unit 1.4- managing people

Question 1

what staff as an asset to business mean

Answer 1

something a business has that is valuable

Question 2

what do skills and abilities of staff mean

Answer 2

they are able to add value to a product, which can be done in a number of ways

Question 3

why should businesses treat their staff as a valued asset and invest in them

Answer 3

will help to motivate staff and increase their productivity

Question 4

how are employees a cost to a business

Answer 4

they get remuneration (payment) for the work they do
- recruitment
- training
- staff welfare (making sure they are secure)

Question 5

what is a wage

Answer 5

is paid to a worker based on amount of work they have done
- often used for lower-skilled or mnual workers

Question 6

how is the national minimum wage helpful

Answer 6

protects workers from being underpaid
- legal minimum that business must pay their employees per hour
- can lead to motivated staff which could increase productivity however can also lead to increasing costs for business as the rates usually increase each year

Question 7

what is a salary

Answer 7

fixed amount that is usually paid monthly
- unusual to be paid extra for working harder or longer
- highly skilled workers

Question 8

what is the difference between dismissal and redundancy

Answer 8

employee can be dismissed if they have breached their contract of employment, can be referred to being fired
redundancy occurs when the employees job role is no longer required, could be due to business reducing number of staff

Question 9

why is it good to have flexible workforce

Answer 9

it is beneficial to a firm as it is easier to match the work done by employees to the needs of the business

Question 10

what is multiskilled

Answer 10

can perform a variety of tasks

Question 11

full or part time contracts

Answer 11

• full time= work at least 35 hours a week
• part time workers work fewer hours
• employing more part time workers can be beneficial as they have more staff to cover any absent workers

Question 12

zero hour contracts

Answer 12

• firm employs worker but does not offer them guaranteed hours
• staff only work as and when they’re needed
• employers dont waste money paying for labour when it isn’t needed
• staff under no obligation to accept work so can be difficult to find enough staff in busy times
• employees may prefer it as they can work around other commitments
• little financial security

Question 13

permanent or temporary contracts

Answer 13

• permanent has no end date, temporary does
• temporary could lead to long term
• good for employers if there is maternity leave or sickness so a temporary contract can be provided to cover this time
• permanent contracts more motivating for employees as they provide more financial security

Question 14

shift work

Answer 14

• used when a job role needs filling for more hours in a day that can be completed by a single worker
• working day divided into shifts
• necessary for 24 hour service businesses
• irregular or night shifts can be hard for employees

Question 15

home working

Answer 15

• employees can work from home some or all days of the week
• employees can save travel costs and can work around other commitments
• can be harder or more distracting
• employers may gain as it can free up work/office space
• difficult to monitor performance of staff

Question 16

flexible hours

Answer 16

• workers complete a set number of daily/weekly/monthly hours at times that suit them
• usually core hours in the middle of the day that all workers need to be present for
• helps workers achieve a work life balance and improve employee motivation
• however can be hard for employers to organise meetings

Question 17

outsourcing

Answer 17

• businesses can outsource some tasks to external businesses
• advantageous to employers as they dont have to invest money in training staff for tasks that may only need doing now and then

Question 18

why is employer-employee relationship important

Answer 18

• it maximises cooperation and minimises potential for conflict
• benefits both employer and employee
• can increase motivation and productivity which can increase profits of a business

Question 19

what is recruitment

Answer 19

finding and hiring someone for a job role that needs filling

Question 20

what are the stages of recruitment

Answer 20

• identify a vacancy
• write job description and job specification
• advertise job
• process applications
• shortlist most suitable candidates
• assess most suitable candidates
• assess most suitable candidate

Question 21

what does a job description include

Answer 21

• job title
• main roles
• responsibilities
• salary

Question 22

what does a job specification include

Answer 22

• qualities and qualifications required

Question 23

what is the difference between internal and external recruitment

Answer 23

internal is when the business recruits someone who already works for them and external recruitment is when it hires someone from outside the business

Question 24

what are the ways in which a business can assess potential candidates

Answer 24

• interviews
• assessment days
• in-tray exercises

Question 25

why do business hire new employees with correct attitudes

Answer 25

- means employees are more driven and may be motivated to learn new skills at a faster rate - more likely to work in teams better

Question 26

why do businesses hire people with highly skills

Answer 26

- reduces training costs - could lack team working skills then they may not be easy to work with and could demotivate other employees

Question 27

pros and cons on internal recruitment

Answer 27

pros - candidates already know the business and business know the candidates - short and cheap process - motivates workers to go for promotion cons - leaves vacancy in another department

Question 28

pros and cons of external recruitment

Answer 28

pros - brings in fresh new ideas - brings in experience from other organisation - larger number of applicants cons - long and expensive process - candidates need longer induction process

Question 29

recruitment and training have costs for a business

Answer 29

-cost of advertising the vacant post -may pay for recruitment agency -training needs to be paid for

Question 30

what is labour turnover

Answer 30

the percentage of employees who leave a business over a period of time -having high labour turnover is costly for a business as it means more money spent on recruiting and training new employees

Question 31

when is on the job training appropriate

Answer 31

- when practical skills are being taught, in work environment

Question 32

when is off the job training appropriate

Answer 32

- when employee needs to know general information about the business or its producers - useful when employee learning new skill that would be difficult to learn whilst in a real work environment

Question 33

pros and cons of on the job training

Answer 33

pros - easy to organise - lower cost of training - training is job specific cons - trainers not fully productive during training - bad practices passed on - no new ideas brought to the business

Question 34

pros and cons of off the job training

Answer 34

pros - trainers are specialist - new ideas are brought to the business - no job distractions cons - can be expensive - no benefit to the business while training - training might not be specific to their day to day job

Question 35

what is an organisational design

Answer 35

diagram or chart which shows the lines of authority and layers in the hierarchy of the business

Question 36

hierarchy

Answer 36

- employees ranked due to status - top more important - seek to move up hierarchy

Question 37

chain of demand

Answer 37

- path of communication and authority up and down the hierarchy - those at top have more power and are able to delegate tasks to people lower down

Question 38

span of control

Answer 38

- number - employee that works as head of department - number of people that a manager is responsible for - jobs specialised - in a school, may have 6 teachers working for them therefore their span control is 6

Question 39

what is the difference between centralised or decentralised

Answer 39

in centralised organisations all decisions made by senior managers at the top of the business in decentralised structures authority is shared out to more junior employees

Question 40

advantages of centralisation

Answer 40

- business leaders have lots of experience of making business decisions - managers get an overview of the whole business - senior managers aren't biased towards 1 departement so they can make best decisions for a business as a whole - senior managers can make big decisions quickly because they don't have to consult anybody else

Question 41

disadvantages of centralisation

Answer 41

- not many people are expert enough to make decisions about all aspects of the business - excluding employees from decision making can be demotivating - organisation reacts slowly to change allowing its competitors to get ahead

Question 42

advantages of decentralisation

Answer 42

- involvement in decision making motivates employees - employees can use expert knowledge of their sector - day to day decisions can be made quickly

Question 43

disadvantages of decentralisation

Answer 43

- junior employees may not have enough experience to make decisions - inconsistencies may develop between divisions in a business

Question 44

tall structure of organisational chart

Answer 44

- lots of opportunities for promotion - info takes long time to get from top to bottom of organisation- decision making is long - everyone knows where they are in hierarchy so is well organised

Question 45

advantages of tall structure

Answer 45

- supervisors usually have small span of control so they can get to know their subordinates really well - more opportunities available

Question 46

disadvantages of tall structure

Answer 46

- lots of layers and long chain of demand means business is inflexible - communications within organisation are slow - expensive way to structure a business- more managers etc

Question 47

flat structure

Answer 47

- wide span of control and a short chain of command so info flows quickly through organisation

Question 48

advantages of flat structure

Answer 48

- fewer layers of hierarchy between bottom and top of organisation, means communication is fast - lots of delegations means that staff are given greater responsibility

Question 49

disadvantages of flat structure

Answer 49

- staff can become over stretched or overworked as there is less supervision which can cause stress ad be demotivating - can create power struggle if manager is barely around as subordinates jostle for roles and responsibilities

Question 50

matrix structure

Answer 50

- in a business where there is more than one product or more than one project running at a time a matrix structure is more suitable than a standard hierarchy

Question 51

advantages of the matrix structure

Answer 51

- very flexible structure means that staff from different departments can jump in and out of different job roles - perfect to exploit the specific skills of staff

Question 52

disadvantages of the matrix structure

Answer 52

- may be possible coordination problems between departments - employees can have conflicts of interest across projects - staff can become stretched across different projects, not spending time in their own departments

Question 53

why do motivated employees get more work done than non motivated employees

Answer 53

motivated work force is likely to be more productive as they are happy in their jobs and are willing to work hard for them - more likely to be reliable - loyal which decreases labour turnover and absences - customer satisfaction increases

Question 54

taylor's scientific management theory

Answer 54

- taylor thought workers were motivated by money, believed workers would do minimum amount of work if they were left to their own devices - his goal was to figure out the most efficient way to do a job - he favoured division of labour- breaking work down into small repetitive tasks, with managers taking responsibility of the workforce - he believed in paying workers according to the quantity they produced, believed financial incentives would motivate workers and raise productivity - increased productivity meant fewer workers were needed - increased productivity could lead to a reduction in quality

Question 55

maslow's hierarchy of needs

Answer 55

- people start by meeting the needs at the bottom of the pyramid once they have sorted out those needs they move to the next level basic physical needs--> safety--> social needs--> self-esteem--> self actualisation

Question 56

herzberg's two factor theory

Answer 56

- interviewed accountants and engineers to find out what motivated and satisfied them at work, he identified 2 which influenced the motivation of workers: hygiene- things like good company policy, supervision, working conditions, pay, relations with fellow employees -they dont motivate as such but if they arent good workers get dissatisfied motivating- things like interesting work, personal achievement, recognition of achievement and scope for more responsibility and development -these do positively motivate workers - his theory recognises that motivation comes from the individuals' needs and has influenced motivational techniques today

Question 57

mayo's human relations theory of motivation

Answer 57

- looked at motivation in hawthorne factory: - changed the working conditions such as break times and duration of the ladies who worked in relay assembly room at the factory - found that just by being studied the employees motivation increased - working in teams was more important than money - non-financial motivators were the most important - boring and repeitive work can be a demotivator

Question 58

mayo : ladies of the relay assembly room

Answer 58

- everything depends on how they see each other ; employees, manager, directors - its about how well they communicate with each other - its recognition and appreciation that increase internal job satisfaction and as a result productivity is increased - managers must meet the workers social needs in order to improve motivation= change from taylor's theory which suggests workers only motivated by pay

Question 59

non financial motivation

Answer 59

job enlargement- gives employee greater range of work to do at same level job enrichment- gives more challenging work and the training they need to do it job rotation- workers occasionally move from one task to another, workers become multiskilled empowerment- gives control over work consultation- between managers and employees, opinions are valued and important delegation- gives employees more responsibility for decision making team working- lead to job enrichment and empowerment flexible working- can allow employees to work whilst having time for personal roles such as being a student

Question 60

financial motivation

Answer 60

- using money to motivate employees piecework - workers paid per unit produced, can motivate workers to produce high quantity products commision - can be used by sale roles - money paid to workers for completing tasks which is often a bonus on top of their salary performance related pay - paid based on performance - determined by both individual and the business meeting targets - workers motivated to meet their own targets and ensure business meets objectives - can lead to demoralisation bonus schemes - extra pay on top of salary once an agreed target has been met profit sharing - set profit targets and share proportion of profit if these targets are met, amount of money worker receives usually depends on their salary

Question 61

when should the motivational techniques be used

Answer 61

- non financial- long term motivation, a business and its management invest a lot of time money and effort into getting it right, more effective for permanent staff - organisational structure- can affect the methods of motivation a business chooses- e.g. business with flat structure might not want to introduce team working bc team leaders introduce an extra level of hierarchy, they may try motivate people through job enlargement or enrichment instead - financial methods- influenced by organisational structures- e.g. business with tall structure might be more inclined to use piecework or performance related pay bc there are lots of levels of authority to monitor the productivity and progress of the people below them

Question 62

what is the difference between leaders and managers

Answer 62

leaders have a vision which they share with others while pushing them in the right direction - leaders think long term and looking to improve and innovate managers make decisions that effect day to day running of a business - they set objectives for their department and for people under them - they decide work needs to be done and meet the objectives and what resources and staff they need - they tend to focus more on meeting targets and maintaining the status quo than on innovation

Question 63

leadership styles can vary

Answer 63

autocratic - leader makes decisions on their own paternalistic - similar to autocratic - focus on employee well being and motivation - leader consults workers before making decisions democratic - leader encourages workers to participate in the decision making process - discuss issues with workers - delegate responsibility and listen to advice laissez faire - very hands off - may offer employees coaching and support but they rarely interfere in the running of the business - appropriate for highly motivated team of able workers