managing people Flashcards
what’s cost
businesses treat employees as a resource
they have strong links with corporate business
what’s asset
businesses treat employees as the most important resource and a source of competitive advantage
employees are treated as individuals and needs are planned accordingly
key features of asset
-strategic focus on longer term planning of workforce needs
-strong and regular communication with staff
-competitive pay structure
-employees are empowered
-flatter organisational structures
-suits democratic leadership style
key features of cost businesses
-short term changes in employee numbers
-minimal communication
-little empowerment or delegation
-taller organisational structure
-suits autocratic leadership style
why is cost good/bad
quicker decision making but staff suffer more so there’s less successful recruitment but it’s more cost effective
why is asset good/bad
rewards employee performance and motivates staff more effectively
being too “soft” when all benefits add up may leave businesses at a competitive disadvantage as they don’t have money to spend else where
why r workers so important?
-most businesses objectives will be linked to productivity
-firms want as much as possible from the workers (some companies want to reduce staff costs by moving people from permanent full time contracts to zero hour part time temporary contracts)
examples of flexible workforce?
-part time working
-flexitime
-working from home
-shift swapping
benefits of flexible workforce?
-saves on costs (no office space)
-helps with recruitment
-ageing population+increased women in labour market(more staff with caring responsibility)
-simple and cost effective to use technology
-open hours can be extended
-meets employees legal rights to request flexible working
drawbacks of flexible working?
-additional administrative work for setup
-potential loss of customer if working hours r reduced
-lower employee productivity
-inability to substitute for certain skill if certain employees r absent
-difficult to manage flexibility
what’s multiskilling?
where staff are allowed to carry out a variety of tasks rather than just specialise in one
benefits if multiskilling?
enables greater use of job rotation
-with subsequent benefits for motivation
negative of multiskilling?
puts greater pressure on requirement of training
what’s outsourcing ?
delegating one or more business processes to an external provider
(someone does the work for you)
what’s offshoring?
transferring activities or ownership of a complete business process to a different country
who uses zero hour contracts?
-seasonal work
-retail
-tourism
how does the zero hour contract worker benefit?
-flexibility
-free time
-quit without notice
-good for students
how does a zero hour contract employee benefit?
-saves on wages
-lots of workers on call
-saves cash
how r zero hour contract workers disadvantaged?
-no consistency
-no regular income
-lacks security
how can a zero hour contract business be negatively affected?
-lacks morale and motivation
-decreased reputation of workforce
-increased staff turnover
what is flexible working?
working arrangements where there are a variety of options offered to employees in terms of working time, location and pattern of working
what are zero hour contracts?
they allow employers to hire staff with no guarantee of work
why are ZHC controversial?
they don’t offer enough financial stability or security
what is dismissal?
when an employee breaks contract, performs badly or behaves badly they r dismissed
-this may be considered unfair and subject to legal claim
what is redundancy?
when an employee loses their job because job is no longer required by business
-redundancy payments available
reasons for dismissal?
-misconduct
-lack of ability
-harassment
-non disclosure of relevant criminal records
what’s unfair dismissal?
where employee has their contract ended in such a way as to have breached employment law
who decides if dismissal has been unfair?
industrial tribunals
5 reasons for unfair dismissal
-they r pregnant
-religious beliefs or race
-they r members of a trade union
-they have a criminal record unrelated to their job
-company have not allowed a fair process
3 reasons for redundancy
-when an employer ceases trading
-when an employer changes location
-when there is insufficient work for employee
what does the amount of redundancy payment depend on?
-current wages
-how long they have worked at the company
what’s natural wastage and why’s it used?
when a short term contract ends and notice is given by either party that they wish to end the contract
-used because redundancy is expensive so companies reduce workers through natural wastage
where will the amount of notice required for redundancy be found?
in the contract of employment
-will be quotes in weeks or months
-employers need to give longer notice then employees
-financial penalties is no notice is given
how can labour turnover be positive?
-more enthusiastic workers
-workers with specific skill can be employed
-new workers may bring new ideas and methods
why may a company regret labour turnover ?
-if employee is a high performer
-a trusted professional
-a potential gem
why might a company not regret labour turnover?
-end of contract
-redundancy
-dismissal
-low/average worker
what are 4 things that legally need to be communicated with employees?
-proposed redundancy plans
-when employees are transferred from one employer to another
-on changes to pension arrangements
-proposed changes on working time arrangements
what are good reasons for a formal system of employee representation?
-makes employees views known to management
-helps strengthen employee and managements understanding of workplace issues and other matters
-helps create trust between employee and management so improves workplace relations
benefits of employee representation
-better motivation
-employees become more committed to business
-better decision making as employee experience and insights are taken into account
-lower risk of industrial disputes
drawbacks of employee representation
-time consuming(slows decision making down)
-conflicts between employer and employee interests may be a block to essential change
-manages may feel their authority is being undermined
why do we have trade unions?
-to act as a pressure group
-to protect the interests of its members (eg working conditions)
what’s a trade union?
organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests.
benefits of trade unions?
-strength in numbers
-expert advice and support
-have money to pay for expensive court cases
-have trained negotiators who know how to deal with employers
what’s industrial action?
-action workers can take to achieve what they want in a dispute with the employer
-only happens if negotiations fail
-strike,overtime ban, work to rule
costs to workers of trade unions
-loss of wages and any bonus / commissions
-if firm loses sales, jobs may be lost through redundancy due to loss of customers
costs to firm of trade unions
-lose income / may make less profit
-customers may take business to competitors
costs to customers of trade unions
-can’t buy goods they need
-if these goods are raw materials they can’t produce goods either
costs to economy of trade unions
-people and firms have less money to spend
-businesses will lose sale revenue
-government will lose tax revenue as people have less income to spend
-imports may rise as people switch to buying from abroad
-unemployment may rise which increases cost benefits
what are the reasons for recruitment?
1.business expansion due to:
-increasing sales of existing products
-developing new products
-entering new markets
2.existing employees leave:
-to work with competitors
-due to factors such as retirement, sick leave and maternity leave
3.business needs employees with new skills
4.business is relocating
what are the changes to employment patterns?
-increase in part time working
-increasing numbers of single parent families
-more women seeking work
-ageing population
-emphasis on flexible working hours
-technology allows us to communicate more
advantages of part time working?
-cheaper to employ as entitled to less benefits
-more flexible workforce so easier to reduce labour hours when sales fall or add hours when demand increases
-wide range of potential recruits
disadvantages of part time working?
-employees feel less loyal to business and so less motivated
-harder for managers to control and coordinate workforce
what’s internal employment ?
-jobs given to staff already employed by a business which involves promotion and reorganisation
advantages of internal recruitment?
-cheaper and quicker
-people already familiar with business
-provides opportunities for promotion within a business
disadvantages of internal recruitment ?
-business knows strengths and weaknesses of candidates
-limits numbers of applicants
-no new ideas from outside
-may cause resentment amongst candidates not selected
-creates another vacancy which needs to be filled
how can companies externally recruitment ?
-job centres
-job advertisements
-recruitment agencies
-headhunting
-personal recommendation
advantages of external recruitment?
-new ideas
-larger pool of candidates
-wider range of experiences
disadvantages of external recruitment ?
-longer process
-more expensive process due to advertisement and interviews required
-selection process may not be effective enough to reveal best candidate
-staff moral may decrease as there’s a change in dynamic
what are the benefits of training? (7)
-higher quality
-better productivity
-more flexible through better skills
-less supervision required so managers r more efficient
-improved motivation through greater empowerment
-better recruitment and employee retention
-easier to implement change
why do businesses need training? (7)
-support new employees
-improve productivity
-increase marketing effectiveness
-support high standards of customer service and production quality
-introduction of new technology
-address changes in legislation
-support employee progression and promotion
what are 5 issues training can’t solve?
-poor management
-poor job design
-ineffective equipment
-poor production organisation
-recruitment
why do businesses neglect training?
-fear employees will be poached by competitors
-a desire to minimise short term costs
-they can’t make a justifiable investment case
-training takes time to have the desired effect
-sometimes benefits are more intangible then tangible
what does induction training involve?
-introducing new employees to the job, colleagues, premises and to values and aims of the business
the length and type of induction depends on?
-size and type of business
-complexity of job
-level or position of job within business
what do you do in a typical induction?
-learn about duties of job
-meet new colleagues
-seeing layout premises
-learning values and aims of business
-learn about internal workings and policies of business
what’s on the job training?
when an employee recieves training whilst remaining in the workplace
what are the methods of on the job training? (4)
-demonstration/instruction(showing trainee how to do the job)
-coaching(involves close working relationship between an experienced employee and trainee)
-job rotation(trainee is gives several jobs in succession to gain experience)
-projects(employee join project team which gives them exposure for new activities)
advantages of on the job training
-most are cost effective
-employees are actually productive
-opportunity to learn whilst doing
-train alongside real colleagues
disadvantages of on the job training
-quality depends on ability of trainer and time availability
-bad habits might be passed on
-learning environment may not be conductive
-potential disruption to production
what’s off the job training
employee training that takes place away from the work place
methods of off the job training
-day or part time attendance at college
-professional development courses or conferences
-online training or distance learning
advantages of off the job training
-wider range of skills or qualifications can be obtained
-can learn from outside specialists or experts
-employees can become more confident when starting a job
disadvantages of off the job training
-more expensive(transport&accomodation)
-lost working time and potential output from employee
-new employees may still need some induction training
-employees now have new skills and qualifications so will leave for better jobs
types of off the job training
-day release(time off work)
-block release courses(weeks at college)
-sandwich courses (months at college)
-sponsored courses in higher education
-self study
-distance learning
what are the links between training and motivation?
-assuming training is effective then…
-employees feel more loyal
-shows business is taking interest in workers
-provides employees with greater promotional opportunities
- enables employees to achieve more at work
what does organisational structure show
-how people and management are organised in business
what does organisational structure determine?
-authority and responsibility
-individual job roles and titles
-the people to whom others are accountable
-the formal routes through which communication flows in the business
what factors influence organisational structure
-size of business
-type of business
-management and leadership style
-competitive environment
how does the type of business influence organisational structure
-depends on:
1. how many locations it has
2. what sector it’s in
3. if it outsources any business activities
4. how much skill the workforce has
how does management and leadership style influence organisational structure ?
-an autocratic leadership style will often result in a very different structure than one designed by a leader who likes to delegate responsibility
how does the competitive environment influence organisational structure ?
-organisational structures are often influenced and changed by developments in the market
-eg/ changes in use of distribution channels, suppliers and competitor actions
how does size of business influence organisational structure ?
-smaller businesses will tend to have informal or flat hierarchal structures
-larger businesses have more complicated structures with more layers, departments and functions structures
what are organisation charts?
-shows how business is organised
-shows management hierarchy
what do organisational charts illustrate?
-span of control
-line management
-chain of command
what is span of control?
-the number of employees for whom a manager is responsible for
what does a narrow span of control allow for?
-closer supervision of employees
-more layers in hierarchy may be required
-helps more effective communication
what does a wide span of control allow for?
-gives subordinate more chance for communication
-more appropriate if labour costs are significant as it reduces number of managers
define levels of hierarchy
-the number of layers of management or supervision in the organisational structure
what does a tall structure mean and key features of it
-many layers in hierarchy
-narrow spans of control
-less independence and keeps people accountable
-allows tighter control (less delegation)
-more opportunities for promotion
-more layers=more staff=higher costs
-takes longer for communication to pass through layers
what does a flat structure mean and key features
-few layers of hierarchy
-wide spans of control
-more delegation and less direct control
-fewer opportunities for promotion but staff given greater responsibility
-vertical communication improved
-fewer layers= less staff= lower costs
what do chains of command describe
-the lines of authority within a business
what does span of control depend on
-personality and skill of manager
-size and complexity of business
-whether business is centralised or decentralised
-the extent of use of clear objectives throughout a business
what is matrix structure
-individuals work across teams and projects as well as within their own department or function
pros of matrix structure
-improves communication (breaks down traditional department barriers)
-expertise integration - use skills in a variety of contexts
-greater motivation in team members
-improved decision making -encourages sharing of good practice and ideas across departments
-resource efficiency
cons of matrix structure
-conflict-members of project teams may have divided loyalties as they report to 2 line managers
-complex- may not be a clear line of accountability for teams
-difficult to coordinate
-role ambiguity- members may neglect function responsibilities
-takes time for members to get used to working this structure
why change the structure?
-growth of business means more formal structure is appropriate
-reduces costs and complexity
-employee motivation needs boosting
-customer service and or quality improvement
challenges in restructuring businesses
-manager and employee resistance
-disruption and demotion = potential problems with staff retention
-costs (redundancies )
-negative impact on customer service or quality
what’s delayering
-removing layers of management from the hierarchy of organisation
benefits of delayering
-lower labour costs
-faster decision making
-shorter communication paths
-stimulating employee innovation
drawbacks if delayering
-widens span of control which means decreased supervision
-greater emphasis on team working and empowerment which lacks leadership
-stimulating employee innovation gives confusion around authority
what’s delegation
the assignment to others of the authority for particular functions, tasks and decisions
advantages of delegation
-reduces management stress and workload
-allows senior management to focus on key tasks
-subordinates are empowered and motivated
-better decisions or use of resources (potentially)
-good method of on the job training
disadvantages of delegation
-cannot/should not delegate responsibility
-depends on quality or experience of subordinates
-harder in a smaller firm
-may increase workload stress of subordinates
what is employee empowerment and the advantages
giving employees the power to do their job
-employees need to feel their actions count
-encourages employee feedback
-shows more trust in employees
what is a centralised business and and example
-when authority rests with senior management at the centre of the business
-mcdonald’s as control is maintained at all branches
what is a decentralised business and an example
when decision making is spread out and a lot of tasks are delegated
-hotels
advantages of centralisation (5)
-easier to implement common policies for whole business
-prevents other parts of business from becoming too independent
-easier to coordinate and control from centre
-economies of scale and over head savings are easier to achieve
-quicker decision making so easier to show strong leadership
disadvantages of centralisation (4)
-more bureaucratic- often extra layers in the hierarchy
-local or junior managers are likely to understand customer needs
-lack of authority down the hierarchy may reduce manager motivation
-customer service miss flexibility and the chance to speed of local decision making
advantages of decentralisation (6)
-decisions are made closer to customer
-respond to local circumstances
-improved customer service
-consistent with flatter hierarchy
-good way of training and developing junior management
-improves staff motivation
disadvantages of decentralisation (5)
-decision making is not easily “strategic”
-harder to ensure consistent practices and policies at each location
-may be some diseconomies of scale
-who provides strong leadership when needed?
-harder to achieve tight financial control- risk of cost-overruns
what is motivation and where does it come from
the will to work
-comes from the enjoyment of work itself and from the desire to achieve certain goals
what are the two methods to motivate employees
- financial methods (salary/bonus)
- non-financial methods (passing on praise )
what are the classic theories of motivation and who made them?
Taylor = scientific management
Mayo = human relation management and the Hawthorne effect
Maslow = hierarchy of needs
Herzberg = two factor theory, motivators/hygiene or maintenance factors
what is Taylors theory of motivation?
-Managers should maintain close control and supervision over their employees
-Is an autocratic style of management- managers, make all the decisions themselves
-Motive workers using peace rate payments
He believes there is only one best way of working
give an example of businesses using Taylors theory of motivation
Amazon, farming and manufacturing
what is Maslows hierarchy of needs?
Maslow believed to have five levels of human needs. Employees need to have fulfilled at work.
-Only once a lower level of need has been fully met with a worker, be motivated by the opportunity of having the next need up in the hierarchy, satisfied
-A business should therefore of a different incentives to workers in order to help them fulfil each need in turn and progress at the hierarchy
what are the three elements of employee engagement
- intellectual engagement (thinking about the job and how to do it better)
2.affective engagement (feeling positive about doing a good job) - social engagement (takes opportunities to share work related issues with others at work)
what is the 2 factor theory and who made it
there’s two factors for a successful business:
1. motivators (factors that directly motivate people to work harder like giving responsibility, recognition for good work and opportunities for promotion)
2. hygiene (factors that can de motivate if not present but do not actually motivate employees to work harder) eg pay and working conditions
-herzbergs theory of motivation
what is mayo’s theory of motivation
where workers are not just motivated by money but also having their human/social needs met
how is motivation increased in mayo’s theory
-better communication between managers and workers
-greater manager involvement in employees working lives
-working in groups
what is empowerment
delegating power to employees so they can make their own decisions
what is promotion
promoting employees to a position of greater responsibility
what’s job enrichment
giving employees more challenging and interesting tasks
what is job enlargement
giving employees more tasks of a similar level of complexity
what does team working offer
employees and opportunity to meet their social needs and often accompanied by empowerment for team
what are the 8 main non-financial incentives
- empowerment
2.praise
3.promotion
4.job enrichment - job enlargement
- better communication
7.working environment
8.team working
advantages of a well motivated workforce
1.better productivity
2.better quality
3.lower levels of absenteeism
4. Lower levels of staff turnover.
5. Lower training and recruitment cost.
what are motivational theorists views on pay?
- Taylor put emphasis on pay and peace rate. He believed it was the best way to motivate employees.
- Mayo, Maslow and Herzberg believed in non-financial reward like teamwork, empowerment and job enrichment, which he believed was more motivating
reasons why people go to work
- To earn money.
- for their family for a sense of achievement and job satisfaction.
3.to belong to a group
4.sense of security
5.to obtain feelings of self worth
what are the main financial incentives? 8 things
wages
Salary
Bonus system
Commission
Profit sharing
Performance related pay
Share options
fringe benefits
what are wages?
normally paid per hour and workers receive money at end of months, week or two weeks
they are normally paid to low
skilled workers or temporary staff and any additional hours get paid a higher rate on overtime
What are salaries?
normally an annual salary which is paid at the end of each month. They’re paid to hire up managers and there’s no set hours but you need enough hours to get the job done
what is a bonus system?
Usually only paid when certain targets have been achieved. Normally only applicable to hire manager, levels and overtime is paid at a higher rate. It increases motivation as people want to meet targets.
what is profit sharing?
A system whereby employees receive a proportion of the companies profits
what are the benefits of profit sharing?
Employees are more likely to accept changes in work practices if they see profits can increase
-It creates a link between pay and performance
-Create a sense of spirit and helps remove them and us barrier
what is performance related pay?
Paid to those employees, who meet certain standards
what are share options?
Common incentive for senior managers who are given shares in the company rather than a straightforward bonus or membership of a profit sharing scheme
what are fringe benefits
Items and employee receives in addition to their normal wage or salary. E.g. accompany car or free meals. These are known as perks and often increase loyalty as benefits are not always taxed or tax at reduced rate.
Advantages for point performance related pay
-senior managers can monitor employee performances during appraisal process
-Set targets for employees to ensure they are focused on company targets
Disadvantages for performance related pay
– Discourages team based approach and creates un-healthy rivalry
-can be difficult, accurately measure performance of some workers
– Incentives may not be large enough to motivate employees
Advantages for piece rate pay
-Low levels of manager supervision
-Encourages high-speed production
-Provides good incentive for workers who are motivated by pay
disadvantages for piece rate pay
-Workers are focused on quantity, not quality
-Repetitive and can be demotivating
-Workers are only used to one method of production and may resist change
advantage of commission
Is a clear length between sales and remuneration (financial reward)
disadvantage of commission
Sales may be influenced by factors outside of employee control
what are the four types of leadership style?
– Autocratic
– Paternalistic
– Democratic
– laissez-faire
what is leadership?
A relationship through which one person influences the behaviour or actions of other people
Why is leadership important in businesses recently?
-changing, organisational structure means they’re becoming flatter with great delegation so teamwork and focus on quality is important
-rapid change is becoming a constant feature of business life, so soft skills of leadership and management become increasingly important
what do leaders do?
-Inspire people
-Build relationships
-Take risks
-Have followers
what do managers do?
-Enact the plan
-Use their authority
-Manage risks
-Have subordinates
what is McGregor’s theory X?
– People are lazy and dislike work, so try to avoid it
– People must be coerced and controlled in order to work hard
– The average person wants to avoid responsibility and be directed
what is McGregor‘s theory Y?
-people want to learn and work is natural to them, and they don’t dislike work
– People are able to exercise, self-control and direction overwork, and they feel rewarded by their own achievements
-Average person learns to accept and seek responsibility
What is authoritarian leadership?
-Focus of power is with the manager
-Communication is top down and one-way
-Formal systems of command and control
-Use of rewards and penalties
-Little delegation
-McGregor theory X approach
What is paternalistic leadership?
-leader decides what’s best for employees
– Links with mayo addressing employee needs
– Same as parent child relationship
– A softer form of authoritarian leadership
what is laissez-faire leadership?
-leader has little input into day-to-day decision-making
– Conscious decision to delegate power
– Managers/employees have freedom to do what they think is best
– Effective when staff are ready, and willing to take on responsibility like Herzberg and Maslow theory of motivation
-Not the same as abdication
what is democratic leadership?
-Focus of power is more with the group as a whole
– Leadership functions are shared within the group
– Employees, have great involvement in decision-making
– Emphasis on delegation and consultation
– A trade off between speed of decision-making and better motivation and moral
Why are modern businesses moving away from autocratically leadership?
– Changes in societies values
– Better educated workforce
– Focus on need for soft HR skills
– Changing workplace organisation
– Greater workplace legislation
– Pressure for greater employee involvement
what factors affect the leadership style used? (9)
-personal value systems
-Managers experience
-Confidence in subordinates
-feelings of security
– Nature of business problems
– Type of organisation
– Effectiveness of teams and groups
– Skills and experience of subordinates
– Pressure such as time and cost
which leadership style is best
-Autocratic is best when businesses are in trouble but bad for decentralised and teamwork businesses
-depends on stage of business, e.g. start up v established businesses
