People In Business

Question 1

What are the main reasons why people work ?

Answer 1

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.

Question 2

Define motivation

Answer 2

The feeling that makes employees want to work hard and effectively in a business

Question 3

What is Maslow hierarchy of needs?

Answer 3

A pyramid showing the different types of needs and how some are more important than others

Question 4

What are the physiological needs

Answer 4

Food, rest , shelter

Question 5

What are the safe / security needs

Answer 5

Protection against danger & poverty. Having fair treatment ( full filed by having job security)

Question 6

What are social needs ?

Answer 6

Friendship, belonging in a group ( full filled by having job security)

Question 7

What are esteem needs ?

Answer 7

Having status and recognition ( full filled by being promoted and being given more responsibility)

Question 8

What are self- actualisation needs?

Answer 8

Achieving your full potential, feeling that you have done a good job.
( full filled by being promoted & being given more responsibility

Question 9

Herzbergs theory

Answer 9

Humans have two sets of needs

1) . Basic animal needs called hygiene
2) . To be able to grow physiologically called motivator needs

Question 10

What are the motivator factors?

Answer 10

• achievement
• recognition
• personal growth
• Advancement/ promotion
• work itself

Question 11

What are the hygiene factors

Answer 11

• status
• security
• work conditions
• relationships with boss and subordinates
• Salary

Question 12

What are the 3 factors that motivate employee’s?

Answer 12

1) . Financial Rewards.
2) . Non - Financial rewards.
3) . Job satisfaction.

Question 13

Financial Rewards include :

Answer 13

• 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

Question 14

Non- financial Rewards:

Answer 14

• company car
• discounts of products
• healthcare
• children school fees paid for
• free trip abroad

Question 15

Define Organisation(al) structure

Answer 15

The levels of management and division of responsibilities within a company .

Shows the chain of command usually in the form of an organizational chart.

Question 16

Define organizational chart

Answer 16

Shows a clear structure of a business and make it easy to see which part of the company does what .

Question 17

What are the advantages of an Organizational chart ?

Answer 17

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.

Question 18

Name the two types of organizational structure of a business:

Answer 18

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.

Question 19

Define chain of command

Answer 19

The structure in a business that allows instructions to be passed down from a person to another below them in the command.

Question 20

Define surbodinate

Answer 20

Someone who is lower in rank under the authority of a superior ( manager)

Question 21

Define span of control.

Answer 21

How many subordinates work directly under a manager.

Question 22

Define authority.

Answer 22

Someone that has recognized power to make decisions and to delegate tasks.

Question 23

Define delegation .

Answer 23

The process of giving authority to a surbodinate to perform a task ( instructions )

Question 24

What are the advantages and disadvantages of a wide span of control .

Answer 24

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.

Question 25

Define line managers.

Answer 25

They have direct responsibility over people below them in the organizational chart.

Question 26

Define staff managers

Answer 26

Which are specialist in certain areas to provide support and information to line managers

Question 27

What are the function of managers?

Answer 27

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.

Question 28

Why is Delegation important?

Answer 28

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

Question 29

What the are three different types of leadership styles?

Answer 29

Autocratic leader Democratic leader Laisser-faire leader

Question 30

Define Autocratic leadership

Answer 30

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

Question 31

Define democratic leadership

Answer 31

Where the manager allows the surbodinates to be involved in the decision making process.

Question 32

Define Laisser-faire leadership.

Answer 32

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

Question 33

Define trade union.

Answer 33

A group of workers that join together to protect their interest.

Question 34

What are the benefits of a trade union?

Answer 34

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)

Question 35

Define recruitment

Answer 35

The process from identifying that a business need to employ someone, to the point where applications arrive at the business.

Question 36

Describe the recruitment process for external recruitment.

Answer 36

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.

Question 37

What are the two types of recruitment.

Answer 37

1) . External recruitment. | 2) . Internal recruitment.

Question 38

Define external recruitment

Answer 38

Job is filled by someone who is not an existing employee

Question 39

Define internal recruitment

Answer 39

Job is filled by an existing employee of the company.

Question 40

What are the benefits of internal recruitment

Answer 40

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.

Question 41

Disadvantages of internal recruitment

Answer 41

It doesn’t bring in new ideas & experience.

Question 42

What are the two types of employment.

Answer 42

1) . Part-time employment. | 2) . Full- time employment.

Question 43

Define part- time employment.

Answer 43

A form of employment that carries fewer hours per week than a full time job.

Question 44

What are the advantages of part time employment?

Answer 44

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.

Question 45

What are the disadvantages of part time employment?

Answer 45

1) . May cause under staffing at times . | 2) . May cause difficulty in scheduling meetings , coordinating projects.

Question 46

What are the advantages of full time employment?

Answer 46

1) . Steady income . | 2) . Job advancement is easier.

Question 47

What are the disadvantages of full time employment?

Answer 47

1) . Job hunting becomes difficult. | 2) . Employer needs to pay salary even during quiet or reduced corporate income.

Question 48

Why is training important for a business?

Answer 48

1) . Improves efficiency of the workers. | 2) . Makes the employees more valuable to the company because they become more skilled.

Question 49

Define hierarchy

Answer 49

Simply refers to the way the power in an Organisation is arranged .

Question 50

Define wide span of control .

Answer 50

Means that the manager is responsible for many workers.

Question 51

Define narrow span of control .

Answer 51

Means manager is responsible for a few workers.

Question 52

What are the advantages and disadvantages of a narrow span of control.

Answer 52

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.

Question 53

Which is better a wide or narrow span of control?

Answer 53

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?

Question 54

Define centralization .

Answer 54

Refers to a structure where most of the decision making takes place at higher levels of management. There is little delegation.

Question 55

What are the benefits of centralization.

Answer 55

Decisions are taken on the basis of entire company. | Able to maximize economies of scale as single order more likely.

Question 56

What are the disadvantages of centralization?

Answer 56

Slower decision making as need time to receive all information. Slower to respond to local issues so opportunities might be lost.

Question 57

Define decentralization.

Answer 57

Refers to a structure where a large amount of the decision making is delegated to lower levels of management.

Question 58

What are the benefits of decentralization.

Answer 58

Able to react better and quicker to local issues affecting business. Improves motivation of workers as they feel involved in decision making.

Question 59

What are the disadvantages of decentralization.

Answer 59

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.

Question 60

Explain reasons why organization chart may change as business grows.

Answer 60

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 .