2. People in Business Flashcards
Name 3 roles of the HR department.
Recruitment and employee selection
training, meeting legal requirements regarding employment, and being responsible for redundancy and dismissal.
What impacts do motivated workers have on the business?
High motivation -> High productivity -> Increased output ->Higher revenue
What impacts do demotivated workers have on the business?
Low motivation -> Less productivity -> Decreased output ->Less revenue
Define labour turnover.
The percentage of the workforce (employees) that leave a business within a given period (usually a year)
List the problems with high labour turnover.
Higher costs
Increased recruitment & training costs
Increased pressure on remaining staff
Disruption to production / productivity
Harder to maintain required standards of quality and customer service
Define absenteeism
Absenteeism is an employee’s intentional or habitual absence from work
What was taylor’s approach to motivation?
- Identify most efficient methods of production
- Spot the most efficient workers and see why they are so good
- Train the remaining workers to work like the best
- Pay workers based on productivity (e.g. piece rates)
What were the problems with Taylor’s approach?
His ideas were too simplistic – employees are motivated by many things and not just money.
You can pay an employee more money, but if they are unfulfilled by their work in some way, there will be no increase in their effectiveness at work and there will be no productivity gains.
Taylor’s approach viewed people as machines
A practical problem arises if you cannot easily measure an employee’s output.
What were the contents of Maslow’s hierarchy of needs?
- Physiological needs
- Safety and security needs
- Social needs
- Esteem needs
- Self actualisation
Explain the 5 levels of hierarchy in Maslow’s approach.
Physiological needs - basic food, shelter, recreation, rest.
Safety needs - protection against danger, job security
Social needs - working in a group with others
Esteem needs - Having status and recognition
Self-actualisation - Succeding to your full potential.
How can each level of the hierarchy be fulfilled?
Physiological - basic pay
Safety and security - contract of employment, safety training
Social - working in groups
Esteem - promotion, rewards, training
What were the problems with Maslow’s approach?
Certain levels do not appear to exist for some individuals
Difficult to successfully identify the level each employee is at and then provide a suitable reward
Some rewards appear to fit into more than one level.
Explain Hertzberg’s theory.
Motivators
Factors that directly motivate people to work harder
Giving responsibility, recognition for good work, opportunities for promotion
Hygiene (maintenance) factors
Factors that can de-motivate if not present but do not actually motivate employees to work harder
Pay, working conditions, job security
Motivate by using motivators plus ensuring hygiene factors are met
Use job enrichment and empowerment (delegating more power to employees to make their own decisions).
What methods can be used to achieve the motivators?
Job enlargement Where extra tasks of a similar level of work are added to a worker’s job.
Job enrichment Involves looking at jobs and adding tasks that require more skill and/or responsibility.
Empowerment Involves giving people greater control over their working lives
What were the problems with Hertzberg’s approach?
Job enrichment may be too expensive for many firms
It is very subjective to ask people what they find satisfying and dissatisfying at work – difficult to then identify what motivates.
