People in Buisness (Long answer)

Question 1

What is Motivation

Answer 1

the feeling that makes employees want to work hard and effectively in a business
Well-motivated workers with high productivity increased output and higher profits
Unhappy workers do not work effectively, low output, no/ lower profits

Question 2

What are the main reason people want to work

Answer 2

Money: to pay for the basic needs for life and some wants
Security: to know that you are safe (financially)
Affiliation (Social needs): to feel part of a group, meet people, make friends
Self-importance (esteem): to feel that you are important and that the job you do is important
Job Satisfaction: to feel pleasure that you have done a good job

Question 3

Explain F.W Taylor Theory

Answer 3

All individuals are motivated by personal gain”
Also known as “theory of an economic man”
Had a mechanical approach rather than human.
This means that if the workers are paid more, they will work more effectively
By breaking down worker’s jobs into simple tasks, you could calculate how much output they could do in a day
Taylor’s idea was that if the workers produced more, they would receive a bonus
But the problem with this approach is that Taylor believed everyone is ONLY motivated by money, which doesn’t, always stand true

Question 4

Explain Abraham Maslow Theory

Answer 4

Physiological Needs – food, rest, shelter (fulfilled by receiving wages)
Safe/security Needs – protection against danger & poverty. Having fair treatment (fulfilled by having job security)
Social Needs – friendship, belonging in a group (fulfilled by having colleagues at work)
Esteem Needs – having status and recognition (fulfilled by being recognised for good work)
Self-actualisation – achieving your full potential, feeling that you have done a good job (fulfilled by being promoted & being given more responsibility)
Maslow’s theory also suggests that each level in the hierarchy (starting from Physiological needs) needs to be achieved before moving on to the next

Question 5

Explain Fedrick Hzerbeg’s theory

Answer 5

Also known as “the 2-factor theory”
Humans have two sets of needs:
Basic human needs (called ‘Hygiene’)
To be able to grow physiologically (called ‘Motivator’ needs)

Question 6

Define Wages

Answer 6

Wage is a payment given weekly
Workers are paid quickly, so don’t have to wait too long to receive money
Given overtime for extra hours worked
They must be calculated every week, which is expensive
Wage clerks need to be appointed

Question 7

Define Time Rate

Answer 7

Paid according to the number of hours worked
Easy to calculate
Good and bad workers are paid the same (demotivating)
Supervisors may need to be appointed to keep a check on workers
Clocking-in system may be required

Question 8

Define Piece Rate

Answer 8

Workers are paid depending on the quantity of products made
Given the above basic pay
Encourages workers to work faster
May only focus on quantity and ignore quality
Workers focusing on quality may earn less (demotivating)

Question 9

Define Salaries

Answer 9

Paid monthly
No overtime
Salary = annual income/12
Payment needs to be calculated only once a month

Question 10

Define Commission

Answer 10

Given to sales staff
Higher sales, higher money
Encourages people to sell more
If it too persuasive may have negative effects on customers

Question 11

Define Profit Sharing

Answer 11

It involves giving employees a share of profit above basic pay
Increases motivation
Other profits may be given to shareholders

Question 12

Define Bonus

Answer 12

A lump sum amount of money is given to workers who have done a good job
Paid yearly
Performance related pay
Employee pay is related to the effectiveness of the employee
Mostly used in the service sector, when output can’t be easily measured
Often used as a method of appraisal
Appraisal is when an employee’s immediate supervisor observes their work and discusses their training needs.

Question 13

Define Share Ownership

Answer 13

Shares of a company are given out to employees
Encourages them to work harder
Share price and value may increase
Improves loyalty as there’s a greater sense of belonging

Question 14

What are non finanical rewards (fringe benefits)

Answer 14

Company Car
Discounts of products
Health Care
Children’s schools paid for
The house is paid for
Free trips abroad (holidays)

Question 15

What is Job Satisifcation

Answer 15

Enjoyment derived from feeling that you have done a good job
Pay
Promotion
Status
Training
If these things are kept in mind, employees will be well-motivated

Question 16

What is Job Rotation

Answer 16

Working, swapping around and doing a specific job for a limited time period
Increases variety of work
Easier for managers to cover up if 1 employee is absent
It makes the job more interesting

Question 17

What is Job Enlargement

Answer 17

Where extra tasks of a similar level of work are added to a person’s job description
Extra tasks shouldn’t add extra work
Increases variety
Higher job satisfaction

Question 18

What is Job Enrichment

Answer 18

It involves adding tasks that require more skills
Higher responsibility
Higher job satisfaction
Higher productivity

Question 19

Define Organisational Strucuture

Answer 19

the levels of management and division of responsibilities within a company

Question 20

Benefits of Organisational Structure Chart

Answer 20

The chart shows how everybody is linked in the organization
Gives a sense of belonging
Employees know their position
It shows how departments are linked
All employees are aware of which communication channel they will receive messages

Question 21

Define Chain of Command

Answer 21

The structure in an organization which allows instructions to be passed down from senior management levels to lower levels of management

Question 22

Define Span of Control

Answer 22

The no of employees working directly under a manager

Question 23

What are the advantages of having a wide Structure

Answer 23

Communication is faster and more accurate
Top managers are more in touch with subordinates because there are fewer levels
The wider span of control means employees feel trusted and make more decisions by themselves
Higher job satisfaction

Question 24

What are the disadvantages of having a wide Strucuture

Answer 24

Difficult to control
Inefficient supervisors
Communication problems
Difficult to motivate workers
Sometimes, there may be a conflict between departments (i.e. marketing wants to buy something, but finance does not think it is necessary)

Question 25

What are the functions of Managers

Answer 25

Planning – setting aims or targets
Organising – delegating tasks. organising people and resources effectively
Co-ordinating – making sure departments work well with each other and have good communication
Commanding – making sure the workers are keeping to targets and deadlines. By guiding and delegating tasks
Controlling – measuring and evaluating work of employees and verify they are on target

Question 26

Define Delegation

Answer 26

Delegation involves giving a subordinate the authority to perform particular task.

Question 27

Why is Delegation important

Answer 27

Managers cannot do every job by themselves
Managers can then measure the success of the employees
Work becomes more interesting for subordinate, increases their motivation
Makes employees feel trusted and important
Gives workers greater career opportunities and chances of promotion

Question 28

Define Autorcratic leader

Answer 28

where the manager expects to be in charge of the business and expects to have their orders followed with no questions asked

Question 29

Define Democratic Leader

Answer 29

where the manager allows the subordinates to be involved in the decision-making process

Question 30

Define Laissez Faire

Answer 30

Where the manager makes broad/general objectives for the employees and leaves them to make their own decisions.

Question 31

Define Trade Unions

Answer 31

a group of workers that join together to protect their interests

Question 32

Benefits of Trade Union

Answer 32

Improved conditions of employment (such as wages, holidays, hours of work)
Improved work environment (health & safety, heating, noise)
Advice/support if member thinks they have been unfairly fired, mistreated, etc

Question 33

Define Recruitment

Answer 33

the process from identifying that a business needs to employ someone, to the point where applications have arrived at the business

Question 34

Define Job Analysis

Answer 34

A job analysis is done to identify the tasks and responsibilities to be carried out by the new employee

Question 35

Define Internal Recruitment

Answer 35

• when the vacancy is filled by someone who is an existing employee of the business

Question 36

Advantages of Internal Recruitment

Answer 36

It is cheaper, motivates other employees, potential of the employee is already known.
The employee is aware of the working conditions and other workers, lesser time taken for induction training
But no new ideas come into the business and there may be jealousy and rivalry amongst employees

Question 37

Define External Recruitment

Answer 37

when the vacancy is filled by someone who isn’t an existing employee and will be new to the business

Question 38

Advantages of External Recruitment

Answer 38

New ideas come into the business. There’s wider choice of workers
But it is expensive and time-taking and may demotivate existing employees
Ads can be place in:
Local newspapers- usually for unskilled and semi-skilled workers.
National newspaper- usually for senior positions which requires high skills.
Specialist magazines- used for particular technical people.
Government job centers- usually for unskilled and semi-skilled workers.
Recruitment agencies- they keep details about qualified people and are approached by companies

Question 39

Advantages of Part Time Workers

Answer 39

Workers working for less than 35 hours a week

Advantages:
Work hours are flexible.
Business can extend the opening/closing hours
Employees can just work at busy times
Cheaper for the employer than employing a full-time worker
May agree for a low salary as good work-life balance

Question 40

Disadvantages of Part Time Workers

Answer 40

Employees are less likely to be trained because they might see it as temporary and don’t want a promotion
Takes longer to recruit many part-time workers than a couple full-time workers
Communication problems may arise
Might be less committed to the company

Question 41

Advantages of Full Time Workers

Answer 41

Workers working for more than 35 hours a week

Advantages:
Higher training and chances of promotion
Lesser time taken in recruitment
Highly committed to the business
Lesser communication problems

Question 42

Disadvantages of Full Time Workers

Answer 42

No flexible working hours
Expensive
May demand higher pay as poor work-life balance

Question 43

When is Training Required

Answer 43

New technology is employed
Less supervision is required
Need to increase efficiency
Need to increase chances of internal promotion
New skills needed
Need to lower accidents

Question 44

Define Induction Training

Answer 44

where the employee is given an introduction on the company’s procedures and customs, and is introduced to their co-workers

Question 45

Advantages of Induction Training

Answer 45

Employees settle into their job quickly
Workers make fewer mistakes
May be a legal requirement

Question 46

Disadvantages of Induction Training

Answer 46

Time consuming
Worker is being paid while not doing work
Delays the start of work for the employee

Question 47

Define On Job Training

Answer 47

where the employee does the job while being supervised by a more experienced worker, giving tips, suggestions and help

Question 48

Advantages of On job Training

Answer 48

Employee does not need to be sent away
So cheaper than off-the-job training
There is still production from worker while training

Question 49

Disadvantages of On Job Training

Answer 49

Trainer won’t be as productive because they are teaching employee
Trainer might have bad habits and pass on to employee
Not recognized training qualifications outside the business

Question 50

Define Off Job Training

Answer 50

where the employee is trained away from the workplace, normally by specialized trainers.

Question 51

Advantages of Off Job Training

Answer 51

Lots of skills are taught
trainings are sometimes off-work hours, worker will still work
Employees become versatile (can be moved around company and know what to do)

Question 52

Disadvantages of Off Job Training

Answer 52

Expensive to send employees off to expert trainings
Workers are being paid but not doing any work
Professional training gives employees additional qualifications, makes it easier for employee to find another job

Question 53

Define Dismissal

Answer 53

when the worker is told to leave the job due to poor work or poor behavior (i.e. if employee is always late for work after being given warnings, when employee is caught stealing, etc)It is more commonly known as being ‘fired’

Question 54

Define Redundancy

Answer 54

when a business no longer needs an employee. Even though the employee did nothing wrong. Usually happens during period of falling sales or due to an economic recession (when no one is buying anything)

Question 55

Effective communication involves

Answer 55

The transmitter/sender sending a message to pass on information
A medium of communication – the method for sending message (i.e. e-mail, phone, etc)
The message being sent to the receiver
The receiver confirming that the message has been received and responds to it (feedback)

Question 56

Advantages of Verbal Method

Answer 56

sender speaks to the receiver (i.e. meetings, telephone, video conference)
Advantages
Information given out quickly & Efficient way to communicate with many people
Opportunity for immediate feedback
Message is reinforced by the speaker’s body language

Question 57

Disadvantages of Verbal Methods

Answer 57

If talking to many people, it’s hard to tell whether everyone got the message
Not good for accurate messages and if a permanent record of the message is needed

Question 58

Advantages of Written Methods

Answer 58

sender creates e-mails, memos or letters, including the use of Information Technology

Advantages
Message can be referred to in the future “hard evidence”
Easy to explain complicated messages
Can be copied and re-sent to many people

Question 59

Disadvantages of Written Method

Answer 59

Might lead to too many e-mails and ‘information overload’
Two-way communication is difficult
Hard to check if message has been received

Question 60

What are the communication Barriers (1)

Answer 60

Problems with the sender: when language is too difficult, speaks too quickly/not clearly, communicates wrong message

Overcome by: using understandable language, making sure message is a clear as possible by asking questions to make sure message was understood

Question 61

What are the communication Barriers (2)

Answer 61

Problems with the medium: message may be lost/not seen by receiver, wrong medium used (i.e. important message on noticeboard), if message is being passed along – it might get distorted

Overcome by: sender asking for feedback/receiver always sending feedback that message is received, selecting the appropriate channel to send message

Question 62

What are the communication Barriers

Answer 62

Problems with the receiver: not listening/paying attention, receiver doesn’t trust the sender/doesn’t want to do it

Overcome by: emphasizing importance of message, ask for feedback to ensure it was understood, using direct communication