Unit 2- People in business Flashcards
What are some reasons people may work?
- Experience
- Passion
- Money
- Security
- Job satisfaction
- Seld-esteem boost
- sense of belonging
The qualities of well-motivated workers
- Loyal
- Hard working
- Arrive early
- Better customer service(more profit)
Qualities of de-motivated workers
- Arrive late/ leave early
- High rate of absenties
- Produce fewer products/poor quality
- Carless
- Poor customer service
- slow
Why should you motivate workers?
De-motivated workers will not work efficiently therefore less output.
What was FW taylor’s motivation theory?
Scientific management - the main belief being that workers are motivated by money. Perfected the assembly line and designed methods to get work doen in the shortest amt. of time in as few steps as possible.
What wage calculation method did FW Taylor use?
Piece-rate
Benefits of Taylors theory
- Increase in productivity costs
- Less unit expenses
What are 2 important things that Taylor believed which effected his theory?
- Managers take all the decisions and workers simply carry these out
- Workers don’t naturally enjoy work and must be closely managed.
Disadvantages of FW taylor’s theory?
- Workers were treated like machines(burnout)
- Their only motivation is money
5 heirarchy of Maslow’s law
- Basic needs
- Safety needs
- Social needs
- esteem needs
- Self-actualization
(from bottom up)
What did Maslow say was the best way of motivation?
Offering the next level in his hierarchy, A manager must realize which level the worker is at and provide the next level for them.
For example: A worker has social needs of collegues now he requires esttem needs, this can be sought out by praise.
Once one level is fulfilled, it doesn’t motivate, the next highest must be present to motivate.
Explain each tier in Maslow’s hierarchy
- Basic needs/psychological: Food and shelter, enough money for bills.
- Security needs: Job security, protection from danger
- Social needs: Sense fo belonging
- Esteem needs: praise, recognition
- Self-actualization: your full potential, can work on lower tiers or help others, however can’t be fully achieved, as problems below are possible.
- these are all needs
- The higher ones must be present for better motivation, after achiving the lower ones ofcourse.
Issue’s with Maslow’s hierarchy
- People argued about the order of the tiers.
- Hard for managers to see where their workers fit.
What was Herzbergs law based on?
Study of accountants and engineers
2 factors of herzbergs theory?
- Hygiene
- Motivators
Define Herzbers Hygeine factors?
Claimed they must be present and their absence is de-motivating but aren’t considered motivators.
Herzbergs motivation theory
Examples of Hygeine factors
- Work itself
- Salary
- status
- conditions
- security
- policies
Define the motivators in Herzbergs theory
These factors allow the worker to psychologically grow
Who’s resposibiltiy is motivation in a workforce?
The manager’s/director’s
3 factors to motivate employees
- Financial rewards
- non-financial rewards/fringe benefits
- Job satsifcation.
3 motivating factors
What are financial rewards?
payment used as incentives to work harder or more efficiently.
What are wages?
Moeny given for work you did, can be calculated via piece rate or time rate.
What is a salary?
Fixed regular payment given to employee via employer
wages
How would i calculate time-rate?
Payment by the hour; if a worker get’s 10$ an hour and works 40 hours, 10x40=400$
wages
Benefits of tim-rate
easier to calculate than piece-rate.
Wages
Drawbacks of time-rate
- Good and bad workers get paid the same
- Supervisors needed, these alsoo require wages
- Time sheets and clocking in systems required.
Wages
When is time-rate used?
When piece rate can’t be applied. E.g: Bus driver or hotel receptionist.
wages
What is piece-rate?
Wages calculated based on quantity of products produced.
Can be used as a bonus system*
wages
Advantages of Piece-rate
Encourages workers to work faster
wages
Limitations of piece-rate
- Bad quality products may occur, damages reputation
- Feuds between workers who work in high quality(but take longer perfecting their work) and workers who produce bad quality but quickly
- Loose wages if a machine breaks.
financial rewards
What are salaries? And how do you calculate them?
A set amount paid monthly. Calculated by the total amount divided by 12.
Cannot add bonuses as it’s a fixed amount.
5 ways to get a bonus
- Commision
- Profit sharing
- Bonus
- Performance related
- Share ownership
bonus-financial rewards
How can i get a bonus via bonus?
i.e: how can i get extra money by a “bonus”
Working well, can be paid during or end of year.
financial rewards-bonus
How can i get a bonus via commissions?
Like piece rate but for the amount fo sales you make, examples include people working in sales
financial rewards-bonus
How can i get a bonus that is performance related?
When a manager like’s your effort, gives appraise and talks to your collegues about your recent work(essentially asking them questions) then calling you for a meeting to discuss further. Examples include teachers and white-collar workers
financial rewards-bonus
Define share ownership in context to bonuses
When workers get a dividend, essentailly working harder to make more profit to get mroe didvidends, applies to any job.
Financial reqards-bonus
In context to bonuses, define a profit-sharing bonus
When workers get soem of the profit added to their basic wage/salary, usually in tertiary sector.
motivators
What are non-financial rewards?
a motivator that doesnt involve finance, e.g: fringe benefits
motivators
list some fringe benefits/non-financial benefits
Atleast 5
- vehicle
- Healthcare paid for
- Discounts on product
- Share options
- genrous expenses(food and clothing)
- Childs education is paid for
- Free accomodations
- Abroad holidays for free
- pensions(old people)
Motivating factors
What is job satisfaction?
When the worker feels enjoyment from job by…
- being treated fairly
- working hours reasonable
- recognition
- collegues
- status fo job
- authority to train others
motivators-job satisfaction
4 ways to make the job less dull/more enjoyable?
- Job rotation
- Job enrichment
- team working
- job enlargment
job satisfaction
Define job rotation
Workers witching over each others role, a factory worker may load trucks in the morning but package in the evening.
- makes covering absenties easier
- doesn’t make job more enjoyable
Job satisfaction
Define job enlargment
Worker given more tasks witht same level of difficulty, for example a worker stocking shelves may now also calculate stock levels, arrange shelves, and price products
Job satisfactions
Define team working
A group of people work together, example: making a car. Gives every worker a sense of importance.
Job satisfaction
Define job enrichment
Worker gets more task on harder levels, for example a worker at reception to greet customers may now also take calls and take orders.
Define Orginazational structure
Leads of management and division of responsibilities in an orginazation, usually presented by orginazational charts.
Define chain of command
Structure which shows the likely path for instructiont o reach sub-ordinate from director usually through 5 levels.
Span of control
The number of subordinates working directly under a manager. Can eb written as; “They have a span of control of x”. x being a number.
List the advantages of orginazational structure
- Show’s how everyone is linked, provides awareness
- Workers can see and measure their authority and accountability as well as whom they should take orders from.
- Gives sense of belonging
- Shows links between departments.
orginazational structure
Define delayering
Removing sections or layers from the orginazational structure.
orginazational structure
What does “wide” mean?
It means an orginazation has a wide span of control, meaning lots of subordinates under each manager.
Orginazational charts
What does tall mean?
Less span of control
orginazational charts
What does short mean?
Short chain of command, faster for task to reach subordinate from the Director
orginazational charts
What does long mean?
Long chain of commnad - takes a long time for task to reach sub-ordinate from director.
Advantages of a short chain of command
- Less levels to pass before reaching intended subordinate
- Less remote activity for the director.
- wide span of control, meaning…
1.More delgation
2. less direct control, more independence and more trust amongst workers(although these workers can make mistakes.)
What is the role of management?
To plan, organize, co-ordinate, communicate and control. Every Manager/Director must do the following at some point.
role of management
Why is Planning a role of managemnet?
They must set aims and targets as well as how to achieve them. This gives employees a sense of direction.
Role fo management
Why is organizing a role of management?
To manage resources and people as well as delegate tasks, they’re duty is also to make the orginazational chart and make sure 2 people dont have the same job.
Roles of management
Why is co-ordination an important role for directors?
To make sure everyone is working together-this avoids chaos, for example: the marketing department has not talked to the manufacturing department, unless they talk together chaos will break loose, it’s the managers job to make sure this is done.
Role of management
Why is communication an important role of management?
They must make sure the task is carried out hence they must communicate well.
Roles of management
Why is controlling an important role of management?
Make sure everyone is co-ordinating according to their planning, this means it’s also their job to figure out why a group of workers is performing poorly.
If the management role is not present, list soem consequences of this
- Lack of control over workers
- No co-ordination of departments, wastage of efforts.
- Lacks sense of direction and control
- As no one is organizing the resources, low outputs and sales.
Essentially the firm will drift apart and fail.
Importance of a good manager
- to motivate employees
- Give guidanced and advice to workers
- To inspire employees
- To keep costs under control
- To increase profitability of the business
Define delegation
To give a sub-ordinate the authority to do a taks but not the responsibility
Why may a director not want to delegate?
- Fear of sub-ordinate doing a better job
- Afraid the sub-ordinate will fail
Benefits to the manager of delgation
- Can measure the usefulness of employees
- Reduces risk of mistakes
- Can divide stress/taks
Benefits tot worker of delegation
- Work becomes more interesting and rewarding
- helps train them
- Gives them a sense fo importance/trust
What are Autocratic leaders?
These leader’s want to take/responsibile for all the decisions and expect workers to do as told, they give them little to no information only what is needed, their communication is downward or top-down.
When are autocratic leaders effective?
- Quick decisions needed
- Workers are experienced
When can Autocratic leaders have/cause problems?
- When workers feel de-motivated if they’re treated unfairly
- Workers feel as though they can’t contribute as they posses no control.
What is leadership?
To inspire others to work their best and work towards the shared goal.
Name the 3 leadership styles
- Autocratic
- Democratic
- Laissez-faire
When may management/leadership style change?
Depending on the workforce.
What will democratic leaders do?
- Persuade and consult different views
- Encourage participation, the final choice is done by leader
- Will make the decision after considering everyone’s views.
- Communication methods include: top-down, bottom, upward, and down.
When are democratic leaders most effective?
- If creative ideas needed
- All workers are experienced
When can democratic leadership cause problems?
- Inexperienced staff
- quick ideas needed
What is a laissez-faire leader?
- they have a limted role in communication
- trust workers
- have a creative atmosphere
- Power and leadeership is given to employees
- Workers take decision
When are laissez-faire leaders effective?
Creative and commitment is encouraged by them
What will the type of leader depend on?
- The task
- The organization
- the workers
- the group size
- The leader’s personality
When can laissez-faire leadership start to cause problems?
If the staff lack direction
Benefits of joining a trade union
- Strengthen’s it in numbers
- improves working conditions+ employment conditions
- improves working envionment
- better working finance support/advice(sometimes)
- Improves job satisfaction
- better job satisfaction through training
- Discounts
- improved pay
Reasons a firm may need workers
- Temporary replacement
- Business expanded/increase in sales
- Employee left/got fired
- Employee got promoted
State the steps in order for recruitment
- Identify vacancy
- analyze job
- create job description
- Create job specification
- Advertize job
- send then recieve application forms
- Shortlist and interview candidates
- Select the best ones and offer them a job
Afte step 8, depending on the job they may need another round of screening, example; a senior position. Whereas a job with 0 qualifications probably won’t
Define a trade union
A group of workers joined together to ensure interests(such as salaries, wages and fair working hours) are protected, example:nurses’ union
Limitations of trading unions
- a Fee is required to join
- May be required to take part in an industrial action you may not agree with, emaple: strike.
A other than protecting interests, trading unions also look to….
- Put view forward into media
- Influence government decisions such as on minimum wage legistration laws.
- Improve communication of workers and management
Industrial actions trade unions can take
- Strike
- work the slowest speed possible
- Overtime ban
Key roles of human resources dept. are…
- Recruitment and selection
- Wages and salaries
- redundancy and dismissal
- Health and safety
- Training programs
- Industrial relations
recruitment
Defien the job analysis stage
A thorough study of the jobs tasks and activities that will entail for the employee, needed to create job description
recruitment
Define job description
Made from job analysis, functions for candidates to know their job, allow for job spec. to be created, and can help smooth out disputes if they were to occur once the candidate is employed.
The job description has….
- Job title
- Department of work
- Responsibilities of candidate
- Purpose of job
- Duties(main+occassional)
- Condition of employment(salary, work hours)
- Training offered
The job specification has…
- Level of education required
- Amount and type of experience
- Special skills/knowledge/abilities
- Personal character/personality traits
- Physical fitness(sometimes)
Define the job specification
acts like a checklist and is often not shown to candidates - shows interviewer if they match the job skill set required
Defien internal recruitment
A post is filled and posted on the office notice board for existing employees in the company to see.
benefits of internal recruitment
- Saves time and money for forms and interviews
- Persons abilities and reliability is already knwon
- Person knows what is expected from company
- Can be motivating for other workers to see their collegue get promoted, hence they start working harder.
Limitations of internal recruitment
- No new ideas or experiences from other companies/outisde
- collegues amy get jealous
Define external recruitment
Vacancy advertized in local/national newspaper, magazines/journals, recruitment agencies, or gov. job centre
What is included in the job advert?
- Duties
- Qualifications
- Salary
- conditions of company
- Information on application method
recruitment
How would you decide where to advertise a job and how much it should/would cost?
Depends on the role of the job, or position; is it a senior or a 0 qualification job? considering these fazctors should answer your questions
What does CV stand for
curriculum vitae
What does a CV typically contain?
- name
- address
- Date of birth
- Telephone number
- Nationality
- education
- Qualifications
- Experience
- interests
- experiences in responsibility
- Reference member + number
What happens after candidates send in their application form’s, CV, and resume’s?
The company shortlists candidates and then calls them for an interview
What happens to rejected candidates
They recieve a letter thanking them for applying and that they did not get the job.
What do application letters need to have?
- Why they should be hired for the job
- why they want the job
- (sometimes) Other relevant information.
They typically have the same information as CV’s
Define “open reference”
When the candidate brings in the reference person or is present and aware of the reference to the company is being made(as well as what is said)
What do interviews aim to do?
Find out….
- The candidates ability to do the job
- Any personal traits that would benefit or limit the company
- Their general character and personality-will they fit in at the company/what the company wants?
….in the least amount of time.
Recruitment and selection
What happens in a skills test?
Ability to carry out different tasks are tested.
Recruitment and selection
What happens in an aptitude test?
Their ability to learn new skills/intelligence is tested.
What happens in a personality test in an interview?
How they would react to stress or working in a group is tested.
What happens in the groupt situation interview?
They’re given a task to work together on, and are observed when they do so.
What does a job advert contain?
- Job title
- name+details of company
- Pay and hours
- Details on how to apply
- closing date
- address for sending application form/CV
define job advert
statement outlining key aspects of the position
Defien contract of employment
A legal document given to employee via employer
What is in the contract of employment
- Both names
- Job title
- work hours
- date employee starts
- Rate of pay and bonuses
- When pay day is
- Holiday entitlement
- Amount of notice needed before leave
Reasons why you train employees
- To introduce them to the new environment
- To new processes/equiptment
- Improve efficiency
- provide skills so they become valuable workers
- More opurtunity for internal recruitment
- Decreases their chances of causing an accident
- Less need of supervision
Training may be used if employees need to….
- increase skills
- increase knowledge
- Change behaviour/attitude
Defien Induction training
For an employee new to the environment, lasts a day or more. Main aim is to familiarize them and make them efficient as well as committed.
Advantages of Induction training
- Helps them settle quickly
- It could be a legal requirement to go over health and safety, which will be covered here
- Less likely for them to cause accidents
Disadvantages of Induction training
- Time consuming
- Wage paid but no output produced.
- Delays the employee’s starting their job
Define Off-job training
They are trained outside of the workplace, for example in a college or training centre
Advantages of Off the job training
- Can learn alot; becoming multi-skilled and able to be moved around the workplace
- Can have training in the evenings so they can still work mornings and produce output
- Only pay the course and keep output levels(as no trainer)
- Centre uses up-to date training
Disadvantages to Off the job training
- Costs are high
- Wages are paid but no work is done
- Additional qualities make it easy for the worker to leave.
Define on-the job training
Trained with in the workpalce, shown what to do, can be for un-skilled or semi-skilled jobs(as skilled jobs need more training)
Advantages of On the job training
- No need to pay the course/travel fee
- Specific businesss needs are met
- Products and ouput still generated
Disadvantages of on the job training
- Trainer is not as productive
- Trainer may pass on bad habits
- May not be counted as training qualifications outside of the business
Advantages to business of part-time workers
- more flexible hours of work
- Easier to call them in during busy hours
- Easy to extend opening time
- less expensive(and workers are willing to take the less pay)
Limitatiosn to employers of part-time
- Less likely to be given training
- Harder to get 2 part-time workers than one full-time
- Less commitment of worker=less likely to be promoted
- Hard to communicate with them outside of their work hours
Defien workforce Planning
Planning for the workforce in the future, depends on no. of workers and type required, future sale plans, etc.
Why may a workforce downsize?
- New automation
- Falling in demand of their good or service
- Closing shop/retail/business
- Relocating abroad
- Merge/takeover(so need to invest money there rather than on workforce)
How does HR decide which workers must leave to downsize the workforce(as new people needed in other aspects)?(the process)
- Counting workers
- Exclude the ones leaving soon(e.g: retiring or reisgning)
- Ask employees to consider retraining for different positions
- recruitment plan
2 ways a workforce is downsized
- redundancy: leave even if satisfactory work done.
- Dismissal: if unsatisfactory work done
Factors affecting redundancy
- How long the worker has worked: If redundancy payments done, is most expensive. Also have experience
- soem may volunteer- as have another job
- Workers with special skills retained(as could help other depts.)
- Which department need to be downsized the most.
law protection
Discrimination
- from age, disability, etc.
- You can loose good candidates
- If not illegal, would be difficult for these people to gain jobs
- Create equal oppurtunities
Law protection
Health and safety
- Machinery protection
- Safety equiptment and clothing
- temperatures
- Breaks
- Hygeine
- all these factors can motivate a worker to make them more efficient/productive
Law protection
Dismissal
- illegal if fired for no reason or:
- Pregnancy
- Joining trade union
- Can lead to industrial tribute
Industrial tribute
A trial where company taken to court for essentially dismissing some one with no reason, court will listen to both sides before gving judgment.
law protection
Wage protection
Enforced so employers dont take advantage and pay a wage for workers to surviv- is in contract of employment
Advantages of wage protection laws
- Prevents employers exploiting those with difficulties finding jobs
- Will encourage trainign so wage is productive
- Encourage people to seek work, less worker shortage
- Low paid can earn more
law protections
Disadvantages of wage protection laws
- Increases cost of business hence increases price
- Employers may not afford, hence redundancy hence more unemployment
- Workers may begin to ask for higher wage, business costs increase
4 factors of effective communication
- Transmiter/sender with the will to pass information
- (suitable)Medium of communication
- Reciever
- Feedback given
*Effective communication is not carried out until feedback given and all stages complete.
2 advantages of two way communication
- Made clear that message was recieved and heard if feedback given
- Motivates reciever as feel they have been given part
Factors of choosing a suitable method of communication
- cost
- message details
- speed
- reciever
- importance of reciever
- importance of feedback
- leadership style
Examples of verbal communication
- one to one
- telephone
- video conference
- meetings/team briefing
Advantages of verbal communication
- Information shared quickly
- Oppurtunity for immediate feedback
- Message is reinforced by body langauge and tone
Disadvantages of verbal communication
- Cannot tell if everyone is listening/understanding in a big meeting
- Longer to use verbal feedback then written
- Permanent record cannot be offered(e.g: warning a worker)
Disadvantages of written communication
- Direct feedback iss not always possible
- Not easy to check if message was recieved and acted upon
- Language barriers
- Body language cannot reinforce messgage
Advantages of written communication
- Hard evidence, can be refferred to in future
- Essential for long messages with detail that can be misunde4rstood verbally
- Written can be copied and sent to toher people then having to telephone every individual
- Cheap
Advantages of verbal communication
- Presents information in an appealing and attractive way
- Can reinforce message and clarify with chart/diagram
Disadvantages of visual communication
- No feedback; sender may need to use other method to see if message recieved
- Charts/diagrams may be difficult to interpret for some people
Examples of written communication
- Letters
- memo’s
- reports
- notices
- fax
- Text messages
- social networking
- films
- video
- powerpoint presentation
- poster
- chart
- diagram
- cartoon
- photograph
Define downward verticle communicatin
Manager talks to worker(s)
Defien upward verticle communication
Worker sends email to his/her boss
Horizontal/lateral communication
When 2 people in the same level of orginazational structure communicate, can be informal or formal channels, and create conflict.
Defien formal channels of communicatipn.
- Through established channels using professional language
- Noticeboards, emails, meetings, and reports
Defien informal channels of communication
- Send and recieve messages casually using day to day language
- Breaks, canteen, freinds, text messages, or meetings.
Advantage of informal communication
The manager can informally communicate with his collegues before formally making the decision or not making it at all.
Disadvantage of informal communication
Can spread rumors and cause conflict which managers cannot control/prevent
a use of downward communication
Send messages, instructions, decisions.
Disadvantage of downward verticle
message may be distorted.
Benefit of upwards verticle
employees may have much to offer, will give business successful and effective internal communication, hence business will strive if managers are willing to listen and act upon it.
Communication barriers of sender
- Uses jargon, technical terms or another language
- Speaks too loudly or not clearly
- Wrong message wrong reciever
- Too long/ too much detail avoiding the main point( so they should make it brief and outline main points)
Communication barriers of medium
- message lost/not recieved
- Wrong channel of communication, e.g: noticeboard
- Distorted
- Medium broke down
Communication barriers of reciever
- not listening
- does not like or trust sender
COmmunication barriers of feedback
- no feedback given
- Slow and distorted final message given as feedback mixed w/ the message.
