Theme 1 - Managing People

Question 1

Taylor’s scientific management theory

Answer 1

• Through Taylors scientific management theory staff are given effective training to do a very specific job
• This means they will become more skilled in that given area
• This will mean that they will be able to produce more and will be motivated to do so if they are paid by for each item they produce (piece rate)
• Leading to an increase in output and productivity as workers need to increase this to be paid more.
• Leading to fixed costs being spread over more units
• Lower unit fixed costs

Question 2

Mayo’s management theory

Answer 2

• Through having more managers there will be more supervision
• This will lead to employees feeling like their actions are valued as the manager is showing an interest in their work
• This is argued by mayo to be an effective motivation =al factor as workers produced more when watched
• Increase productivity
• Increase output
• Leading to fixed costs being spread over more units
• Lower unit fixed costs

Question 3

What are the stages of Maslow’s hierarchy of needs

Answer 3

1. Self actualisation - More control over job, success
2. Esteem needs - Status, power trust, recognition
3. Love and belonging/ social needs - Employees feeling valued and trusted
4. Safety - safe working environment
5. Physiological - Basic needs like food and shelter

Question 4

Maslow hierarchy of needs

Answer 4

• Job enrichment give employees greater responsibility by increasing the complexity of tasks they are called upon to complete
• Enrichment is likely to improve employees levels of motivation as they will feel trusted to complete challenging tasks
• This will mean that employee esteem needs are met according to Maslow’s hierarchy of needs
• This may ensure that staff become more satisfied in their job a higher level of job satisfaction will improve staff members wellbeing
• Therefore, through job enrichment and improving job satisfaction it is likely to reduce labour turnover
• A lower labour turnover will then ensure that the business does not expect to experience significant recruitment costs

Question 5

Herberg 2 factor theory LOA

Answer 5

• Business can make investment into working conditions
• This will mean that they can (choose relevant factor from case)
• This will help meet one of Herzberg’s hygiene factors
• This will provide a foundation in which to motivate staff by other factors such as employee recognition

Question 6

Autocratic leadership - benefit

Answer 6

• Autocratic leadership means that all decisions are made by leader
• No delegation or consultation
• Ensures quick decision making
• Business is able to quickly adapt to changing trends
• Identify example of trends from extract
• Increased differentiation/low costs – explain how it links to business

Question 7

Autocratic leadership - drawback

Answer 7

• Autocratic leadership means that all decisions are made by leader
• No delegation or consultation
• Employees don’t feel valued by organisation
• As they are not included in decision-making process
• Esteem needs not met (Maslow)
• May become demotivated
• Explain drawback of demotivated workforce, relevant to business in extract

Question 8

Paternalistic leadership - benefit

Answer 8

• Paternalistic leadership means leaders will consider employee welfare when making decisions
• Whilst still maintaining full control of decision making process
• This means that employees esteem needs are met (Maslow)

Question 9

Paternalistic leadership - benefit

Answer 9

• Paternalistic leadership means leaders will consider employee welfare when making decisions
• Whilst still maintaining full control of decision making process
• This means that employees esteem needs are met (Maslow)
• As their welfare is important to leader, employees will feel valued by organisation
• Increasing employee motivation
• Explain importance of motivated workforce
• Link to relevant benefit to business.

Question 10

Paternalistic leadership - drawback

Answer 10

• Paternalistic leadership means leaders will consider employee welfare when making decisions
• Employee input may be listened to but decision making still controlled by leader
• This may mean that ideas (be specific to business) suggested by subordinates ignored by leader
• Reduction in innovation by business
• Products less differentiated
• Loss of competitive advantage
• Explain drawback of this specific to business.

Question 11

Democratic leadership - benefit

Answer 11

• Democratic leadership means that leaders involve employees in the decision-making process
• This means that employees will have a greater level of responsibility and authority
• Increased responsibility will mean employee’s feel recognised by leader
• Meeting esteem needs (Maslow)
• Increasing employee motivation
• Explain importance of motivated workforce
• Link to relevant benefit to business.

Question 12

Democratic leadership – drawback

Answer 12

• Democratic leadership means that leaders involve employees in the decision-making process
• This may delay the decision-making process
• Business fails to adapt to changing trends (be specific to business)
• Loss of first mover
  advantage
• Product less differentiated
• Loss of competitive advantage
• Explain drawback of this specific to business.

Question 13

Laissez faire leadership - drawback

Answer 13

• Laissez faire leaders delegate full responsibility for decision making to employees
• This means that employees will have a greater level of responsibility and authority
• To ensure effective decision making, employees must possess necessary skills
• Hygiene factors not present (Herzberg) If not, employees may feel overwhelmed with lack of direction
• Employees become demotivated
• Explain drawback of demotivated workforce, relevant to business in question