2- People in Business Flashcards
Communication
is about sending and receiving information.
upward communication
passing messages from the botom of an organisation to those at the top.
downward communication
passing messages from the top of the organisation to those at the bottom.
horizontal communication
exchange of information between parties on the same level in an organisation’s hierarchy.
internal communication
communication between people inside the business.
external communication
communication between the business and those outside such as customers, investors or the authorities.
Formal communication
use of recognised channels when communicating.
Informal communication
use of non- approved channels when communicating
The effects of poor communication
- Mistakes occur
- costs rise
- Decision making slows down
- Staff motivation suffers
Methods of communication
- face to face communication
- writen communication
- electronic communication
Writen communication
- letters
- reports
- Memorandums
- forms
- Noticeboards
Electronic communication
- internet
- mobile phones
- social media
- intranets
- Videoconferencing and teleconferencing:
- Public address (PA) systems.
- Electronic noticeboards
communication barriers
Obstacles that prevent effective communication between the sender and the receiver.
Examples of communication barriers
- Lack of clarity.
- Technological breakdown.
- Poor communication skills.
- Jargon.
- Distractions.
- Business culture.
- Long chain of command
- Using the wrong medium.
- Different countries, languages and cultures.
The problems of ineffective communication in business
- Higher staff turnover.
- Poor customer service.
- Higher legal costs.
- Lower profits.
- Damage relations with customers and suppliers.
How can barriers to communication can be removed?
- Recruitment.
- Training.
- Written communication.
- Technology.
- Chain of command.
- Social events.
- Culture change.
Types of employment
- Full-time employment.
- Part-time employment.
- Job share.
- Casual employment.
- Seasonal employment.
- Temporary employment.
hospitality industry
when companies entertain clients or take them on trips in order to get business.
The requirement process
- Identify the type and number of staff needed.
- Prepare a job description and person specification.
- Advertise using appropriate media.
- Evaluate applicants and select a shortlist for interview.
- Provide feedback for unsuccessful applicants.
- Evaluate interviews and appoint the best candidate.
- Cary out interviews.
job description
document that shows
clearly the tasks, duties and responsibilities expected of a worker for a particular job.
person specification
personal profile
of the type of person needed to do a particular job.
job application form
standard document used to collect information from a job applicant.
curriculum vitae
document used by a
job seeker that lists personal details, qualifications, work experience, referees and other details.
induction
introduction of someone into a new job, company, or official position.
Recruitment documents
Job description
Person specification.
Application form.
Crurriculum vitea (CV)
internal recruitment
appointing workers from inside the business.
external recruitment
appointing workers from outside the business.
Legal controls over employment
Governments often pass legislation to protect people at work.
What are equal opportunities?
If a business chooses a person for a new job or promotion because they are more skilled and better qualified than another, this would be legal. However, it is illegal in most countries to discriminate on the grounds of gender, race, disability, sexual preference, religion or age.
Some measures a business might have to take to ensure that gender discrimination is avoided in the workplace.
- Advertisements for jobs must not specify a particular gender.
- References to work titles in job adverts must be genderless.
- Promotion must not be made on the basis of gender.
- Wages for staff occupying the same position must be the same for both
men and women.
ethnic origin
the birthplace of a group of people of a different race from the main group in acountry.
Some examples of the effects of race legislation on businesses
- Businesses cannot prevent employees from wearing ethnic or religious dress.
- Businesses must take into account the religious holidays of ethnic groups.
- Businesses cannot refuse to employ people from particular ethnic or religious groups.
How to help accommodate disabled employees?
- Improve access to the workplace by widening doors and providing ramps for wheelchairs.
- Allow disabled workers time to attend medical appointments.
- Alter equipment such as telephones and computers to accommodate those with sight or hearing difficulties.
- Allow more time for training.
How to provide protection against age discrimination?
- It would be illegal to not to offer a job to someone on the grounds of age.
- Businesses should take measures to prevent older workers from being harassed in the workplace.
- Businesses cannot refuse promotion or training on the grounds of age.
minimum wage
minimum amount per hour, which most workers are entitled to be paid.
The main reasons why governments set legal minimum wages.
- To benefit disadvantaged workers.
- To reduce poverty.
- To help businesses: Aminimum wage should reduce staff turnover, absence and raise productivity.
training
process that involves increasing the knowledge and skils of a worker to enable them to do their job more effectively.
on-the-job training
training that takes place while doing the job.
Different approaches of on-the-job training
- mentoring : where people with a lot of experience and knowledge advise and help other people at work.
- job rotation: where employees alternate between different jobs during the course of their employment.
Advantages of on-the-job training
- Output is being produced.
- Relevant because trainees learn by actualy doing the job.
- Cheaper than other forms of training.
- Can be easy to organise.
Disadvantages of on-the-job training
- Output may be lost if workers make mistakes.
- May be stressful for the worker.
- Staff may get frustrated if they are ‘unpaid’ trainers.
- Could be adanger to others, for example, surgeon or train driver.
off-the-job training
training that takes place away from the work area.
Advantages of off-the-job training
- Output is not affected if mistakes are made.
- Learning cannot be distracted by work.
- Training could take place outside work hours if necessary.
- Customers and others are not put at risk.
Disadvantages of off-the-job training
- No output because employees do not contribute to work.
- Some off-the-job training is expensive if provided by specialists.
- Some aspects of work cannot be taught off-the-job.
- It may take time to organise.
The benefits of training
- keeping workers up to date.
- improving labour flexibility.
- improving job satisfaction and motivation.
- new jobs in the business.
- training for promotion.
Why is employee motivation important in business?
- easier to attract employees.
- easier to retain employees.
- higher labour productivity.
Herzberg two-factory theory
Psychologist Frederick Herzberg discovered in the 1960s that certain factors at work would help to give employees job satisfaction. He called these motivators. He also found that other factors could leave workers dissatisfied. He called these hygiene factors.
hygiene factors (Herzberg’s)
things at work that result in dissatisfaction.
motivators (Herzberg’s)
things at work that result in satisfaction
Examples of motivators (Herzberg’s)
- Achieving aims
- Chance of promotion
- Responsibility Interesting work
- Recognition
- Personal development
Examples of hygiene factors (Herzberg’s)
- Pay
- Working conditions
- Job security
- Quality of supervision
- Staff relationships
- Company policy
Maslow’s hierarchy of needs
order of people’s needs starting with basic human needs.
The pyramid of Maslow’s hierarchy of needs
- Physiological needs
- safety and security
- social needs
- esteem needs
- self actualisation
remuneration
money paid to employees for their work or services
The different methods of remuneration
- Time rates
- Piece rates
- Performance - related pay
- Bonus payment
- Commission
Time rates
payment system based on the amount of time employees spend at work.
Piece rate
payment system where workers receive an amount of money for each unit produced
performance-related pay
payment system designed for non-manual workers where pay increases are given if performance targets are met
Bonus systems payment
payment in addition to the basic wage for reaching targets or in recognition for service.
Commission
payment based on the value of sales, usually apercentage of sales made.
fringe benefits
perks’ over and above the normal wage or salary
Job rotation
One way to make work more interesting is to allow employees to change jobs from time to time.
job enrichment
making a job more challenging and interesting
autonomy
giving workers the authority to make choices and decisions about the way they work (sometimes caled empowerment)
formal organisation
internal structure of abusiness as shown by an organisation chart
organisational chart
diagram that shows the different job roles in a business and how they relate to each other
hierarchy
order or levels of responsibility in an organisation from the lowest to the highest.
Directors
Directors are appointed by the owners to run the business.
The business is divided into four departments: Production, Marketing, Human Resources and Finance. A director runs each of these departments.
Managers
Managers have a number of functions. They are responsible for planning, controling, organising, motivating, problem solving and decision making. However, their overall role is to achieve the objectives of the owners.
Supervisors
- Supervisors monitor the work in their particular area.
- Supervisors may carry out managerial duties, but at a lower level.
General staff
Businesses often employ staff that do not have any specific skills. However, with training they can perform a variety of tasks and gain promotion to other positions.
Professional staff
Professional staff are skilled and highly trained. Examples include lawyers, accountants, doctors, pilots and dentists.
chain of command
route through which orders are passed down in the hierarchy
subordinates
people in the hierarchy who work under the control of a more senior worker.
delegation
authority to pass down work from superior ot subordinate.
span of control
number of people a person is directly responsible for in a business.
centralised
type of organisation system where most decisions are made at the top of the organisation and then passed down the chain of command.
decentralised
type of organisation system where decision making is pushed down the
chain of command and away from the top
The main tasks completed by the human resource (HR) department
- Workforce planning
- Recruitment and selection
- Training
- Health and safety
- Staff welfare
- Employment issues
- Industrial relations
- Disciplinary and grievance procedures
- Dismissal
- Redundancy
The main tasks completed by the finance department
- Recording transactions
- Wages and salaries
- Credit control
- Cash flow forecasting and budgets
- Accounts
The main tasks completed by the marketing department
- Market research
- Product planning
- pricing
- sales promotion
- Advertising
- customer service
- public relations
- Packaging
- Distribution
The main tasks completed by the production department
- Design
- Purchasing
- Stock control
- Maintenance
- Research and development (R&D)
