People In Business Flashcards
What are the main reasons why people work ?
Money- to pay for the basic needs for life .
Security- to know that you are safe.
Affiliation( social needs ) - to feel part of a group, meet people , make friends.
Define motivation
The feeling that makes employees want to work hard and effectively in a business
What is Maslow hierarchy of needs?
A pyramid showing the different types of needs and how some are more important than others
What are the physiological needs
Food, rest , shelter
What are the safe / security needs
Protection against danger & poverty. Having fair treatment ( full filed by having job security)
What are social needs ?
Friendship, belonging in a group ( full filled by having job security)
What are esteem needs ?
Having status and recognition ( full filled by being promoted and being given more responsibility)
What are self- actualisation needs?
Achieving your full potential, feeling that you have done a good job.
( full filled by being promoted & being given more responsibility
Herzbergs theory
Humans have two sets of needs
1) . Basic animal needs called hygiene
2) . To be able to grow physiologically called motivator needs
What are the motivator factors?
- achievement
- recognition
- personal growth
- Advancement/ promotion
- work itself
What are the hygiene factors
- status
- security
- work conditions
- relationships with boss and subordinates
- Salary
What are the 3 factors that motivate employee’s?
1) . Financial Rewards.
2) . Non - Financial rewards.
3) . Job satisfaction.
Financial Rewards include :
- Wages( payment for work usually weekly)
- Time rate ( payment per hour , I.e 10/hour)
- Piece rate ( where workers are paid depending on the quantity of products made.)
- Has a * BONUS
Non- financial Rewards:
- company car
- discounts of products
- healthcare
- children school fees paid for
- free trip abroad
Define Organisation(al) structure
The levels of management and division of responsibilities within a company .
Shows the chain of command usually in the form of an organizational chart.
Define organizational chart
Shows a clear structure of a business and make it easy to see which part of the company does what .
What are the advantages of an Organizational chart ?
1) . It gives everyone a sense of belonging, motivates them to move up the chain of command.
2) . Each employee can also see their own position, who’s authority they are under and who they have authority over.
Name the two types of organizational structure of a business:
1). You can have a tall structure with a long chain of command.
OR
2). You can have a wide structure with a short chain of command.
Define chain of command
The structure in a business that allows instructions to be passed down from a person to another below them in the command.
Define surbodinate
Someone who is lower in rank under the authority of a superior ( manager)
Define span of control.
How many subordinates work directly under a manager.
Define authority.
Someone that has recognized power to make decisions and to delegate tasks.
Define delegation .
The process of giving authority to a surbodinate to perform a task ( instructions )
What are the advantages and disadvantages of a wide span of control .
ADVANTAGES:
1) . Communication is faster and more efficient.
2) . Faster decision making.
DISADVANTAGES:
1) . More difficult to know what every surbodinate is doing.
2) . More difficult to control large numbers of workers.
Define line managers.
They have direct responsibility over people below them in the organizational chart.
Define staff managers
Which are specialist in certain areas to provide support and information to line managers
What are the function of managers?
Planning - setting aims or targets.
Organizing - delegating tasks , organizing people and resources effectively.
Co- ordinating- making sure department 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.
Why is Delegation important?
Through delegation a manager is able to divide the work and allocate it to the surboedinates . This helps reducing he / she’s work load so so that he/she can work on important areas
What the are three different types of leadership styles?
Autocratic leader
Democratic leader
Laisser-faire leader
Define Autocratic leadership
Where the manager expects to be in charge of the business and expects to have their orders followed with no questions asked.
Define democratic leadership
Where the manager allows the surbodinates to be involved in the decision making process.
Define Laisser-faire leadership.
Where the manager makes broad/ general objectives for the employees and leaves them to make their own decisions.
Define trade union.
A group of workers that join together to protect their interest.
What are the benefits of a trade union?
1) . Advice/ support - if member thinks that they have been unfairly fired, mistreated e.t.c
2) . Improved work environment ( health & safety e.t.c)
Define recruitment
The process from identifying that a business need to employ someone, to the point where applications arrive at the business.
Describe the recruitment process for external recruitment.
1) . A job analysis is done to identify the tasks & responsibilities to be carried out by the new employee.
2) . Once the details of the job are gathered, s job description will be made outlining these duties.
3) . From the job description, a job specification is created which outlines the requirements, qualifications & expertise for the job.
4) . Then the job is advertised in the appropriate media ( I.e if it’s a Finance related job , it might be advertised in finance magazine).
5) . Candidates start sending their application forms and the company does a shortlist for interviews ( because they cannot interview all )
6) . The candidate is chosen after the interviews by the company.
What are the two types of recruitment.
1) . External recruitment.
2) . Internal recruitment.
Define external recruitment
Job is filled by someone who is not an existing employee
Define internal recruitment
Job is filled by an existing employee of the company.
What are the benefits of internal recruitment
It saves money for the business
The employee already has knowledge about the business and position and it motivates other workers to get a promotion.
Disadvantages of internal recruitment
It doesn’t bring in new ideas & experience.
What are the two types of employment.
1) . Part-time employment.
2) . Full- time employment.
Define part- time employment.
A form of employment that carries fewer hours per week than a full time job.
What are the advantages of part time employment?
1) . Works hours are flexible. Fits with employees that have kids to take care of .
2) . Cheaper for the employer than employing a full time worker.
What are the disadvantages of part time employment?
1) . May cause under staffing at times .
2) . May cause difficulty in scheduling meetings , coordinating projects.
What are the advantages of full time employment?
1) . Steady income .
2) . Job advancement is easier.
What are the disadvantages of full time employment?
1) . Job hunting becomes difficult.
2) . Employer needs to pay salary even during quiet or reduced corporate income.
Why is training important for a business?
1) . Improves efficiency of the workers.
2) . Makes the employees more valuable to the company because they become more skilled.
Define hierarchy
Simply refers to the way the power in an Organisation is arranged .
Define wide span of control .
Means that the manager is responsible for many workers.
Define narrow span of control .
Means manager is responsible for a few workers.
What are the advantages and disadvantages of a narrow span of control.
ADVANTAGES:
1) . Easier to control a small number of workers.
2) . More effective feedback.
DISADVANTAGES:
1) . Communication can suffer due to many levels for information to pass through.
2) . Employees can feel out of touch with decision makers.
Which is better a wide or narrow span of control?
There is no perfect answer. It depends on many factors including the following.
Size of organization- a small business with few workers might not need much of a hierarchy.
The skills of the employees- highly skilled employees might need less supervision than unskilled employees.
The type of work- simple tasks need less supervision so wider span possible.
The skill & style of manager - are they willing or able to delegate?
Define centralization .
Refers to a structure where most of the decision making takes place at higher levels of management. There is little delegation.
What are the benefits of centralization.
Decisions are taken on the basis of entire company.
Able to maximize economies of scale as single order more likely.
What are the disadvantages of centralization?
Slower decision making as need time to receive all information.
Slower to respond to local issues so opportunities might be lost.
Define decentralization.
Refers to a structure where a large amount of the decision making is delegated to lower levels of management.
What are the benefits of decentralization.
Able to react better and quicker to local issues affecting business.
Improves motivation of workers as they feel involved in decision making.
What are the disadvantages of decentralization.
Misunderstandings/ problems of control and coordination if senior managers are not aware of decisions taken elsewhere in business .
More expensive to set up as need due to need to duplicate functions in different locations.
Explain reasons why organization chart may change as business grows.
There is no best structure as it depends on the objectives of the business, what they produce , where they sell and the size of the organization.
It is important for larger businesses to choose the right structure , otherwise control and communication problems could lead to inefficiency & diseconomies of scale .
