section 2 Flashcards
recruitment and selection
attracting and selecting the best candidates for job posts
Wages and salaries
set wages and salaries that attract and retain employees as well as motivate them
Industrial relations
there must be effective communication between management and workforce to solve complaints and disputes as well as discussing ideas and suggestions
Training programmes
give employees training to increase their productivity and efficiency
Health and safety
all laws on health and safety conditions in the workplace should be adhered to
Redundancy and dismissal
the managers should dismiss any unsatisfactory/misbehaving employees and make them redundant if they are no longer needed by the business.
Recruitment
Recruitment is the process from identifying that the business needs to employ someone up to the point where applications have arrived at the business.
job description
outlines the responsibilities and duties to be carried out by someone employed to do the job
describes the job
job analysis
identifies and records the tasks and responsibilities relating to the job
job specification
a document that outlines the requirements, qualifications, expertise, skills, physical/personal characteristics etc. required by an employee to be able to take up the job.
describes job holders
Internal recruitment
when a vacancy is filled by an existing employee of the business
advantages of internal recruitment
Saves time and money- no need for advertising and interviewing
Person already known to business
Person knows business’ ways of working
disadvantages of internal recruitment
No new skills and experience coming into the business
Jealousy among workers
External recruitment
when a vacancy is filled by someone who is not an existing employee and will be new to the business
External recruitment needs to be advertised. This can be done in local/national newspapers, specialist magazines and journals, job centres run by the government
what will they look at for the bases of selection
the applicant’s ability to do the job
personal qualities of the applicant
character and personality of applicant
Part-time employment
considered to be between 1 and 30-35 hours a week
full-time employment
usually works 35 hours or more a week
Advantages to employer of part-time employment (disadvantages of full-time employment to employer)
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
Disadvantages to employer of part-time employment (advantages of full-time employment to employers)
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
what does training help in
improve the worker’s skills and knowledge and help the business be more efficient and productive
Induction training
introduction given to a new employee, explaining the firm’s activities, customs and procedures and introducing them to their fellow workers
Advantages induction training
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
Disadvantages induction training
Time-consuming
Wages still have to be paid during training, even though they aren’t working
On-the-job training
watching a more experienced worker doing the job
Advantages On-the-job training
It ensures there is some production from worker whilst they are training
It usually costs less than off-the-job training
disadvantages On-the-job training
The trainer will lose some production time as they are taking some time to teach the new employee
The trainer may have bad habits that can be passed onto the trainee
Off-the-job training
trained away from the workplace, usually by specialist trainers
Advantages Off-the-job training
A broad range of skills can be taught using these techniques
Employees may be taught a variety of skills and they may become multi-skilled that can allow them to do various jobs in the company when the need arises.
Disadvantages Off-the-job training
Costs are high
It means wages are paid but no work is being done by the worker
The additional qualifications means it is easier for the employee to leave and find another job
Workforce Planning
the establishing of the workforce needed by the business for the foreseeable future in terms of the number and skills of employees required
reasons to downsize the workforce
introduction of automation
Falling demand for their products
Factory/shop/office closure
Relocating factory abroad
downsize the workforce in two ways
Dismissal
redundancy
dismissal
where a worker is told to leave their job because their work or behaviour is unsatisfactory.
redundancy
when an employee is no longer needed and so loses their work, through not due to any fault of theirs. They may be given some money as compensation for the redundancy.
employee protection
against unfair discrimination
health and safety at work (protection from dangerous machinery, safety clothing and equipment, hygiene conditions, medical aid etc.)
against unfair dismissal
wage protection (through the contract of employment since it will have listed the pay and conditions). Many countries have a legal minimum wage
industrial tribunal
legal meeting which considers workers’ complaints of unfair dismissal or discrimination at work. This will hear both sides of the case and may give the worker compensation if the dismissal was unfair
why do people work?
Have a better standard of living: by earning incomes they can satisfy their needs and wants
Be secure: having a job means they can always maintain or grow that standard of living
Gain experience and status: work allows people to get better at the job they do and earn a reputable status in society
Have job satisfaction: people also work for the satisfaction of having a job
factors to motivate a worker to work
Money
social needs
esteem needs
job satisfaction
security
why motivate workers?
When workers are well-motivated, they become highly productive and effective in their work, become absent less often, and less likely to leave the job, thus increasing the firm’s efficiency and output, leading to higher profits.
F. W. Taylor
money is the main motivator
piece-rate system- workers get paid for the number of output they produce.
So in order, to gain more money, workers would produce more but didn’t guarantee quality
system is not very practical in situations where output cannot be measured
Maslow’s Hierarchy
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.
self actualisation - succeeding to your full potential
esteem needs - being given recognition for a job well done, having status and recognition, achievement, independence
social needs- work colleagues that support you at work, friendship, a sense of belonging to a team
safety/security needs- job security, protection against danger, poverty, fair treatment
physiological needs- wages high enough to meet weekly bills, food, rest, recreation, shelter
Financial Motivators
Wages
Salary
Commission
Bonus
Performance-related pay
Profit-sharing
Share ownership
wages
time rate
piece rate
often paid weekly. They can be calculated in two ways:
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. The productive and unproductive worker will get paid the same amount, irrespective of their output.
Piece-Rate: pay based on the no. of output produced. Same as time-rate, this doesn’t ensure that quality output is produced. Thus, efficient workers may feel demotivated as they’re getting the same pay as inefficient workers, despite their efficiency.
Salary
paid monthly or annually.
Commission
paid to salesperson, based on a percentage of sales they’ve made. The higher the sales, the more the pay. Although this will encourage salespersons to sell more products and increase profits, it can be very stressful for them because no sales made means no pay at all.
Bonus
additional amount paid to workers for good work
Performance-related pay
paid based on performance. An appraisal (assessing the effectiveness of an employee by senior management through interviews, observations, comments from colleagues etc.) is used to measure this performance and a pay is given based on this.
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.
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.
Non-Financial Motivators - fringe benefits
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
Job Satisfaction:
the enjoyment derived from the feeling that you’ve done a good job.
Employees have different ideas about what motivates them- it could be pay, promotional opportunities, team involvement, relationship with superiors, level of responsibility, chances for training, the working hours, status of the job etc. Responsibility, recognition and satisfaction are in particular very important.
Job Rotation
involves workers swapping around jobs and doing each specific task for only a limited time and then changing round again. This increases the variety in the work itself and will also make it easier for managers to move around workers to do other jobs if somebody is ill or absent. The tasks themselves are not made more interesting, but the switching of tasks may avoid boredom among workers.
Job Enlargement
where extra tasks of similar level of work are added to a worker’s job description.
These extra tasks will not add greater responsibility or work for the employee, but make work more interesting.
Job Enrichment
involves adding tasks that require more skill and responsibility to a job.
This gives employees a sense of trust from senior management and motivate them to carry out the extra tasks effectively.
Some additional training may also be given to the employee to do so.
Team-working
a group of workers is given responsibility for a particular process, product or development. They can decide as a team how to organize and carry out the tasks. The workers take part in decision making and take responsibility for the process. It gives them more control over their work and thus a sense of commitment, increasing job satisfaction. Working as a group will also add to morale, fulfill social needs and lead to job satisfaction.
Opportunities for training
providing training will make workers feel that their work is being valued. Training also provides them opportunities for personal growth and development, thereby attaining job satisfaction
Opportunities of promotion in job
providing opportunities for promotion will get workers to work more efficiently and fill them with a sense of self-actualisation and job satisfaction
Organizational structure
refers to the levels of management and division of responsibilities within a business.
Advantages of organisational chart
All employees are aware of which communication channel is used to reach them with messages
Everyone knows their position in the business. They know who they are accountable to and who they are accountable for
It shows the links and relationship between the different departments
Gives everyone a sense of belonging as they appear on the organizational chart
span of control
is the number of subordinates working directly under a manager in the organizational structure
organisational chart
refers to a diagram that outlines the internal management structure
hierarchy
refers to the levels of management in any organisation from the highest level to the lowest
level of hierarchy
managers/ supervisors other employees who are given similar level of responsibility in an organisation
chain of command
is the structure of an organization that allows instructions to be passed on from senior managers to lower levels of management.
Advantages of a short chain of command (these are also the disadvantages of a long chain of command):
Communication is quicker and more accurate
Top managers are less remote from lower employees, so employees will be more motivated and top managers can always stay in touch with the employees
Spans of control will be wider, This means managers have more people to control
–> encourages them to delegate responsibility and so the subordinates will be more motivated and feel trusted.
directors
are senior managers who lead a particular department or division of a business
line managers
have direct responsibility for people below them in hierarchy of an organisation
supervisors
junior managers who have direct control over the employees below them in the organisational structure
staff managers
specialists who provide support information and assistance to line managers
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. Managers should also plan for resources required to achieve these targets – the number of people required, the finance needed etc.
Organizing
managers should then organize the resources. This will include allocating responsibilities to employees, possibly delegating.
Coordinating
managers should ensure that each department is coordinating with one another to achieve the organization’s aims.
This will involve effective communication between departments and managers and decision making.
They need to come together regularly and make decisions that will help achieve each department’s aims as well as the organization’s.
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.
Controlling
managers must try to assess and evaluate the performance of each of their employees. If some employees fail to achieve their target, the manager must see why it has occurred and what he can do to correct it- maybe some training will be required or better equipment.
Delegation
giving a subordinate the authority to perform particular tasks
Advantages to managers for delegation
managers cannot do all work by themselves
managers can measure the efficiency and effectiveness of their subordinates’ work
However, managers may be reluctant to delegate as they may lose their control over the work.
Advantages to subordinates for delegation
the work becomes more interesting and rewarding- increased job satisfaction
employees feel more important and feel trusted– increasing loyalty to firm
can act as a method of training and opportunities for promotions, if they do a good job.
job enrichment and enlargement
why is it important to have good managers?
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
leadership styles
different approaches used when dealing with people when in a position of authority. There are mainly three styles you need to learn: the autocratic, democratic and laissez-faire styles.
Autocratic style
is where the managers expects to be in charge of the business and have their orders followed. They do all the decision-making, not involving employees at all.
Communication is thus, mainly one way- from top to bottom. This is standard in police and armed forces organizations.
Autocratic style adv and disadv
adv- one centre of authority
rules and command must be followed
quick decision making duringg crisis’
disadvantage- demotivate staff
decisions do not benefit from staff inputs
no opportunity for employees to tell their concerns
give little information and instructions
Democratic style
managers involve employees in the decision-making and communication is two-way from top to bottom as well as bottom to top. Information about future plans is openly communicated and discussed with employees and a final decision is made by the manager.
Democratic style adv and disadv
disadvantage - time consuming
does not allow quick decisions
conflict- sensitivity of issues not maintained
adv- best results can be obtained
laissez - faire
(French phrase for ‘leave to do) style makes the broad objectives of the business known to employees and leaves them to do their own decision-making and organize tasks. Communication is rather difficult since a clear direction is not given. The manger has a very limited role to play.
laissez - faire adv disadvantage
disadvantage - workers may not appreciate the back of structure and decision
lack feedback as managers might not be closely monitoring
adv- encourages employees to show creativity and responsibility
- leads to motivation
Trade Unions
A trade union is a group of workers who have joined together to ensure their interest are protected.
Benefits to workers of joining a trade union
strength in number- a sense of belonging and unity
improved conditions of employment, for example, better pay, holidays, hours of work etc
improved working conditions, foe example, health and safety
improved benefits for workers who are not working, because they’re sick, retired or made redundant (dismissed not because of any fault of their own)
financial support if a member thinks he/she has been unfairly dismissed or treated
benefits that have been negotiated for union member such as discounts on firm’s products, provision of health services.
Communication
the transferring of a message from the sender to the receiver, who understands the message
internal communications
between the members of the same organisation
message
information or instructions being passed on from the sender to the receiver
external communications
between the organisation and other organisation or people outside the business
why is external communications important
if wrong information is given to customers it can lead to the business having a bad reputation
it is important to the image and efficiency of a business
transmitter or sender
is the person starting off the process by sending the message
medium of communication
the method used to send a message
eg. letter - written communication
meeting - verbal communication
receiver
person whom the message has to be sent to
feedback
reply from the receiver which shows whether the message has arrived been understood and acted upon
one way communication
involves a message which does not require further communications or a call for.
two way communications
involves a message where the receiver sends a response and which requires a discussion
advantages of two way communications
it would become extremely clear to the sender wether the receiver has fully understood the message and whether they have acted upon it or not.
now Both the sender and receiver have become involved in the message and it becomes more effective. receiver will also feel more apart of the process
communication methods
written - letter, posters
verbal - calls, meetings
visual - diagrams, charts, visuals
how to choose the appropriate communication method
speed - how fast it will reach the receiver
cost- how expensive it will be, according to the businesses costs
message details - how detailed the message is, if it needs to be displayed visually or if its something that can be explained through a call
leadership style- if the leadership style is democratic and requires two way communication or if its autocratic and a one way communication is enough
receiver - who is the target receiver, if the message has to only reach one person or more than one person
importance of written record- if its essential that a written record will need to be used at any point in time in the future then communication methods that involve transcripts should be used
importance of feedback- how important it is for the sender to receive feedback and how fast
adv of verbal communications
information can be given out very clearly
opportunity for immediate feedback and 2 way communication
message often reinforced by seeing the speaker
disadv of verbal communications
in a big gathering there is no way of telling whether everybody is listen or has understood the message
it can take longer to use verbal method when feedback occurs than to use a written form of communications
if an accurate and permanent record of the message is needed, verbal communication isn’t accurate
written communication disadv
not so easy to check that the message has been received and acted upon as with verbal messages
language used can be difficult for some receivers to understand. if them written message is too long then the receiver may get confused and loose interest
written communication adv
there is hard evidence of the message which can be referred to in the future- can reduce disagreements between the sender and receiver incase a mistake is made
written messages can be copied and sent to many people - ore efficient
electronic communication is a quick and cheap way to reach a large number of people
visual communication adv
Can present information in an appealing and attractive way
Can be used along with written material (eg: reports with diagrams and charts)
visual communication disadv
No feedback and the sender may have to use other communication methods to understand whether the receiver has understood or not
May not be understood/ interpreted properly.
formal communication
messages are sent through established channels using professional language
Downward communication
messages from managers to subordinates i.e. from top to bottom of an organization structure.
Upward communication
messages/feedback from subordinates to managers i.e. from bottom to top of an organization structure
Horizontal communication
occurs between people on the same level of an organization structure.
Communication barriers
factors that stop effective communication of messages
