People

Question 1

Define chain of command

Answer 1

Order authority and power is passed down:

Top management –> every employee at every level.

Question 2

What do shopfloor workers do?

Answer 2

Carry out basic duties.

Question 3

What do team leaders do?

Answer 3

Help managers achieve targets set by directors.

Use employees and other resources in the best possible way.

Question 4

What do managers do?

Answer 4

Achieve the targets set by directors.

Use employees and other resources in the best possible way.

Question 5

What do directors do?

Answer 5

Set long term plans and targets.

Question 6

Define span of control

Answer 6

No. of people a manger organises and leads.

Question 7

Define hierarchy

Answer 7

How management levels are structured and how communication takes place between members of the business. Most important person is at the top.

Question 8

Define delegation

Answer 8

Sr. person asking a more Jr. person to complete a certain task/activity.

Question 9

Define specialisation

Answer 9

People in an organisation carry out a small part of business activities to become experts at that particular bit.

Question 10

Define function

Answer 10

Things a business does to meet customer needs.

E.g. marketing, finance, admission etc.

Question 11

Define line manager

Answer 11

Employee’s immediate superior/boss.

Question 12

Define delayering

Answer 12

Removal of 1 or more layers in the hierarchy.

Question 13

Define subordinate

Answer 13

Employees directly below a line manager.

Question 14

Define flat structure

Answer 14

An organisation with few layers in the hierarchy,

wider span of control and quick communication.

Question 15

What are the advantages of a flat structure?

Answer 15

1) Easier to communicate between levels.
2) Reduced overheads could increase efficiency.
3) Fewer layers in hierarchy means communication is easier.

Question 16

What are the disadvantages of a flat structure?

Answer 16

1) Managers may have less time for each subordinate as there’s a wide span of control and they must delegate effectively.
2) More delegation = More responsibility / stress.
3) Limited promotion opportunities.
4) May end up doing many jobs and not specialising.

Question 17

Define tall structure

Answer 17

An organisation with many layers in the hierarchy, smaller span of control and slow communication.

Question 18

What are the advantages of a tall structure?

Answer 18

1) More promotional opportunities increases motivation.
2) Subordinates report to a line manager who has authority over them.
3) More promotion and clear hierarchy.

Question 19

What are the disadvantages of a tall structure?

Answer 19

1) Many levels = Longer chain of command = May take time to communicate / have poor communication issues.
2) Important details can be lost when reporting up hierarchy levels and chain of command.
3) Less delegation can mean low morale and lack of commitment.
4) Longer chain of command takes longer to make and implement decisions.

Question 20

Why is delegation beneficial?

Answer 20

1) Provides more work for suboridantes:
they feel valued and motivated and work efficiently.

2) Increases motivation and managers can share their workload.
3) Workers gain xp. on jobs they wouldn’t normally do.
4) Reduces stress of line manager.

Question 21

Why could delegation be problematic?

Answer 21

1) Subordinates would have more work and potentially more stress and less pay.
2) Work might not be completed to high standard.
3) Workers might not want more work, could lead to low morale and more stress.

Question 22

Define centralisation

Answer 22

Authority is with Sr. management at the business centre.

Question 23

What are the advantages of centralisation?

Answer 23

1) Decisions are made by xp.d people with an overview of the business.
2) Ensures policies are consistent throughout the firm.
3) Ensures quick decisions can be made.

Question 24

What are the disadvantages of centralisation?

Answer 24

1) Reduces input of day to day experts into the firm’s decision making.
2) Risks discouraging branch managers who may feel mistrusted or powerless.

Question 25

Define decentralisation

Answer 25

Authority is delegated down the hierarchy, away from the centre.

Question 26

What are the advantages of decentralisation?

Answer 26

1) Can empower local managers and encourage them to be more motivated.
2) Reduces communication between head office and branches, giving Sr. managers time to consider long-term strategy.
3) Subordinates may have better knowledge of how local conditions affect their work, allowing them to make more well-judged choices. when doing delegated tasks.

Question 27

What are the disadvantages of decentralisation?

Answer 27

1) Consistency reduction may unsettle customers (they expect every franchise to lookt the same).
2) No-one can provide leadership in an emergency situation.
3) May be duplication of roles and not cost effective.

Question 28

What does induction training do?

Answer 28

Introduces the new employee to their workplace (usually on the 1st day of the new job).

It includes introducing them to their peers and explaining the company rules to them e.g. health and safety and being given a tour of the site. It could also include some initial training on how to do their new job.

It should help to make the new employee feel welcome and comfortable in their new working environment.

Question 29

Define on-the-job training

Answer 29

Being shown how to do the job and then practising it.

Question 30

What are the advantages of on-the-job training?

Answer 30

1) It’s cost effective for the employer because the employee continues to work whilst they’re learning new skills.
2) Workers feel comfortable because they know their colleagues and the environment—which could increase working quality.
3) Content of the course is designed specifically for the business, so the workers know exactly what to do.

Question 31

What are the disadvantages of on-the-job training?

Answer 31

1) Taught by a colleague so it might be a bad quality of training and potentially ineffective.
2) Workers being familiar with the workplace may hinder their concentration which might decrease their working quality.
3) Worker might pick up bad habits from their trainer which they then produce in their work.

Question 32

Define off-the-job training

Answer 32

Outside experts are paid to explain a job or a skill.

Question 33

What are the advantages of off-the-job training?

Answer 33

1) Higher quality - trained by well-qualified trainers which might make them work more efficiently.
2) Employee can meet people from other organisations which allows them to exchange ideas or they could be shown new equipment which may improve work.

Question 34

What are the disadvantages of off-the-job training?

Answer 34

1) More expensive.

2) May not be directly related to the actual job.

Question 35

What is the recruitment method?

Answer 35

1) Vacancy arises.
2) Job analysis is performed to identify job requirements.
3) Job description is written with the duties.
4) Person specification is written: describes skills, qualifications, xp. the ideal candidate requires.
5) Person specification + job description = Job advertisement.
6) Application forms / CVs are received by business.
7) Applications are short listed (select best).
8) References are requested.
9) Interviews / testing begins.
10) Business picks most suitable candidate.
11) Letter of appointment is sent out.

Question 36

What are the selection processes?

Answer 36

1) Skills tests - Check if they have required skills and is linked to job demands.

2) Interviews - Test communication skills and confidence.
See is CV is true.

3) CV - Summary of skills, qualifications, xp. interests, personal info.

Question 37

Define appraisal

Answer 37

Assessment of how effectively an employee is working.

Used so managers know how employees are working.

Question 38

How do the employer and the employee benefit?

Answer 38

1) Provide worker feedback - have targets been met?
2) Make suggestions for improving performance.
3) Increase motivation - shows interest in workers - increased productivity.
4) Identify training needs and potential for promotion.
5) Basis for pay rise (or not).

Question 39

Why might an appraisal not work?

Answer 39

1) Waste of time if employees aren’t interested.
2) Time consuming.
3) Problems arise from lack of understanding.
4) Manager could write -ve appraisal if they don’t get along.
5) Candidate might lie.

Question 40

Define motivation

Answer 40

Desire to complete a task and do a good job.

Question 41

What are the financial rewards?

Answer 41

1) Wage - Set amount of pay per hour.
2) Salary - Paid fixed amount per year (monthly payments).
3) Piece rate - Paid per unit of production (usually bonus).
4) Commission - Employee earns % of value of sales they’ve made.
5) Bonuses - Extra amount of pay on top of normal earnings based on achieving target amount of production.

Question 42

What are the non-financial rewards?

Answer 42

1) Training.
2) Greater responsibility (delegation).
3) Better working conditions.
4) Fringe benefits.

Question 43

Define democratic (listens to employee)

Answer 43

Encourages participation in decision making.

Involves teamwork and communication.

Strong coaching, listening and motivating skills results in increased loyalty.

Prepared to make final decision if employees can’t agree.

Question 44

Define autocratic (tells the employee)

Answer 44

Full control of decision making.

Employees have little to no input - can be demotivating.

Good in crisis situations.

Motivation through rewards.

Question 45

What are the benefits of a motivated workforce?

Answer 45

1) Increased productivity.
2) Reduced absenteeism.
3) Improved quality.
4) Good customer service.
5) Lower labour turnover - motivated staff want to stay.

Question 46

Why is retaining staff beneficial?

Answer 46

Cuts recruitment, selection and training costs.