GCSE Business section 2 Flashcards
Define motivation
The reasons why employees want to work hard and effectively for the business
Identify and explain why people work
Money- To pay for neccesities and luxuries
Social needs- friends, feeling part of a group
Esteem needs- feeling important, feeling the job you do is important
Job satisfaction- the feeling that you have done a good job
Job security- knowing that your job and pay are safe
What are the benefits of a motivated workforce
High output per worker- helps to keep costs low and increase profit
willingness to accept change
two way communication with management- can suggest new ideas
Low labour turnover- reduces costs of recruiting new workers
Low rates of absenteeism
low rates of strikes
What is maslows motivational theory
Maslows hierachy of needs
What is Herzbergs motivational theory
Herzbergs theory states that humans have 2 sets of needs. One is is hygiene needs, the basic needs. The second is the motivational needs, which are for a human to be able to grow psychologically
Hygiene factors
Status
Job Security
work conditions
salary
Motivators
Achievement
Recognition
personal growth
promotion
What is Taylors motivational theory
Taylors motivational theory focused on the assumption that akll individuals are motivated by personal gain so if they are paid more they will work more effectively
Define and explain advantages and disadvantages of financial methods of motivation
Wages- wages are paid every week, sometimes in cash or into a bank account
Advantages-
Workers are paid on a regular basis and dont have to wait for the money
If the employee works longer than their normal hours, they can usually be paid overtime, this means they have an incentive to work more hours for the business
Disadvantages-
Since the wages are paid weekly, they have to be calculated every week which takes time and money
Wages clerks are often employed to perform this tasks which leads to more cash outflows for the business
Salaries- Salaries are paid monthly, normally straight into a bank account. They are not paid in cash.
Advantages-
It is easy to calculate salary costs for the business
The payment has to be calculated only once a month instead of at least four times a month
Disadvantages-
Increased cash outflow
No payment for extra time worker so workers will be more reluctant to work longer
Bonuses- a bonus is an additional sum of money paid to workers when they have worked well.
Advantages-
Workers can be more motivated as they feel more recognised and special if they recieve a bonus
Workers will woprk harder to achieve the additional money
Disadvantages-
Increases costs for the business
If unrealistic targets are set then it could decrease motivation
Commisions- A payment relating to the number of sales made, the more sales a business makes, the more money is paid to staff
Advantages-
Employees will work harder to achieve increased sales
Disadvantages-
Quality of good may decrease as employees try to produce more goods
It could be stressful for staff as if they have a bad month, then their pay will fall
Less retained profit
Profit sharing- A proportion of the companies profits are paid out to the workers
Advantages-
Workers will work harder to achieve increased profit
Disadvantages-
Less retained profit for the business
Loss or little profit could lead to no profit sharing which would decrease motivation
Define and explain advantages and disadvantages of non financial methods of motivation
Job Enrichment- Involves looking at jobs and adding tasks that require more skill and responsibility
Advantages-
Employees have more responsibility which would increase motivation
More variety of tasks will decrease boredom
Disadvantages-
The increased workload will decrease motivation for employees
There could be more mistakes which would lead to higher costs due to waste
Job rotation- Workers on the productiopn line carry out different tasks
Advantages-
Increased motivation due to variety of tasks
Increased motivation due to new skills gained
Disadvantages-
Increased mistakes when learning new skills
Teamwork- Involves a group of workers bieng given responsibility for a particular process, product or development
Advantages-
Increased motivation due to more responsibility
Social needs met will lead to more motivation
Disadvantages-
Will take longer to make decisions
More disagreements
Training- The process of improving workers skills
Advantages-
Workers will feel recognised which will increase motivation
Will lead to increased productivity which will decrease average costs
Will increase quality which will increase sales
Disadvantages-
Time consuming which will lead to decreased output
Paying for training will increase cash outflow for the business
Promotion opportunities- An advancement of an employee within an organisation
Advantages-
Workers will feel more responsibility which will increase motivation
Workers will feel recognised which will increase motivation
Disadvantages-
They could lack skills for the new position which could lead to more mistakes
Training will lead to increased costs
Define hierachy
Refers to the levels of management in any organisation, from the highest to the lowest.
Advantages and disadvantages of a flat organisational structure (Few layers of hierachy, Short chain of command, wide span of control)
Advantages-
Fast communication
Short chain of command leads to less mistakes
Increased responsibility will lead to increased motivation
Disadvantages
Lack of promotion opportunities will lead to decreased motivation
Loss of control due to wide span of control could lead to more mistakes
Advantages and disadvantages of a tall organisational structure (Many layers of hierachy, long chain of command, narrow span of control)
Advantages-
High level of control will lead to less mistakes so lower average costs
More chances of promotion will lead to increased motivation
Disadvantages-
Many managers will lead to increased costs
Less responsibility will decrease motivation
Poor communication due to large chain of command which will lead to slower decision making and more mistakes
Define chain of command
Refers to passing on authority down the organisational structure
Define Delegation
Passing authority down through the organisational heirachy to a subordinate to perform particular tasks
Define span of control
The number of subordinates working directly under a supervisor/manager
Explain the roles of Managers
Motivating employees
Delegating tasks
Solving day to day problems
Explain the roles of directors
Setting the long term plans for the business
Reviewing the performance of managers
Providing leadership to ensure the success of the business
Explain the roles of Supervisors
Supervisors are responsible for giving out tasks to the workers, making sure they carry out the tasks and checking the quality of the work
Explain the functions of management
Planning-
Planning for the future of the organisation involves setting targets which will give the organisation a sense of direction and purpose.
Organisiing-
It is the managers responisibility to organise poeple and resources effectively
Coordinating-
A manager will make sure that all departments work together to achieve the plans set by the directors
Commanding-
Managers have to make sure all supervisors and workers are keeping to targets and deadlines
Controlling-
Managers have to make sure that groups or individuals are on target and if they arent then to take some corrective action.
Advantages and disadvantages of delegation
Advantages-
By delegating the manager has more time to focus on other important tasks
Managers are less likely to make mistakes if some of their tasks are performed by their subordinates
Managers can measure the success of their staff more easily
Disadvantages-
The manager loses some control over subordinates
Explain the relationship between trust and control when delegating tasks
Delegation must mean:
increasing trust of workers by supervisors and managers
and
a reduction in direct control by supervisors and managers once tasks are done by workers
Define Autocratic leadership
Autocratic leadership is where the manager expects to be in charge of the business and have their orders followed, the manager doesnt consult employees about decisions
Advantages and disadvantages of Autocratic leadership
Advantages-
Quick decision making
Consistent brand image
Disadvantages-
No opportunity for employee imput can decrease motivation
No new ideas for the business
Define Democratic leadership
Democratic leadership gets other employees involved in the decision making of the business, the manager consults the employees before making a decision
Advantages and disadvantages of Democratic leadership
Advantages-
New ideas could lead to better decision making
Could Increase motivation since employees get a say in decisions
Disadvantages-
Will lead to slower decision making
Unpopular decisions could be made whcih could decrease motivation
Define Laissez- Faire leadership
In a business with Laissez-faire leadership, a manager lets the employees make the decision
Advantages and disadvantages of Laissez-Faire leadership
Advantages
New ideas could lead to better decision making
Employees could have increased motivation due to them bieng in charge of decisions
Disadvantages-
Slow decision making
Increased mistakes
Define Trade unions
A trade union is an organisation who represent a group of employees to protect their rights/ interests
Advantages and disadvantages for employees to being part of a trade union
Advantages-
Improves working conditions which will increase motivation
It will protect their rights which will increase pay
Disadvantages-
Cost to employees to be a member
Define Recruitment
Recruitment is the process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business
Define Employee selection
Employee selection is the process of evaluating candidates for a specific job and selecting and individual for employment based on the needs of the organisation
Define Job analysis
A job analysis identifies and records the responsibilities and tasks relating to a job
Define Job description
A job description outlines the responsibility and duties to be carried out by someone employed to do a specific job
Define Job specification
A job specification is a doccument which outlines the requirements, qualifications, expertise, physical characteristics for a specific job
Identify and explain the different stages of the recruitment and selection of employees process
1- Acess the business needs
2- A job description is produced
3- A person specification is produced
4- The job is advertised
5- Send out application form and job details
6- Recieve completed applications
7- Select a shortlist from all applicants
8- Interview shortlisted candidates
9- Select the right candidate
What is internal recruitment
Internal recruitment is when a vacancy is filled by someone who is an existing employee of the business
Advantages and Disadvantages of internal recruitment
Advantages-
Lower costs due to no advertisement costs
Will motivate other employees as they want to be promoted as well
Disadvantages-
Will bring no new ideas to the business
Employees could lack skills for the position
What is external recruitment
External recruitment is when a vacancy is filled by someone who is not an existing employee and will be new to the business
Advantages and disadvantages of external recruitment
Advantages-
Bring new skills and better experience to the business
New ideas
Disadvantages-
Job advertisement cost will lead to more cash outflow for the business
Induction training
Why do businesses employ a worker
An employee leaves their job and they need to be replaced
It is a new business and needs employees
It is a successful business and wants to expand by employing more people
What is a part time employee
A part time employee is someone who works fewer hours than a full tiem employee, often less than 35 hours a week.
What is a full time employee
Full time employees will usually work 35 hours or more a week
What are the advantages and disadvantages of part time employees
Advantages-
More flexible in hours of work
Can respond to changes in demmand for workers
Can attract well qualified staff wanting flexibility
Disadvantages-
Communication problems which could lead to misunderstandings
Will cost the business more as they need more part time workers than full time
(Advantages and disadvantages of full time is the other way around)
Define induction training
Induction training is training for new members of staff so that they are familiar with the workplace
Advantages and disadvantages of Induction training
Advantages-
Learn skills for the job which will lead to increased productivity
Increased motivation
Disadvantages-
Will increase costs which will increase the cash outflows
No output while they are training
Define On the job training
Training at the place of work, watching or following an experienced member of staff
Advantages and disadvantages of On the job training
Advantages-
Lower costs
Some output while training
Disadvantages-
Could pick up bad habits which could lead to mistakes
Slows down production which will decrease production
Define Off the job training
Training takes place away from the workplace by a specialist trainer
Advantages and disadvantages of Off the job training
Advantages-
Workers dont pick up bad habits
Workers focus 100% on training which means no slowdown in output
Disadvantages-
Increased costs for the business
Not specific to the business which could decrease productivity
What is dismissal
Dismissal is when employment is ended against the will of the employee, usually for not working ina ccordance with the employment contract
What is redundancy
Redundancy is when an employee is no longer needed and so loses their job. It is not due to any aspect of their work bieng unsatisfactory
Why would businesses reduce their workforce
Introduction of atomation
Less demmand for their goods or services
Factory/shop closure
relocating abroad
