Business unit 2.1, 2.2, 2.3, 2.4 Flashcards
what is motivation?
the reason why employees want to work hard and work effectively for the business
what are the benefits of a well motivated workforce? (5)
- high output per worker = increasing efficiency, decreasing average costs, increasing profits
- willingness to accept change
- more willing to communicate effectively with managers
- decreased labour turnover leading to lower recruitment and selection costs
- lower absenteeism
why do people work? (4)
- for money
- security = knowing that your job and pay are safe
- social need = feeling included, making new friends
- esteem needs = feeling important and needed
- job satisfaction
what are esteem needs?
praised for your work and rewards
what are the 5 stages of motivation from maslows hiechry of needs?
- self actualisation
- esteem needs
- social needs
- safety/security needs
- psychological needs
what is self actualisation?
being promoted and given more responsibility
what are the two sets of needs according to Herzberg?
1 - basic needs –> hygene factors
2 - motivators
what are the basic needs? (4)
- good working conditions
- good relationship with employees
- salary wage
- job security
what are social needs?
staff social events, team bonding, having colleagues that support you
what are safety security needs? (2)
- having job security
- haveing a safe working environment
what did F.W Taylor do?
he conducted experiments on how productivity can be increased
what did F.W Taylor believe?
he believed workers were quite simply, motivated by money
what are psychological needs?
being given a wage/salary do you can pay for personal things
what are the motivators? (3)
- recognition
- achievement
- promotion
what did Herzberg beleive?
fulfilling the hygiene factors does not lead to motivation but if they are not fulfilled this could lead to demotivation
when are wages paid?
wages are paid every week
what are the two ways that wages can be paid?
- time rate
- piece rate
when are time rate paid?
paid by the hour
what are the benefits for time rate? (2)
- easy to calculate by the company
- employee knows exactly how much money they’re supposed to have
what are the disadvantages for time rate?
good and bad workers get paid the same –> demotivation of good workers
what is the piece rate?
when workers are paid depending on the quantity of products made (more make, more paid)
what is an advantage for piece rate?
encourages workers to work faster and produce more
what is a disadvantage for piece rate?
workers may focus on being fast, which may lead to impacting the quality of the products
what are salaries and when are they paid?
an amount of money paid per year and are paid monthly
what are the advantages of salaries? (2)
- only has to be distrusted once a month –> less time consuming for HR and finance dep.
- improves cashflow –> employer has the money in their account longer than wages
what is a bonus?
a lump of sum paid to workers when they have worked well or reached a certain target
what are the disadvantages of salaries? (2)
- workers may prefer to be paid weekly
- no payment for extra time –> demotivating employees
what are the advantages of a bonus? (2)
- motivating for employees to try and achieve bonus
- workers like being recognised for their achievements
what are the disadvantages of a bonus?
- resentment may occur if some employees get bonuses and others don’t
what are the financial methods of motivation? (7)
- wages
- piece rate
- time rate
- salary
- bonus
- commission
- profit sharing
what are the advantages of a commission?
- motivates the worker to sell more products –> increasing sales for buisness
what are commissions?
a payment relating to the number of sales made (more sales, more money)
what are the disadvantages of a commission? (2)
- employees can be annoying nd presure customers into buying products, and the business can lose customer loyalty and get a bad image
- if there is a recession, sales will be low
what is profit sharing?
where a proportion of the companys profits is put into the employees salary in addition
what are the advantages of profit sharing?
motivates employees to work hard so they can receive a share of the profit
what are the disadvantages of profit sharing? (2)
- if a buisness makes a loss or low profits, employees will be disappointed
- conflict between higher paid and lower paid staff because profit share is calculated based on a percentage of your salary
what do non financial rewards focus on?
increasing job satisfaction
what are the non financial methods of motivation? (6)
- fringe benefits
- team work
- job rotation
- training
- job enrichment
- opportunities for promotion
what is job rotation?
involves workers swapping around and doing each specific task for a limited time then changing again
what are fringe benefits?
are perks that employees give to their employees and non financial rewards
what are examples of fringe benefits? (3)
- free lunch
- company car
- gym membership
what are the disadvantages of job rotation?
- expensive to train all the staff for different tasks
what are the advantages of job rotation? (2)
- more options for workers so they don’t get bored
- if people are absent, its easier to find a new person to do the job as they are all skilled
what is job enrichment?
looking at jobs and adding tasks that need skill and responsibility
what are the advantages of job enrichment?
giving workers more responsibility makes them feel more appreciated and important which leads to motivation
what are the disadvantages of job enrichment?
workers will be unhappy as more tasks are given to them with no extra pay
what is team work?
teamwork involves using groups of workers to complete tasks and responsibilities
what are the advantages of team work?
working as a team gives you a sense of belonging which increases motivation
what are the disadvantages of team work?
employees may clash and have arguments which distracts them from working
what is training?
training is the process of improving a workers skills
what are the disadvantages of training?
training is expensive
what are the advantages of training? (2)
- if a worker learns new skills, they will gain a sense of achievement leading to motivation
- employees can take on new responsibilities which is job enrichment leading to increased motivation
what is promotion?
an employee getting moved up to a higher position in the business
what are the advantages of promotion?
will lead employees to feel recognized for being given more responsibility this leads to increased motivation
what are the disadvantages of promotion?
conflict may occur as one is promoted and the other is not
what are the functions of a manager?
- planning
- organising
- coordinating
- commanding
- controlling
what is planning (the functions of a manager)?
setting targets, this motivates managers as they have a clear goal.
what is organising (the functions of a manager)?
managers must organise employees and resources
what is commanding (the functions of a manager)?
managers have to make sure all employees are keeping to targets and deadlines and will give instructions to employees too
what is coordinating (the functions of a manager)?
all departments and employees working effectively together to complete a task
what is controlling (the functions of a manager)?
managers must evaluate the work of all employees and groups to make sure they are on target. managers may have to take action if employees are not reaching targets.
what is delegation?
giving a subordinate the authority to perform a particular task
what are the advantages of delegation? (2)
- less stress for managers as they are giving some of their tasks to subordinates, so they can focus on other things
- subordinates feel empowered that they have been given more responsibilities (they feel trusted) leads to motivation
what are the disadvantages of delegation? (2)
- subordinates may feel demotivated as they are having more tasks but no extra pay
- the subordinates may not be skilled enough to complete the task –> impacts the quality of the product
what is democratic leadership?
allows other employees to be involved in the decision making process
what are the advantages of democratic leadership? (2)
- employees feel their ideas are being listened to –> increases motivation
- employees may have great ideas to offer –> increases customer service or product quality
what are the disadvantages of democratic leadership?
- decision making is slower because there are more people involved –> decreases efficiency
what is a laisser faire leadership?
when leaders made the objective of the business known to employees but then employees are left to make their own decisions and organise their work
what are the advantages of laissez faire leadership? (2)
- encourages employees to show creativity –> can lead to better products
- makes employees feel important as they feel they can be trusted with independent work –> increases motivation
what are the disadvantages of laissez faire leadership? (2)
- if employees are not experienced, they might not successfully achieve the task well and are unsure on what they are doing
- may cause employees to be less efficient as there is no strict supervision
what is autocratic leadership?
what are the advantages of autocratic leadership? (2)
what is an organisational structure?
the levels of management and division responsibilities within an organization
what are the disadvantages of autocratic leadership? (2)
what is a hierarchy?
the levels of management in any organisation from highest to lowest
what is a tall structure?
has many levels of hierarchy
what is the chain of command?
when instructions are passed down from senior management to lower levels
what is a flat structure?
has few levels of hierarchy
what is the role of a director in an organisational structure? (give an example)
they lead a department e.g. marketing department
what is the span of control?
the number of subordinates working under a manager
what is the role of a manager in an organisational structure?
work in a department and can give orders to supervisors
what is the role of a supervisor in an organisational structure?
supervisors supervise all other subordinates
what is an advantage of a tall structure? (2)
- lots of opportunities for promotion
–> increased motivation - supervisors normally have a small span of control so they can get to know their subordinates and monitor them efficiently –> increasing subordinates productivity
what is an disadvantage of a tall structure? (2)
- lots of layers and a long chain of command communication and decision making will be very slow as there are many layers to pass through
- expensive as there are more managers and supervisors –> higher salary costs
what is an advantage of a flat structure? (2)
- few layers of hierarchy between the bottom and the top communication and decision-making will be fast
- lots of delegation means that staff are given greater responsibility which will increase motivation
what is a disadvantage of a flat structure? (2)
- wide span of control means managers have too many staff and may lose touch with them this could have a decrease in productivity
- less chance of promotion –> decreased motivation
what are the types of communication and who are they communicating with? (2)
- internal between members of the same organisation
- external is to customers, suppliers or people in other organisations
what are the four features of effective communication? (give more info for 1 and 4)
- a transmitter or sender who sends a message
- a medium of communication (email)
- a receiver of the information
- feedback - where the receiver confirms the message has been received and responds to it
what are the three communication methods and their examples?
- verbal communication = meetings, team meetings, video conferences)
- written communication (letters, emails, noticeboards, reports)
- visual communication (PowerPoint displays, videos, charts and diagrams)
what is an advantage of verbal communication? (2)
- team meetings are an efficient way of communicating with a large number of people
- feedback can be given immediately
what is a disadvantage of verbal communication?
people may not listen during a meeting or not understand, so people will have to have a permanent record of the meeting in writing
what is an advantage of written communication? (2)
- there is hard evidence of communication so communication is clear and will reduce disagreements
- messages can be forwarded to people and can be passed on quicker
what is a disadvantage of written communication? (2)
- many emails may be information overload and receivers may start to ignore them
- some emails may be too long and difficult to understand for some of them
what is an advantage of visual communication?
- can be used to make a written message clearer by adding a graph or a chart
- may attract receivers’ attention more than written communication
what is a disadvantage of visual communication?
- some people may find the charts difficult to understand so the message might be misunderstood
- some may not pay attention to videos
what are some of the barriers to communication and why?
- problems with the sender –> sender speaks too quickly, message is too long and complicated, language is too difficult
- problems with the medium –> message down a long chain of command so the message might be distorted, wring channels have been used
- problems with the receiver –> might not be listening, the receiver might not like sender so they will not be willing to listen
- problems with feedback –> the receiver doesn’t give feedback, feedback takes too long due to long chain of command
what is the recruitment process?
vacancy arises –> complete a job analysis –> create a job description –> create a job specification –> job advertised in appropriate media –> review application forms or cvsand short list –> carry out interviews and select the right candidate
what is a job analysis?
identifies and records the responsibilities and tasks relating to a job
what is a job description?
outlines the responsibilities and duties to be carried out by someone employed to do a specific job.
what are the functions of a job description? (2)
- it is given to applicants so they know exactly what the job does so they don’t have to waste time applying if they don’t like it
- once someone has been employed it helps the business see if they do their job well
what is internal recruitment?
when a vacancy if filled by someone who is an existing employee in the buisness
what is an advantage of internal recruitment? (3)
- it is cheaper than external as there is no need to carry out external recruitment
- it can be motivating for existing employees as there is potential for promotion
- the business is aware of the existing worker’s abilities before they hire them
what is an disadvantage of internal recruitment? (2)
- no new ideas or experience coming into the business
- there might be rivalry if one worker gets the promotion and the other doesn’t –> leads to demotivation
what is external recruitment?
when a vacancy is filled by someone who is not an existing employee and will be new to the buisness
what is an advantage of external recruitment?
new ideas and experiences come into the business
what is an disadvantage of external recruitment?
its more expensive than internal as they need to advertise externally
how are jobs advertised? (6)
- local and national newspapers
- recruitment agencies
- online recruitment sites
- government job centre
- the business centre
how do you choose the most suitable candidate for the business? (3)
- work experience
- qualifications and education
- whether internal or external recruitment is better for the business
how long will part time employees work for in a business?
between 1 and 30-35 hours per week
how long will full time employees work for in a business?
35 hours or more per week
what are hiring part time employees advantages? (2)
- can ask employees to work at busier times
- can ask workers to only work during peak hours –> reduces unnecessary wage costs
what are hiring part time employees disadvantages? (2)
- takes longer to recruit two part time employees rather than one fulltime worker
- they can be less committed to the business (more likely to leave the business)
what are hiring full time employees advantages? (2)
- takes less time to recruit one full time employee than 2 part time employees
- full time employees can be more committed to the business, increasing quality of customer service/products produced
what are hiring full time employees disadvantages?
employees need to be paid even if its busy times or not, leading to higher costs
what is training?
when an employee is new to a job explainign the business activities, introducing them toother workers, and the working environment and health and safety instructions
what are the four main ways why training is important?
- improves the efficiency of the employees –> leads to lower unit costs and high output
- to introduce a new process or new equipment
- improves the quality of the product
- reduces the chances of workplace accidents
what is on the job training?
a person being trained by watching a more experienced worker doing the job (suitable for unskilled workers)
what are the advantages of on the job training? (2)
- cheaper than off the job training
- it is training tailored to the specific needs of the business
what are the disadvantages of on the job training? (2)
- the trainer may not be as productive as normal as they are trying to coach the trainee –> decrease in productivity
- the trainer may have bad habits and pass it on to the trainee
what are advantages of off the job training? (2)
- trained by experts, gains more skills, leads to high productivity and better quality
- the employee could attend the course in the evening so they can still go to work - no decrease in output
what is off the job training?
being trained away from the workforce in training centres or colleges
what are disadvantages of off the job training? (2)
- costs of courses can be high
- if the employee gains additional qualifications from the course, they could easily work for another firm as they are more employable
what are the three reasons why reducing the workforce is often necessary
- introducing new machinery –> less employees are needed
- falling demand for goods and services
- relocating the factory abroad
what is dismissal?
when employment is ended against the will of the employee for not fulfilling duties of the contract
what is redundancy?
when an employee is no longer needed so they lose their job
how do you decide who should be made redundant? (3)
- ask employees first, some might want to leave
- look at how long people have bee working in the business
- employment history
what is unfair dismissal?
when a buisness ends a workers contract for no reason
what is the impact of dismissal on the employee? (2)
- buisness can be taken to court and get a bad name
- employer will have to keep verbal and written earnings to they arent accused of unfair dissmissal
what is the impact of dismissal on the employer?
- the employee can take the employer to a court
what are discrimination laws?
getting fired because of someones, race, colour, gender. sexuality or disability
how can businesses follow the law of health and safety at work? (3)
- providing safety equipment
- training staff on machinery
- have hygenic facilities
what is legal minimum wage?
employers must pay employees the legal minimum wage of that country
what are the impacts of health and safety at work on the employee? (2)
- higher costs for paying equipment
- reduces accident rate, so less workers taking sick leave
what are theBENEFITS of health and safety at work on the employer? (2)
- workers feel safer and motivated
what are the impacts of legal minimum wage on the employee? (2)
- increasing buisness costs
- employees are more motivated as they are getting more money
what are the impacts of health and safety at work on the employer?
higher wage = better standard living
what are the 5 employment legislations that a business must follow?
- provide all employees with a contract of employment
- unfair dismissal
- discrimination laws
- healthy and safety at work
- legal minimum wage
