringe benefits - other benefits such as a company car
Bonuses - a sum of money given if the worker has done well
Time rate - the amount paid to a worker for one hour
Piece rate - the amount paid for each unit of output
Non financial methods, examples and their meanings
Job rotations - workers swap to do different jobs in a production line
Autonomy/teamworking - working in groups and are responsible for a particular part of the assembly
Workers can decide as a group who does what tasks
Job enrichment - adding more tasks that require more skill so they take on more responsibility (may require training)
Training - the process of improving a workers skill, worker may feel a sense of achievement
Opportunities of promotion- the advancement of an employee in an organisation, may feel a sense of achievement and get more
Challenging work
Maslows hierarchy
Psychological needs, food/Shelter
Safety needs, job security
Love and belonging (social needs), work colleagues support
Self esteem, being recognised by doing a good job
Self actualisation, being promoted given more responsibility
Herzeberg motivational theory
Hygiene factor
- decreases if you dont have it but doesn’t increase motivation
Eg; health and safety
Motivating factors
- opportunities
- financial
Taylors motivational theory
Scientific theory that people are only motivated by money, piece rates
However not everyone is motivated by money
What is job satisfaction
The enjoyment derived from feeling that you have done a good job
Hierarchy
Level of management in any organisation from highest to lowest
Functions of an organisational structures
Describes every job in an organisation
Describes the responsibilities of each employee
Describes how each job is related to other jobs
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
Chain of command
Chain of command
The structure in an organisation which allows instructions to be passed down from senior management to lower levels of management
a hierarchy that outlines who reports to whom, as well as the roles each person has within the organization.
Span of control
A feature in the organisational structure where it is the number of employees working directly under a manager and for which a manager is responsible for
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
Delegation definition and advantages (for workers and the manager)
Passing down tasks down to someone lower in the hierarchy, balancing the work load for both the manager and the employee
Advantages for the manager
- less work, managers can focus of managerial tasks and less likely to make mistakes
- easier to measure the success of the task when its done by someone else
Advantages for the worker
- the work is more interesting and rewarding
- the worker feels more important and feels like they are trusted
- delegation may help trains he employees for more difficult tasks in the future
Delayering
When an organisation removes a layer
Centralised organisation
Keep decision making firmly at the top of the hierarchy amongst the most senior management
Centralised organisation Advantages
Consistent decisions
More experienced decisions are made
Easier to implement policies/rules
Centralised Disadvantages
Slow decisions
Less creativity
Branch managers are demotivated
More layers, might increase costs
Danger of losing a key decision maker
Decentralised advantages
Communication faster
Good way of training. And development
More motivation with staff managers
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
Decentralised advantages
Communication faster
Good way of training. And development
More motivation with staff managers
Decentralised organisation
Decision making is spread out to include more junior/lower level managers in the hierarchy
Decentralised organisation disadvantages
Inconsistent decisions
Less experience
Harder to control costs
Not necessarily looking to the long term future direction of the business
Tall organisational structures features
Long chain of command
Smaller span of control
Flat organisational structures features
Large span of control
Less layers
Tall organisational structures advantages
More chances of promotion
More supervision/support
Tall organisational structures disadvantages
Slower communication
Heavier work load
Flat organisational structures advantages
Better communication
Less work load
Flat organisational structures disadvantages
Less supervision feels disconnected
Less promotion opportunities
Organisational structure
Levels of managements and responsibilities within an organisation
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
Organisational chart
To the diagram that outlines the internal management structure
The role and function of management
Planning (relation to the main aims and targets)
Organising (delegation)
Commanding (guiding)
Co ordinated (teamwork)
Trade unions
An organisation that protects employees rights, for money
Trade unions advantages
Negotiates better pay
Gives advice and support
Negotiates better working conditions, health and safety
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
Trade unions disadvantages
Trade unions disadvantages
Unions drive up costs for the business
Expensive to pay
Time consuming
The process of recruitment
- Job analysis - identifies and records the responsibilities and tasks relating to the job
- Job description - outlines the responsibilities and duties to be carried out by someone employed to a specific job also hilighting details about the job (final version of job analysis)
- A job description will include a job specification as well (what qualifications are needed to get the job)
- Job will be advertised to the appropriate media/target audience such as newspaper, magazine and online recruitment sites
- Application forms will be submitted
- Interviews and selection happens
- Vacancy is filled (vacancy is a gap in the workforce)
Why do they need to recruit people
High labour turnover
New skills
Growing/expand
Someone got promoted
Features of a job description
Job title
Purpose of a Job
Duties/responsibilities
Location hours of work
Internal recruitment
When a business fills a job vacant with an existing employee
Typically used for promotions
External recruitment
The process by which a business will search for a new candidates from outside a business
Advantages of internal recruitment
Workers strengths and weakness known
No need for induction training
Usually cheaper and quicker method
High staff retention as staff know there is a chance of a promotion
Disadvantages of internal recruitment
More training may be needed to equip the employee with the right skills
It creates another vacancy in the business
Can cause jealously among staff if overlooked
No new ideas are brought in
Advantages of external recruitment
News ideas and skills are introduced in the business
Larger choice of applicants
Disadvantages of external recruitment
More cost and time
Selective process is important for the business
If you get the right people….. it?
Increases output, productivity
Different ideas
Improvement in quality and customer service
Increase staff retention
Types of training, examples and their meanings
Induction training - an introduction given to the new employee explaining the business activities customs and procedures also introducing new rooms and their fellow workers
On the job training - Training at the place of work, when an experienced employee watches you and makes the necessary corrections
Off the job training - Training that takes place away from the workplace usually by a specialist trainer(s)
Off the job training advantages and disadvantages
- broad range and variety of skills are taught
- the business does not lose output of that employee
- specialist trainer are the teacher who have up to date knowledge
- costs can be too high
- the additional qualifications will make it more easier for the employee to go and find another job
Dismissal
Termination by the employer because the employee has broken company rules or is not performing work to the required standard
On the job training advantages and disadvantages
- employee does not need to be sent away to their training (travel costs are high)
- costs are less than off the job
- tailored training to the superficial needs of the business
- the trainer will not be as productive as usual
- trainer may have bad habits which may be passed down to the trainee
Employee selection
The process of evaluating which candidate is best suited for the job at hand and the needs of the organisation
Recruitment
The process of identifying that the business needs to employ someone
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
Study These Flashcards
Part time vs full time jobs
Part time jobs - when you work for 1-35 hours a week
Full time jobs - when you work for more than 35 hours
What are the three impacts of employment contracts?
both employers and employees know what is expected of them.
it provides some security of employment to the employee.
if the employee does not meet the conditions of the contract then legal dismissal is allowed.
Workforce planning
The workforce needed for the business in the near future this could include skills of employees required
Induction training advantages and disadvantages
helps the new employees settle into their job more quickly
less likely for the worker to make mistakes
time consuming
this means wages are paid but no work is done
Redundancy
When an employee is no longer needed so loses this job (not because their work was unsatisfactory)
Why is training important
Introduce a new process
Improve the opportunities for internal promotion
Decrease in mistakes
Increase productivity (know what they are doing)
Decreases in supervision
Types of legal control when hiring new employees
Discrimination
Unfair Dismissal
The contract of employment (legal agreement)
Health and safety
Minimum wage
