Unit 2 Flashcards
What is motivation
Factors that stimulate people to work hard
Why do ppl work?
1) Financial gain
2) security
3) self-esteem
4) social needs
5) Job satisfaction
Why motivate workers
1) increased (quality + productivity + efficiency)
2) better customer service
3) lower turnover rate
4) increased chance of achieving business objectives
What could a business achieve with more motivated workers?
1) Raise market share
2) increase profit margin as more efficient workers
3) less cost per unit, so greater profit
What are the three theories of motivation
1) Econ man
2) Heirarchy of needs
3) 2 factor theory
Explain and give disadvantages for econ man
1) People are mainly motivated by financial gain, so piece rate wage and increasing pay is the best way to motivate
2) Disadv:
a- too simplistic
b- money might not motivate people who are satisfied with what they earn
c- Money does not meet social and self-esteem needs
d- might not satisfy ppl who seek status
Explain and give disadvantages for hierarchy of needs
1) 5 levels of needs: physical, security, social respect, self-respect, and self actualisation
2) Disadvantages:
a- Not everyone has the same needs
b- It is difficult to identify individual needs
c- Money is needed to satisfy some needs
d- self actualisation is never permanent
Explain 2 factor theory
Hygiene factors: not motivating, but worker won’t be satisfied if not present
Motivating factors: stimulate people to work harder
Compensation methods (contractual & add ons)
1) Contractual:
A) Time based wage
B) piece based wage
C) Salary: fixed amount of annual income paid on a monthly basis
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2) Add ons
A- Comission
B- Bonus
C- performance related pay
D- profit sharing
Non financial rewards
1) fringe benefits
2) training
3) Job (rotation + enrichment + enlargemnet)
4) delegation
5) team working
6) status and praise
7) working conditions
Organisation structure and advantages
1)Level of management and division of responsibility within and org.
2) easy for people to know their role
- show formal lines of communication
State the most important features in an organisation chart and define
1) Hierarchy: shows the number of levels of management
2) Chain of command: how power and authority are passed from the top to the bottom of the org
3) span of control: number of subordinates under the supervision of 1 person
Advantages and disadvantages of short chain of command
1) More efficient communication
2) faster decision-making
3) Less sense of remoteness
4) more delegation
5) It is easier for subordinates to report to the manager
But
1) It is harder to monitor each employee
2) Less promotion
3) jealousy if the manager delegates to 1 employee instead of another
Functions of management
1) control
2) Coordinate
3) Plan
4) Organise
5) Command
