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Business > Section 2 People in Business > Flashcards

Section 2 People in Business Flashcards

1
Q

Why do people work?

A
  • 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
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2
Q

What is motivation?

A

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

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3
Q

What are the benefits of a well-motivated workforce?

A

When workers are well-motivated,
- they become highly productive and effective in their work
- become absent less often
- less likely to leave the job,
thus increasing the firm’s efficiency and output, leading to higher profits.

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4
Q

What is Maslow’s hierarchy?

A

Abraham Maslow’s hierarchy of needs shows that employees are motivated by each level of the hierarchy going from bottom to top.

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5
Q

What are the levels of Maslow’s hierarchy?

A

Physiological needs -> Safety/security needs -> Social needs -> Esteem needs -> Self-actualization

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6
Q

What are the two motivational theories?

A
  • F.W. Taylor’s Theory
  • Herzberg’s 2 Factor Theory
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7
Q

What is Taylor’s theory?

A

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.
- So in order, to gain more money, workers would produce more.

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8
Q

What is Herzberg’s 2 Factor Theory?

A

Frederick Herzberg’s two-factor theory, he states that people have two sets of needs:
1. ‘hygiene factors’
- status
- security
- work conditions
- company policies and administration
- relationship with superiors
- relationship with subordinates
- salary

  1. ‘motivators’
    - achievement
    - recognition
    - personal growth/development
    - promotion
    - work itself
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9
Q

What are wages?

A

Payment for work, usually paid weekly

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10
Q

What are 2 ways to calculate wages?

A
  • Time rate
  • Piece rate
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11
Q

What is a time rate?

A

The amount paid to an employee for one hour of work

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12
Q

What is a piece rate?

A

The amount paid for each unit of output

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13
Q

What is a salary?

A

Payment for work, usually paid monthly

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14
Q

What is a bonus?

A

An additional amount of payment above basic pay as a reward for good work

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15
Q

What is a commission?

A

Payment relating to the number of sales made

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16
Q

What is profit sharing?

A

A system whereby a proportion of the company’s profits is paid out to employees

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17
Q

What is job satisfaction?

A

The enjoyment derived from feeling that you have done a good job

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18
Q

What is job rotation?

A

Involves workers swapping and doing each specific task for only a limited time and then changing around again

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19
Q

What is job enrichment?

A

Involves looking at jobs and adding tasks that require more skill and/or responsibility

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20
Q

What is teamworking?

A

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

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21
Q

What is training?

A

The process of improving a workers skills

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22
Q

What is promotion?

A

The advancement of an employee in an organization

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23
Q

What is an organizational structure?

A

Refers to the levels of management and division of responsibilities within a business. They can be represented on organizational charts

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24
Q

What are the advantages of an organizational structure?

A
  • 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
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25
Q

What is the span of control?

A

The number of subordinates working directly under a manager in the organizational structure

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26
Q

What is the chain of command?

A

The structure of an organization that allows instructions to be passed on from senior managers to lower levels of management

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27
Q

What is the link between the span of control and the chain of command?

A

The wider the span of control the shorter the chain of command

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28
Q

What are the roles and responsibilities of directors?

A

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

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29
Q

What are the roles and responsibilities of line managers?

A

They have direct responsibility for people below them in the hierarchy of an organization

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30
Q

What are the roles and responsibilities of supervisors?

A

They are junior managers who have direct control over the employees below them in the organizational structure

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31
Q

What are the roles and responsibilities of staff managers?

A

They are specialists who provide support, information and assistance to line managers

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32
Q

What are the roles and functions of management?

A
  1. Planning
  2. Organizing
  3. Coordinating
  4. Commanding
  5. Controlling
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33
Q

What is delegation?

A

Giving a subordinate the authority to perform particular tasks

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34
Q

What are the advantages of delegation for managers?

A
  • Managers cannot do all the work by themselves, therefore when delegating, managers are able to concentrate their time on other important management functions
  • Managers can measure the efficiency and effectiveness of their subordinates’ work
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35
Q

What is the disadvantage of delegation for managers?

A

Managers may be reluctant to delegate as they may lose their control over the work

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36
Q

What are the advantages of delegation for subordinates?

A
  • The work becomes more interesting and rewarding- increased job satisfaction
  • Employees feel more important and trusted– increasing loyalty to the firm
  • Can act as a method of training and promotion opportunities, if they do a good job
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37
Q

What are the 3 main leadership styles?

A
  • Autocratic leadership
  • Democratic leadership
  • Laissez-faire leadership
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38
Q

What is autocratic leadership?

A

Where the manager expects to be in charge of the business and to have their orders followed

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39
Q

What is a potential advantage of autocratic leadership?

A
  • Quick decision-making
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40
Q

What is a potential disadvantage of autocratic leadership?

A
  • No opportunity for employee input into key decisions which can be demotivating
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41
Q

What is democratic leadership?

A

Gets other employees involved in the decision-making process

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42
Q

What is a potential advantage of democratic leadership?

A
  • Better decisions could result from consulting with employees and using their experience and ideas
  • Also being a motivating factor
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43
Q

What is a potential disadvantage of democratic leadership?

A

Unpopular decisions such as making workers redundant could no effectively be made using this style of leadership

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44
Q

What is laissez-faire leadership?

A

Makes the broad objectives of the business known to employees but then they are left to make their own decisions and organize their own work

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45
Q

What is a potential advantage of laissez-faire leadership?

A

Encourages employees to show creativity and responsibility

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46
Q

What is a potential disadvantage of laissez-faire leadership?

A

Unlikely to be appropriate in organizations where a consistent and clear decision-making structure is needed

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47
Q

What is a trade union?

A

A group of employees who have joined together to ensure their interests are protected

48
Q

What are the effects of employees being union members?

A
  • Strength in numbers when negotiating with employers
  • Improved conditions of employment
  • Improved environment where people work
  • Improved benefits for members who are not working because they are sick
49
Q

What is the role of the Human Resources department?

A
  • Recruitment and selection
  • Wages and salaries
  • Industrial relations
  • Training programmes
  • Health and Safety
  • Redundancy and dismissal
50
Q

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

A
  • When an employee leaves their job and need to be replaced
  • When a new business is starting up and needs employees
  • When a business is successful and wants to expand by employing more people
51
Q

What are the steps of the recruitment process?

A
  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
52
Q

What is a job analysis?

A

Identifies and records the responsibilities and tasks relating to a job

53
Q

What is a job description?

A

Outlines the responsibilities and duties to be carried out by someone employed to do a specific job

54
Q

What is a job specification?

A

A document which outlines the requirements, qualifications, expertise, physical characteristics, etc., for a specified job

55
Q

What is internal recruitment?

A

When a vacancy is filled by someone who is an existing employee of the business

56
Q

What are the advantages of internal recruitment?

A
  • Quicker and cheaper than external, which may involve expensive advertising
  • The person is already known to the business
  • The person also knows how the organization works
  • Very motivating for employees to see their colleagues being promoted which makes them work harder to ensure that promotion is possible for them
57
Q

What are the disadvantages of internal recruitment?

A
  • No new ideas or experience come into the business
  • Rivalry among existing employees and jealousy towards the worker who gains promotion
  • Quality of internal candidates may be low
58
Q

What is external recruitment?

A

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

59
Q

What is the difference between internal and external recruitment?

A
  • Internal recruits candidates from inside the business
  • External recruits candidates from outside the business
60
Q

How do you recommend which workers to employ?

A

Based off of these factors:
- Work experience
- Educational and other qualifications
- Age
- Internal
- External

61
Q

What is part-time employment?

A

Often considered to be between 1 and 30-35 hours a week

62
Q

What are the advantages of a business employing part-time employees?

A
  • More flexible in the 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
  • Fits in with looking after children and therefore employee is willing to accept lower pay
  • Reduces business costs compared to employing a full-time employee
  • In some countries, it is easier to make part-time workers redundant
63
Q

What are the disadvantages of a business of part-time employees?

A
  • Less likely to seek training because the employee 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 to the business and may be more likely to leave to get another job
  • Less likely to be promoted because they will not have gained the same skills and experience as full-time employees
  • More difficult to communicate with part-time employees when they are not in work
64
Q

What is full-time employment?

A

Employees that usually work 35 hours or more a week

65
Q

Why is training important to a business?

A
  • Introduce a new process or new equipment
  • Improve the efficiency of the workforce
  • 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
66
Q

Why is training important to employees?

A
  • To increase skills
  • To increase knowledges
  • To improve employees’ attitudes
67
Q

What is induction training?

A

An introduction given to a new employee, explaining the business’s activities, customs and procedures and introducing them to their fellow workers

68
Q

What are the advantages of induction training?

A
  • Helps new employees to settle into their jobs quickly
  • May be a legal requirement to give health and safety training at the start of a job
  • Means workers are less likely to make mistakes
69
Q

What are the disadvantages of induction training?

A
  • It is time-consuming
  • Means wages are paid but no work is being done by the worker`
  • Delays the start of the employee commencing their job
70
Q

What is on-the-job training?

A

Occurs by watching a more experienced worker doing the job

71
Q

What are the advantages of on-the-job training?

A
  • Individual tuition is given and it is in the workplace so the employee does not need to be sent away (travel costs are expensive)
  • It ensures there is some production from the workers while they are training
72
Q

What are the disadvantages of on-the-job training?

A
  • The 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 the trainee
  • It may not lead to training qualifications recognised outside the business
73
Q

What is off-the-job training?

A

Involves being trained away from the workplace, usually by specialist trainers

74
Q

What are the advantages of off-the-job training?

A
  • 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 which can allow them to do various jobs in the company when the need arises.
75
Q

What are the disadvantages of off-the-job training?

A
  • 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
76
Q

What is dismissal?

A

When employment is ended against the will of the employee, usually for not working in accordance with the employment contract

77
Q

What is redundancy?

A

When an employee is no longer needed and so loses their job. It is not due to any aspect of their work being satisfactory

78
Q

Why is reducing the size of the workforce necessary?

A

This can be because of:
- Introduction of automation
- Falling demand for their goods or services
- Factory/shop/office closure
- Relocating their factory abroad
- A business has merged or been taken over and some jobs have become surplus to requirements in the newly combined business

79
Q

Which workers in a business should be made redundant?

A
  • Some workers may volunteer and be happy to be made redundant
  • Workers who have worked for the business for a long time are often retained and are the most expensive to make redundant
  • Workers with essential skills that are needed by the business or whose skills could be transferable to other departments are often retained
80
Q

What legal control areas are employees protected in?

A
  • 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
81
Q

What is a contract of employment?

A

A legal agreement between an employer and employee, listing the rights and responsibilities of workers

82
Q

What is the impact of employment contracts on employers and employees?

A
  • Both employers and employees know what is expected of them
  • It provides some security of employment to the employee
  • If the employee does not meet the conditions of the contract then legal dismissal is allowed
  • If the employer fails to meet the conditions of the contract, then the employee can seek legally binding compensation
83
Q

What is an industrial tribunal?

A

A type of law court that makes judgements on disagreements between companies and their employees

84
Q

What is unfair dismissal?

A

This is when an employer ends a worker’s contract of employment for a reason that is not covered by that contract

85
Q

What is the impact of unfair dismissal on the employer and employee?

A
  • Employers must keep very accurate records of a worker’s performance if they want to claim that the employee
  • Employees have security of employment
  • Allows employees to take their employer to an industrial tribunal if they feel they have been treated unfairly
86
Q

What is the impact of health and safety on the employers and employees?

A
  • Cost to the employer of meeting the health and safety regulations
  • Time needs to be found to train workers in health and safety precautions
  • Workers feel ‘safer’ and more motivated at work
  • Reduces accident rate and the cost of compensation for workers injured at work
87
Q

What is the impact of legal minimum wage on employers and employees?

A
  • It should prevent strong employers from exploiting unskilled workers who could not easily find other work
  • As many unskilled workers will now be receiving higher wages -> it might encourage employers to train them to make sure that they are more productive
  • It will encourage more people to seek work -> fewer shortages of workers
  • Low-paid workers will earn more and will have higher living standards -> they will be able to afford to buy more
88
Q

What is communication in business?

A

The transferring of a message from the sender to the receiver, who understands the message.

89
Q

What is a message in business?

A

The information or instructions being passed by the sender to the receiver

90
Q

What is the purpose of communication?

A
  • To provide info about the business
  • To collect information
  • To give instructions
  • To coordinate different functions of the business
91
Q

What is internal communication?

A

Communication between members of the same organization

92
Q

What is external communication?

A

Communication between the organization and other organizations or individuals

93
Q

What does effective communication involve?

A
  • A transmitter
  • A medium of communication
  • A receiver
  • Feedback
94
Q

What is a transmitter in business?

A

The personal starting off the process by sending the message?

95
Q

What is the medium of communication in business?

A

The method used to send a message

96
Q

What is the receiver in business?

A

The person who receives the message

97
Q

What is feedback in business communication?

A

The reply from the receiver which shows whether the message has arrived, been understood and if necessary acted upon

98
Q

What is one-way communication?

A

Involves a message which does not call for or require a response

99
Q

What is two-way communication?

A

When the receiver gives a response to the message and there is a discussion about it

100
Q

What are the advantages of two-way communication?

A
  • It should become absolutely clear to the send whether or not the person receiving the message has understood it and acted upon it
  • Both people are now involved in the communication process -> therefore the receiver feels more a part of the process -> he/she can make a real contribution to the topic
101
Q

How to choose the most appropriate communication method?

A
  • Speed
  • Cost
  • Message details
  • Leadership style
  • The receiver
  • Importance of a written record
  • Importance of feedback
102
Q

What are examples of verbal methods?

A

Telephone conversation, face-to-face conversation, video conferencing, meetings, etc.

103
Q

What are the advantages of verbal communication?

A
  • Quick and efficient
  • There is an opportunity for immediate feedback and two-way communication
  • Speaker can reinforce the message- change his tone, body language etc. to influence the listeners.
104
Q

What are the disadvantages of verbal communication?

A
  • Can take long if there is feedback and therefore, discussions
  • In a meeting, it cannot be guaranteed that everybody is listening or has understood the message
  • No written record of the message can be kept for later reference.
105
Q

What are examples of written communication?

A

Letters, memos, text-messages, reports, e-mail, social media, faxes, notices, signboards

106
Q

What are the advantages of written communication?

A
  • There is evidence of the message for later reference.
  • Can include details
  • Can be copied and sent to many people, especially with e-mail
  • E-mail and fax is quick and cheap
107
Q

What are the disadvantages of written communication?

A
  • Direct feedback may not always be possible
  • Cannot ensure that message has been received and/or acknowledged
  • Language could be difficult to understand.
  • Long messages may cause disinterest in receivers
  • No opportunity for body language to be used to reinforce messages
108
Q

What are some examples of visual communication?

A

Diagrams, charts, videos, presentations, photographs, cartoons, posters, etc.

109
Q

What are the advantages of visual communication?

A
  • Can present information in an appealing and attractive way
  • Can be used along with written material (eg: reports with diagrams and charts)
110
Q

What are the disadvantages of visual communication?

A
  • No feedback
  • May not be understood/ interpreted properly.
111
Q

What is formal communication?

A

When messages are sent through established channels using professional channels

112
Q

What is informal communication?

A

When information is sent and received casually using everyday language

113
Q

What are communication barriers?

A

Factors that stop effective communication of messages

114
Q

What are barriers to communication in terms of the sender?

A
  • Poor attitude/body language wrong
  • Unclear message
  • Message too long
  • Sent to wrong person
115
Q

What are barriers to communication in terms of the receiver?

A
  • Lack of trust
  • Poor attitude
  • Does not listen
116
Q

What are barriers to communication in terms of the communication medium?

A
  • Too many people pass on the message
  • Message may be lost
  • Wrong channel used
  • Technical breakdown
117
Q

What are barriers to communication in terms of the feedback?

A
  • Not sent
  • Unclear
  • Not asked for

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