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Business Studies > Section 2 - People in Business > Flashcards

Section 2 - People in Business Flashcards

1
Q

Define motivation

A

factors that influence the behavior of workers towards achieving set business goals

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2
Q

Benefits of a Well-Motivated Workforce (5)

A
  • Higher productivity/efficiency
  • Lower rate of absenteeism
  • Lower rate of labour turnover/attrition
  • Better quality goods and services
  • More competitive
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3
Q

Maslow’s hierarchy (5)

A
  • physical needs: to survive
  • safety needs: safe from physical danger & job security
  • social needs: loved and accepted
  • esteem needs: respected & recognized
  • self actualization: reaching their full potential
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4
Q

F.W. Taylor- Scientific Management Theory

A
  • Theory of Economic Man: view that humans = only motivated by money.
  • The piece-rate method was developed by Taylor’s research, but supervision is required.
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5
Q

Fredrick Herzberg – Two-factor Theory (5-5)

A

1) Hygiene factors: prevents job dissatisfaction
Working conditions – safe, clean, facilities at workplace
Relationships with others- good relationships with others & feel belonging
Salary & Wage – being paid enough to encourage workers
Supervision – leadership style & how closely workers are supervised
Company policy & Administration – rules & procedures
2) Motivators: factors that influence a person to increase their efforts
Work – needs to be varied & challenging
Responsibility – showing that managers trust and value workers
Advancement – opportunity for promotion
Achievement – workers feel they have reached challenging goals
Recognition of achievement

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6
Q

Financial rewards and methods (7)

A

> Hourly wage rate - time not number of output
Salary (fixed annual payment) – not based on hours and not linked to worker effort
Piece-rate – not linked to quality, just quantity
Commission (based on value of items they sell) – linked to value, workers never certain about earn
Bonus scheme – linked to performance but if target is unrealistic, can become a demotivator
Fringe benefits (non-cash rewards) – e.g. health insurance, discounts, company cars and free housing. Can help in recruitment and retention of workers, but is often linked to status and not performance
Profit-sharing – motivates workers, attracts more employees, increases loyalty, decreases attrition and absenteeism rate and higher acceptance towards change but less dividend

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7
Q

Non-financial factors of motivation (7)

A

> Job rotation – increasing variety/switching tasks
Job enlargement – more tasks but same difficulty
Job enrichment – harder tasks but same number
Job redesign
Quality circles – discuss work-related problems
Team-working
Delegation – Passing responsibility to do tasks to subordinates

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8
Q

Define hierarchy

A

number of levels in an organizational structure

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9
Q

Define chain of command

A

route through which authority is passed down through an organisation

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10
Q

Define span of control

A

number of subordinates reporting to each supervisor/manager

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11
Q

Factors affecting the span of control (5)

A

> Difficulty of task (simple 🡪 wide)
Skills of workers ( more skilled 🡪 wide)
Size (small 🡪 wide –as there are less managers-)
Levels of hierarchy (flat 🡪 wide)
Management style (less control 🡪 wide)

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12
Q

Tall hierarchies (5)

A

Many levels of hierarchy
Each level is management (except bottom level)
More managers = narrow span of control
Long chain of command
Communication and decision-making are slower

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13
Q

Flat hierarchies (4)

A

Few levels of hierarchy
Chain of command is short
Span of control is wide
Communication and decision-making are much faster

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14
Q

Define delayering

A

Reducing the size of the hierarchy by removing one or more levels (often middle management)

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15
Q

Advantages of delayering (5)

A
  • reduces costs
  • reduces chain of command
  • communication/decision making = faster + more effective
  • Wider span of control 🡪 motivates employees as they are given more trust by managers
  • Senior managers are more informed of what is happening in the business
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16
Q

Disadvantages of delayering (4)

A
  • Increased workload on managers 🡪 tasks may not be completed or poor quality
  • May have to make redundancy payments
  • Employees fear redundancy = reduces job security
  • Wider span of control 🡪 reduce effective management of subordinates
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17
Q

Define centralized

A

all important decisions made at Head Office or centre

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18
Q

Define decentralized

A

decision-making is passed down to lower levels

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19
Q

Advantages of centralized organisations (3)

A

Faster decision making
Decision benefits whole business
Specialist staff improve decision-making

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20
Q

Disadvantages of centralized organisations (3)

A

Slower communication
Slow response to changes in the market
Reduces employee motivation

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21
Q

Advantages of decentralized organisations (3)

A

Decisions based on local needs
Can train junior managers
Delegation motivates employees

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22
Q

Disadvantages of decentralized organisations (2)

A

Decisions may not interest the whole business

Poor decisions can be made due to lack of skills and experience

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23
Q

Responsibilities of Directors (4)

A

> Setting strategy
Make sure resources are available to achieve objectives
Reviewing the performance of managers, protecting the interests of shareholders and other stakeholders
Providing leadership

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24
Q

Responsibilities of Managers (5)

A

> Making sure the decisions of directors are carried out
Delegating tasks to members of their department
Taking decisions to achieve departmental objectives
Motivating workers
Solving day-to-day problems

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25
Q

Responsibilities of Supervisors (3)

A

> Giving out tasks to workers
Making sure they carry out the tasks
Checking the quality of the work

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26
Q

Functions of management (5)

A

> Planning – setting clear objectives and actions required to achieve them
Organising – preparing & organising resources needed to achieve planned goals & objectives
Commanding – control, supervision & motivating workers
Coordinating – make sure all employees are working together to achieve business’s goals
Controlling – make sure that plan is working, if not, taking action to correct it

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27
Q

Managers must: (5)

A
  • Understand people who work for them
  • Set a good example
  • Treat subordinates fairly
  • Delegate tasks
  • Communicate effectively
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28
Q

Advantages of delegation (4)

A

> Managers have time to focus on more important things
Can motivate workers to take responsibility
Develops skills of workers & increases flexibility of workforce
Quality of work is often improved

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29
Q

Advantages of democratic leadership (4)

A
  • Motivates workers
  • Workers gain authority
  • Feel significant & important
  • Workers get trained & learn to be responsible
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30
Q

Choosing a leadership style (3)

A
  1. Time available
  2. Personality of manager
  3. Task to be completed
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31
Q

Define trade unions

A

An organisation of workers aimed at improving pay and working conditions and providing other services, such as legal advice, for members

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32
Q

Roles of trade unions (4)

A
  • Negotiating with employers to improve pay and working conditions
  • Resolving conflict
  • Providing legal support and advice
  • Providing support for members
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33
Q

Benefits of being a member of a trade union (4)

A
  • Greater power when dealing with employers (than if doing it as an individual)
  • Support and legal advice for workers who are being unfairly treated by employers, or who have been injured at work
  • Improved environment where people work
  • Improved communications between workers and management
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34
Q

Effects on employers of trade unions (4)

A
  • Single point of contact = less time consuming
  • Unions improve working conditions = improve employee motivation and reduce the level of absenteeism/turnover
  • High wage demands = increases business costs + reduce competitiveness & profitability of businesses.
  • Strikes to force the employers to meet their demands, disrupts production = loss of orders = reduces profitability.
35
Q

Advantages of internal recruitment (4)

A
  • Vacancy filled more cheaply and quickly
  • Business already knows the strengths and weaknesses of applicants
  • Applicants already know how the business works
  • Can motivate employees when they see that there is a change of promotion
36
Q

Disadvantages of internal recruitment (4)

A

> Better candidate may have been available from outside the business
Can cause conflict in the workplace if other internal candidates feel they should have got the job (jealousy)
Does not bring any new ideas or skills
There will still be a vacancy to fill, unless worker’s previous job has been made redundant

37
Q

Advantages of external recruitment (3)

A

> Can bring new ideas and improve effectiveness and efficiency of business
Wider choice of applicants
Avoids upsetting workers if someone internal is promoted

38
Q

Disadvantages of external recruitment (3)

A

> Takes longer to fill the vacancy
More expensive than internal recruitment (advertising costs, time spent)
Will need induction training, increases expenses

39
Q

Recruitment process (9)

A
  1. Identify vacancy and carries out job analysis
  2. Job description is produced
  3. Person specification is produced
  4. Job is advertised (internal or external)
  5. Send out application forms & job details
  6. Receive applications
  7. Create a shortlist from all the applicants
  8. Interview shortlisted candidates
  9. Select the right candidate
40
Q

Benefits of part time workers (7)

A

> Can attract well-qualified workers
Help business keep experienced staff
Provides greater flexibility
Work hours flexible = allow changes in demand
Workers are more motivated as they are less tired
2 part-time instead of 1 full-time increases skills
Doesn’t need to take time off for appointments

41
Q

Limitations of part time workers (3)

A

> Increases in induction and training costs
Communication problems
Quality of service may not be as good as full-time staff, as part-time workers are usually less dedicated to the business

42
Q

Benefits of training (7)

A

> Trained workers are more efficient
Management training improves quality of decisions & reduces cost of mistakes
Helps workers develop their abilities 🡪 motivation
Easier to recruit new workers & keep existing workers
Can improve customer service
Health & safety training = reduces accidents
Well-trained workforce = competitive

43
Q

Methods of training (3)

A
  • induction
  • on the job
  • off the job
44
Q

Advantages of on the job training (3)

A
  • Relatively cheap
  • Workers learn the way the business wants job done
  • Workers are producing while training
45
Q

Disadvantages of on the job training (4)

A
  • Workers may pick up experienced worker’s bad habits
  • Might not learn most up-to-date methods
  • Make more mistakes while learning 🡪 increases waste
  • Slows down production of experienced worker
46
Q

Advantages of off the job training (2)

A
  • Workers learn latest methods and techniques

- Does not disrupt the production of other workers

47
Q

Disadvantages of off the job training (2)

A
  • Can be expensive

- Worker does not produce any output during training

48
Q

Methods for reducing the size of the workforce (4)

A
  • resignation
  • redundancy
  • retirement
  • dismissal
49
Q

Reasons for downsizing the workforce (3)

A
  • Fall in demand for the product the worker produces
  • New technology automates the work that workers do
  • If business relocates
50
Q

Methods for deciding which workers to make redundant (4)

A
  • Last in first out method
  • How productive workers are
  • Days that workers were late/absent in the past year
  • Age of workers
51
Q

Legal controls over employees (5)

A
  • Contract of Employment
  • unfair dismissal
  • discrimination
  • health & safety
  • legal minimum wage
52
Q

Contents of a Contract of Employment (9)

A 
Name of employer
Name of employee
Date of commencement of contract
Amount employee will be paid
Number of hours employee is expected to work
Job title & main responsibilities
Number of days of holiday
Period of notice
Grievance and disciplinary procedure
53
Q

Benefits of a contract of employment (3)

A

Removes any misunderstanding
If worker breaks terms of contract = dismissal
If employer ignores any terms = legal action

54
Q

Define internal communication

A

where employees communicate with each other, upwards, downwards or horizontal

55
Q

Define external communication

A

communicating with external stakeholders, not a part of organisation

56
Q

Define communication media

A

the methods used to communicate a message

57
Q

Effective communication (4)

A

> Message is sent using correct communication media
Message is sent to & received by the correct person
Receiver understands message
Receiver provides feedback to sender to confirm they have received & understood message.

58
Q

Benefits of effective communication (6)

A

Reduces risk of mistakes
Faster decision making
Quicker responses to market changes
Improves coordination between departments
Improves motivation and morale of workforce
Improves customer relationships

59
Q

Methods of communication

A
  • oral
  • written
  • visual
60
Q

Advantages of oral communication (4)

A

Quick
2 way communication 🡪 feedback
Personal contact
Language can be altered

61
Q

Disadvantages of oral communication (3)

A

No way of know if everybody is listening
No permanent record
Can cause distortion

62
Q

Advantages of written communication (4)

A

Permanent record
Can be looked at more than once
Quick and cheap way to communicate with a great number of people
Message can’t be altered

63
Q

Disadvantages of written communication (5)

A 
One way 🡪 no feedback
Not easy to check if message was received
No body language
Time consuming
Letter can be too long or complex
64
Q

Advantages of visual communication (4)

A

Greater impact than spoken or written word
Can simplify complex data
Often easier to understand than words
Creates interest

65
Q

Disadvantages of visual communication (3)

A

No feedback
Can be difficult for some people to interpret
Some detail might be lost

66
Q

Choosing the best method of communication (9)

A 
Urgency of message
Length and complexity of message
Number of receivers
Distance between sender and receiver
Importance of receiving message at the same time
Cost of media
Importance of having a permanent record
If message requires discussion
How confidential the message is
67
Q

Main causes of communication barriers (6)

A 
> Channel of communication
Wrong medium
Language is too complex
> Senders and receivers
Lack of trust
Demotivated 🡪 not listening properly
> Physical environment
Noise
Distance
68
Q

Problems caused by communication barriers (6)

A 
Tasks not completed/completed incorrectly
Reputation of business damaged
Workers morale and motivation falls
Higher risk of accidents
Poor sales
Recruitment and selection problems
69
Q

How to remove communication barriers (6)

A

Use appropriate language
Keep channel of communication as short as possible
Sender must insist on receiving feedback
Use appropriate medium
Physical barriers (noise) should be removed
Management must build a culture of trust and respect between employees

70
Q

Reasons communication within large business is difficult (4)

A

No direct contact
Opportunity for feedback limited
Too many people to inform
Work at different times (shift workers)

71
Q

Reasons for using bonuses to pay staff (5)

A 
Industry norm
Motivation
Performance related / hit targets / recognition
Can help increase output
Retention of workers / loyalty
72
Q

Define organisational structure

A

refers to levels of management and division of responsibilities within an organisation and the relationships between them

73
Q

Reasons managers/workers meetings benefit the business (6)

A

interchange of ideas
better understanding of other people’s points of view/opinions
improves communications
increases sense of unity of purpose and motivation
better decision-making
Problem-solving

74
Q

Define chain of command (ms)

A

structure within an organisation through which orders are passed down from senior management to the lower levels of management

75
Q

Disadvantages of a wide span of control (5)

A

difficult to control so many people = less work done
communication problems as too many subordinates to inform/ask = harder to get feedback about work + messages lost
workers may not have skills to cope with extra responsibility = more mistakes
supervisors might not have the right skills to manage so many people
fall in productivity as hard to motivate so many people

76
Q

Define job description

A

Document that outlines the responsibilities and duties expected to be done by someone employed to do a specific job

77
Q

Features of a person specification (5)

A 
Qualifications
Experience
Skills
Personal qualities
Age/gender
78
Q

Issues of business growing too quickly (10)

A

High demand + growing quickly = expand to meet customer requirements
Depends on objectives of business
Can business afford to pay costs of expansion
Management issues
Recruitment problems
Finance issues
Diseconomies of scale
Quality may suffer in rush to meet demand
Sales could fall as quickly as they had risen
Problems of excess stock

79
Q

Define on-the-job training

A

Training that involves watching more experienced worker doing job in workplace.

80
Q

Define autocratic management style

A

decisions are made by the management without consultation and discussion

81
Q

Disadvantages of one way communication (3)

A

No feedback = unsure whether message was received & understood
No new ideas generated internally, as workers aren’t encouraged to do so
Wider gap between management/employees = tension & mistrust

82
Q

Reasons to ignore health & safety (7)

A

Legislation incurs costs / they don’t have to spend money
Management doesn’t care about employee welfare
Laws not enforced
Cheaper to pay fines
To increase production
Workers can be easily replaced
Some countries do not have laws for health and safety

83
Q

Benefits of an organisational chart (5)

A

Clear structure so everyone knows their roles
Clear chain of command = everyone knows who to report to + orders passed effectively between directors and employees
Can show where possible problems of control/communication might be
Helps retention of workers
Allows for effective delegation

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