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H2 Management of Business > Managing People > Flashcards

Managing People Flashcards

Revision

1
Q

Define Human Resources

A

Human Resources is a business department responsible for how people are managed by a business in order to meet the strategic objectives of the business

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2
Q

Define what an organisation chart is

A

An organisation chart is a diagram which shows the hierarchy in a business, usually top to bottom, in terms of seniority

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3
Q

Name 3 benefits of using organisation charts

A
  1. Shows responsibility and authority
  2. Shows managers of others
  3. Shows business progression authorities
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4
Q

Define delayering

A

Delayering is the process of removing/reducing the number of layers/levels within an organisational structure

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5
Q

Name the benefits of delayering

A
  1. Reduce long term costs with wages
  2. More employee responsibility so can increase motivation
  3. Faster and clearer communication down the organisation so decisions can be made sooner
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6
Q

Name the negatives with delayering

A
  1. Short term redundancy costs
  2. Span of control increases so can increase training costs to make employees better independent workers
  3. Damage staff morale as feel as if they’re next
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7
Q

Define delegation

A

Delegation is the assignment to others of authority for particular functions, tasks and decisions

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8
Q

Define empowerment

A

Empowerment is the process of giving employees the power to do their job

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9
Q

Define span of control

A

The number of subordinates a manager is responsible for

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10
Q

Define chain of command

A

The way in which responsibility for employees is organised through a business

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11
Q

Name a benefit and drawback of a narrow span of control

A
  1. Managers get to spend more time with employees and give clear instruction
  2. Staff may feel over watched
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12
Q

Name a benefit and a drawback of a wide span of control

A
  1. Independence may be motivating for staff

2. Staff may perform badly as managers loose control

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13
Q

Define labour turnover

A

Labour turnover is how frequently employees leave a business

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14
Q

What is the calculation for labour turnover

A

(Number of employees leaving in a period x average number of employees in a period) x 100

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15
Q

Define absenteeism

A

Absenteeism is the proportion of employees not at work on a given day

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16
Q

What is the formula for absenteeism

A

(Number of unauthorised absences during period / total days worked over period) x 100

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17
Q

What is an authorised absence

A

Absence with permission from a senior manager

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18
Q

What is an unauthorised absence

A

Absence without permission from a senior manager

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19
Q

What is the formula for lateness

A

(Days late in period / days on time in period) x 100

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20
Q

Define labour productivity

A

Labour productivity is the total output per worker employed

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21
Q

Name the limitations with measuring labour productivity

A
  1. Averages may be misleading - figures for firm as a whole aren’t representative of departments
  2. Not all departments employ the same number of people - labour turnover will vary from department to department so effects labour turnover as a whole
  3. A single figure has limited use
  4. Numbers do not explain the situation
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22
Q

Namer the benefits to employees of improving the other methods of assessing workforce performance

A
  1. Job security
  2. Higher pay
  3. Bonuses
  4. Improvement in working conditions (eg - subsidised canteen)
  5. Financial assistance for career development
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23
Q

Define appraisal

A

An appraisal is a formal assessment of an employees performance

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24
Q

Name the sections of an appraisal

A
  1. Strengths
  2. Weaknesses
  3. Performance targets
  4. Training needs
  5. Promotion opportunities
  6. Pay progressions
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25
Q

Name the reasons for an appraisal

A
  1. Record issues (collect evidence)
  2. Motivate staff
  3. Give staff focus
  4. Make staff feel valued
  5. Set staff standards/expectations
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26
Q

Define managerial appraisal

A

A method of appraisal where a manager examines and evaluates an employees performance

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27
Q

Name the benefits of a managerial appraisal

A
  1. Receives expert input

2. Managers can make subsequent decisions about promotions, rewards and disciplinary procedures

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28
Q

Name the drawbacks of managerial appraisals

A
  1. Manager may not work closely with employee to know their strengths and weaknesses
  2. Input is limited to the managers point of view
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29
Q

Define self appraisal

A
  1. Employees assess own performance, often with a tick sheet to grade aspects of their work
  2. Can be used as a stand alone or in advance of a managerial appraisal
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30
Q

Name the benefits of self appraisals

A
  1. Good in large firms as the manager may not know you well
  2. You know your strengths and weaknesses
  3. Can be quicker
  4. Less intimidating for employees
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31
Q

Name the drawbacks of self appraisals

A
  1. Can overvalue or under value yourself

2. No tangible way to answer some questions

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32
Q

Define peer appraisal

A

A peer appraisal is an appraisal carried out by your work colleges

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33
Q

Define 360 appraisals

A

A 360 appraisal is where you receive feedback from several people in a firm. Used for staff who work in large organisations or in many firms

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34
Q

Name a benefit of peer appraisals

A

Work closer to you than your manager so know you better

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35
Q

Name the drawbacks with peer appraisals

A
  1. May not be taken seriously due to a lack of authority

2. May not give truthful feedback as don’t want to play with your emotions

36
Q

Name a benefit of 360 appraisals

A

Broader perspective of workers abilities

37
Q

Name a disadvantage of 360 appraisals

A

Conflicting points of view may be overwhelming

38
Q

Name the causes of ineffective appraisals

A
  1. Lack of amitment from senior staff. A proper appraisal can be expensive.
  2. An inconsistent approach from line managers. Some may be too negative for example.
  3. Inadequate time given for the appraisal process as managers may be keen to move onto other work
39
Q

Define what a tall structure is

A

A tall structure is an organisation with many layers of hierarchy

40
Q

Define what a flat structure is

A

A flat structure is one worth few levels of hierarchy

41
Q

Name the benefits of flat structures

A
  1. More delegation
  2. Larger span of control
  3. Increased speed of communication and increased accuracy
42
Q

Name the benefits with tall organizations

A
  1. Narrower span of control so more regulated

2. More potential opportunities for progression with less communication so can increase motivation

43
Q

Name a negative of flat structures

A

Less opportunity and more competition for promotions so decreases motivation

44
Q

Name a disadvantage of tall structures

A

Decreased speed of communication with decreased accuracy

45
Q

Define organisation by function

A

Business arranged into specialist areas that all have some input to the business output

46
Q

Define organisation by product

A

Business organised into different products made and each product becomes a mini company with its own business functions

47
Q

Name 2 benefits of organisation by product

A
  1. Communication barriers between specialists are broken down
  2. Each product has more independence so can increase motivation
48
Q

Name 2 disadvantages with organisation by product

A
  1. Conflict can arise though competing for resources

2. Duplication of departments increases costs

49
Q

Name 2 benefits of organisation by function

A
  1. No duplication of roles

2. Specialists are in one place so can share ideas

50
Q

Name 2 disadvantages of organisation by function

A
  1. Harder to identify blame for week products

2. Reduces the speed of communication

51
Q

Define organisation by devision

A

Organised by the geographical location

52
Q

Define matrix organization

A

Where individuals work in a project and in their function and have 2 line managers

53
Q

Name the benefits of matrix structure

A
  1. Good way of sharing resources across projects
  2. Avoid need for regular department meetings
  3. Helps communication between functions and projects
54
Q

Name the drawbacks of organization by matrix

A
  1. May have unclear authority with 2 line managers
  2. Takes time to get used to the new structure
  3. Team members may neglect functional responsibilities
55
Q

Define what a centralised structure is

A

A centralised structure is where decision making is kept at the top of the hierarchy

56
Q

Define what a decentralised structure is

A

A decentralised structure is where decision making is spread out amount the managers in the hierarchy

57
Q

Name the benefits of a centralized structure

A
  1. Easier to implement common policies
  2. Easier co-ordination and control
  3. Easier to obtain EOS
  4. Quicker decision making
58
Q

Name the drawbacks of a centralized structure

A
  1. Often extra layers in the hierarchy that increase costs
  2. Local managers likely to be closer to customer needs
  3. Lack of responsibility for managers may be demotivating
  4. CS loses flexibility and speed of local decision making
59
Q

Name the benefits of a decentralized structure

A
  1. Decisions made closer to consumers
  2. Better able to respond to circumstances
  3. Improved CS
  4. Reduces costs by making a flatter hierarchy
  5. Good way of training junior management
  6. Increased empowerment can increase employee motivation
60
Q

Name the negatives of a decentralized structure

A
  1. Decision making not necessarily strategic
  2. May encounter dis EOS
  3. Hard to ensure consistent policies at each location
  4. Hard to achieve tight financial control as increases risk of overruns
61
Q

Give the three main management skills

A

leading, motivating, communication

62
Q

Define leadership and give the three main types of leadership

A

Ability to direct people and positively influence them so they follow and obey you.

  1. autocratic leadership
  2. democratic leadership
  3. Laissez faire leadership
63
Q

Explain autocratic leadership

A

Manger makes all the decision and does not ask the employees opinions. They give orders to be obeyed without question. They may use fear or threats to get their way and also their position of authority. Is not effective way of leading people except perhaps in emergency or stressful situations

64
Q

Explain democratic leadership

A

Manger involves employees and listens to their views letting them devise possible solutions before making a final decision. The manager delegates work and trusts employees. They get employees on their side through explanations and reasoning. This style of leadership is effective as employees feel valued.

65
Q

Explain Laissez - faire leadership

A

Manger does not interfere with how employees do their work. Give employees time limits to complete their goals but let the employee decide how to achieve this goal. They delegate work and trust their employees.

66
Q

Explain delegation with an example

A

When a manager assigns authority to an employee to carry out task or project for them. Employee is given the responsibility for the job and will be held accountable for the job. Ex: HR manager gives HR assistant CVs to go through after which they have to pick five people to interview

67
Q

Give five advantages of delegation

A

Manager has more time to spend on most important issues of the business- efficient use of managers skills
Work completed faster- saves time and money
Good way to train employees on the job- learn how to manage with managerial tasks. Ensures steady supply of managers for future
Improves manager-employee relationship. - trust
Motivates employees- has faith in them, feel valued. Employees are happier as are involved in business

68
Q

Give four points of importance of effective leadership

A

Improved efficiency
Improved coordination
Employee retention
Helps deal with change

69
Q

Evaluate Autocratic leadership

A

Style does not produce good results for manager. Worked resent being treated in this way. Some will resign and so business may lose excellent workers. Those who stay are unhappy and uncooperative.

70
Q

Evaluate Democratic leadership

A

Effective because employees like to be involved in the business.Employees will be happier as a result and work harder for their manager. They are more likely to show intrapreneurship. Appropriate when employees are knowledgeable and when manager wants to encourage team building. Employees do find decisions take longer to make with this method. Not to be used in in rush.

71
Q

Evaluate Laissez Faire leadership

A

Only appropriate when manager has highly trustworthy employees. Some employees may find it difficult to work with little instruction. Work may not be done on time or mistakes may be made. Is effective in businesses relying on employee creativity.

72
Q

Explain improved efficiency in terms of the importance of effective leadership

A

Clear instructions to employees
Employees understand tasks
Do exactly what is expected of them and no time is wasted with mistakes

73
Q

Explain improved coordination in terms of the importance of effective leadership

A

Inspires employees to share his vision for the future.
Employees believe in vision - on the same page
Work as one to succeed

74
Q

Explain employee retention in terms of the importance of effective leadership

A

Explain employee retention in terms of the importance of effective leadership

75
Q

Explain Change in terms of the importance of effective leadership

A

Leader should help a business change for the better
acts as role model for employees- put in effort to make change happen
Encourages employees to accept change too

76
Q

Explain what is meant by motivating

A

Involves manager Energising employees
Providing them with appealing incentives to cooperate and work hard for business
ex: Microsoft motivate employees offering bonuses based on performance, Better their work the bigger the bonus

77
Q

Explain a theory X manager

A

Believe employees are lazy, have no ambition and dislike work.
Believe they only work for money
Use a hard approach - Keeps close eye on employees
May use threat or punishment
McGregor believes employees hate being treated this way and it demotivates them so they do as little work possible

78
Q

Explain a theory Y manager

A

Believes employees enjoy working, are ambitious and want more responsibility
Motivate employees- offer promotions, give praise and delegate
Results in happy, co-operative, hard-working employees

79
Q

What are the five levels of Maslow’s hierarchy of needs

A

physiological needs, safety needs, social needs, esteem needs, self-actualisation needs.

80
Q

Explain Physiological needs,

A

Most essential human needs
needed for survival- water, food, air
ex: manager can have a staff canteen so employees do not get hungry or thirsty on the job

81
Q

Explain safety needs

A

Need to feel safe and secure. Includes financial security, safety from accidents
ex: Can offer employee a long-term contract for job security.

82
Q

Explain social needs

A

Need for friendship, belonging, acceptance and love
ex: Put employees working together in teams
Hold staff parties to get to know one another outside of work

83
Q

Explain esteem needs

A

Need to feel good about yourself.
Gain the respect of others - people need to feel valued
ex: Manger can praise workers and recognise hard work with awards and promotions

84
Q

Expalin self-actualisation needs.

A

Need for personal growth and fulfillment.
Achieve all you are capable of- best you can be
ex: Manger can offer employee more challenging work
Can offer shares in business so they become part owner

85
Q

Evaluate Maslow’s Hierarchy of needs

A

Provides good insight into what influences employees to work hard.
It tells managers what level employees are at and informs them of suitable incentives to motivate them
Shows money is not only thing that motivates

H2 Management of Business (4 decks)

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