Business 2.4 Flashcards
Explain Taylors scientific management
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
Advantages of Taylors
Works well for people who
are money-driven
Works for low-paid
low-qualified labour
In line with some cultures
Disadvantages of Taylors
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
Explain Maslow’s Hierarchy of Needs
physiological, security, social, esteem, self-actualization
Maslow’s Hierarchy of Needs Disadvantages
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
Maslow’s Hierarchy of Needs advantages
Easy to use
Can be applied to all industries
Straightforward
Can be used to motivate
employees intrinsically
helps employers identify intinsiç motivation for workers
Explain herzberg’s two factor theory
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
herzberg’s two factor theory advantages
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.
herzberg’s two factor theory disadvantages
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
Describe McClelland’s acquired needs theory
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
McClelland’s acquired needs theory advantages
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.
McClelland’s acquired needs theory disadvantages
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.
Explain Deci and Ryan’s self-determination theory
2 types of motivation:
- Autonomous (when you do
something because you want to,
can be intrinsic & extrinsic) - 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
- Relatedness-
care for and be cared by others, be part of the group - Autonomy-
self-endorsed behaviour, need to be in charge of own choices and make decisions
Employees are motivated
when all 3 needs are met
Deci and Ryan’s self-determination theory disadvantages
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
Deci and Ryan’s self-determination theory advantages
The needs are universal and apply to everyone
Theory promotes self-determination of employees, thus shifting the emphasis to developing intrinsic motivation
Exaplain Adams’s equity theory
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
Exaplain Vroom’s expectancy theory
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
Advantages of Equity and expectancy theory
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
Disadvantages of Equity and expectancy theory
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’
List financial motivational methods
Wages
Piece rate
Salary
Commission
Profit-related pay
Performance related pay (PRP)
Employee share ownership schemes
Fringe benefits (perks)
Explain Piece rate
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
Explain Wages
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
Explain Salary
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
Explain Commission
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
Explain Profit-related pay
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
Explain Performance related pay (PRP)
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
Explain Fringe benefits (perks)
Meets employee’s safety needs (Maslow) at a cost
Includes medical insurance, bonus schemes, company car, subsidised meals, discounts
Explain Employee share ownership schemes
Giving shares for free or at a discount
Usually only given to senior management
Impractical for most companies
List all Non-financial motivation
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
Explain Job enlargement
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
Explain Job enrichment
Provides employee with more complex and fulfilling tasks
Adds sense of control, pride, and achievement
Explain Job rotation
Shifting of cross trained workers to other tasks
Allows understanding of different operating areas of business
Can reduce fatigue, since new tasks are assigned
Explain Employee empowerment
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
State Appraisal Methods
Peer
Formative
Summative
360 degree
Self-Appraisal
Explain peer appraisal
Same level employees on the business hierarchy appraises you
Appraiser and appraisee are familiar with requirements for job
Might be reluctant to criticize peers
Explain Formative
Appraisal during a specific job process
Used to get feedback to guide improvement
Explain Summative
Appraisal after a specific job process
Compares the performance of an employee to a benchmark
Explain 360 degree
Appraisal from many different sources (managers, peers, subordinates, customers, etc.)
Comprehensive – many perspectives
Subjective, influenced by group norms, time consuming
Explain Self-Appraisal
Need for employees to set targets for improvement
Outline recruitment process
Vacancy arises
Job analysis
Job description & Person specification
Job advertisement
Receiving applications
Short-listing
Interviews (& Testing)
Vacancy filled (& Rejecting & Contracts)
