Exam Revision Flashcards
Sole trader disadvantage
Knowledge and skills are limited to the owner
Partnership disadvantage
Conflicts could arise due to shared decision making
Private limited company advantage
There is a greater variety of expertise and ideas as more people are involved
Private limited company disadvantage #1
Expensive to set up
Private limited company disadvantage #2
Complex reporting requirements such as annual reports
Public listed company disadvantage
Same as Private limited company
Social enterprise disadvantage #1
difficult to balance the achievement of financial objectives with social objectives
Social enterprise disadvantage #2
May be difficult to obtain a bank loan as the business does not solely focus on financial objectives
Government business enterprise disadvantage #1
Governments and politicians can interfere and change the strategic direction of the business
Government business enterprise disadvantage #2
Productivity may be lower than private sector businesses as there tends to be a lack of accountability in the public sector
Autocratic disadvantage
may increase costs associated with replacing employees as staff may leave the business due to lower motivation
Persuasive management style
involves a manager making decisions and communicating the reasons with the employees without their input
Physiological Needs
Physiological needs are the basic requirements for human survival e.g living wage
Safety and Security Needs
Safety and security needs are the desire to feel protected from dangerous or threatening environments
Social Needs
Social needs are the desired for a sense of belonging and friendship among groups, both inside and outside the workplace
Esteem Needs
Esteem needs are the desire for an individual to feel important, valued and respected
Self-actualisation Needs
Self-actualisation needs are the desire for employees to reach their full potential through creativity and personal growth
Maslow’s advantage #1
can give managers clear path to motivate employees
Maslow’s advantage #2
motivated employees are able to progress through the lower levels of the hierarchy easily
Maslow’s disadvantage #1
not all employees are motivated by the same things
Maslow’s disadvantage #2
assumes that there are no other fundamental needs that can motivate employees
Four Drive Theory
The four drive theory is a motivational theory that suggests that people strive to balance four fundamental desires
Drive to acquire
the desire to achieve rewards and high status
Drive to learn
the desire to gain knowledge, skills and experience
Drive to bond
the desire to participate in social interactions and feel a sense of belonging
Drive to defend
the desire to protect personal security as well as the values of the business
Four drive theory advantage #1
provides a simple approach to motivating the employees of a business
Four drive theory advantage #2
Satisfying the drives can improve employee performance and productivity and therefore increase the business’s profits
Four drive theory disadvantage #1
managers may find it difficult to manage all four drives simultaneously
Four drive theory disadvantage #2
rewarding individual employees may lead to unhealthy competition
Goal setting theory
the goal setting theory is a motivational theory that suggests employees are motivated by clearly defined goals that fulfil five key principles
GST #1
clarity: goals should be specific and easy to measure
GST #2
commitment: employees should be involved in setting their goals and the goal should incorporate the employees personal interests
GST #3
Challenge: the goal should be difficult enough to encourage the employees to improve in order to achieve it
GST #4
Task complexity: The goal should not overwhelm employees and should be achievable
GST #5
feedback: managers should provide regular support to the employees and adjust the goals as needed
goal setting theory advantage #1
when employee goals align with business objectives, they can contribute to achieving the business’s financial aims, such as to make a profit
H.O.N & F.D.T Similarity #1
both theories suggest employees are motivated by the desire to improve knowledge and skills
H.O.N & F.D.T Similarity #2
Both theories suggest employees are motivated by the desire to feel a sense of belonging within the workplace through social needs and the drive to bond
H.O.N & F.D.T difference #1
HON- must be met in a sequential order
FDT - drives may be relevant to an employee in no particular order
H.O.N & F.D.T difference #2
HON - employees are motivated to fulfil only one at a time
FDT - all needs can drive employee behavior simultaneously
HON & GST similarity #1
both recognise the importance of feedback from management - self esteem needs in HON and feedback principle in GST
HON & GST similarity #2
Both theories place emphasis on motivating through intrinsic factors - GST involves setting intrinsic goals and the HON’s higher-order needs are considered intrinsic motivators
HON & GST difference #1
HON - focus on fulfilling one need at a time in sequential order
GST - requires all principles to be incorporated simultaneously to motivate an employee
HON & GST difference #2
HON - applied by the manager alone
GST - involves employees input to create goals collaboratively
FDT & GST similarity #1
both theories recognise that employees are motivated to achieve success - FDT’s drive to acquire and GST of being promoted to a position of more responsibility
FDT & GST similarity #2
both suggest that multiple factors motivate an employee at any given time - all four drives may be active simultaneously and business goals should incorporate multiple principles simultaneously
FDT & GST difference #1
GST - involves employee input
FDT - applied by the manager alone
FDT & GST difference #2
GST - believes an individual can only be motivated through purely intrinsic factors
FDT - also addresses extrinsic motivators through drive to acquire
Motivation strategy #1
performance related pay - financial reward employees receive for reaching or exceeding business goals
Motivation strategy #2
Career advancement - the upward progression of an employee’s job position
Management by objectives
involves both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives
MBO disadvantage
employees may take harmful shortcuts in their work in order to achieve their objectives
Performance appraisals
involves a manager assessing the performance of an employee against a range of criteria providing feedback and establishing plans for future improvement
Performance appraisals advantage
employees who demonstrate strong performance may be recognsied for promotional opportunities
entitlement considerations
are legal obligations can employer owes to its employees following the termination of their employee contract
entitlement consideration #1
annual/long service leave - must be paid out to an employee upon the termination of their contract
entitlement consideration #2
redundancy pay
transition considerations
are social and ethical practices that a manager can consider implementing when terminating employees
role of H.R
recruit, hire, train and terminate - hire candidates with the required qualities and skills to assist the business in achieving its objectives
role of employees
complete tasks with proper care and diligence - complete set tasks with the aim of contributing to business objectives
role of employer associations
provide advice - encourage employers to communicate strongly with their employees when making changes at the business
role of unions
represent employees and negotiate new wages and conditions on behalf of their members - communicate the concerns and desires of employees to employers during collective bargaining, with the aim to protect and improve their wages and conditions
role of the Fair Work Commission
set national minimum working standards - revise and update National Employment Standards to protect the wages and working conditions of employees
Awards
Awards are legal documents that outline the minimum wages and conditions of work for employees across an entire industry
Award advantage
transparency and equality between employees is maintained, as they all receive the same wages and conditions as set out by their award
Enterprise agreements
are legal documents that outline the wages and conditions of employees and are applicable to a particular business or group of business
enterprise agreement advantage
a business may attract highly skilled and talented employees if it is paying wages that are above the industry average
award & agreement similarity #1
businesses must uphold requirements of employment as stated through NES
award & agreement similarity #2
contractual disputes are dealt with by the FWC
award & agreement difference #1
award - applicable to an entire industry
agreement - applicable to a business or group of businesses
award & agreement difference #2
awards - are developed by the FWC
agreements - are reviewed and approved by the FWC
mediation
involves an impartial third party facilitating discussions between disputing parties to help each side of the conflict reach a resolution themselves
mediation advantage #1
when parties reach decisions together it promotes a positive working relationship for the future
mediation advantage #2
it is less expensive than more formal dispute resolution processes as it usually occurs in an informal setting
mediation disadvantage #1
does not always result in a legally binding decision meaning parties could go back on their agreement in the future
mediation disadvantage #2
if a final decision is not reached, the process can be a waste of timea
arbitration
involves an independent third party hearing arguments from both disputing parties and making a legally binding decision to resolve the conflict
arbitration advantage #1
it guarantees a final decision is made by a third party, enabling a business to move forward from a dispute
arbitration advantage #2
employees are not coerced into agreeing to a resolution as the likelihood of a power imbalance between disputing parties is reduced
arbitration disadvantage
is the most expensive dispute resolution process due to the costs incurred from conducting hearings
arbitration & mediation similarity #1
both methods require an independent body or individual to be involved in resolving the dispute
arbitration & mediation similarity #2
both methods are more formal than resolving disputes within a workplace without a third party
arbitration & mediation difference #1
mediation - does not result in a decision that is legally binding
arbitration - guarantees a legally binding decision