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Business Studies Theme 1 - People > Managing People 1.4 > Flashcards

Managing People 1.4 Flashcards

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People You Should Know flashcards
1
Q

Labour turnover definition:

A

Number of staff leaving a company as a percentage of the number employed

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2
Q

Outsourcing definition:

A

Taking a task traditionally run by your own staff and putting it out to tender, with the lowest bid winning the contract

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3
Q

Redeployment definition

A

Retraining a staff member to give the skills required to take on a new job role

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4
Q

Zero hours contract definition:

A

Employment contracts that agree employee duties and hourly pay rates, yet offer no guarantee of any work ( and therefore income) in any specific week

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5
Q

What are the two chains of viewing people in a business - 4 steps in each:

A

People

  1. Our most important asset - permanent secure jobs - high quality training - high value staff
  2. Costs - temporary jobs - or outsourcing/ offshoring - low cost staff
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6
Q

What do well run companies with long term sights do with employees?

A

Keep the trust between the employees and management

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7
Q

What are the two key goals of managing people?

A
  1. Making sure you have the right number of staff, with the right skills and experience to meet all production and customer service requirements
  2. Making sure staff understand the business culture and are motivated in the right way
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8
Q

What are the 4 key components to planning staffing needs?

A
  1. Audit what you have at the moment, how many staff and their skills and their aspirations perhaps
  2. Analyse the business plan to turn plans into people - how many new staff will be needed
  3. Take into account the changes on the way from here to there. - how many will retire, have kids, or a career change?
  4. Calculate the gaps that need to be filled between now and two years time
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9
Q

Why may it be hard to ensure that the personnel plan fits with the new business strategy?

A

Because staff develop ways of thinking and working that can be hard to change

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10
Q

Why should companies take plenty of time deciding on their staff recruitment?

A

Because customers are more likely to come into contact with the ‘ordinary staff’ rather than managers, so the attitude and competence of shop floor staff is vital to competitiveness

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11
Q

Why might some recruitment managers be more interested in skills rather than staff attitudes?

A

The jobs may not be customer facing, and therefore the skills are more important

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12
Q

Why may staff redeployment prove more expensive than redundancy plus fresh recruitment?

A

Redeployment may cost more training than the cost in redundancy plus recruiting a new employee

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13
Q

Why may incentives not motivate?

A

An incentive focuses behaviour on one aspect of a job, motivated staff give their best in general and because they enjoy doing so

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14
Q

Why does a workforce need to be flexible? (3)

A
  1. An ever improving technology means the marketplace is subject to frequent and rapid change. Firms need to anticipate these changes and respond to them quickly in order to maintain a competitive edge
  2. Many consumers want more customised goods and services - firms have to adapt the production process in order to meet demand whilst still keeping costs down
  3. Increasing competition especially from overseas firms, has forced businesses faced with fluctuating or seasonal demand to introduce greater flexibility, to eliminate unnecessary costs.
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15
Q

What are the 4 ways which a firm can attempt to increase the level of workforce flexibility?

A
  1. Multiskilling
  2. Part time and temporary
  3. Flexible hours and homeworking
  4. Outsourcing
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16
Q

What are the benefits of multiskilling? (3)

A
  1. Increases in productivity
  2. Reduction in disruption to production caused by staff absence
  3. Greater employee motivation created by more varied and challenging tasks at work
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17
Q

What are the drawbacks of multiskilling? (3)

A
  1. Potential loss of production as workers switch between different tasks
  2. Greater training requirements and cost as individual workers acquire a wider range of skills
  3. Workers may be reluctant to acquire new skills especially if there is no increase in pay
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18
Q

What are some negatives for the employee of having part time/ temporary contracts?

A
  1. They may not be earning enough regularly

2. May not be able to get a mortgage with no definitive salary.

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19
Q

What is a benefit for increasing flexibility? (3)

A
  1. Improve recruitment
  2. Increase motivation
  3. Reduce labour turnover
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20
Q

What is an example of a type of flexibility with working hours:

A

Zero hour contracts

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21
Q

What are the three main circumstances when companies need to dispense with the services of staff? (3)

A
  1. When individual staff members lack the competence to carry out their duties effectively
  2. When economic or other factors depress demand throughout an industry, forcing companies to cut costs in order to stay above their breakeven levels of operation
  3. When competitive or other factors cause the business to lose market share in a way which causes management to cut staff
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22
Q

Core workers definition:

A

Employees who are essential to the operations of a business, supporting whatever makes it distinctive or unique. They are likely to receive good salaries and working conditions

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23
Q

Flexible approach definition:

A

An approach to operations that implies a move away from mass production to batch productions, the use of machinery which can quickly be reprogrammed to carry out a range of tasks, and the creation of a multi skilled and flexible workforce which can adapt to meet a firms changing requirements

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24
Q

Hot desk definition:

A

An approach that provides a temporary desk for home workers to use when they come to the main office, they aren’t allowed to leave their own possessions there.

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25
Q

Peripheral workers definition:

A

Those workers which aren’t seen as being central to a firms operations. They may carry out necessary tasks, but may only be required on a temporary basis and can easily be replaced

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26
Q

Zero hours contracts:

A

Employment contracts that agree employee duties and hourly pay rates, yet offer no guarantee of any work in any specific week

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27
Q

What’s the difference between a redundancy and a dismissal?

A

A redundancy is when the job becomes irrelevant, whereas a dismissal is to do with an employee perhaps for ‘gross misconduct’.

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28
Q

What is a trade union?

A

An organisation that employees pay to join in order to gain greater power and security at work. They are concerned solely with obtaining satisfactory rates of pay in reasonably safe working conditions. They also protect workers rights under the law

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29
Q

Why have trade unions declined in recent years?

A

Tougher laws and privatisation have made it harder for strikes to succeed, which weakens union power.

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30
Q

Describe a job description:

A

It directly relates to the nature of the position itself, rather than the person required to fill it. It usually contains

  • title of the post
  • details of the main duties and tasks involved
  • person to whom the job holder reports and any employees who the job holder is responsible for
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31
Q

Describe a person specification:

A

It identifies the abilities, qualifications and qualities required of the job holder in order to carry out the job successfully. The main specification includes:

  • any educational or professional qualifications required
  • necessary skills or experience
  • suitable personality or character
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32
Q

What are the two ways of recruiting people?

A
  1. Internal recruitment

2. External recruitment

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33
Q

Give 4 advantages of internal recruitment:

A
  1. It is likely to be quicker and cheaper than external recruitment
  2. Greater variety and promotion opportunities may motivate employees
  3. It avoids the need and cost of induction training
  4. Firm will already be aware of employees skills and attitude to work
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34
Q

Give 2 disadvantages to internal recruitment:

A
  1. Existing workers may not have the skills required especially if the business wants to develop new products or markets
  2. Relying on existing employees may create a vacancy elsewhere instead.
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35
Q

Give 2 advantages of external recruitment:

A
  1. It should result in a wider range of candidates than internal recruitment
  2. Candidates may already have the skills required to do the job, which avoids the need for training
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36
Q

Give 2 disadvantages of external recruitment:

A
  1. It can be expensive and time consuming process using valuable resources
  2. It can have a demotivating effect on members of the existing workforce, who may have missed out on a promotion
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37
Q

Give 5 examples of methods of external recruitment:

A
  1. Media advertising (newspapers or magazines)
  2. Job centres
  3. Commercial recruitment agencies
  4. Executive search consultants (paid directly to approach individuals)
  5. Firms own website
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38
Q

What are three factors used by a business which influence the choice of method of recruitment:

A
  1. Cost of the recruitment method
  2. Size of recruitment budget
  3. Location and characteristics of likely candidates
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39
Q

Give three examples of selection techniques when suitable candidates have applied for the vacancy:

A
  1. Interviews
  2. Testing and profiling - aptitude tests and psychometric tests
  3. Assessment centres
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40
Q

Describe the 7 stages in a recruitment process:

A
  1. Determine the number and type of employees required
  2. Conduct job analysis for each vacancy to identify the various duties and responsibilities included
  3. Create a job description and person specification
  4. Advertise the vacancy to attract suitable candidates
  5. Draw up a shortlist of the most suitable candidates for interviews
  6. Decide on most suitable candidates using appropriate selection methods
  7. Appoint successful candidates and inform those who haven’t been successful
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41
Q

Give three benefits of training:

A
  1. Increases the level and range of skills available to the business leading to improvements in productivity and quality
  2. It increases the degree of flexibility within a business, allowing it to respond to changes quickly especially in technology or demand
  3. It can lead to a more motivated workforce by creating opportunities for development and promotion
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42
Q

Give three negatives of training:

A
  1. Can be expensive for both the actual training and the evaluating of its effectiveness
  2. Production may be disrupted while training is taking place leading to lost output
  3. Newly trained workers may be persuaded to leave and take up jobs elsewhere
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43
Q

What three things would induction training usually include:

A
  1. Information on important policies and procedures such as health and safety
  2. Tour of the organisation and introduction to colleagues
  3. Details of employment - payment arrangements, holiday entitlement
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44
Q

Industrial action definition:

A

When employees take up action against the employer

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45
Q

Voluntary redundancy definition:

A

Employer consults employees to see if any want to leave

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46
Q

Give three examples as to why an employee is dismissed:

A
  1. Absenteeism
  2. Gross misconduct
  3. Theft of company money/ property
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47
Q

What are the three main methods of industrial action:

A
  1. Work to rule- follow exact terms of contract - no overtime hours
  2. Strike
  3. Sit in - sit in factory but do no work
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48
Q

What are 4 methods to avoid industrial dispute:

A
  1. Regular consultations with trade unions
  2. A staff forum - to pass on information and collect ideas
  3. Employee consultation body
  4. Team meetings and group feedback
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49
Q

What is the impact on the employer and employee with a strike:

A

Employee- could be sacked/ dismissed
- empowered and change policies
Employer - pay wages to employees on strike
- productivity reduced
- pay extra staff

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50
Q

What is the impact on the employer and employee with an overtime ban:

A

Employee - less additional pay

Employer - impact on productivity and cant meet demand

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51
Q

What is the impact on the employer and employee with a work to rule:

A

Employee - fulfil terms of contract
Employer - low productivity
- bad reputation
- could lose customers

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52
Q

What is the impact on the employer and employee with a go slow:

A

Employee - boring - not stressful

Employer - low productivity

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53
Q

What could an employer do to the employees in return:

A

They could do a lock out where they don’t allow employees in as they may suspect employees will trash the place

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54
Q

What is mediation in a business:

A

An independent impartial discussion to come and reach a solution. Aim is to restore and maintain employment relationship. It’s best used early on

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55
Q

What is conciliation in a business:

A

When employee is making a specific complaint against the employer. Conciliator has no authority. It encourages the parties to come to an agreement

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56
Q

What is arbitration in a business:

A

Have to have an impartial outsider making a decision on a dispute. It is voluntary for both sides. It’s held in private

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57
Q

What is an ACA/ advisory, conciliation and arbitration service:

A

A government run, independent organisation which helps in settling disputes

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58
Q

Give 5 advantages of on the job training:

A
  1. Tailored to the companies own ways of working
  2. After a mistake the employee can get instant advice from fellow workers
  3. Saves the time and cost of sending people out
  4. Get to train alongside actual colleagues
  5. Employees are actually productive
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59
Q

Give 5 disadvantages of on the job training:

A
  1. Quality depends on ability of the trainer at the time available
  2. Bad habits may be passed on
  3. Potential disruption to production
  4. Less knowledge acquired on methods used elsewhere
  5. May take lower priority as staff focus on production
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60
Q

What are 4 ways of in the job training:

A
  1. Demonstration/ instruction - showing the trainee how to do the job
  2. Coaching - more intensive between experienced employee and trainee
  3. Job rotation - several jobs given too trainee to gain wide experience
  4. Projects - employees join project team to give wider exposure to the business and allowing them to take part in activities
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61
Q

On the job training definition:

A

Employees receive training whilst still in the workplace

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62
Q

Off the job training definition:

A

Where employees leave their normal place of work in order to receive instruction, either within the firm or by using an external organisation

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63
Q

What are 7 methods of off the job training:

A
  1. Day release - take time off work to attend college or training centre
  2. Distance training/ evening classes
  3. Block release courses - several weeks at a college
  4. Sandwich course- where the employee spends a longer period of time at college before returning to work
  5. Sponsored courses in higher education
  6. Self study/ computer based training
  7. Online training
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64
Q

Give 4 advantages of off the job training:

A
  1. Wider range of skills/ qualifications can be obtained
  2. Can learn from outside experts/ specialists
  3. Employees can be more confident when starting the job
  4. Opportunity to meet other people
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65
Q

Give 4 disadvantages of off the job training:

A
  1. More expensive (transport/ accommodation)
  2. Now have new skills/ qualifications and may leave for better jobs
  3. New employees may still need induction training
  4. Communication may not be as effected
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66
Q

Give three disadvantages of induction training:

A
  1. Have to be paid even though they aren’t working
  2. After induction they may be still unsure about the business
  3. Inproper induction training may result in poor employee retention
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67
Q

Give three advantages of induction training:

A
  1. Can avoid costly mistakes by recruits not knowing the procedures
  2. Makes them more confident and independent within their role
  3. Good induction training can lead to high retention rate in the business
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68
Q

Why do some companies offer holiday jobs to university students:

A

Because it gives the company a good long look at the individual, allowing better recruitment decisions to be made later on

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69
Q

What might a company try to avoid getting lots of applicants for a job?

A

Shortlisting, assessing and interviews take a lot of staff time, if the role isn’t critical for the business managers may prefer fewer candidates

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70
Q

Induction training definition:

A

Familiarises newly appointed workers with key aspects of their jobs and their employer, like health and safety. The aim is to make employees fully productive as soon as possible

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71
Q

Cross functional definition:

A

‘Across the functions’ in other words it draws from all the functions instead of just one

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72
Q

Delayering definition:

A

Removing a management layer from the organisational structure

73
Q

Line manager definition:

A

A manager responsible for meeting specific business targets and responsible for specific staff

74
Q

Matrix structure definition:

A

Where staff work in project teams in addition to their responsibilities within their own department. Meaning the staff answer to more than one boss

75
Q

Span of control definition:

A

The number of staff who are answerable directly to a manager

76
Q

What are the three types of organisational structure:

A
  1. Tall structure
  2. Flat structure
  3. Matrix structure
77
Q

What are three advantages of a narrow span of control:

A
  1. Allows close management supervision
  2. Communication may be excellent within the small teams
  3. More layers on the hierarchy means a higher chance for promotion
78
Q

What are three disadvantages of a narrow span of control:

A
  1. Workers may feel over supervised and not trusted, perhaps causing better staff to leave for more responsibility
  2. Communications may suffer within the business as a whole as more later of hierarchy means communication between the higher levels are harder
  3. Narrow span may mean restricted space for initiative and development
79
Q

Give four reasons as to why we need an organisational structure:

A
  1. Helps alleviate/ spread workload
  2. Gives a clear sense of purpose as roles are clearly defined
  3. Clear structure of authority - subordinate knows who to communicate with
  4. Responsive to customer needs and staff needs
80
Q

Subordinates definition:

A

People below you in authority structure

81
Q

Give 5 advantages of a centralised structure:

A
  1. Easier to implement common policies and practices for the whole business
  2. Prevents other parts of the business from becoming too independent
  3. Easier to coordinate and control from the centre (e.g. Budgets)
  4. Economies of scale and overhead savings easier to achieve
  5. Quicker decision making
82
Q

Give 4 disadvantages of a centralised structure:

A
  1. More bureaucratic - often more layers in hierarchy
  2. Local or junior managers are likely to be much closer to customer needs
  3. Lack of authority down the hierarchy may reduce manager motivation
  4. Customer service may lack flexibility and speed of local decision making and doesn’t take into account local needs
83
Q

Give 6 advantages of a decentralised structure:

A
  1. Decisions are made closer to the customer
  2. Better able to respond to local circumstances
  3. Improved level of customer service
  4. Consistent with aiming for for a flatter hierarchy
  5. Good way of training and developing junior management
  6. Should improve staff motivation
84
Q

Give 5 disadvantages of a decentralised structure:

A
  1. Decision making is not necessarily ‘strategic’
  2. Harder to ensure consistent practices and policies at each location
  3. May be sine diseconomies of scale
  4. Question of who is leader in a crisis for example
  5. Harder to achieve tight financial control
85
Q

What is a centralised structure?

A

All decisions are made at the top, restricting authority to managers but giving consistency for customers

86
Q

What is a decentralised structure?

A

Decisions are made locally, closer to customers, giving managers more responsibility and making them more motivated

87
Q

Describe a tall structure:

A

There is a long chain of command, but a short span of control. There are lots of layers of hierarchy

88
Q

Describe a flat structure:

A

There is a short chain of command, but a big span of control. They rely on delegation and empowerment

89
Q

Give some strengths and weaknesses with a tall structure:

A

Strength - lots of opportunities for promotion
- someone to help you if you need - watching over you
Weaknesses- longer length of time to communicate
- higher costs as more staff from the more layers

90
Q

Give some strengths and weaknesses of a flat structure:

A 
Strength - better communication
- more responsive to customer needs
- employees feel more empowered
Weakness - less promotion opportunities
- could feel stressed/ overloaded
91
Q

Give three advantages of a matrix structure:

A
  1. Working together should avoid hold ups and speed is vital for competitiveness
  2. Enriches the experience of every team member as they learn views from other departments
  3. Individuals get to use their skills in a variety of contexts
92
Q

Give three disadvantages for a matrix structure:

A
  1. Team members may forget their functional responsibilities
  2. Could be conflicting views from people who are both in high positions
  3. Different teams could drift apart- with different objectives
93
Q

What factors affect the type of organisational structure chosen: (6)

A
  1. Size of business
  2. Skills and expertise of employees
  3. Leadership style of person in charge
  4. Type of business (dynamic markets)
  5. How financially secure the business is - afford layers?
  6. The competitive environment
94
Q

Who is F.W. Taylor and what is his management strategy?

A

His idea for management is that every task needs to be told exactly how to do everything. He believed in the division of labour which is where the job is broken down into smaller repetitive tasks, which all employees do the same way. He introduced piece rate where an employee is paid for each piece of work which they produce.

95
Q

What is F.W. Taylor leadership style:

A

Autocratic - authority of others. Managers job is to tell employees what to do

96
Q

What are some positives and negatives of F.W. Taylors theory?

A

Positive- enhanced production- ability to control employees
- decreased autocracy - cost of production reduced - good working conditions
Negative - requires lots of capital - demotivating approach - overly bureaucratic - stressful - time consuming

97
Q

What are the three main implications of taylors theory?

A
  1. Main form of motivation is high wages which = higher output
  2. Managers job to tell everyone what to do
  3. Workers job is to do what they are told and get paid accordingly
98
Q

What is the name of Taylors theory?

A

Scientific management

99
Q

Division of labour definition:

A

Subdividing a task into a number of activities, enabling workers to specialise and therefore become very efficient at what might be a small repetitive task

100
Q

What were Taylors methods? (5 of them)

A
  1. Observe workers at work, recording and timing what they do and how long it takes - time and motion study
  2. Identify the most efficient workers and see how they achieve this
  3. Break down the task into small component tasks which can be done quickly and repeated.
  4. Devise equipment to speed up tasks
  5. Set out exactly how the work should be done in the future - instructions
101
Q

Who is Elton mayo and what is his management strategy?

A

He was heavily influenced by Taylor, but his leadership style was much more paternalistic.

102
Q

What are some positives of Mayos experiment: (2)

A

Positives - solves productivity issues in a sustainable and long term way
- methods allows identification of the concerns of the worker

103
Q

What was Mayos experiment called? Describe it:

A

The Hawthorne effect as it took place in a Hawthorne factory, where mayo looked at motivation. He changed the working conditions in the factories like break times. He found that the employees motivation increased with break times and more outputs were created, and that working in teams was more important than money. He found praise was the highest motivator.

104
Q

What were Mayos conclusions: (3)

A
  1. The women gained satisfaction from the freedom and control over the working environments
  2. Communication between workers and managers influences moral and outputs.
  3. Workers are motivated by the interest shown to them by their managers
105
Q

What is Maslows theory of motivation:

A

The hierarchy of needs

106
Q

What are the 5 levels of hierarchy for Maslows theory?

A
  1. Self actualisation - self fulfilment
  2. Esteem needs (e.g. Managerial needs, prestige)
  3. Social needs (e.g. Independence, achievement, responsibility)
  4. Safety needs
  5. Physical needs (most important)
107
Q

What are some negatives of Maslows theory? (3)

A
  1. Do all humans have the same hierarchy of needs?
  2. Can anyone’s needs be satisfied
  3. People have different degrees of needs
108
Q

What is Herzebergs theory called? And what does it consist of?

A

The two factor theory. These factors are hygiene factors and motivator factors.

109
Q

Give 5 examples of the two factors of Herzebergs theory:

A

Motivators - there are 5 factors of job satisfaction including: -achievement - recognition for it - work itself - responsibility - advancement
Hygiene factors - salaries - wages - employee benefits - job security - working conditions

110
Q

Describe the two factor theory:

A

Motivators have the power to create positive job satisfaction but little downward potential. Hygiene factors will cause job dissatisfaction unless they are provided for, but they don’t motivate

111
Q

Give two advantages of the experiment which Herzeberg carried out:

A
  1. Outlines what motivates employees

2. Used to identify issues

112
Q

Give two disadvantages of the experiment which Herzeberg carried out:

A
  1. Only sampled on 200 people and 2 jobs

2. Can’t show all the factors, there may be more

113
Q

What is Herzebergs experiment:

A

He interviewed 200 accountants/ engineers to find out what motivated them. He asked employees to describe recent events which had made the employees feel good about their jobs, and why.

114
Q

What was Herzebergs conclusion?

A

His main insight was that unless the job itself was interesting, there was no way to make working life satisfying.

115
Q

Job satisfaction definition:

A

The sense of well being and achievement that stems from a satisfying job

116
Q

What are the four main things which motivate staff?

A
  1. Financial incentives
  2. Empowering the employees - delegation, consultation and empowerment
  3. Team and flexible working
  4. Job enlargement: job enrichment and job rotation
117
Q

What is the importance of motivation: (7)

A
  1. Something to strive for - increase productivity and decrease costs
  2. Quality of work will improve
  3. Add incentive - reduce staff retention
  4. Provides direction for workers
  5. Can prevent industrial dispute
  6. Recruitment will be easier
  7. Encourages innovation
118
Q

What is piecework, describe it:

A

Means working in return for a payment per unit produced. They receive no basic or shift pay, so no sick pay, holiday pay or company pension.

119
Q

Give some disadvantages to piecework: (3)

A
  1. Scrap levels may be high if workers are just focused on fast pace
  2. There is incentive to provide good quality, but not for the best quality
  3. Workers will work hardest when they want more earnings (Christmas and summer holiday) which may not coincide with demand
120
Q

What are some advantages of piecerate? (3)

A
  1. Experienced and efficient workers can earn which is even more of an incentive to complete the work.
  2. Employees may work more hours to finish a job
  3. Employees can start and finish when they want so that it fits around family life
121
Q

Describe commission:

A

It’s a bonus made on top of a salary usually related to sales. It makes people want to sell more in their job to earn money for it

122
Q

Give some positives of commission: (2)

A
  1. Earn more money - as there is an incentive

2. The employees are likely to work harder

123
Q

Give some negatives of commission:

A
  1. More pressure/ stress on employees
  2. Reduce teamwork
  3. Not a steady income
124
Q

Why does commission motivate employees:

A

So that they work harder to make more money on top of their salary especially if they’re earning a low income

125
Q

How does piecerate motivate employees:

A

It motivates because they know they have to be efficient to get paid more

126
Q

Describe a bonus:

A

They are a method to motivate people to work hard, perhaps to meet business targets. They are an extra sum of money on top of their salary

127
Q

Give some negatives to bonuses: (2)

A
  1. Herzeberg said that motivating people through bonuses was a bad idea, implying that people would be incentivised to do the wrong thing again and again
  2. Might increase cheating and shortcuts making the work a lower quality
128
Q

Give some positives to bonuses: (2)

A
  1. They can act as a nice thank you for a job well done

2. Banks suggest that bonuses are an important part in remuneration.

129
Q

Describe profit sharing:

A

The staff receive a share of the profits made in a business or company.

130
Q

Why does profit sharing motivate:

A

Profit sharing motivates employees as if staff receive some of the shares then they may be more open to working with customers in a friendly way, keeping the customers to return to the business.

131
Q

Give some positives of profit sharing: (2)

A
  1. More products would be sold increasing the profit when they sell
  2. Employees earn extra money on top of their salary
132
Q

Give some negatives of profit sharing: (2)

A
  1. An increase in quantity of products may lead to a decrease in the quality of the products.
  2. Some employees don’t view money as a main motivator
133
Q

Describe performance related pay:

A

It’s a financial reward to staff whose work is considered above average. It’s usually made after an appraisal

134
Q

What are some benefits of PRP: (3)

A
  1. They directly link employees performance with how much they are paid
  2. Gives the employee direction as they have a target to meet
  3. Management can see if employees are doing well or need help
135
Q

What are some negatives of PRP: (3)

A
  1. Perceived unfairness due to favouritism rather than quality of work
  2. Doesn’t promote teamwork
  3. Money is often too low to act as an incentive to work towards targets
136
Q

Why does PRP motivate?

A

Employees earn more money on top of a salary. It also gives employees a target or goal to reach

137
Q

What is the usual method for PRP? (3 steps)

A
  1. Establish targets for each member of staff/ management at an appraisal interview
  2. At the end of the year, the individuals achievements are discussed against those targets
  3. Those with outstanding achievements are given merit 1 pay rise, which is the highest
138
Q

Why do firms continue with PRP? (2)

A
  1. To make it easier for managers to manage/control their staff
  2. To reduce the influence of collective bargaining and therefore trade unions
139
Q

Describe the difference between empowerment and delegation:

A

Empowerment is when you are given more authority for a task as well as having some scope to decide what that task should be, whereas delegation is just being given authority for a task

140
Q

Advantages of empowerment: (3)

A
  1. Increases productivity and moral as you don’t have to wait for approval
  2. Improve quality of employees
  3. Staff recognised for their ability
141
Q

Disadvantages of empowerment: (3)

A
  1. Makes managers insecure
  2. Bad decisions may be made as people aren’t necessarily trained properly in certain areas
  3. Confusion as little instruction
142
Q

What needs to happen to make delegation effective: (4)

A

The boss has to:

  1. Trust the junior staff member
  2. Provide extra training if needed
  3. Provide resources that may be needed
  4. Stay interested but not intervene too much
143
Q

How does delegation motivate employees:

A

The member of staff is trusted to tackle a new challenge so they feel motivated to do the best

144
Q

Give a pro and a con to delegation:

A

Pro: empowers managers to make decisions and allocate tasks to most appropriate member of staff
Con: may not choose most suitable employee

145
Q

Definition of consultation:

A

Asking the views of the staff you manage, then take them into account when making decisions

146
Q

Why does consultation motivate?

A

It boosts team working and moral as people can become more comfortable putting across their idea to a team

147
Q

Give 2 pros and 2 cons to consultation:

A

Pros- employees feel involved in decision making
- can lead to new ideas that will help develop a business
Cons- some may feel their idea wasn’t properly looked over
- may not get any valid ideas

148
Q

Describe team working:

A

Organising employees into relatively small teams in order to maximise staff satisfaction and these teams can be functional or geographical

149
Q

Give 2 advantages and 2 disadvantages of team working:

A

Adv - pooled talents
- individuals can specialise
Disadv- tensions if not everyone gets on
- could discourage effort if the teams are bad

150
Q

Why does teamworking motivate employees:

A

It makes the work more enjoyable, working with new people. If struggling teams are multi skilled so people can help out

151
Q

Describe flexible working:

A

Employees choose hours to balance home and work life

152
Q

Give some advantages of flexible working: (3)

A
  1. Can choose hours
  2. More motivated as working part time from home they can fit in home life and job role together
  3. Attracts talented people which may otherwise not be able to work
153
Q

Give some disadvantages of flexible working: (3)

A
  1. May be hard to fit in shifts
  2. Miss out on information and training
  3. Some staff may not be committed.
154
Q

Describe job enrichment:

A

It’s a management concept which involves redesigning jobs so that they are more challenging alto the employee and so that it is less repetitive.

155
Q

Give 3 pros and 3 cons of job enrichment:

A

Pros- learn new skills - reduce boredom - receive recognition
Cons- lack of training - increase workload - possible poor performance

156
Q

Describe job enlargement:

A

It’s an increase in job tasks and responsibilities to make a position more challenging.

157
Q

Give 2 pros and 2 cons of job enlargement:

A

Pros - more exciting - less repetitive
Cons - employee may be unmotivated as there is more to do
- an increase in workload which could increase stress

158
Q

Describe job rotation:

A

The practice of moving employees between different tasks to promote experience and variety

159
Q

Give 1 positive and 1 negative of job rotation:

A

Pros - New ideas brought into different areas of business

Cons - may not be very experienced in any areas as constantly moved around

160
Q

Flexitime definition:

A

Giving staff flexibility over their arrival and leaving time as long as they do the right number of hours

161
Q

Kaizen definition:

A

Continuous improvement, usually achieved by workforce engagement and involvement

162
Q

Motivation definition:

A

To professor Herzeberg, it means doing something because you want to do it, most business leaders think of it as prompting people to work hard

163
Q

Quality circle definition:

A

Discussion groups in which staff discuss an operational problem with a view to recommending a solution to management

164
Q

Remuneration definition:

A

All the financial rewards received by an employee- pay, pension contributions, bonuses

165
Q

Leadership definition:

A

A relationship through which one person influences the behaviour or actions of other people

166
Q

What are the two main differences between leaders and managers:

A
  1. Job role - leaders look ahead to new opportunities whereas the managers look towards the short term
  2. The person - leaders need to be strong/ steely, whereas a manager may be able to get away with difficult decisions
167
Q

What two reasons makes leadership more important in business:

A
  1. Changing organisational structures

2. Rapid change in business

168
Q

What difficulties may a entrepreneur face when becoming a leader of a larger organisation:

A
  1. Learning to delegate
  2. Trusting others
  3. Listening to others
  4. Having an open mind
  5. Being less reactive to dynamic markets and more proactive
  6. Developing emotional intelligence
169
Q

What are 4 types of leadership styles:

A
  1. Autocratic leaders
  2. Democratic leaders
  3. Paternalistic leaders
  4. Laissez faire
170
Q

Describe an autocratic leader:

A

They are authoritarian. They tell employees what to do and don’t listen to what others have to say. They usually know what they want doing and how they want it done

171
Q

Describe a democratic leader:

A

They like to involve workers in their decisions. They usually listen to employees and make people contribute to the discussions. They would regularly delegate to subordinates.

172
Q

Describe a laissez faire leader:

A

This happens when leaders are busy or lazy and allow their employees lots of freedom to decide what they will do.

173
Q

Describe a paternalistic leader:

A

Someone who thinks and acts like a father, they try to do what is best for their employees. They consult the employees, but the decisions are still made by the boss

174
Q

What is McGregors Theory X and Y?

A

It’s two styles of management, called theory y and theory X. Theory X managers tend to distrust their subordinates, believing employees don’t enjoy their work and need to be controlled. Theory Y managers believe that employees do enjoy work and want to contribute ideas and effort.

175
Q

What is a charismatic leader?

A

They are people who are able to connect with an audience and who can get others to buy into their ideas

176
Q

Autocratic leaders definition:

A

Autocratic managers keep most authority to themselves, they don’t delegate much or share information with employees.

177
Q

Democratic leader definition:

A

Democratic managers take the views of subordinates into account when making decisions.

178
Q

Paternalistic manager:

A

Believes he or she knows what is best for employees. They tell employees what to do, but will often explain their decisons.

Business Studies Theme 1 - People (6 decks)

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