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