People In Business Flashcards
What are the features of a flat structure with wide spans of control?
- Individual managers have less time for each subordinate and must delegate
- More delegation means greater responsibility, but this may lead to stress
- Vertical communication improves
- Reduced overhead costs should mean greater efficiency within the organisation
What are the features of a tall structure with narrow spans of control?
- They offer more promotional opportunities because there are more levels on the career ladder
- More layers mean more staff, which in turn means higher company overheads
- There is tight control which could be beneficial for the organisation
- Important information may be lost in reporting up through the many levels of the hierarchy
- A longer chain of command decisions take longer to be made
Name two ways in which you could improve the effectiveness of delegation
- Delegation must be based on mutual trust between manager and subordinate
- Delegate to most suitable person
- Tasks and responsibilities must be clearly explained
- Limitations of subordinates authority should be made clear
Benefits of delegation
- Limit on amount of work managers carry out by themselves
- Delegation empowers and motivates workers
- Subordinates may have better local knowledge
Drawbacks of delegation
- Small firms, owners are more reluctant to relinquish power
- Customers may want to speak to the manager, even though responsibilities have been delegated
- The leadership style in an organisation will largely dictate the extent to which responsibilities are delegated down the hierarchy
- Extent to which responsibilities are delegated is influenced by the skills of staff
Name two processes of communication
- Sender/Communicator: Person or group sending the message
- The Message: The topic of the communication
- A Transmission: Mechanism by which a message is conveyed
- A Receiver: The person or group whom the message is aimed at
- Feedback: The response from the receiver
Benefits of effective communication
- Enables business to make more informed decisions based based on better-quality info
- Easier to implement change
- Effective communication encourages more motivated work force
- Helps ensure good coordination and pursuit of corporate objectives
- Allows the organisation to be more competitive
Name two problems caused by high labour turnover
- High recruitment and selection costs
- High induction and training costs
- Reduced productivity
- Low Morale among existing workers
Name two ways in which labour turnover could be improved
- Monitoring trends and identifying problem areas
- Exit interviews
- Effective recruitment
- High-Quality Induction and training
- Career development
Name two ways to reduce absenteeism
- Introducing more flexible working practices
- Ensuring jobs are interesting and challenging
- Improving working conditions
- Improving relations between employees and employers
- Introducing attendance bonuses
Give two factors that must be taken into a account when recruiting
- Level of the job within the firm
- Size of the organisation
- Resources available to fund both recruitment and selection process
- Cost of any particular method used
- Cultural Factors
Name two benefits of training
- Helps new employees reach the levels of performance of experienced workers
- It develops a knowledgable and committed workforce
- Increases efficiency and productivity
- Identifies employees potential
- Reduces costs and increases productivity
- Encourages employees to deal with change more effectively
Give two drawbacks for F.W Taylor’s scientific management approach
- More boring
- More repetitive
- Loss of power for individual workers as a lack of skills was required
Name two financial motivators
- Time Rates
- Profit Sharing
- Piece work
- Performance related pay
- Share ownership and share option
- Fringe benefits
Benefits of Performance related pay(PRP)
- Makes direct link between pay and effort
- Reduces cost
- Increases productivity
- Improves quality
- Motivation is increased
- Labour Turnover and absenteeism is decreased
Drawbacks of PRP
- Causes conflict among staff receiving different bonuses but doing the same job
- Effect on motivation may be negligible
- Often only introduced into jobs where it is hard to measure performance
Benefits of profit sharing
- Reduces employees’ ‘them and us’ feelings
- Reduces resistance to change
- Provides incentives to keep cost down and productivity up
Drawbacks of profit sharing
- Has little effect on motivation
- Can be uncertainty in financial planning if employees come to depend on bonuses
- Free riding could potentially occur(Slacking but still earning money from companies profit)
Evaluate money as a motivator
Despite their widespread use and short term benefits, most evidence suggests that money is not a major motivator in the long term.
Name two non-financial methods of motivating employees
- Job enlargement
- Job Enrichment
- Job Rotation
- Empowering Employees
- Working in teams
Benefits of job enrichment
- Relieves boredom
- Ensures cover for staff who are absent
- Improves Motivation
- Encourages greater participation in the production process
Drawbacks of Job enrichment
- Some may find process intimidating
- May place unwanted pressure on individual
- Could be viewed as a way to get more out of workers whilst paying them the same rate
Benefits of Job Rotation
- Develops workers unused skills and presents them with challenges
- It allows workers to make greater contribution to decision making process
- Enhances workers promotional prospects
- Motivates workers
Drawbacks of Job Rotation
- Increases training cost
- Decrease in output
- Less specialisation
- May be seen as a large number of boring tasks