CHAPTER 2: Management and leadership

Question 1

what is a manager?

Answer 1

a person who is responsible for setting objectives, organizing resources to meet those objectives

Question 2

what are the functions of a manager?

Answer 2

planning 
organizing 
commanding
coordinating 
controlling

Question 3

what is leadership?

Answer 3

is the ability to motivate a group of people towards achieving a common goal

Question 4

what is management?

Answer 4

is the planning, organizing, commanding, coordinating and controlling a business enterprise

Question 5

what are the interpersonal roles of Mintzberg?

Answer 5

dealing with and motivating staff

figurehead - the symbolic leader of the organization (gives important presentations)

leader - motivates employees and trains managers

liaison - linking with managers and leaders from other organisation

Question 6

what are the informational roles of Mintzberg?

Answer 6

involved in the processing of information

monitor - collecting data relevant to the business (attending conferences)

disseminator - sends information collected from all sources to the organisation

spokesperson - communicates information about the business to external groups

Question 7

what are the decisional roles of Mintzberg?

Answer 7

use information to make decisions

entrepreneur - looks fort new opportunities to develop the business (new ideas from within business)

disturbance handler - responding to changing situations that can put the business at risk (respond to new competitor)

resource allocator - decides on the allocation of the businesses financial, human and physical resources

negotiator - represents the business in important negotiations

Question 8

what is autocratic leadership?

Answer 8

leader takes all decisions on their own
one way communication
staff have little to no contribution and discussion
generally unmotivating for employees

Question 9

what is democratic leadership?

Answer 9

participation is encouraged 
discussion with employees before taking decisions 
two way communication
delegation is passed
motivating for employees

Question 10

what is laissez-faire leadership?

Answer 10

little input and direction from management
allows workers to make decisions for themselves
literally means ‘let them do it’

Question 11

what is theory X?

Answer 11

Theory X managers view their workers as lazy, dislike work, cannot except responsibility and need to be controlled. Managers with this view will work with an autocratic leadership style, which will un-motivate workers and they will in such way because of the managers attitude towards them.

Question 12

what is theory Y?

Answer 12

Theory Y managers view their workers as enjoying work, are prepared to except responsibility, creative and like sharing ideas. Workers would find managers attitude towards them motivating and would act in such way.

Question 13

what is emotional intelligence?

Answer 13

the ability to recognize your own feelings and those of others and to be able manage it and use social skills

Question 14

what is the four components of Goleman’s emotional intelligence?

Answer 14

self awareness - the ability to recognize you own feelings and understand how and why we feel this way

self management - the ability to understand that your behavior affects others and be able to control your emotions

social awareness - the ability to understand other people’s emotions and be sensitive towards them

social skills - handling others emotions well and building relationships and managing them using social skills

Question 15

what is motivation?

Answer 15

the factors that drives a person towards achieving a certain goal

Question 16

why is motivation important?

Answer 16

increases labor productivity
lowers levels of absenteeism
lowers labor turnover
increases profit

Question 17

what is FW Taylor’s theory?

Answer 17

economic man theory
he believed that the only way workers were motivated was by money and that the only factors stimulating effort was the chance of earning financial rewards
he invented piece rate
he believed that ‘workers should be paid a fair days pay for a fair days work’

Question 18

what is piece rate?

Answer 18

paying workers a certain amount of money for each unit produced

Question 19

what is Mayo’s theory?

Answer 19

Hawthorn effect and social man
motivation depended on the type of supervision given and group relationships and the sense of teamwork. he believed that financial rewards have little or no effect on productivity. working in teams leads to an improvement in productivity and gives employees a sense of importance.

Question 20

what is Mazlow’s theory?

Answer 20

hierarchy of needs

self actualization = highly promoted
esteem = recognition
social - friends = teamwork
safety - shelter = contracts
physiological - food and water = wages

he believed that individuals start at the bottom with basic needs and once each level has been achieved or satisfied, individuals will aim to achieve the next level.
a business would motivate its employees by offering them the chance to fulfill a higher level of need when the lower one is satisfied.

Question 21

what is Herzberg’s theory?

Answer 21

motivating factors:

Question 22

what is Vroom’s theory?

Answer 22

expectancy: the confidence of employees of their ability to complete a task
instrumentality: the belief of employees that by completing a task, they could obtain their desired outcome
valence: the strength of a persons desire to achieve an outcome

Question 23

what is Mclelland’s theory?

Answer 23

claims that an individual’s motivation depends on their needs and that these needs are determined by the individuals experience.

achievement:
people who have the need for achievement aim for excellence and accomplishment.

authority and power:
a person with a need for power can fall into one of two categories:
- a need to control and direct others
- a need to be influential and make a change

affiliation:
employees who have the need for affiliation generally seek relationships with others in the organization and they need to feel accepted and are motivated to work with others

Question 24

what is piece rate?

Answer 24

a payment to a worker for each unit produced

Question 25

what is a salary?

Answer 25

annually income that is payed on a monthly basis

Question 26

what is a bonus?

Answer 26

extra payment made on top of the normal wage or salary

Question 27

what are fringe benefit?

Answer 27

a benefit given to employees separate from pay

Question 28

what is job rotation?

Answer 28

when a team of workers switch their tasks to prevent boredom

Question 29

what is job enlargement?

Answer 29

increase the scope of a job by deepening the tasks

Question 30

what is job redesign?

Answer 30

restructuring of a job to make work more interesting and challenging

Question 31

what is job enrichment?

Answer 31

adding tasks to a job that require more skill or responsibilities

Question 32

what is HRM?

Answer 32

process of making the most efficient use of an organization employees

Question 33

what is labor turnover?

Answer 33

the % of a business’s workforce that leave the business over a given period of time

Question 34

what are the reasons for turnover?

Answer 34

low wages
poor motivation
redundancy or retirement
ineffective recruitment

Question 35

what is recruitment?

Answer 35

is the the process of identifying the need for a new employee, identifying the job that needs to be filled and the person that needs to fill it

Question 36

what is internal recruitment?

Answer 36

when a vacancy is filled by an existing employee of the business

Question 37

what is external recruitment?

Answer 37

when a vacancy is filled by someone who isn’t an existing employee of the business

Question 38

what are the advantages and disadvantages of internal recruitment?

Answer 38

advantages:
saves time and money
they already know how the business operates
is motivating for employees

disadvantages:
creates jealousy between colleagues
no new ideas or knowledge brought into the business

Question 39

what are the advantages and disadvantages of external recruitment?

Answer 39

advantages:
new ideas and knowledge into the business
avoids jealousy between staff
a wider choice of potential applicants

disadvantages:
money and time consuming
unaware of the business operations
they need training

Question 40

what is the employee contract?

Answer 40

a legal document that sets out the terms and conditions of a job

Question 41

what is induction training?

Answer 41

an introductory training given to new recruits to familiarize them with the business systems and employees

Question 42

what is on-the-job training?

Answer 42

a form of training given to employees at the workplace

Question 43

what are the advantages and disadvantages of training?

Answer 43

advantages:
employees feel valued
training improves productivity and motivation
training will give a better reputation for the business, attract highly qualified workers
training can improve the employees performance and the competitiveness of the business

disadvantages:
once they’re trained, they could leave for a better job
employees are unavailable for the organisation (off-the-job)
sometimes managers avoid training their staff as the resources used in training will be wasted

Question 44

what is off-the-job training?

Answer 44

a form of training given to employees outside of the workplace?

Question 45

what is dismissal?

Answer 45

is when an employer terminates employees employment for reasons like:

inability to do their job even when training has been given
theft or violence
negative attitude at work
violating their contract

Question 46

what is unfair dismissal?

Answer 46

ending a workers employment for a reason that the law regards as unfair for reasons like:

pregnancy
discrimination: race, gender, non-relevant criminal records

Question 47

what is redundancy?

Answer 47

a legal reason for an employer to dismiss an employee, only occurs if a job no longer exists

reasons like:
business closes down and all employees become redundant
their job is replaced by technology