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