Topic 2.1-2.2 Flashcards
Motivation
willingness of an employee to work towards a given goal. Being motivated can bring several benefits to the business:
Labour turnover
the rate at which employees leave a company and are replaced by new employees: High levels of labour turnover mean that many people are working for only a short time in any particular job
MASLOW’S HIERARCHY OF NEEDS
Physiological, safety, social, esteem, self actualization
TAYLOR’S MOTIVATION THEORY
Taylor suggested that labour productivity would improve if each employee specialized in a simple, repetitive, and easily measured task and was rewarded with more pay if they achieved production targets (money is the only factor). He believes that the extra output more than offset the extra pay, so the costs would be lower, and the profit will be higher.
HERZBERG’S TWO-FACTOR THEORY
Hygiene factors:
These are factors that will demotivate (lower motivation) if they are not present or are taken away. However, they do not increase motivation if they are increased. Examples of hygiene factors include: pay, fringe benefits (see 2.2), working conditions, supervision, relationships with co-workers.
Motivation factors
These are factors that improve motivation and productivity if they are improved or increased. Examples of motivation factors include: meaningful or challenging work; responsibility; potential for promotion; good quality training; recognition or achievement
FINANCIAL METHODS OF MOTIVATION
Wages
- time-based rates
- piece-rate system Salary
Commission
Fringe benefits
Profit-sharing
job design
Job rotation – This is where employees are moved from one task or duty to another for a short period of time to give them more experience and variety in their work.
Job enlargement – This is where employees are given a wider range of tasks to complete at the same level of work. In other words, the employee is given more variety by expanding the types of work they have to complete.
Job enrichment – This is where the employee is given a wider range of tasks at different levels, which offer more challenges. These tasks usually involve giving the employee more responsibility.
Teamwork
organizing employees into teams and give them the responsibility for completing a particular task. Sometimes they do this under instruction or close supervision (in working groups) and sometimes they do this unsupervised (in autonomous working groups).
Training
where businesses provide opportunities for their employees to learn new skills. Employees may be motivated by the possibility of career development and promotion (moving up to a higher position), and they will view learning new skills as something that will benefit them in the future.
Chain of command
how many other layers of management that person has authority or control over.
span of control
the number of employees and job roles manager is responsible for.
hierarchy
the number of levels of management in the organisation structure
Advantages of a hierarchical business structure:
- Clear management structure
- Individual roles and responsibilities clear to all inside the organisation
- Senior managers and directors are able to make all major decisions and control the organisations
Disadvantages of a hierarchical business structure:
- Communications up and down the hierarchy can take time and slow down decision making
- Managers recruited to senior positions may have limited experience and understanding of all the other functions performed in the organisations
- If senior managers take all major decisions, it can discourage other managers and employees from developing new ideas
delegation
pass the authority and responsibility to make decisions to employees lower down the hierarchy
tall structure
If a business has a long chain of command, it has a tall structure. Managers in a tall structure have a narrow span of control.
flat structure
In contrast, if a business has a short chain of command, it has a flat structure. Managers have a wide span of control.
centralised organisation
In a centralised organisation authority, responsibility and decision making is concentrated at the top of the chain of command. Managers and other employees lower down the chain of command have very little say in how the business is run.
decentralized organisation
In a decentralized organisation, a lot of authority, responsibility and decision making is delegated down the chain of command.
board of directors
is the most senior management team. Directors are elected by company shareholders (in private limited company it may be shareholders or owners of the business).
The board of directors of a company has major responsibilities. They include:
- setting business objectives
- making important financial decisions
- determining the distribution of profits to shareholders.
a managing director (MD)/ CEO
They are responsible for ensuring that the decisions made by the board of directors are carried out.
Their responsibilities include:
- appointing senior managers to help run the organization
- meeting and taking part in negotiations on major issues.
Managers
In large organisations senior managers may be heads of departments, supported by middle managers and junior managers. Managers are responsible for the day-to-day running of a functional area, department or possibly even a whole section of the business.
Managers may have responsibility for:
- motivating staff to increase their productivity
- writing reports and making presentations to directors
- setting objectives and allocating tasks to their staff (delegation, see page 36; for advantages and limitations, see kognity 2.2.2)
supervisor
A supervisor is usually regarded as the first managerial grade in an organisation structure. Many are junior managers. A supervisor will normally work alongside the small group of employees they supervise, closely managing their work on a daily basis and providing them with the training and guidance they need.
The supervisor will also be the first in line to deal with routine problems and disputes as they arise:
- organizing the repair of broken equipment
- arranging overtime work
- disciplining employees if they are late for work or cause trouble
5 management functions
Planning – Planning involves looking at the current position of the business and identifying where it wants to be, then developing a strategy for how that is going to be achieved.
Coordinating – Coordination is the process of bringing resources together to enable the business to produce goods and services.
Organizing – A good manager will make sure that they use their time effectively to complete their work. They will also organize the resources of the business as efficiently as possible to keep costs low.
Commanding – A good manager will have the respect of their workforce and will be able to direct the staff on how they are expected to perform. They will also have to do this while maintaining staff motivation.
Controlling – As well as being responsible for decision-making, managers also have to make sure that all employees are working hard and that all tasks are completed on time and are of a high quality.
Autocratic leadership
when leaders make all the decisions and do not involve the employees. Communication is one-way and delegation is not used. It is common in emergency situations where a fast decision is often needed (such as the fire service and the military).
Democratic leadership
occurs when leaders involve employees in decision-making. Communication is two-way, delegation is used, and managers encourage employees to share ideas.
- Laissez-faire
occurs when managers allow employees complete freedom in how they complete the tasks. Managers set the tasks and deadlines but completely delegate the process of completing the task to the employees and do not get involved.
collective bargaining
By forming a trade union, the members can increase their power when bargaining with management for better pay or working conditions. This process of working as a group to increase their bargaining power, rather than working as individuals, is called collective bargaining. This increases job security and improves motivation. (Can also be defined as negotiation between employer and trade unions to improve wages or other working conditions.)
Industrial disputes
happen when negotiations between employers and unions fail to end in agreement.
industrial action
organized disruptive actions to put pressure on their employers to address their demands or grievances
Official/unofficial actions
Official action has the backing of their trade union, other unions may also take action in support. Unofficial action means workers taking industrial action do not have the support of the union.
arbitration
Trade unions are also involved in resolving conflict between managers and employees. In discussions they can act as a ‘neutral (third party’ to solve disputes and to help both the employees and managers reach a final decision.
closed shop/ open shop
A closed shop is an arrangement whereby a place of employment requires current membership in a specific union as a condition of employment. In an open shop, unionized or ununionized labour can be employed.
single union agreement
A single union agreement is an agreement between a company and its employees that states that the company will discuss pay, working conditions, etc. with only one trade union.
Department
Subdivision of a business organisation that specialises in performing a particular job or function
