Theme 2 - People in Business Flashcards

1
Q

What is communication?

A

The process by which a message or information is exchanged (sent) from a sender to a receiver

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2
Q

what is internal communication?

A

Communication between people within the business

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3
Q

what is external communication?

A

Communication between people outside the business

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4
Q

what are the 3 different directions of communication?

A
  • horizontal
  • downwards
  • upwards
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5
Q

describe downwards communication in a business

A

this is when important messages or business decisions are passed down from the manager to the subordinate (the person beneath the manager) to the other workers in the business. this does not allow for feedback and if there are many levels to the business, the original message might get distorted

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6
Q

what is upwards communication in a business?

A

Upwards communication is when a message or feedback is passed up from the subordinates or workers up to the managers. Therefore, this allows for staff’s involvement and contribution to business decisions.

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7
Q

what is a horizontal communication in a business?

A

Horizontal communication is when staff at the same level in an organisation can communicate freely. Ideas + opinions can be contributed informally or formally

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8
Q

what is formal communication?

A

Formal communication is when people can communicate using recognised channels of communication e.g. emails, letters, telephone calls

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9
Q

what is informal communication?

A

Informal communication is communication that takes place outside formal communication. For example, a conversation in the corridor or at social events

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10
Q

what are the ways that employees/employers communicate in the workplace? are they informal or formal methods of communication?

A
  • emails (formal)
  • face-to-face conversation (informal)
  • phone call (informal)
  • notice boards (formal)
  • teams/chat apps (informal)
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11
Q

what are the advantages of using a face-to-face conversation to discuss ideas in the workplace?

A
  • it is quick and easy
  • direct, with a fast response
  • people tend to feel more comfortable in person
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12
Q

what are the disadvantages of using a face-to-face conversation to discuss ideas in the workplace?

A
  • details can be easy to forget
  • can be inconvenient
  • can be boring or long
  • there is no proof of the conversation
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13
Q

what are the advantages of using emails to discuss ideas in the workplace?

A
  • it is direct and can easily get important points across
  • is a cheap and easy way to communicate with people internally and externally
  • there is proof of the conversation
  • can be easily shared
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14
Q

what are the disadvantages of using emails to discuss ideas in the workplace?

A
  • there is a higher likelihood of having a delayed response
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15
Q

what is an advantage of using notice boards to discuss ideas in the workplace?

A
  • it is effective for reminders
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16
Q

what is a disadvantage of using notice boards to discuss ideas in the workplace?

A
  • messages can be overlooked
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17
Q

what are the advantages of using teams/chat applications to discuss ideas in the workplace?

A
  • people are easier to reach
  • more likely to have faster replies for urgent reminders, as it enables for fast and real time communication
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18
Q

what are the disadvantages of using teams to discuss ideas in the workplace?

A
  • messages can be hard to keep a track off
  • can be irrelevant
  • can lead to misunderstandings and misinterpretations
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19
Q

what are the advantages of using phone calls to discuss ideas in the workplace?

A
  • it is direct and easy
  • Information is transferred quickly leading to higher efficiency
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20
Q

what are the disadvantages of using phone calls to discuss ideas in the workplace?

A
  • can be irrelevant to the business since it is an informal method of communication
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21
Q

what are the advantages of using video calls/zoom to discuss ideas in the workplace?

A
  • Video calls allow people in different locations to connect
  • it is a direct method of communication
  • Meetings can be set up relatively quickly
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22
Q

what are the disadvantages of using video calls/zoom to discuss ideas in the workplace?

A
  • tends to be glitchy, which limits effective communication
  • Calls between different time zones can be difficult to organise for international firms
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23
Q

what are some barriers to communication?

A
  • language
  • confiscation or restrictions of devices/social media
  • workers not checking emails
  • unclear messages that can cause misunderstandings
  • people not listening
  • network issues or glitches
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24
Q

what is the issues of barriers to communication?

A

Barriers to communication hinder the flow of information, leading to potential misunderstandings, conflicts and inefficiency

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25
how is language a barrier to communication?
The use of certain terminology can be misinterpreted and can be confusing or staff in businesses that operate across international borders may speak different languages
26
how is the restriction of using social media a barrier to communication?
the restriction of using social media in a business can cause a reduction on internal and external communication in the workplace, which can reduce the speed of operations of the business being done as workers are not allowed to communicate
27
how is people not listening a barrier to communication?
this is a barrier to communication because if a person isn't paying attention, they could miss key information and this can lead to miscommunications, which reduces the efficiency of the employees overall
28
how is people not checking emails a barrier to communication?
this is a barrier to communication because if people are not checking their emails, they might miss urgent messages and this can reduce efficiency and productivity
29
how are unclear messages a barrier to communication?
unclear or ambiguous messages can be misinterpreted and misunderstood into a different meaning, which can confuse people and lead to more mistakes
30
How are network issues/glitches a barrier to communication?
Technical issues such as poor internet connections, malfunctioning equipment or unfamiliarity with platforms can slow communication
31
what is a subordinate
A sub-ordinate is a person beneath the manager in the organization
32
what is delegation?
Delegation is when a manager gives authority to a subordinate to carry out a specific task
33
what is the span of control?
The span of control is how many people a manager is responsible for
34
what is the chain of command?
The chain of command is how instructions are passed down in a business
35
why is good communication important?
- it improves efficiency of workers - reduces costs - reduces mistakes and misiterpretations - promotes customer satisfaction
36
how does effective communication improve the efficiency of workers?
Employees will be more productive when they fully understand tasks and processes, which will increase their speed and productivity
37
how does effective communication reduce costs?
Good communication allows managers and employees to minimise mistakes, which reduces costs
38
how does effective communication promote customer satisfaction?
Better and regular communication with customers will increase sales as customers build a relationship with the brand
39
what is recruitment?
Recruitment is the process of attracting and identifying potential job candidates who are suitable for a particular role
40
why is it important to recruit well - what should new employees have?
- the employees should be reliable, trustworthy and responsible - ensures a positive reputation as employees are a reflection of the company - they should be experienced and good at their job - they should have good teamwork and collaboration skills - financial qualification - time and money is being wasted if the company needs to hire and train a new employee
41
what are the types of employment?
- Full-time - Part-time - Job share - Casual - Seasonal - Temporary
42
what is full time employment?
It is an employee who works for more than 35 hours per week and is spending a full working day and week at a certain company.
43
what are the advantages of full time employment?
- higher job satisfaction - stronger level of employee loyalty as they are committed to their job - higher rates of productivity
44
what are the disadvantages of full time employment?
- the company has to pay extra money for full-time employees - employees are more prone to stress
45
what is seasonal employment?
It is a temporary employment that happens around the same time every year and can span for a few weeks to a few months. Companies can hire these employees for extra help during the busiest times of the year
46
what are the advantages of seasonal employment?
- it is a good side hustle that employees can use to get extra money - it is more cost effective then hiring full time employees, they only need to pay their wages for when they truly need them - higher rates of efficiency
47
what are the disadvantages of seasonal employment?
- they may be low paying or require long hours - there is no job stability so employees can get easily fired
48
what is casual employment?
It is a temporary employment where employees work at a company on a as-needed basis, or if there is an extended demand. there is no fixed hours or dates in which employees have to work and there are no contracts
49
what are the advantages of casual employment?
- there is a higher flexibility where employers can hire employees when - there is demand for them - saves costs because a salary or benefits like a pension or insurance is not needed - employees can use these job opportunities to help build skills and build a good CV, leading to better job opportunities
50
what are the disadvantages of casual employment?
- since these employees are just temporary, they will not be as committed to working, reducing the quality of work - there is a higher likelihood of having an unstable income and because there is no contract, they can get fired at any point
51
what is temporary employment?
Temporary employment is a work arrangement where an employee is hired for a fixed period or specific project, with set hours and a contract
52
what are the advantages of temporary employment?
- there is a higher flexibility where employers can hire employees when there is demand for them - can suit different people like students, freelancers or those with other commitments - employees can fill in the gaps with specialized skills
53
what are the disadvantages of temporary employment?
- since these employees are just temporary, they will not be as committed to working, reducing the quality of work - employees will get let go as soon as their contract ends
54
what is part time employment?
A type of employment where an employee works for fewer hours a week than a full-time employee.
55
what are the advantages of part time employment?
- offers work-life balance - allowing employees to prioritize personal life and work commitments. - Part-time employment may be more flexible and can be adjusted subject to employee availability and employer requirements
56
what are the disadvantages of part time employment?
Part-time work typically comes with reduced pay compared to full-time positions
57
what is job share?
This is a form of flexible working which enables two employees to share the responsibilities and duties of a single full-time job.
58
what are the advantages of job share employment?
- Improved work-life balance - Reduced absences - Enhanced communication skills.
59
what are the disadvantages of job share employment?
If job sharers have different work styles, it can affect productivity. Since the role is shared, each person works fewer hours and earns less than a full-time salary, thus reducing the overall income that they make
60
what is internal recruitment?
When somebody gets promoted or when somebody gets a different job whilst working in that **same company**
61
what is external recruitments?
hiring an employee from outside the company
62
what are some benefits of internal recruitment?
- It reduces the time and effort taken to hire somebody new - The company saves money on getting a recruitment company to find somebody new - reduced hiring costs and less training required - It improves employee's engagement and satisfaction with the company
63
what are some drawbacks of internal recruitment?
- Lack of fresh talent and innovation in the company - limits the skill diversity - There can be some resentment and conflict with other employees - increased frustration and can damage relationships - Limited workers or options
64
what are some benefits of external recruitment?
- New skills and ideas - More diversity - Unlimited workers or options
65
what are some drawbacks of external recruitment?
- Would have to do induction training and can take time for them to adjust - Increased on training or hiring costs - Longer hiring process - can be time consuming
66
what is a person specification?
A person specification are characteristics that are needed in a candidate to actually get the job which is **posted by the company**, such as degrees, qualifications or any skills that are needed for the job
67
what are the stages in the recruitment process?
1. Define 2. Source 3. Advertise 4. Receive applications 5. Selection
68
What is define in the recruitment process
Defining means that the business has acknowledged that there is a vacancy and define the characteristics of the ideal candidate, which is done by positing the job description and person specification.
69
what is source in the recruitment process
Source is when the business will identify whether applicants will be recruited internally or externally
70
what is advertise in the recruitment process
Advertise is when businesses will advertise the vacancy and try to reach potential candidates using recruitment activities e.g. social media outreach, job fairs, job advertising (like posters), recommendations from current employees
71
what is receive applications in the recruitment process
This is when businesses collect all the CV's and cover letters that they received, and will then create a shortlist out of those candidates to interview them
72
what is selection in the recruitment process
Selection is the process of choosing the best candidate, which happens through selection activities, which is when CV's are reviewed and interviews and assessment tasks are conducted.
73
what is the goal for recruitment and selection?
Recruitment: to create a pool of qualified candidates who can be considered for the role Selection: to choose the best candidate for the job
74
What documents do businesses use in the recruitment process?
1. person specification 2. job specification 3. Curriculum Vitae (CV) 4. application form
75
what is a job description?
A job description is about the business and the basic details and responsibilities about that job, e.g. the location of the company, who the manager is, what work will you be responsible for, pay
76
what is a person specification?
A person specification are characteristics that are needed in a candidate to actually get the job which is **posted by the company**, such as degrees, qualifications or any skills that are needed for the job
77
What is a curriculum vitae?
A curriculum vitae (CV) is a document provided by the applicant of their qualifications, interests and educational and work experience
78
what is an application form?
Application forms contain a series of questions to which all candidates must respond and fill in, such as contact details, work experience, qualifications, interests. most of these forms are completed online
79
what are job adverts?
Job adverts help to advertise and promote the vacant role and can be found on the internet, or can be a poster
80
what is so important about recruitment documents?
The recruitment documents are used throughout the process and play a very important part in helping the business choose the right candidate for the role
81
what happens if the recruitment documents aren't detailed?
Without detailed recruitment documentation, the candidates may lack the appropriate skills or qualifications needed for the role, or be misinformed about what the role consists of
82
what is a shortlist?
A shortlist is a list that a company has for the certain applicants that they like, they also meet the role criteria and for whom the business would like to find out some more information about them at interview
83
why do business hire employees from interviews and assessment tasks?
People can lie about their abilities, so companies now don’t just hire from interviews but also their skills, which can be shown in an assessment task
84
what are some benefits of an application form?
- A benefit of using an application form is that all applicants provide identical information in the same format so it is easy to compare with each other - Another benefit is that it is also catered to ask all the questions that the business wants to find out and the business just finds out what they want to
85
what is a drawback of an application form?
A drawback of using an application form is that limited information can be expressed by candidates so key desirable attributes may not be identified
86
what is a benefit of using a CV?
More applicants may apply because it is easier for candidates to prepare and adapt a standard CV
87
what is a drawback of a CV?
comparing different formats and content of CVs is more time consuming and lengthens the recruitment process
88
what is an interview?
A formal meeting in which an applicant is asked questions to determine their suitability for a particular role. The interview process should lead to a suitable candidate being appointed
89
What aspects do legal controls effect in the workplace?
Legal controls have passed laws in order to protect the rights of employees and to make sure that they are not getting exploited, legislation controls aspects such as: - Pay - Hours and conditions of work - Health and Safety - Discrimination - Rights to paid and unpaid absence (time-off) - Dismissal
90
what are legal controls in businesses?
Legal controls are the laws and regulations passed by governments that require businesses to conduct their behaviour in a particular manner
91
what are the names of these laws?
- Health and Safety at Work Act - Right to a Minimum Wage - National Living Wage - The Equality Act - Protection against Unfair dismissal - Contract of employment - Employment Law
92
what is the Health and Safety at Work Act?
Employers must ensure that they safeguard all their employees' heath, safety and welfare at work. Employers must implement health + safety measures so that the company isn't liable for any accidents or violations
93
what is the Equality Act?
This piece of law says that employees can't be treated differently in the workplace and shouldn't be discriminated on the basis of any of the following factors: age, disability, gender, race, religion, pregnancy, sexual orientation. This ensures that nobody should be discriminated against and that everyone gets the same opportunities
94
what is the employment law
Laws protecting the rights of employees which must be obeyed by the employers. Businesses must provide a minimum wage to make sure that people have a stable income, to protect the employee
95
What is the Right to a Minimum Wage act?
A minimum wage is an hourly rate of pay which is set by the government. All employees above a certain age must receive at least this rate of pay
96
What is the National Living Wage act?
The Living Wage Act is a suggestion that the government gives to employees, as it is more than the minimum wage, which is a requirement. The Living Wage isn't a requirement but is good for employees since they would get paid enough to live. It is more expensive for businesses
97
what is the contract of employment
a legal document stating hours, rate of pay, duties and other conditions under which a person is employed. It is there to make the person aware of their responsibilities so that the employee can decide whether they want to join or not. This is good for employers, if anything happens then they aren't liable for it since there is a contract.
98
What is Protection against Unfair Dismissal? why is this bad for companies?
Dismissal is when an employer ends an employee's contract of employment with the business. Sometimes, employers can fire employees for no reason so they have to have proof to dismiss an employee, due to it being unethical. this protects the employee's right to not get fired for no reason. This is bad for companies, if they don't want to keep somebody due to productivity decreasing, it can be really hard to let go of people
99
what is training?
training is a process that helps employees learn the necessary skills to perform their jobs effectively.
100
why is being a well-trained workforce good?
- it increases the likelihood of productive staff, as employees are more likely to work harder and enthusiastically at something that they are good at - Skilled and confident staff are likely to be capable of taking on new workplace challenges - the staff are likely to be more loyal to the company as employees feel like they are better at their job and would want to continue developing
101
what are the 2 types of training?
- on the job training - off the job training
102
why is training important?
Both new and existing staff need to be trained well, where training can teach new skills and can lead to the development of existing skills
103
is some training given for legal reasons?
Yes, as Food safety regulations require workers to be trained in the safe handling of ingredients - Businesses must ensure that some workers have first-aid training (health + safety) - Employees working with hazardous chemicals must receive appropriate training (health + safety)
104
what is induction training?
Induction training is usually delivered as soon as possible after new workers join a business. It introduces employees to the organisation, its culture, policies, procedures and their job roles and responsibilities
105
what is on the job training?
On-the-job training takes place while employees are working in their job roles and settings. Employees learn skills and knowledge from colleagues while performing their job duties
106
what are the benefits of on-the-job training
- Employees learn new skills and knowledge while performing their job duties - Training is tailored to the employee's specific job role and responsibilities - Training is often practical and relevant to the employee's job duties - Can be cost-effective as it takes place during working hours
107
what are the drawbacks of on-the-job training
- Employees may make mistakes while learning - trainers could pass on bad habits which may impact productivity and quality - Can be disruptive to the workplace as it requires the trainer to devote time to training the employee
108
what is off-the-job training?
off-the-job training takes place away from or outside of the workplace. It can be in the form of workshops, seminars, conferences or online courses
109
what are some benefits of off-the-job training?
- Employees learn new skills and knowledge outside of the workplace, which can bring fresh ideas and perspectives to the workplace - Training can be tailored to the employee's specific needs and interests - Training can be used as a reward or incentive for high-performing employees - Can be cost-effective if training is provided online or through webinars
110
what are the some drawbacks of off-the-job training?
- Can be expensive to organise, especially if travel and accommodation are required - Employees may miss work while attending training, which can impact productivity - The training may not be directly applicable to the employee's job role or the needs of the firm
111
What will the success of training depend on for both types of training?
It depends on the type of training as well, as the success of on-the-job training is dependent on if the other employees train the new ones well and don't pass on bad habits. The success of off-the-job training depends on if the training is effective and well planned
112
what is motivation?
Motivation is the willingness (desire) to complete a task
113
what are some financial motivators?
- bonus - commission - promotion - fringe benefits - renumeration
114
what are some non-financial motivators
- delegation - **job rotation** - **job enrichment** - **autonomy**
115
what is time rate? what is a benefit and drawback? is it financial or non-financial?
time rate is when employees get paid for the time that they work + simple for those who pay them - doesn’t encourage those to work at the best ability as they are just getting paid for the amount of time that they work for
116
what is piece rate? what is a benefit and drawback? is it financial or non-financial?
a piece rate is when employees get paid for the amount of products that they sell or produce. it is a financial motivator + creates motivation since more money can be earned at a faster speed - The quality might be bad or rushed
117
what is a bonus? what is a benefit and drawback? is it financial or non-financial?
a bonus is when employees get paid an additional amount as a reward for good work. it is financial + creates motivation to do better work and earn more money - The business loses money and bonuses can create tension between employees
118
what is delegation? what is a benefit and drawback? is it financial or non-financial?
Delegation is when a person in the company who is higher up gives a task to an employee. it is non-financial + employees feel valued by higher-ups - Employees don’t want any extra work
119
what is commission? what is a benefit and drawback? is it financial or non-financial?
A commission is an additional amount of money that is paid to employees who sell products and services, where employees get rewarded for a specific job done. it is financial. + if employees know they will get more money, they will be more empowered to work - It won't always be the same commission earned, making it stressful for employees
120
what is job rotation? what is a benefit and drawback? is it financial or non-financial?
Job rotation is the practice of moving employees between different tasks to promote experience and variety. it is non-financial + reduces the work pressure since tasks are spread out + it also can improve the quality of work since employees would not get bored - Might need training to do specific things - some employees might not like shifting jobs, they might want to focus on one job that they are good at
121
what are fringe benefits? what are some benefits and drawbacks? is it financial or non-financial?
Fringe benefits are extra benefits earned by employees from their company (company car, gym membership). this is financial + for employees, certain things will be cheaper and would pay for less, saves money + increases motivation, employees would be more committed and happy with the business if they are giving them benefits - employees can't exchange the benefits for money - is more expensive for the business
122
what is a promotion? what are some benefits and drawbacks? is it financial or non-financial?
Promotion usually demands a higher level of responsibility from an employee in the job role, where higher pay is usually offered to reflect the increased responsibility. this is financial + the employee gains more money and they get more responsibility, leading them to feel more important in their role + motivates employees because they want more money + responsibility - more responsibility = more stress
123
what is renumeration? what are some benefits and drawbacks? is it financial or non-financial?
Remuneration is the money employees are paid in return for working in a business. this is financial + Many employees are motivated by remuneration, and pay rises can often make employees feel more motivated. - The more money spent on employees, the more expensive it is for the company
124
what are non-financial incentives (motivating factors)?
Non-financial incentives are rewards that are not directly related to money. These incentives may be intangible and include methods that lead to recognition, praise or job satisfaction
125
what is a financial incentive (motivating factors)?
Financial incentives are rewards or payments given to employees in return for their labour or improved performance
126
what is autonomy? what are some benefits and drawbacks? is it financial or non-financial?
Autonomy is when an employee has a choice on how they do the task, this means that an employee has the ability to make more decisions about their role. This is non-financial + they have freedom, they will perform better since they can do tasks better + employees will feel valued and trusted by employers - Employees might take advantage of this and might not do the work as well
127
what is job enrichment? what are some benefits and drawbacks? is it financial or non-financial?
Job enrichment is when employees gain more responsibility and it also involves enhancing employees’ roles through providing a wider range of tasks for them to complete during the working day. this is non-financial + employees feel more important and they know that they are better at what they do, increasing productivity and staff retention (keeping employees in the business) -More workload and higher pressure
128
what are the 3 types of motivation theories?
- Taylor's theory of Motivation - Herzberg's theory of motivation - Maslow's theory of motivation
129
what is Taylor's theory of Motivation?
Frederick Taylor developed his own theory that focusses on breaking down large tasks into smaller, manageable ones and giving employees clear instructions and training. He believed in using financial methods of motivation on employees, where he thought that money was the only thing that motivated employees
130
what did Taylor believe was the best way for employees to work?
- ensure the most efficient ways of working are used - pay based on results - standardize the work process (detailed procedures and instructions are written, which workers will follow) - workers are trained to preform only one task, which they become skilled at
131
what are the advantages of using Taylor's theory?
- increased efficiency lowers costs - more products can be produced in a shorter time span. - mistakes are reduced since clear instructions are given
132
what are the disadvantages of using Taylor's theory?
- employees might get bored by working in a machine-like, repetitive environment, reducing productivity - an overfocus on money and efficiency reduces employee satisfaction with the company - businesses who follow Taylor's approach are likely to exploit their employees by underpaying them and overworking them
133
what is Herzberg's theory of motivation?
Herzberg's two factor theory suggests that 2 factors determines employee motivation: **hygiene** and **motivators**
134
describe the hygiene factor in Herzberg's theory. are they financial or non-financial? what are some examples of this?
The hygiene factors in this theory are the bare minimum factors and basic expectations that employees have for their workplace, where if they don't have these factors they will be unable to work or be motivated at all. This can include financial or non-financial factors. examples include: - workplace conditions and policies - relationships - safety, security - pay
135
describe the motivators factor in Herzberg's theory. are they financial or non-financial? what are some examples of this?
Motivators in this model are aspects of a job that will actually motivate and satisfy employees and are non-financial. Examples include: - recognition - achievement - responsibility
136
what are some advantages of Herzberg's theory of motivation?
- shows that people need and expect to get paid - increases team and employee satisfaction - employee retention is more likely to be long term
137
what are some disadvantages of Herzberg's theory of motivation?
- some people might actually be motivated by pay
138
what is Maslow's theory of motivation? Are they financial or non-financial? What are the tiers?
Maslow's theory outlines a hierarchy of human needs that must be met for employees to reach their full potential. According to Maslow, people needed to meet basic needs at work and then achieve higher levels to feel motivated. This pyramid has a mix of financial and non-financial needs. The 5 tiers of these needs are (lowest to highest): 1. physiological needs 2. safety and security needs 3. love and belonging needs 4. esteem needs 5. self-actualisation needs
139
describe the lowest tier in Maslow's hierarchy of needs. what are some examples?
**Physiological needs** are basic necessities that are needed to work and can be provided by a business. Examples include: - food - water - shelter - comfortable working environment - adequate breaks - pay - sleep
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describe the 2nd tier in Maslow's hierarchy of needs. what are some examples?
**Safety and Security needs** ensure that employees must feel safe and secure in their working environment, this includes job security, which can be provided by a business to comfort employees Examples include: - security of body - security of employment - contracts - constant salary - safe working conditions - security of health
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describe the 3rd tier in Maslow's hierarchy of needs. what are some examples?
**Love and belonging needs** is when employees feel valued, included and appreciated in a business. Businesses can encourage teamwork and generate a sense of community and belonging within the workplace Examples include: - family - friendship - love
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describe the 4th tier in Maslow's hierarchy of needs. what are some examples?
**Esteem needs** are how an employee feels about themselves, they should feel confident about their role. Businesses can provide recognition for employees' accomplishments, delegation for tasks and promotions to employees Examples include: - achievement - respect of/from others - confidence - self-respect
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describe the highest tier in Maslow's hierarchy of needs. What are some examples?
**Self-actualisation needs** is an intrinsic need (internal confidence), where businesses should encourage and give opportunities for employees to meet personal goals and feel internally confident to reach their full potential. Examples include: - creativity - problem solving
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what are the advantages of Maslow's hierarchy of needs
- meeting employee needs establishes a positive working environment, leading to increase satisfaction and loyalty - employees who feel valued and supported in their job are more likely to perform better
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what are the disadvantages of Maslow's hierarchy of needs
- some people might prioritise some aspects more than others so it is hard to cater to everybody - meeting individual needs can be expensive, like expensive perks like a company car - Self-actualization is never permanently achieved as businesses must constantly offer opportunities and challenges for employees
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what are organisational designs?
Organisational structures illustrates the design and layout of a business' roles and responsibilities
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what is a hierarchy?
A hierarchy refers to the levels of authority within an organisation, showing the ranking of employees in an organisation, where the higher position in the hierarchy, the more authority and power it holds
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what is the chain of command (organisational structure)?
The route by which instructions and communications flow from the top to the bottom of a business. It explains who is answerable to whom.
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what is the span of control (organisational structure)?
The span of control is how many employees one manager is responsible for
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what does it mean to have a **wide** span of control?
A wide span of control is when a manager is responsible for many employees, e.g. when a manager is responsible for 7 employees
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what does it mean to have a **narrow** span of control?
A narrow span of control is when there are less employees assigned to a single manager, e.g. when a manager is assigned to 2 employees
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what are the advantages of a **narrow** span of control?
- better communication - it is easier to communicate with less employees - employees can gain more help and guidance from the manager, improving employee satisfaction as they would get more attention - managers can connect with employees better as they have more time and energy to spend time with employees
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what are the disadvantages of a **narrow** span of control?
- if more employees join the company, this will lead for the company to hire more managers, which is time consuming and expensive - there is a higher likelihood of arguments as there is a higher stress and pressure for employees as their managers watching them more
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what are the advantages of a **wide** span of control?
- information and instructions can travel faster between employees because fewer layers are involved - the managers are responsible for more people, so there is less need for as many managers, reducing recruitment and training costs - managers will tend to delegate more tasks to employees, leading them to feel more important as they are trusted by managers
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what are the disadvantages of a **wide** span of control?
- managers would not be able to pay direct attention to employees, leading to an increase in mistakes or reduce job satisfaction - delegation allows employees to make decisions regarding their work, which might lead to inappropriate decisions being made - messages might arrive faster but the quality can be poor, leading to confusion
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what are the 4 types of structures in an organisation?
- Tall structures - flat structures - centralised - decentralised
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what are the features of a Tall structure?
Tall structures means that there are more levels of the hierarchy, so there will be a **long chain of command** and there will be a **narrow span of control** because there are more managers, therefore the managers are responsible for less people
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what are the features of a flat structure?
A flat structure means that there are less levels of the hierarchy. This means that there are less managers and workers in the company so there will be a **short chain of command** and there will be **wide span of control** because one manager would be responsible for more people
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what are the advantages of tall structures?
- there are more opportunities for promotion which can lead to greater staff motivation - there is a higher degree of supervision as each manager is responsible for a few people - there is a higher likelihood for delegation since there are more levels in the organisation
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what are the advantages of flat structures?
- the chain of command are short, making the firm more responsive to changes - the pace of decision-making is quicker - the staff working in this structure are empowered to work independently and can take on more responsibility
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what are the disadvantages of tall structures?
- the span of control is narrow and the chain of command is long, making communication slower as instructions take longer to travel through the levels of the organisation - can be expensive to run due to high wage and salary costs
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what are the disadvantages of flat structures?
- there is a wider span of control meaning that tasks must be delegated, leading to employees feeling stressed and managers feeling overstretched - less promotion opportunities, leading to the company losing staff to other organisations
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what is centralisation? give an example with JESS
Centralisation is when all of the activities, decision making and planning is all controlled by the people at the top of the business and is distributed through the chain of command. JESS would use centralization because there are many rules and procedures that they would need to follow and also many teachers have many conflicting views which would make it harder to make an effective decision.
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what is decentralisation? give an example with hospitality
Decentralization is when activities, decision making and responsibilities are divided evenly between all the employees on the behalf of the business. Hospitality would use decentralisation, where a more customer focused industry would use this because they need to make fast and the best decisions in the moment
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what are the advantages of using a centralised structure?
- There is consistency in the business and the operations and decisions are clear and controlled - the chain of command and accountability are clear, the higher ups would have to take the responsibility since they have all the control - The business will have a clear direction
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what are the disadvantages of using a centralised structure?
- It can demotivate employees since they don't have any role in any decision making - People who are at the top of the company might not be in touch with the company and might make poor decisions. Employees wouldn’t be happy because the higher-ups are not actually close to the customers - Lowers productivity since they are not involved in any decisions
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what are the advantages of using a decentralised structure?
- Improved employee motivation since they feel that they can make a difference in the business - Employees are likely to be happier since they know what the company knows due to working so closely with it and if they make decisions, they are likely to make better decisions for the company - More responsibility for employees - more likely to get a promotion since the business knows that employees are capable of making effective decisions
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what are the disadvantages of using a decentralised structure?
- Some of the managers lower down the company can make ineffective decisions that might reduce sales or overall business performance - Consistency is not achieved across the business since the decisions can change many times due to having too many managers - Accountability is unclear since many employees might have taken part in that mistake and might be responsible
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what are the 4 functional area within a business?
- Human resources - finance - marketing - production
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what is the role of HR areas in business? what do they focus on?
Human resources manages workers in the organisation and ensures their welfare, where they focus on issues like: - industrial relations (the relations between employers and employees), - health and safety - recruitment and selection - dismissal + unfair dismissal - training
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what is the role of finance areas in business? what do they focus on?
Employees in finance records money coming into and going out of the business, collecting debts and paying bills, where they focus on aspects like: - wages and salaries - cash-flow forecasting - budgets - accounting
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what is the role of marketing areas in business? what do they focus on?
Marketing areas finds out the needs and wants of existing and potential customers, where they plan suitable products and their distribution, where they focus on: - market research - product planning - pricing - advertising - customer service - public relationship (the brand/reputation of the business) - packaging and distribution
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what is the role of production areas in business? what do they focus on?
Production areas in a business are responsible for making the product or providing the service sold by the business. they focus on aspects like: - manufacturing the product - designing new products - quality control - stock control (making sure that the appropriate amount of stock is maintained)
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what is a functional area in a business?
A functional area is a group of workers with similar skills and expertise who carries out a specific organisational role, where without these roles, the business wouldn't be successful as functional areas need to work together effectively to achieve business aims and objectives.
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why is each functional area important?
**HR** maintains the needs of the employees **Finance** records anything to do with money **marketing** is responsible for making the business' products and services seem attractive to consumers **production** creates the products and services sold