people in business

Question 1

reasons why people work

Answer 1

1. Have a better standard of living: by earning incomes they can satisfy their needs and wants
   2.Be secure: having a job means they can always maintain or grow that standard of living
   3.Gain experience and status: work allows people to get better at the job they do and earn a reputable status in society
   4.Have job satisfaction: people also work for the satisfaction of having a job

Question 2

benefits of a well -motivated workforce

Answer 2

1. high productivity
2. high output per worker
3. willingness
4. two-way communications with management
5. low labour turnover
6. lower rate of absenteeism
7. lower rate of strikes

Question 3

the three motivation theories

Answer 3

1.F. W. Taylor
2.Maslow’s Hierarchy
3.Herzberg’s Two-Factor Theory

Question 4

explain .F. W. Taylor theory

Answer 4

Taylor based his ideas on the assumption that workers were motivated by personal gains, mainly money and that increasing pay would increase productivity (amount of output produced). Therefore he proposed the piece-rate system, whereby workers get paid for the number of output they produce

Question 5

explain Maslow’s Hierarchy theory

Answer 5

ierarchy of needs shows that employees are motivated by each level of the hierarchy going from bottom to top. Mangers can identify which level their workers are on and then take the necessary action to advance them onto the next level.
One limitation of this theory is that it doesn’t apply to every worker. For some employees, for example, social needs aren’t important but they would be motivated by recognition and appreciation for their work from seniors.

Question 6

hierachy of needs

Answer 6

lastly - physicological needs ; wages high enough to provide weekly bills ,food , rest , recreation, shelter
fourthly- safety / security needs ; job security also safety against poverty and danger & protection on fair treatment .
thirdly - work colleagues that supports at work , friendship and sence of belonging in the team
secondly - esteem needs ; being given recognition for job welldone , having high status , independence .
firstly- self actualisation ; being promoted and given more responsibility.

Question 7

what is Herzberg’s Two-Factor Theory

Answer 7

1. first factor :hygiene factors’:
   status
   securitwork conditions
   company policies and administration
   relationship with superiors
   relationship with subordinates
   salary
2. second factor -psychologically, called the ‘motivators’:

achievement
recognition
personal growth/development
promotion
work itself

Question 8

examples of financial motivators

Answer 8

1. wages
2. time rate
3. piece rate
4. salary
5. commission
6. bonus
7. performance -related pay
8. profit sharing
9. share ownership

Question 9

what is time rate

Answer 9

Time-Rate: pay based on the number of hours worked. Although output may increase, it doesn’t mean that workers will work sincerely use the time to produce more- they may simply waste time on very few output since their pay is based only on how long they work.

Question 10

define piece rate

Answer 10

Piece-Rate: pay based on the no. of output produced. Same as time-rate, this doesn’t ensure that quality output is produced.

Question 11

what is commission

Answer 11

Commission: paid to salesperson, based on a percentage of sales they’ve made. The higher the sales, the more the pay.

Question 12

what is bonus

Answer 12

Bonus: additional amount paid to workers for good work

Question 13

define Performance-related pay

Answer 13

Performance-related pay: paid based on performance

Question 14

what is profit sharing

Answer 14

Profit-sharing: a scheme whereby a proportion of the company’s profits is distributed to workers. Workers will be motivated to work better so that a higher profit is made.

Question 15

define share ownership

Answer 15

Share ownership: shares in the firm are given to employees so that they can become part owners of the company. This will increase employees’ loyalty to the company, as they feel a sense of belonging.

Question 16

list non financial motivators

Answer 16

Non-Financial Motivators

Fringe benefits are non-financial rewards given to employees
Company vehicle/car
Free healthcare
Children’s education fees paid for
Free accommodation
Free holidays/trips
Discounts on the firm’s products

Question 17

what is job enlargement

Answer 17

Job Enlargement: where extra tasks of similar level of work are added to a worker’s job description.

Question 18

what is job enrichment

Answer 18

Job Enrichment: involves adding tasks that require more skill and responsibility to a job.

Question 19

what is organizational structure

Answer 19

Organizational structure refers to the levels of management and division of responsibilities within a business

Question 20

adavantages of organizational structure

Answer 20

1. All employees are aware of which communication channel is used to reach them with messages
2. Everyone knows their position in the business. They know who they are accountable to and who they are accountable for
3. It shows the links and relationship between the different departments
4. Gives everyone a sense of belonging as they appear on the organizational chart

Question 21

the roles of a manager

remember the acronym

Answer 21

1. planning
2. organising
3. coordinating
4. commanding
5. controling

POC3

Question 22

what the manger plan and why

Answer 22

Planning: setting aims and targets for the organisations/department to achieve. It will give the department and it’s employees a clear sense of purpose and direction.

Question 23

how does manager organise

Answer 23

Organizing: managers should then organize the resources. This will include allocating responsibilities to employees, possibly delegating.

Question 24

how does manger coordinate

Answer 24

the manger brings worker together to achieve organisation aims .
This will involve effective communication between departments and managers and decision making.

Question 25

what is commanding

Answer 25

Commanding: managers need to guide, lead and supervise their employees in the tasks they do and make sure they are keeping to their deadlines and achieving targets.

Question 26

what is controlling

Answer 26

Controlling: managers must try to assess and evaluate the performance of each of their employees.

Question 27

what is delegation

Answer 27

Delegation is giving a subordinate the authority to perform some tasks.

Question 28

advantages of delegation to managers

Answer 28

1. managers cannot do all the task themselves 2. managers can easily measure the efficiency and effectiveness of their subordinates’ work

Question 29

advantages of delegation to subordinates

Answer 29

1. it can be used as a method of training and opportunities for promotion if they do a good job . 2. the work becomes more interesting and rewarding- increased job satisfaction 3. employees feel more important and feel trusted– increasing loyalty to firm

Question 30

reasons for a good manager

Answer 30

1. to motivate employees 2. to increase profitability of the business 3. give guidance to employees 4. inspire employees 5. mange resources effectively

Question 31

what is a trade union

Answer 31

a trade union is a group that employeees join that protect the interest of the employees and are protected

Question 32

recruitment process

Answer 32

1. job vacancy 2. job analysis 3. job description 4. job specification 5. job advertisement 6. job application 7. interview and selection 8. vacancy filled

Question 33

adavantages of internal recruitment

Answer 33

1. quicker and cheaper 2. already known to the business 3. the person knows hoe the organisations work 4. motivating for employees

Question 34

disadvantages

Answer 34

1. no new ideas or experience into the business 2. they may be conflicts between empoyees 3. quality of internal candidates may be low

Question 35

adavantages of employments

Answer 35

more flexible hours of work easier to ask employees just to work at busy times easier to extend business opening/operating hours by working evenings or at weekends works lesser hours so employee is willing to accept lower pay less expensive than employing and paying full-time workers

Question 36

disadvantages of partime workers

Answer 36

less likely to be trained because the workers see the job as temporary takes longer to recruit two part-time workers than one full-time worker can be less committed to the business/ more likely to leave and go get another job less likely to be promoted because they will not have gained the skills and experience as full-time employees more difficult to communicate with part-time workers when they are not in work- all work at different times.

Question 37

what is induction training

Answer 37

Induction training: an introduction given to a new employee, explaining the firm’s activities, customs and procedures and introducing them to their fellow workers.

Question 38

advantages of induction training

Answer 38

Advantages: Helps new employees to settle into their job quickly May be a legal requirement to give health and safety training before the start of work Less likely to make mistakes

Question 39

disadvantages of induction training

Answer 39

Time-consuming Wages still have to be paid during training, even though they aren’t working Delays the state of the employee starting the job