Business 2.4 Flashcards

1
Q

Explain Taylors scientific management

A

Managers in charge of everything
(planning, direction, control)

Division of labour and specialisation

Performance-related pay: the more oneworks, the more one gets

Workers have to be selected
scientifically: based on their abilities,not on manager’s subjective preference

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2
Q

Advantages of Taylors

A

Works well for people who
are money-driven

Works for low-paid
low-qualified labour

In line with some cultures

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3
Q

Disadvantages of Taylors

A

Mental output is hard to measure, not suitable for some professions

Not all people are
motivated by money

The more educated people are the more they want to have a say in how things are done

Implies repetitive tedious work
and being told what to do

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4
Q

Explain Maslow’s Hierarchy of Needs

A

physiological, security, social, esteem, self-actualization

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5
Q

Maslow’s Hierarchy of Needs Disadvantages

A

Impossible to motivate all workers using the same hierarchy of needs

Levels of the hierarchy are impossible to measure. Where is the border?

The order of needs might be
different, as well as the number of levels

What motivates Jeff Bezos? Are all self-actualised people unhappy?

Not necessarily 5 needs need to be used, could be more for different workers

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6
Q

Maslow’s Hierarchy of Needs advantages

A

Easy to use

Can be applied to all industries
Straightforward

Can be used to motivate
employees intrinsically

helps employers identify intinsiç motivation for workers

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7
Q

Explain herzberg’s two factor theory

A

Hygiene factors-

aspects of work that do not motivate but must be met to prevent dissatisfaction: organisational rules, regulations, policies, working conditions, pay

Motivators-

factors that lead to the
psychological growth of workers and hence increase satisfaction and performance at work: achievement, recognition, responsibility, advancement

Includes
Job enlargement - more variety in tasks (but not more challenging)

Job enrichment - more complex and challenging tasks to maximise potential
and sense of achievement

Job empowerment delegating
decision-making power to workers

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8
Q

herzberg’s two factor theory advantages

A

Gives more autonomy to worker

It clearly distinguishes between the factors that motivate employees on the job and the factors that maintain employees on the job.

It recommends specific measures (i.e. motivators) to improve motivation levels.

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9
Q

herzberg’s two factor theory disadvantages

A

Can’t be applied to low-skilled low-paid labour (enrichment and
empowerment will not work)

Herzberg’s research was based on accountants and engineers only

Not all employees will be motivated by job
enlargement/ enrichment as it implies more work and responsibilities

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10
Q

Describe McClelland’s acquired needs theory

A

Employees have 3 needs:
1. Achievement desire to succeed,
master skills and achieve goals
2. Affiliation - need to be around
others and be loved/admired
3. Power- desire to lead
and inspire others

One of these needs dominates. If managers fail to understand which one, they won’t be able to motivate well

Achievement- like to be alone

Affiliation- like to be loved and be around people (make bad managers)

Power- usually good for managers

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11
Q

McClelland’s acquired needs theory advantages

A

Employees given tasks according to their needs: Giving employees tasks based on their needs can help to motivate them, as they are more likely to be engaged and interested in tasks that align with their interests and skills.

No scope for excuses: When employees are given tasks that align with their interests and skills, they are less likely to make excuses for not completing their work, as they are more likely to be invested in the tasks they are given.

Leads to satisfied employees: By giving employees tasks that align with their interests and skills, companies can increase employee satisfaction and reduce turnover, as employees are more likely to be happy and fulfilled in their work. This can be a great asset to the company, as satisfied employees tend to be more productive and loyal.

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12
Q

McClelland’s acquired needs theory disadvantages

A

Does not consider basic needs: McClelland theory does not address primary needs like food, shelter, and safety, which should be fulfilled before other needs.

Stereotyping: Employees may get stereotyped based on their needs, and it may limit their opportunities to work in other departments even if they have the necessary qualifications.

Difficult to match needs with positions: It may be challenging for the company to find positions that match the needs of all employees, leading to accommodation problems.

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13
Q

Explain Deci and Ryan’s self-determination theory

A

2 types of motivation:

  1. Autonomous (when you do
    something because you want to,
    can be intrinsic & extrinsic)
  2. Controlled (when you do
    something for reward)

They don’t conflict each other and one can be transformed into the other

The most productive employees
internalise controlled motivation,i.e make it autonomous

3 types of needs:
1. Competence-
need to succeed, achieve, develop

  1. Relatedness-
    care for and be cared by others, be part of the group
  2. Autonomy-
    self-endorsed behaviour, need to be in charge of own choices and make decisions

Employees are motivated
when all 3 needs are met

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14
Q

Deci and Ryan’s self-determination theory disadvantages

A

Hard to identify how much of each need different employees require

Many employees are driven only by rewards and aren’t able to internalise motivators if there’s no personal benefit

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15
Q

Deci and Ryan’s self-determination theory advantages

A

The needs are universal and apply to everyone

Theory promotes self-determination of employees, thus shifting the emphasis to developing intrinsic motivation

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16
Q

Exaplain Adams’s equity theory

A

Employees compare their efforts and rewards to those of their colleagues

They become demotivated if their inputs are greater than the outputs

Inputs -contributions made by employee

Outputs- financial and non-financial rewards

Workers are motivated only if their input-outcome ratio is equitable (fair) in relation to others in the workplace.

To understand equity theory, consider how you might feel if your teacher gave you a lower predicted grade for Business Management despite you putting ina huge amount of effort, yet your friend who has put in very little effort was rewarded with a higher predicted grade

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17
Q

Exaplain Vroom’s expectancy theory

A

People act in a certain way because they expect certain outcomes for their behaviour. If there are no desired outcomes, employees will not alter their behaviour

18
Q

Advantages of Equity and expectancy theory

A

Helps individuals set realistic goals and understand the effort needed to achieve them.

Encourages individuals to value the outcomes they desire, and to believe that their efforts will lead to those outcome

19
Q

Disadvantages of Equity and expectancy theory

A

Doesn’t always work: sometimes people act against their best interests

Inputs and outputs cannot be quantified, as well as some rewards

Subjective: people have different understandings of fairness and ‘rewards’

20
Q

List financial motivational methods

A

Wages

Piece rate

Salary

Commission

Profit-related pay

Performance related pay (PRP)

Employee share ownership schemes

Fringe benefits (perks)

21
Q

Explain Piece rate

A

Based on no. of items produced or sold in a given time

Motivated to work/sell more

Lack of financial security – pressure to sell

Workers might sacrifice quality for quantity

22
Q

Explain Wages

A

Time-based

Rate is based on worker’s experience and responsibilities

Overtime rate for work in excess of contracted time

Workers are rewarded for time not effort

23
Q

Explain Salary

A

Fixed annual rate paid on a monthly basis

Time-rate payment

Little incentive to work hard due to consistent pay

Difficult to reward better workers

Can be improved by using appraisals

24
Q

Explain Commission

A

Output based system (based on how much they sell/produce)

Pays workers based on percentage of sales or output contributed rather than a fixed amount per unit like piece rate

Similar advantages and disadvantages to piece rate

25
Q

Explain Profit-related pay

A

Pay linked to profits of the firm

Strengthens employee loyalty

Limits labor conflict (both managers and employees benefit from higher profits)

May be too insignificant

26
Q

Explain Performance related pay (PRP)

A

Based on individual performance/ability to meet goals

Various forms:

Performance bonus

Loyalty bonus

Pay rise

Gratuity – bonus for completing contract

Satisfies Equity Theory

Problems of bias or how to quantify performance

Targets may be too unrealistic

27
Q

Explain Fringe benefits (perks)

A

Meets employee’s safety needs (Maslow) at a cost

Includes medical insurance, bonus schemes, company car, subsidised meals, discounts

28
Q

Explain Employee share ownership schemes

A

Giving shares for free or at a discount

Usually only given to senior management

Impractical for most companies

29
Q

List all Non-financial motivation

A

Job enlargement

Job enrichment

Job rotation

Employee empowerment

Teamworking

Other forms of non-financial motivation:

Recognition and praise

Working environment

Delegation

Worker participation

Monthly awards for employee of the month

30
Q

Explain Job enlargement

A

Horizontal expansion by increasing scope of work required

Enhances employee pride in work, feeling of responsibility

May lower productivity or quality because of higher workload

31
Q

Explain Job enrichment

A

Provides employee with more complex and fulfilling tasks

Adds sense of control, pride, and achievement

32
Q

Explain Job rotation

A

Shifting of cross trained workers to other tasks

Allows understanding of different operating areas of business

Can reduce fatigue, since new tasks are assigned

33
Q

Explain Employee empowerment

A

Employees are delegated tasks assigned to managers

Increases employee motivation and productivity

Managers must share: Decision-making power Rewards (based on organizational performance)

Knowledge/expertise needed to enhance performance

Employees must be highly skilled, motivated, and competent

Managers are ultimately still liable for whatever they delegate

34
Q

State Appraisal Methods

A

Peer

Formative

Summative

360 degree

Self-Appraisal

35
Q

Explain peer appraisal

A

Same level employees on the business hierarchy appraises you

Appraiser and appraisee are familiar with requirements for job

Might be reluctant to criticize peers

36
Q

Explain Formative

A

Appraisal during a specific job process

Used to get feedback to guide improvement

37
Q

Explain Summative

A

Appraisal after a specific job process

Compares the performance of an employee to a benchmark

38
Q

Explain 360 degree

A

Appraisal from many different sources (managers, peers, subordinates, customers, etc.)

Comprehensive – many perspectives

Subjective, influenced by group norms, time consuming

39
Q

Explain Self-Appraisal

A

Need for employees to set targets for improvement

40
Q

Outline recruitment process

A

Vacancy arises

Job analysis

Job description & Person specification

Job advertisement

Receiving applications

Short-listing

Interviews (& Testing)

Vacancy filled (& Rejecting & Contracts)