Business Models/Theories Flashcards
What is the Tannenbaum Schmidt Continuum?
Categorises the range of behaviours from being manager-centred leadership, where managers make all the decisions and inform subordinates to being subordinate-centred leadership, here managers give workers a large degree of autonomy
What are the different stages on the Tannenbaum Schmidt Continuum?
Manager Centred Leadership
-Tells
-Sells
-Suggests
-Consults
-Joins
Subordinate Centred Leadership
What are the advantages and disadvantages of the Tannenbaum Schmidt Continuum?
-Lays out a range of potential strategies for a leader to choose depending upon their management style.
-Presents a range of styles that correspond with a range of different scenarios. It does not advocate that any approach is best, but allows space for different strategies for different situations.
-Gives managers scope for experimenting with different styles to see which works best for them.
-Doesn’t present any one ‘correct’ way of managing groups, so leaves ambiguity for the user of the model.
-The model hasn’t been differentiated for different types of leadership positions (workplace, educational, non-government, healthcare sector, etc.) which may require more specific models for their specific needs.
What is the Blake Mouton Grid?
The Blake-Mouton grid classifies management and leadership styles depending on their focus or priorities
On a scale of 1 to 9, how concerned is the manager about production (x axis) and how concerned is the manager with the people (y axis).
What are the different stages of the Blake Mouton Grid?
(1,1)- Impoverished management style
(1,9)- Country club management style
(9,1)- produce or perish management style
(9,9)- Team management style
(5,5) Middle of the road management style?
What are the advantages and disadvantages of the Blake Mouton Grid?
-The managerial or the leadership grid is used by managers to get better results and increase productivity.
-The model neglects the essence of internal and external limits which affects the working process.
What is the Boston Matrix?
The Boston Matrix allows businesses to plot their products on a grid or matrix according to each product’s market share and its market growth.
What are the different stages of the Boston Matrix
Dog: Low market share and low market value, Remove this product from the market.
Question marks: Low market share and high market growth, Monitor this product to see whether it has the potential to become a star.
Stars: high market share and high market growth, Invest in this product as it has potential for further growth.
Cash cows: high market share and low market growth, Maintain this profitable product’s market share but do not spend too much on it as sales are unlikely to grow significantly.
What are the advantages and disadvantages of the Boston Matrix?
-Simple to implement and easy to understand
-It can predict the future actions of a company
-The true nature of businesses may not be reflected
-The distinction between high and low is subjective
What is Hackman and Oldham’s Job design?
The Job Characteristics Model describes five core job characteristics that positively affect employee satisfaction and performance.
What are the different aspects of Hackman and Oldham’s job design?
Skill Variety: The job should require employees to have multiple skills and competencies to ensure it doesn’t become too routine.
Task Identity: The job should have a clearly defined beginning and end. It informs employees that their tasks have a predetermined objective, which can increase their sense of fulfilment by making what they’ve accomplished more meaningful.
Task Significance: Employees should feel that their work has a decided impact on the company or society.
Autonomy: The job should be flexible enough to let employees decide how and when to complete it (within reason). Having control over their work can help increase job satisfaction.
Feedback: Employees should have ready access to feedback to give them an avenue to improve professionally.
What are the advantages and disadvantages of the Hackman and Oldham’s Job design?
-Employee Autonomy:
Task autonomy means giving your workforce more control over how and when they work, which helps keep them interested in the work.
-Increased Productivity:
Higher employee engagement often increases productivity. By providing variety and chances to improve their skills, work becomes a more rewarding experience for employees and often drives them to work at their peak.
-This model does not take into account that not all employees require these job characteristics to be fulfilled in their jobs.
-Hackman and Oldham’s model does not address the individual employee’s needs. Meaning that this model can not predict what requires to be included in the job design to maximise job satisfaction regarding individual employees.
What is Maslow’s Hierarchy of needs?
People work to fulfil some needs. The two bottom needs to make staff turn up for work (basic needs) and the three levels above make them work hard (Higher level needs).
What are the different stages in Maslow’s Hierarchy of needs?
-Phycological needs
-Security need
-Social need
-Esteem need
-Self actualisation need
What are the advantages and disadvantages of Maslow’s Hierarchy of needs?
-More individualised approach to motivating employees.
-Recognised that workers not only motivated by money + that what motivates them now may not motivate them in the future
-Highlights need for both monetary + non-monetary rewards
better working relationships within workplace
-Underestimates desire for staff to seek financial reward + upgrades in standard of living
-Do all employees have same set of needs + pleased by job satisfaction
-Exceptions to Maslow’s theory - very creative workers may not be interested in only financial reward
What is Herzberg’s Two Factor Theory of Motivation?
Some elements of a job make staff turn up for work (hygiene factors) and others make them work hard (motivators)
What are the aspects of Herzbergs Two Factor Theory of Motivation?
Motivating Factors:
-Company policy
-Responsibility
-Relationships at work
-Working conditions
-Learning and growth
-Achievement
-Promotion
-Recognition
-Status
Hygiene Factors:
-Pay and benefits
-The job itself
-Job security
What are the advantages and disadvantages of Herzbergs Two Factor Theory of Motivation?
-Direct focus on employees motivation
-Companies can solve problems faced by employees
-Monetary factors are the secondary focus
-External factors are not considered
-Employee job satisfaction and their work efficiency are not directly related
-Herzberg’s theory does not consider differences in people’s social and cultural backgrounds - People have different priorities, meaning that they are motivated by different factors.
What is Taylor’s motivational theory?
Money is the only way to make staff work hard reward staff for the amount of work they produce.
What are the aspects of Taylor’s motivational theory?
Financial Incentives:
Piece rate
Performance related pay
Bonus
Salaries
Wage
Profit sharing
-Share option
-Commission
-Fringe benefit
Non-financial incentives:
-Delegation
-Consultation
-Empowerment
-Team working
-Flexible working
-Praise
-Promotion
-Fulfilling jobs
-Job enlargement
-job enrichment
-Better communication
What are the advantages and disadvantages of Taylor’s motivational theory?
Increased production - The employees are strictly supervised by their managers and have set targets to achieve therefore the productivity of employees are likely to increase.
Payment system - The pay per performance system is beneficial for higher-performing employees.
Control of employees - This can also be a drawback as control of employees must follow activities that are set by the managers. This makes work repetitive, does not allow employees to be creative and reduces their motivation.
Alienation - As employees are mainly focused on how to better perform the task and increase their performance results. Employees are alienated from social interactions and collaborations with colleagues.
What is Elkington’s triple bottom line?
The “Triple Bottom Line” suggests there is more to business success than profit.
It aims to measure the financial, social and environmental performance of a business over a period of time.
-People
-Planet
-Profit
What are the advantages and disadvantages of Elkington’s triple bottom line?
-Aims to have positive impact on the world
-May boost employee retention as workers may appreciate favourable working conditions
-May result in greater external funds from investors seeking ESG investments
-May result in greater sales from customers seeking to support ESG companies
-May result in long-term efficiencies that reduce costs in the long-run
-May be more difficult to assess non-financial inputs or outputs
-Lack of comparability across impact groups (i.e. companies may need to choose one bottom line over the other)
-May result in competing strategies, making it difficult to easily pivot from one plan to another
-Will likely increase the cost of operations due to needing to find alternative products or processes
