2. People in business Flashcards
define chain of command
the structure in the organization which allows instructions to be passed down from senior to lower levels of management
Advantage of short chain of command
-Better communication
-Span of control will be wider:
Encourages delegation
More trust
define Internal recruitment:
Filling a vacant post with someone already employed in the business
Advantages of Decentralisation:
Decisions are taken by managers who are ‘closer to the action’
More trust and satisfaction
Decisions made faster
Advantages of Internal Recruitment
- Vacancy can be filled more quickly and cheaply
- Applicants already knows how the business works
- Business already knows the strengths and weaknesses of applicants
- Workers can become motivated when they see that there is a change for promotion
Disadvantages of Internal Recruitment
- A better candidate may have been available from outside the business
- It could cause conflict between the workers if they wanted the promotion
- Does not bring in new ideas
- The previous job of the person who has been promoted needs to be replaced
Define External Recruitment
Filling a vacant post with somebody not already employed in the business
Advantages of External Recruitment
- External applicants may bring in new ideas
- Wider choice of applicants with different skills and experience
- Avoids the risk of upsetting workers when someone who is internal is promoted
Disadvantages of External Recruitment
- Takes longer to fill the vacancy
- More expensive because the job needs to be advertised
- Applicants will need training
Main stages in recruitment and selection of staff (9)
- The business identifies the need for a new worker and carries out job analysis
- A job description is produced
- A person specification is produced
- The job is advertised
- Send out application forms and job details
- Receive completed applications
- Select a shortlist from all of the applicants
- Interview shortlisted candidates
- Select the right candidate
Dismissal
Termination by the employer because the worker has broken company rules or is not performing work to the required standard. Examples include, incompetence or poor conduct
Redudancy
Termination of employment by the employer because the job is no longer needed. Examples include, people being replace by machines, relocation to another country or when the business closes
contract of employment for
- Discriminations
- Unfair dismissals
- health and safety
- Legal minimum wage
define induction training
Education for new employees which involves learning about the way the business works
Benefits(2) and limitations(2) of induction training
Education for new employees which involves learning about the way the business works
😃increase understanding of culture
😃increase motivation
😃new employee intergrade faster and contribute more
😡 Increases business costs
😡 Induction training workers receive wage and salary but don’t contribute to the output
Define On-the-job training
where an employee learns a job by seeing how it is carried out by an experienced employee
Benefits(3) and limitations(4) of On-the-job training
where an employee learns a job by seeing how it is carried out by an experienced employee
😃Relatively cheap
😃 Workers learn the way that the business wants the job done
😃 Workers are producing output while training
😡 Workers may pick up bad habits from some experienced workers
😡Workers may not learn the most up-to-date methods
😡Workers make more mistakes when learning and this increases waste
😡It slows down the production of the experienced worker
describer types of management style
Autocratic: A leadership style where the leader makes all the decisions
Democratic: A leadership style where workers take part in decision-making
Laissez-faire: A leadership style where most of the decisions are left to the workers
F.W.Taylor motivational theory (basically)
$$$$$$$$$$$$$$$$
Herzberg motivational theory
1 HYGEINE factors
- if hygiene factors are not satisfied 👉👉 demotivators.
- not motivators, since motivating effect quickly wears off after satisfied.
2 MOTIVATIONAL factors:
F.W.Taylor motivational theory
$$$$ = main motivator.
- If employees are paid more, they work more
- extra pay is less than the increased productivity
Cons
Advantages/Disadvantages of a Short Chain of Command
😃Better communication- quicker & more accurate
😃Top managers are less remote
😃Span of control will be wider:
👉Encourages delegation
👉More trust
😡Managers could lose control since they lot of people under them
😡Subordinates could be incompetent
Decentralized management
definition
pros/cons
decision is spread out to include more individuals
😃 able to respond to local change
😃 close contact to customer
😃 provide leadership skill so train junior management
😡slow decision making
Why join trade union
- greater power in influencing employer’s decisions
- provide legal advice to members- inexpensive
define trade union
A trade union is an organisation of workers aimed at improving pay and working conditions and providing other services, such as legal advice, for members.
what is induction training
Induction training: A training programme to help new recruits become familiar with their workplace, the people they work with and the procedures they need to follow
Benefits
- The workers quickly feel part of the business making them more motivated and more willing to perform tasks efficiently
- The training is specific to the business making it more relevant to what the business requires
Limitations
- Increases business costs
- Induction training workers receive wage and salary but don’t contribute to the output
pros/cons of induction training
😃workers quickly feel part of the business
👉more motivated/ willing to perform tasks efficiently
😃training is specific to the business
👉 more relevant to what the business requires
😡 Increases business costs
😡 Induction training workers receive wage and salary but don’t contribute to the output
define Off-the-job training
pros/cons
Off-the-job training: Training that takes place away from the workplace
Off-the-job training’s pros/cons
😃 Workers learn latest methods/ techniques
😃 doesnt disrupt production of workers:
😡Expensive
😡Worker does not produce any output during training
😡 Training not specific to the business’s requirements?
define job enlargement
Staff are given more tasks of similar difficulty
define job enrichment
Staff are given interesting and challenging work
define Commission
basic salary plus a percentage of the value of sales
full time worker pros/coms
Benefits
- Available for longer hours
- They know the business better than part-time workers
- They may be more experienced
- They may be more loyal to the business
- Carry out more tasks
Limitations:
- Workers may not be always so motivated
- More expensive than part-time workers
part-time worker pros/cons
Benefits:
- Provides greater flexibility, so if workers are sick then part-time workers can cover their duties
- Business can often attract well-qualified workers
- Sometimes they are more productive than full-time workers
Limitations:
- Increase in induction and training costs
- Could be communication problems
- Quality of service may not be as good as full-time workers
