People In Business

Question 1

What is motivation?

Answer 1

Motivation is the reason why employees want to work hard and work effectively for the business.

Question 2

What are the reasons why people work?

Answer 2

Money - to pay for necessities and some luxuries
Security - a sense of security, i.e. knowing that your job and pay are safe - you are not likely to lose your job.
Social needs (affiliation) - feeling part of a group or organisation, meeting people, making friends at work
Esteem needs (self-importance) -
feeling important, feeling that the job you do is important
Job satisfaction - enjoyment is derived from feeling that you have done a good job

Question 3

What are the benefits of a well-motivated workforce?

Answer 3

High productivity - high output per worker - in a business usually comes from a workforce that is motivated to work effectively and from this comes increased profits. Which helps to keep costs low and increase profits
Willingness to accept to accept change (e.g. new methods of working)
Two-way communication with management (e.g. suggestions for improving quality)
Low labour turnover - a loyal workforce - Which reduces the cost of recruiting workers who leave
Lowrates of strike action - Avoiding damage to customer relations

Question 4

Describe well-motivated vs unhappy workers

Answer 4

Well-motivated workers → High productivity → Increased output → Higher profits
Unhappy workers → DO not work very effectively → Low output → Lower/no profit

Question 5

Describe each tier in the Maslow’s hierarchy from the bottom to the top and how managers can provide them to employees

Answer 5

Physiological needs - food, rest, recreation, shelter : wages high enough to meet weekly bills
Safety/security needs - protection against danger, protection against poverty, fair treatment : job security
Social needs - friendship, a sense of belonging to a team : work colleagues who support you at work
Esteem needs - having status and recognition, achievement, independence : being given recognition for a job well done
Self-actualisation - succeeding to your full potential, feeling that you have done a good job not just for financial and personal reward : being promoted and given more responsibility

Question 6

Explain the idealogy behind Maslow’s hierarchy of needs

Answer 6

• Most business managers now recognise that if employees are going to be motivated to work effectively then the higher levels in the hierarchy must be available to them
• Maslow also suggested that each level in the hierarchy must be achieved before an employee can be motivated by the next level.
  For example, once social needs are met, this will no longer motivate the employee, but the opportunity to gain the respect of follow workers and to gain esteem could motivate employee to work effectively
  There are problems in that some levels do not appear to exist for certain individuals, while some rewards appear to fit into more than one level. (e.g. money allows basic needs to be purchased, but high pay can also be status symbol)
  Managers must identify the level of hierarchy that a particular job provides and then look for ways of allowing the employees to benefit from the next level up the hierarchy (e.g. e.g. providing full-time jobs to workers in agriculture to fulfill not only their physiological needs, but also security needs)

Question 7

What are the two main employee motivational theories?

Answer 7

Taylor’s Motivational Theory - Money is the only motivator (e.g. piece rate, hourly rate)
Herzberg’s Motivation-hygiene Theory - Some of the factors cause satisfaction and some of the factors cause dissatisfaction/

Question 8

Explain Tayloy’s Motivational Theory as well as the criticisms

Answer 8

It is created by Frederick W. Taylor -he started his working life as labourer in a factory in America in the 1880s, and rose to become chief engineer. He based his ideas on the assumption that all individuals are motivated by personal gain and therefore, if they are paid more, they will work more effectively. Taylor saw employees rather like machines - when they were working hard, their productivity would be high and therefore the labour costs would be low for each unit produced.

Taylor’s ideas resulted in a big productivity gains at the company where he worked and many other businesses adopted his ideas. However, there are several criticisms of Taylor’s ideas:
His ideas were too simplistic - Employees are motivated by many things and not just money.
You can pay an employee more money, but if they are unfulfiled by their work in some way, there will be no increase in their effectiveness at work and there will be no productivity gains.
A practical problem arises if you cannot easily measure an employee’s output.
Worker working not for money but for other interests.

Question 9

Explain Herzberg’s Motivation-hygiene Theory

Answer 9

According to Herzberg, humans have two sets of needs; one is for basic needs - ‘hygiene’ factors or needs, and the second one is for a human being to be able to grow psychologically - ‘motivational’ needs or ‘motivators’.
Motivators (motivates workers) (Maslow’s Hierarchy)
Achievement
Recognition
Personal growth/development
Workitsment/promotion
‘Hygiene’ (or ‘maintenance) factors
:
Status
Security
Work conditions
Company policies and administration
Relationship with supervisor
Relationship with subordinates
Salary
According to Herzberg, the ‘hygiene’ factors must be satisfied; if they are not, they can act as demotivators to the workers. However, they do not act as motivators, as once satisfied, the effects of them quickly wear off.

Question 10

What are the most frequently used methods of payment or financial reward?

Answer 10

Wage
Wage - Time rate
Wage - Piece rate
Salary
Bonus
- Commission
Profit sharing
Fringe benefits

Question 11

Describe wage as a financial reward

Answer 11

Wages is payment for work, usually paid weekly, sometimes in cash and sometimes directly into a bank account.
The workers get paid on a regular basis and does not have to wait long for some money (tends to be paid to manual workers e.g. those who work in a warehouse/factory)
- If the employee works longer than their normal hours, they can usually be paid overtime

Question 12

What are the drawbacks of wages as a financial reward?

Answer 12

As the wages are paid weekly, they have to be calculated every week, which takes time and money
Wages clerks are often employed to perform this task
When calculating the wages to be paid, they can be worked out in a number of different ways - time rate or piece rate

Question 13

Describe wage (time rate) as a financial reward

Answer 13

Time rate is payment by hour. For example, if an employee is paid $10 per hour, and they work for 40 hours, they will be paid $400.
- This makes it easy to calculate the worker’s wages and the worker knows exactly how much they will be paid for working a certain period of time

Question 14

What are the possible limitations of wages (time rate) as a financial reward?

Answer 14

• The hours worked are often recorded on a timesheet which must be filled in and used to calculate the wages by the Accounts department. This system takes time.
• Good and bad workers get paid the same amount of money
• Often supervisors are needed to make sure the workers keep working and producing a good quality product. This is expensive because more supervisors are needed by the business
• A clocking-in system is needed to determine the number of hours worked by the employees

Question 15

When is time rate often used?

Answer 15

Time rate is often used where it is difficult to measure the output of the worker, for example, a bus driver or hotel receptionist.

Question 16

Describe wages (piece rate) as a financial reward

Answer 16

Piece rate is where the workers are paid depending on the quantity of products made - the more they make, the more they get paid. A basic unit is usually paid, with additional money paid according to how many products have been produced.
Piece rates can only be used where it is possible to measure the performance of an individual or a team.
- The advantage with this system is that it encourages workers to work faster and produce more goods

Question 17

What are the possible limitations of wages (piece rate) as a financial reward?

Answer 17

Workers may concentrate on making a large number of products and ignore quality. This usually requires a quality control system and this is expensive
- Workers who are careful in their work will not earn as much as those who rush, which may not be seen as fair.
Friction between employees may be caused as some will earn more than others
If the machinery breaks down, the employees will earn less money. Because of this, workers are often paid a guaranteed minimum amount of money

Question 18

Describe salaries as a financial reward

Answer 18

Salaries are paid monthly, normally straight into a bank account. It is usual for office staff or management to be paid salaries.
• A salary is calculated as an amount of money per year for the job performed by the worker. It is divided into 12 monthly amounts. This means it is easy to calculate salary costs for the business.
The employer has the money in their bank account for longer than if they were paying their workers’ wages, as
salaries are paid only once a month
Do not have to pay for OT (overtime)
They payment has to be calculated only once a month instead of at least four times a month (e.g., like wages)

Question 19

What are the possible limitations of salaries as a financial reward?

Answer 19

Workers may prefer to be paid weekly
No payment for extra time worked - workers may be reluctant to work longer
Might decrease output as they get paid the same

Question 20

Describe bonuses as a financial reward

Answer 20

A bonus is an additional amount of payment above basic pay as a reward for good work. It can be paid at the end of the year or at intervals during the year.
Bonuses do not have to paid - a business can decide to pay a bonus just to an individual worker who has performed well or to all of its employees if the business has exceeded certain targets. Being paid a bonus can have a positive motivating effect. Workers often consider themselves to be ‘recognised” and ‘special’

Question 21

What are the possible limitations of bonuses as a financial reward?

Answer 21

Bonuses can become ‘expected” every year and if they are not paid, then employee disappointment can be
difficult to manage
- If only one or a small number of workers are paid a bonus, then bad feelings can be caused as other workers resent this.

Question 22

Describe commission as a financial reward

Answer 22

Commission is payment relating to the number of sales made. These additional payment are often paid to sales stuff.
The more sales they make, the more money they are paid - similar to piece rate, but applying only to sales staff. This encourages the sales staff to sell as many products as possible. This should be good for the business as sales may increase. Commission is paid in addition to the existing wage or salary.

Question 23

What are the possible limitations of commissions as a financial reward?

Answer 23

If the sale staff are very persuasive and encourage people to buy goods they don’t really want, then the business may see its sales increase only in the short term and then fall again as it gets a bad reputation.
- It can be very stressful for the sales staff because, if they have a bad month, their pay will fall.
- There might be too much competition between sales staff to ‘get the next customer’ who enters the shop.

Question 24

Descibe profit sharing as a financial reward

Answer 24

Profit sharing is a system whereby a proportion of a company’s profits is paid out to employees. This additional payment should motivate the workers to work hard as they all receive a share of the profits earned by the business. THe rest of the profits will be paid as dividends to the shareholders or retained by business.
Profit sharing is often used in the service sector where it is difficult to identify an individual employee’s contribution to the increased profits, but they will all benefit from more productive work.

Question 25

What are the possible limitations of profit sharing as a financial reward?

Answer 25

- If a business makes very low profits or even a loss, then no 'profit sharing' will be possible - leading to employee disappointment - The profit share is usually calculated on the basis of an additional percentage of a worker's existing wage or salary - so higher paid workers will receive a higher profit share. This could cause bad feeling among lower paid workers who consider that they have worked just as hard.

Question 26

What is a fringe benefit and give examples?

Answer 26

A non-financial reward, such as a Company vehicle (car) Discounts on the business' products Health care paid for - Children's education fees paid Free accommodation Share options (where company shares are given to employees) Generous expense accounts (for food and clothing) - Pension paid for by the business - Free trips abroad/holidays

Question 27

What are the non-financial reward methods?

Answer 27

Job rotation Job enrichment Autonomous work groups or teamworking Training - Opportunities for promotion

Question 28

Describe job rotation as a non-financial reward

Answer 28

Workers on a production line may carry out simple but different tasks. Job rotation involves the workers swapping round and doing each specific task for only a limited time (e.g. for one hour) and then changing around again. This increases the variety in the work itself and also makes it easier for the managers to move workers around the factory if people are ill and their jobs need covering. However, it does not make the tasks themselves more interesting.

Question 29

Describe job enrichment as a non-financial reward

Answer 29

Job enrichment involves looking at jobs and adding tasks that require more skill and/or responsibility. Additional training may be necessary to enable the employee to take on extra tasks. For example, employees may be given responsibility for a whole area of the work. If managers can design jobs so that they provide scope for fulfilling higher human needs, workers will often become more committed because they get more satisfaction from their jobs, again raising productivity.

Question 30

Describe autonomous work groups or teamworking as a non-financial reward

Answer 30

Team working involves a group of workers being given responsibility for a particular process, product or development. They can decide as a group how to complete the tasks or organise the jobs. The workers can become more involved in the decision making and take responsibility for this process. This gives a feeling of control over the jobs/tasks and the employees feel more committed, therefore increasing job satisfaction. Example of this is organising employee on a car production line where particular parts of the assembly line are given over to teams of workers and they decide how to organise themselves.

Question 31

Describe training as a non-financial reward

Answer 31

Improving a worker's level of skills can have beneficial effects on motivation levels. First, workers can feel a great sense of achievement if they successfully gain and apply new work-based skills. Second, they could now be given challenging and rewarding work to perform - and this is an important element of job enrichment. Workers can also feel as if they have been selected by management for training courses and this can give them a feeling that their good work has been recognised.

Question 32

Describe opportunities for promotion as a non-financial reward

Answer 32

Many businesses prefer to fill posts of responsibility (e.g. supervisors, team leaders, managers). This internal recruitment offer opportunities for advancement to existing workers. Not only does the business benefit from promoting workers who already 'know how it operates' but it also gains from better motivated workers. Employees offered promotion will feel recognised, have a higher status and will be given more challenging work to perform. All of these benefits are closely linked to the views of both Maslow and Herzberg.

Question 33

(definition) motivation

Answer 33

Motivation is the reason why employees want to work hard and work effectively for the business

Question 34

(definition) wage

Answer 34

A wage is payment for work, usually paid weekly

Question 35

(definition) time rate

Answer 35

Time rate is the amount paid to an employee for one hour of work

Question 36

(definition) piece rate

Answer 36

Piece rate is an amount paid for each unit of output

Question 37

(definition) salary

Answer 37

A salary is payment for work, usually paid monthly

Question 38

(definition) bonus

Answer 38

A bonus is an additional amount of payment above basic pay as a reward for good work

Question 39

(definition) commission

Answer 39

Commission is payment relating to the number of sales made

Question 40

(definition) profit sharing

Answer 40

Profit sharing is a system whereby a proportion of the company's profits is paid out to employees

Question 41

(definition) job satisfaction

Answer 41

Job satisfaction is the enjoyment derived from feeling that you have done a good job

Question 42

(definition) job rotation

Answer 42

Job rotation involves workers swapping around and doing specific task for only a limited time and then changing around again.

Question 43

(definition) job enrichment

Answer 43

Job enrichment involves looking at jobs and adding tasks that require more skill and/or responsibility

Question 44

(definition) teamworking

Answer 44

Team working involves using groups of workers and allocating specific tasks and responsibilities to them

Question 45

(definition) training

Answer 45

Training is the process of improving a worker's skills

Question 46

(definition) promotion

Answer 46

Promotion is the advancement of an employee in an organisation, for example, to a higher job/managerial level

Question 47

(definition) organisational structure

Answer 47

Organisational structure refers to the levels of management and division of responsibilities within an organisation. This structure is often presented in the form of an organisational chart with several levels of hierarchy.

Question 48

What are the features of an organisation chart?

Answer 48

- It is a hierarchy - meaning there are different levels in the organisation. Each level has a different degree of authority - It is organised into departments. - there's a chain of command as there are different levels of management. It allows instructions to be passed down from senior management to lower levels of management.

Question 49

What are the advantages of an organisation chart?

Answer 49

Every individual can see their own position in the organisation. They can identify who they are accountable to and who they have authority over. Employees can see who they should take orders from. - It shows the links and relationship between different departments within the organisations : Everyone is in a department and this gives them a sense of belonging

Question 50

Describe the span of control and organisational charts

Answer 50

There is an important link between the span of control and the chain of command. The longer the chain of command, the "taller' will be the organisational structure and the 'narrower' the span of control. When the span of control is short, the organisation will have 'wider' spans of control.

Question 51

(definition) delayering

Answer 51

When organisations make their structure 'wider' with shorter chain of command - in some cases, this has been done by removing a whole level of management.

Question 52

What are the advantages of short chains of command?

Answer 52

- Communication is quicker and more accurate. Each message has fewer levels to pass through before reaching the intended person. -Top managers are less remote from the lower level of the hierarchy. These top managers should be more in touch with people below them as there are fewer management levels to get to know. -Spans of control will be wider. This means each manager is responsible for more subordinates. Advantage of this includes it will encourage to managers to delegate more, and there will be less direct control of each worker and they will feel more trusted as they will be able to take more decision by themselves

Question 53

What is a disadvantage of short chains of command?

Answer 53

However, wider spans of control, with more people to be directly responsible for, could mean that the managers lose control of what their subordinates are doing. The subordinates could make many mistakes if they are poorly trained.

Question 54

Describe the directors in a business

Answer 54

Directors: There are a lot of different types of directors (e.g. operations director, financial director, purchasing director.). Directors are senior managers who lead a particular department or division of a business. They have the final responsibility for the work of everyone in the department.

Question 55

Describe the managers in a business

Answer 55

There may be two general types of managers - line managers and staff managers. Line managers have direct responsibility for people below them in the hierarchy of an organisation. Staff managers, however, are specialists who provide support, information and assistance to line managers.

Question 56

Describe the supervisors in a business

Answer 56

Supervisors are junior managers who have direct control over the employees below them in the organisational structure.

Question 57

Describe the employees in a business

Answer 57

Employees are people employed by another usually for wages or salary and in a position below the executive level.

Question 58

What are the functions of management?

Answer 58

Planning (future target) Organising (resources) Coordinating (labour) Commanding (labour) Controlling (factors of production)

Question 59

Describe planning (future target) as a function of management

Answer 59

Planning for the future of the organisation involves setting aims or targets, for example: 'We should plan to increase sales of our new product range by 50% in three years? These aims and targets will give the organisation a sense of direction of purpose. There will be a common feeling in the organisation of having something to work towards. It is a poor manager who does not plan for the future at all. A manager must also plan for the resources which will be needed, for example: increased advertising expenditure will be needed to increase sales of our product.'

Question 60

Describe organising (resources) as a function of management

Answer 60

A manager cannot do everything. Tasks must be delegated to others in the organisation. These people must have the resources to be able to do these tasks successfully. It is therefore the manager's responsibility to organise people and resources effectively. An organisational chart can help to show who has the authority to do different jobs. It also helps to make sure that specialisation occurs and that two people do not end up doing the same task. An effective manager will organise people and resources very carefully.

Question 61

Describe coordinating (labour) as a function of management

Answer 61

Coordinating means bringing together'. A manager may be very good at planning and organising, but may have failed to "bring people in the organisation together'. A good manager will make sure all departments in the organisation work together to achieve the plans originally set by the manager. This could be done by regular meeting between people in different departments. Alternatively, a project team could have been set up to develop and launch the new product. The team would be made up of people from different departments.

Question 62

Describe commanding (labour) as a function of management

Answer 62

Many people think that this is all managers do. In fact, the task of management is more concerned with guiding, leading. and supervising people than just telling them what to do. Managers have to make sure that all supervisors and workers are keeping to targets and deadlines. Instructions and guidance must be provided by managers and it is also their responsibility to make sure that the tasks are carried out by people below them in the organisation.

Question 63

Describe controlling (factors of production) as a function of management

Answer 63

Managers must try to measure and evaluate the work of all individuals and groups to make sure that they are on target. If it seems that certain groups are failing to do what is expected of them, then managers may have to take some corrective actions. There might be reasons for poor performance other than inefficient workers - it is the manager's jobs to find out why targets are not being met and then to correct the problem.

Question 64

If there is no clear and effective management in a business, a business lacks what?

Answer 64

Without clear and effective management, a business is going to lack: • A sense of control and direction Coordination between departments, leading to wastage of effort • Control of employees • Organisation of resources, leading to low output and sales - business will drift and eventually fail

Question 65

Delegation (definition)

Answer 65

Delegation means giving a subordinate the authority to perform particular tasks.

Question 66

Describe delegation

Answer 66

Delegation means giving a subordinate the authority to perform particular tasks. It is very important to remember that it is the authority to perform a task which is being delegated - not the final responsibility. If the job is done badly by the subordinate then it is the manager who has to accept the responsibility for this.

Question 67

Advantages of delegation for the manager

Answer 67

Advantages for the manager: - Managers cannot do every job themselves. By delegating, manager is able to concentrate his time on other important management functions. - Managers are less likely to make mistakes if some of the tasks are performed by their subordinate. Maneers can manage the success of the staff more easily. They can see how well they have done in performing the tasks delegated to the subordinate.

Question 68

Advantages of delegation for the subordinate

Answer 68

-The work becomes interesting and rewarding -The employee feels more important that trust is being put in them to perform a job well -Delegation helps to train workers and they can make progress in the organisation - giving them career opportunities -Learn more skills

Question 69

Why might a manager not delegate?

Answer 69

There are some managers who are reluctant to delegate as they afraid the subordinates might fail and the manager wants to control everything by themselves. Also, there is a risk that the subordinates might do a better job than the manager - making the manager feel very insecure.

Question 70

Why is it important to have good managers?

Answer 70

Why is it important to have good managers? A good manager should: • Motivate employees • Give guidance and advice to employees they manage Inspire employees they manage to achieve more than they thought possible Manage resources effectively and keep costs under control - Increase profitability of the business

Question 71

What are tasks of an effective manager?

Answer 71

Plan for the future -Organise and delegate Coordinate departments Command and guide others - Control and assess the work of departments

Question 72

What are qualities of an effective manager?

Answer 72

Intelligence Self-confidence -Determination Initiative Good communication skills • Enthusiasm

Question 73

Leadership (definition)

Answer 73

A good leader in a large business is someone who can inspire and get the best out of the workforce, getting them to work towards a common goal.

Question 74

What are the main leadership styles?

Answer 74

Autocratic leadership Democratic leadership Laissez-faire leadership

Question 75

Describe an autocratic leader

Answer 75

Autocratic leadership is where the manager expects to be in charge of the business and to have their orders followed. They keep themselves separate from the rest of the employees. They make virtually all the decisions and keep information to themselves. They tell employees only what they need to know. Communication in the business is mainly one way, that is, downward or top-down, and the workers have little or no opportunity to comment on anything.

Question 76

An advantage of an autocratic leader

Answer 76

Quick decision making (e.g. In a crisis)

Question 77

a disadvantage of an autocratic leader

Answer 77

No opportunity for employee input into key decisions, which can be demotivating

Question 78

Describe a democratic leader

Answer 78

Democratic leadership gets other employees involved in the decision-making process. Information about future plans is openly discussed before the final decision is made, often by the leader. Communication is both downward or top-down, and upward or bottom-up.

Question 79

An advantage of a democratic leader

Answer 79

Better decisions could result from consulting with employees and using their experience and ideas - as well as being a motivating factor

Question 80

A disadvantage of a democratic leader

Answer 80

Unpopular decisions, such as making workers redundant, could not effectively be made using this style of leadership

Question 81

Describe a laissez-faire leader

Answer 81

Laissez-faire is French for 'leave to do'. Laissez-faire leadership tends to make the broad objectives of the business known to employees, but then they are left to make their own decisions and organise their own work. Communication can be difficult in this type of organisation as clear direction is not given. The leader has only a very limited role to play.

Question 82

An advantage of a laissez-faire leader

Answer 82

Encourages employees to show creativity and responsibility

Question 83

Disadvantages of a laissez-faire leader

Answer 83

Unlikely to be appropriate in organisations where a consistent and clear decision-making structure is needed (e.g. providing customer service) • No supervisions - so workers might be demotivated

Question 84

Trade Union (definition)

Answer 84

A trade union is a group of employees who have joined together to ensure their interests are protected.

Question 85

Describe a Trade Union

Answer 85

A trade union is a group of employees who have joined together to ensure their interests are protected. Essentially, forming a trade union is a way of helping employees to achieve improvements in different aspects of their environment (e.g. improving their pay, being treated fairly, given proper training) - a trade union is a type of pressure group.

Question 86

What are the effects of employees being Union members?

Answer 86

When a person starts work, they may be asked by someone who represents a trade union if they want to join. If the worker decides to join the trade union, they will pay an annual subscription (a yearly fee).

Question 87

What are the benefits of being a union member?

Answer 87

- Strength in numbers when negotiating with employers - Improved conditions of employment (e.g. rates of pay, holidays) - Improved environment where people work - Improved benefits for members who are not working because they are sick/retired/redundant - Improved job satisfaction by encouraging training - Advice and/or financial support - Benefits that have been negotiated or provided for union members (e.g. discounts) • Trade unions often meet government officials to influence policies for the benefit of workers - More secure employment when there's a closed shop

Question 88

What are the disadvantages of being a union member?

Answer 88

- It costs money to be a member - Workers may be required to take industrial action even if they don't agree

Question 89

What are the advantages for employees when their employees are union members?

Answer 89

Advantages: - They can help improve communication between workers and management - Wage agreements will be easier to negotiate with a trade union than with many individual workers

Question 90

What are the disadvantages for employees when their employees are union members?

Answer 90

- Trade unions can organise strikes if they do not receive the pay levels and work conditions they demand - Wages are likely to be higher - adding to business costs - when many employees are trade union members

Question 91

(definition) organisational chart

Answer 91

Organisational chart refers to a diagram that outlines the internal management structure

Question 92

(definition) hierarchy

Answer 92

Hierarchy refers to the levels of management in any organisation, from the highest to the lowest

Question 93

(definition) level of hierarchy

Answer 93

A level of hierarchy refers to managers/supervisors/other employees who are given a similar level of responsibility in an organisation

Question 94

(definition) chain of command

Answer 94

Chain of command is the structure in an organisation which allows instructions to be passed down from senior management to lower levels of management

Question 95

(definition) span of command

Answer 95

The span of control is the number of subordinates working directly under a manager

Question 96

(definition) directors

Answer 96

Directors are senior managers who lead a particular department or division of a business

Question 97

(definition) line managers

Answer 97

Line managers have direct responsibility for people below them in the hierarchy of an organisation

Question 98

(definition) supervisors

Answer 98

Supervisors are junior managers who have direct control over the employees below them in the organisational structure

Question 99

(definition) staff managers

Answer 99

Staff managers are specialist who provide support, information and assistance to line managers

Question 100

(definition) autocratic leadership

Answer 100

Autocratic leadership is where the manager expects to be in charge of the business and to have their orders followed

Question 101

(definition) democratic leadership

Answer 101

Democratic leadership gets other employes involved in the decision- making process

Question 102

(definition) laissez-faire leadership

Answer 102

Laissez-faire leadership makes the broad objectives know to the employees, but then they are left to make their own decisions and organise their own work.

Question 103

(definition) closed shop

Answer 103

A closed shop is when all employees must be a member of the same trade union

Question 104

What are the different human resource departments?

Answer 104

Recruitment and selection Involves attracting and selecting the best candidates for vacancies that arise Wages and salaries These must attract and retain the right people and be sufficiently high to motivate employees Training programmes Involves assessing and fulfilling the training needs of employees. This should be linked to the future plans of the business Health and safety The business needs to make sure that it complies with all the laws on health and safety Redundancy (retrenchment) and dismissal This involves shedding employees elther because the business changes in some way or because thut be sue lo no a won of the lows ons redundancy, dismissal and disciplinary matters Industrial relations There must be effective communication between representatives of the management and of the workforce. This may be to resolve grievances and disputes but also to put forward ideas and suggestions for improvements

Question 105

When do businesses need to start the processes of recruitment and selection?

Answer 105

Businesses need to start the process of recruitment and selection when: An employee leaves their job and they need to be replaced - It is a new business starting up and needs employees It is a successful business and wants to expand by employing more people

Question 106

What is the process of recruitment and selection?

Answer 106

1.vacancy arises 2 job analysis 3. Job description 4. Job specification 5. Job advertised in appropriate media 6. Application forms and shortlisting 7. Interviews and selection 8. vacancy filled 7 interviews and selection

Question 107

Job analysis (definition)

Answer 107

A job analysis identifies and record the responsibilities and tasks relating to a job.

Question 108

Job description (definition)

Answer 108

A job description outlines the responsibilities and duties to be carried out by someone employed to do a specific job.

Question 109

What is the first stage of recruitment process? And what happens after that?

Answer 109

The first stage of recruitment process is to carry out job analysis to study the tasks and activities to be carried out by the new employee. Once the job has been analysed, a job description will be produced.

Question 110

What happens after a job has been analysed?

Answer 110

Once the job has been analysed, a job description will be produced.

Question 111

What are the functions of a job description?

Answer 111

A job description has several functions: - It is given to the applicants for the job so they know exactly what the job entails - It will allow a job specification to be drawn up, to see if the applicants 'match up to the job' - so right people will be employed - Once someone has been employed, it can show whether they're carrying out the job effectively

Question 112

What information do job descriptions contain?

Answer 112

Job descriptions often also contain information about: The conditions of the employment - salary, hours of work, pension scheme, staff welfare Training that will be offered Opportunities for promotion

Question 113

What are the usual job requirements/specifications?

Answer 113

-The level of educational qualifications - The amount of experience and type of experience - Special skills, knowledge or particular aptitude - Personal charactersics, such as type of personality

Question 114

Describe internal recruitment

Answer 114

The post could be filled from inside the organisation - internal recruitment. The vacancy may be advertised on a company noticeboard or in a company newspaper. This method of recruitment would be suitable for an employee who seeks promotion within the business and when a business is happy to recruit someone from its existing workforce.

Question 115

Advantages of internal recruitment

Answer 115

It is quicker and cheaper than external recruitment - may involve expensive advertising The person is already known to the business and their reliability, ability and potential are known -The person also knows how the organisation works, it's structure and what is expected from its employees. - it can be very motivating for employees to see their fellow workers being prompted

Question 116

Disadvantages of internal recruitment

Answer 116

No new ideas or experience come into the business There may be rivalry among existing employees and jealousy towards the worker who gains promotion The quality of internal candidates might be low

Question 117

External recruitment (definition)

Answer 117

External recruitment is when a vacancy is filled by someone who is not an existing employee and will be new to the business

Question 118

How can people advertise job vacancies (external recruitment)?

Answer 118

Local newspaper - Often used for advertising vacancies for jobs which don't require high skill levels (e.g. office, factory positions) National newspaper - Usually for senior positions where there may be few local people with the right experience, skills, and qualifications. With senior positions, which are highly paid, people will be willing to move Specialist magazines - Usually be used for specialist technical employee (e.g. scientists) Online recruitment sites - These offer the ability to create online job adverts for vacant positions in a business (e.g. Linkedin). THese can be searched by job seekers through their network • Recruitment agencies - These are specialists in recruiting employees. They will advertise usually by means of their website, and interview people. Agencies are also approached by companies who need to employ a particular type of skilled worker. Some businesses 'outsource' the recruitment process to agencies to reduce the need for the employment of their own recruitment team Centres run by government (Job Centres) - These are places where job vacancies can be advertised. Details of vacancies are given to interested people. The vacancies are usually for unskilled and semi-skilled jobs

Question 119

What questions should a business ask themselves before drawing up a job advertisement?

Answer 119

What should be included in the advert? Where should the advertisement be placed? How much will the advertising cost and is it within the budget of the Human Resources department?

Question 120

What are the requirements of a CV?

Answer 120

A CV should be well laid out and clear, and should usually contain the following details: Name, address, telephone number, email address, nationality, education and qualifications, work experience, positions of responsibility, interests, name and address of referees

Question 121

What should a letter of application outline?

Answer 121

Why the applicants want the job Why the application feels he/she would be suitable

Question 122

Methods of selection

Answer 122

The applicants who are shortlisted and invited for interview will have provided the names and addresses of referees. These are people who will be asked to provide a reference (give their opinion on the applicant's characters). if the applicant is a school leaver, it is normal to give the school as a referee. If the applicant is older, usually a former employer will be used,

Question 123

Main purpose of interviews

Answer 123

- The applicant's ability to do the job - Any personal qualities that are an advantage or disadvantage - The general character and personality of the applicant - will they fit in?

Question 124

Some tests in selection processes in businesses

Answer 124

Skill tests - Shows the ability of candidate to carry out certain tasks Aptitude tests - Shows the candidate's potential to gain additional skills Personality tests - Used if a particular type of person is required for the job Group situation tests - Give tasks to applicants to complete in group situations and the group is observed

Question 125

What are some factors that affect which work to employ?

Answer 125

Work experience - How important is it that the worker has direct experience of the job? Educational and other qualifications - Are these essential for filling the post (e.g. doctor)? • Age - is youth of 'experience of life' more important? However, businesses must be careful not to break any 'age discrimination laws' that may exist in their country Internal - How important is it that the applicant has a good understanding of how the business operates? External - How important is it that the new worker has experience and skills gained from outside the business?

Question 126

How to reject an unsuccessful applicant?

Answer 126

When the suitable applicant has been offered the job and has accepted it, the unsuccessful applicants should be informed that they have not got the job and thanked for applying.

Question 127

Part-time (definition)

Answer 127

Part-time employment is often considered to be between 1 and 30-35 hours a week

Question 128

Full-time (definition)

Answer 128

Full-time employees will usually work 35 hours or more a week

Question 129

Benefits to a business of employing part-time employees

Answer 129

More flexible in the hours of work Easier to ask employees just to work at busy times Easier to extend business operating hours Reduces business costs compared to employing and paying a full-time employee In some countries, it is easier to make part-time workers redundant

Question 130

Limitations to a business of employing part-time employees

Answer 130

Less likely to seek training because employees may see the job as temporary Takes longer to recruit two part-time workers than one full-time employee Part-time employees can be less committed on the business Less likely to be promoted as they won't have gained the same skills as full-time emplayees More difficult to communication with them

Question 131

Why is training important to a business?

Answer 131

Introduce a new process or new equipment Improve the efficiency of the workforce and reduce waste Provide training for unskilled workers to make them more valuable to the company Decrease the supervision needed Improve the opportunity for internal promotion Decrease the chances of accidents

Question 132

Training is usually to achieve what?

Answer 132

To increase skills To increase knowledge To improve employee's attitudes to encourage them to accept change and raise awareness (e.g. a need to improve customer service)

Question 133

What are the main types of training?

Answer 133

Induction On-the job training Off-the-job training

Question 134

Induction training (definition)

Answer 134

Induction training is an introduction given to a new employee, explaining the business' activities, customs and procedures and introducing them to their fellow workers

Question 135

On-the-job training (definition)

Answer 135

On-the-job training occurs by watching a more experienced worker doing the job

Question 136

Off-the-job training (definition)

Answer 136

Off-the-job training involves being trained away from the workplace, usually by specialist trainers

Question 137

Describe induction training

Answer 137

This is carried out when an employee is new to the job. When a new employee starts at a company, they will not know where anything is or who people are or what is expected of them. The induction programme will last sometimes for a day, sometimes for several days - it depends on the company and the particular job. When a person starts a new school, they are shown round, introduced to teachers and told about their lessons - this is the same type of information you would need to know if you had just joined a new company.

Question 138

Advantages and disadvantages of induction training

Answer 138

Advantages and disadvantages Advantages: Helps new employees to settle; May be a legal requirements to give health and safety training; Less mistakes from workers Disadvantage: Time-consuming; Means wages are paid but no work is being done by worker; Delays the start of employee

Question 139

Describe on-the-job training

Answer 139

This is where a person is trained by watching a more experienced worker doing the job. They are shown what to do. This method of training is only suitable for unskilled and semi-skilled jobs.

Question 140

Advantages of on-the-job training

Answer 140

Individual tuition is given and it is in the workplace so the employee does not need to be sent away Ensures there is some production from the worker while they are training Usually costs less than off-the-job training It is training tailored to the specific needs of the business (employees do tasks how the business wants them to)

Question 141

Disadvantages of on-the-job training

Answer 141

Trainer will not be as productive as usual because they are showing the trainee what to do instead of getting on with their job The trainer may have bad habits and they may pass these on to the trainee It may not lead to training qualifications recognised outside the business

Question 142

Describe off-the-job training

Answer 142

This is where the worker goes away from the place where they work. This may be to a different part of the building or it may be at different place altogether, such as college or specialist training centre. The techniques used to train workers are more varied and can involve more complex tasks. Off-the-job training often involves classroom learning. using lecture, role play, case studies or computer simulations.

Question 143

Advantages of off-the-job training

Answer 143

- A broad range of skills can be taught. - If these courses are taught in the evening after work, they're cheaper for the business as employee will still carry out their normal duties during the day - Business will only need to pay for the course. - Employees may be taught a variety of skills, becoming multi-skilled (more versatile) - It often uses expert trainers who have up-to-date knowledge of business practices

Question 144

Disadvantages of off-the-job training

Answer 144

Costs are high It means wages are paid but no work is being done by the worker The additional qualifications mean it is easier for the employee to leave and find another job as they have training

Question 145

Recruitment (definition)

Answer 145

Recruitment is the process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business

Question 146

Employee selection (definition)

Answer 146

Employee selection is the process of evaluating candidates for a specific job and selecting an individual for employment based on the needs of the organisation

Question 147

Internal recruitment (definition)

Answer 147

Internal recruitment is when a vacancy is filled by someone who is an existing employee of the business