Business info Flashcards
Job production
involves manufacturing single items or providing one-off services, giving a high level of customization
Batch production
typical for smaller scale manufacturing operations where a set number of products are produced as a ‘batch’, allowing for efficiency in production while maintaining quality.
Flow production
refers to a continuous move of items through the production process, often applied with mass-produced, standardised products.
Cell production
lean method of production which aims at improving efficiency by dividing the workforce into teams (or ‘cells’) that produce an entire product or a significant part of it.
Sole traders
a one-person operation. Here, the entrepreneur is the only person who is responsible for the activities of the business, including its liabilities and responsibilities. However, they also reap all of the profits.
Capital productivity
refers to how efficiently a business uses its capital in the production process; a high capital productivity indicates that a business is making good use of its resources.
Partnerships
Each partner shares in the profits, losses, and liabilities.
Private Limited Companies (LTD)
owned by shareholders, but shares cannot be traded publicly. This form protects personal wealth of shareholders as their liability is limited to investment amounts.
Public Limited companies (PLC)
can offer shares to the public and are typically listed on a stock exchange. These companies are governed by strict regulations to protect shareholders.
Taylors theory name
Scientific managment
Mayos theory name
Human relations to managment (Hawthorne effect)
Maslows theory name
Hierachy of needs
Bottom is start of career top is end.
Start = physiological needs e.g. pay
Herzberg theory name
Two-factor theory (motivators and hygine)
What does Taylor state?
Managers should maintain close control and supervision over their employees.
What style of leadership does Taylor side with?
Autocratic leadership style
What does Taylor believe?
That workers are lazy and are only motivated by money
What type of payment does Taylor believe workers should have?
Piece-rate payments, Pain by production, not time.
Taylors 4 steps of approach to management
1) work study - identify most efficient method of production.
2) Identify - Spot most efficient workers.
3) Train - Train remaining workers to work like best.
4) Reward - Pay workers based on productivity.
What did Maslows theory of motivation entail?
Five levels of human needs which employees need to have fulfilled at work.
How do Maslows steps work?
Only once a lower level of need has fully been met, would a worker be motivated by having the one higher.
What are the 5 levels in Maslows hierachy of needs?
TOP TO BOTTOM
Self-actualisation
Esteem
Social
Safety
Physiological (basic needs)
Two parts of Herzbergs theory of motivation
Hygine factors
Motivators
Theorists
Taylor - financial
Herzberg - financial/human
Maslow - human
Mayo - human
Herzberg - Hygiene factors
Factors that can de-motivate if not present.
e.g: Pay, working conditions, Job security
Herzberg - Motivators
Factors given directly to get people to work harder.
e.g.: Giving responsibilities, recognition for good work, opportunities for promotion.
What does herzberg also state?
To use job enrichement and empowerment.
Delegating more power to employees to make their own decisions.
How does Mayo say to increase motivation?
Better communication between managers and workers.
Greater manager involvement in employees work lives.
Working in groups.
Mayos three elements to employee engagement?
Intellectual engagement - thinking about the job and how to do it better.
Affective engagement -Feeling positive about doing a job.
Social engagement - Takes opportunities to share work-related issues with others at work.
Autocratic leadership
Leadership style characterized by individual control over all decisions and little input from group members.
Democratic leadership
A leader who asks for input and considers feedback from their team before making a decision.
Laissez-faire leadership
‘Allow to do’.
Leader is hands-off and allows group members to make their own decisions.
Paternalistic leadership
Involves a dominant authority figure who treats employees as though they were members of a large extended family.
In exchange the leader expects loyalty and trust.
Advantages of Job production (hairdresser)
- Customer requirements and changes can be handled.
- Associated with higher quality.
- Employees can be more motivated - job satisfaction.
- Flexible production method.
Disadvantages of Job production (hairdresser)
- Individual cost of one unit may be high.
- Often labour-intensive.
- Requires close consultation with client.
- Reliant on high skills.
Advantages of Batch production (baker)
- Cost savings by buying bulk materials.
- Allows customer choice.
- Products specialised worked on at each stage.
- Allows a firm to handle un-expected orders.
Disadvantages of Batch production (baker)
- Takes time to switch production of one batch to another.
- High stocks of raw materials.
- Tasks may be boring and repetitive.
- Size of batch dependant on capacity allowed.
Advantages of Flow production (chocolate)
- Suitable for large quantities.
- Capital incentive means it can work constantly (machine).
- Less need for training and skills.
Disadvantages of Flow production (chocolate)
- Very long to set up machinery.
- high amount of raw materials.
- Goods are mass produced, less differentiation for buyer.
- Production is shut down if flow is stopped.
- High capital costs .
