Unit 3.4 Effective People Managment Flashcards
What does organisational structure shows
How people and management are organised in a business
What is a organisation chart and what does it show
A diagram which shows the internal structure of an organisation.
Shows the management hierarchy in a business.
Illustrates the key concepts e.g span of control, line management,chain of command.
What does organisational structure determine
Authority and responsibility, individual job roles and titles, people who others are accountable for, formal routes through which communication flows into the business
What is authority
Power or right to give orders, make decisions and enforce obedience
What is subordinates
W person under the authority or control of another within an organisation
What is divisional structure
As a business grows and becomes more complicated it often organised itself along business units or divisional lines.
Why do we use divisions
Makes sense to grow similar businesses/ products together. Specialist/ expert management can be employed and shared to help budgetary control. Used to manage a business in the same area.
What is the span of control
The number of employees who a manager is responsible for
What is the characteristics of a narrow span of control (e.g only 3)
Helps more effective communication
Allows for closer supervision of employees
Characteristics of a wide span of control (e.g 7)
More appropriate if labour costs are significant - reduces number of managers
More Layers in the hierarchy acquired
Gives subordinates more chances for independence
What is a chain of command
Describes the lines of authority within a business.
Sam
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Brenda Chris
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Sharon
What are the difficulties arising from a long chain of command
Distortion of message as it needs to go through more people so could change and be given wrong
Managing change as if it’s long chain so has to get to everyone and is a lot of effort to move around all those people
De-motivated workers as they won’t feel as if they have important jobs and are constantly watched
‘Tribe mentality’ as if an employee in the chart think to do something e.g strike the rest in the layer will follow disrupting business
What is delayering
Removing layers of management from the hierarchy of the organisation
What are the benefits of delayering (5)
Lower labour costs
Better drive mentality and motivation as staff get more important jobs
Shortening the chain of commands increases communication
Builds better relationship with staff as they have more responsibility
Better teamwork
What are the disadvantages to delayering (6)
Stresses lower people out - more work for no extra pay
It takes away jobs from people who need them
People may complain they aren’t getting any extra money
May need to retain people which could cost
Could be demotivating - what if I’m next?
Employees aren’t as closely supervised so more chance of errors
Less production
What is employee empowerment
Giving employees the power to do their jobs
How does employee empowerment help employees
The employees feel their actions count
What does empowerment cover
- giving authority to make decisions to front line staff
- encouraging employee feedback
- showing more trust in employees
What way could a business give authority to employees
By training the staff in decision making ad they would feel more confident in actually deciding on things and therefore have more authority
How might a business be able to encourage employee feedback
By having an employee suggestion box which would make them feel more comfortable in saying what’s wrong with the business do they could suggest improvements
How could a business show more trust in employees
Giving them more power and authority as this would make them feel important and trusted
Why might a business want to empower its employees
So they can have better communication and a relationship within the business to help strengthen trust and make the business improve itself with employee suggestions.increases motivation and productivity.
What is motivation
The will to work which comes from enjoyment of work itself and or from desire to achieve certain goals
What are the advantages of a well motivated workforce
Better productivity Better quality Lower levels of absenteeism Lower levels of staff turnover (employees leaving the business) More flexibility
What are the stages to Maslows hierarchy of needs
Self acculisation - intellectual needs, fufilling potential or goal
Self esteem - self respect, level of status
Love and belonging - feeling wanted, sense of belonging, team
Safety - safe working envionment,job security
Physiological - basic needs
START FROM THE BOTTOM AND IF IT DOESNT FIT THE MOTIVATION OF THE JOB GO UP UNTIL IT DOES
What are the financial methods of motivating staff
Competitive salary Bonuses Commission Profit sharing Share scheme
What are the non financial ways businesses motivate staff
Social aspect Career progression Clear goals Job satisfaction Support
Applications of Maslow
- money alone is not always enough to motivate
- non financial rewards are better incentives as employees work up the needs hierarchy
- job security is seen as an important motivator as is being part of a team
- it is important for businesses to recognise employee achievements and status
What is communication
The process by which a message or information is exchanged from a sender to a receiver
What is the general circle for communication
Sender e.g customer -> communication e.g a loan application form -> receiver e.g loan department at bank -> feedback e.g confirmation that it has been granted -> sender.
Why do businesses need effective communication
Motivate employees
Easier to control and coordinate business activities
Makes successful decision making easier
Better communication with customers will increase sales
Improve relationship with suppliers
Improve chances of obtaining finance
Explain internal communication
When communications occur between employees of w business
Links together all activities in business
Ensures all employees are working together to a goal
Explain external communication
Where a business communicates with people and organisations outside a business e.g press release, adverts, publishing financial information , letters and emails with customers and suppliers
What is a channel of communication
The path taken by a message e.g horizontal , vertical or grapevine
What is a horizontal channel of communication
One on the same level
What is a vertical channel of communication
Up and down the hierarchy
What is a formal channel of communication
Recognised and approved channels
What is an informal or grapevine channel of communication
Not formally recognised
What are six barriers to effective communication
- Language - too much jargon
- Noise - poor connection, background noise, distractions
- Overload - too much information
- Emotion - relationship between sender and receiver
- Gaps - too many layers in hierarchy so could get distorted
- Inconsistency - may ignore
What is remuneration
The reward (usually finance) that is offered to an employee for providing their service
What is salary
Pay usually of non manual workers, expressed as a yearly figure but paid monthly
What is basic pay
Pay earned for working the basic working week
What is a bonus
Addition to the basic wage or salary often for achieving targets
What is commission
Payment system usually used with sales staff where their earnings are determined by how much they sell e.g car dealership
What is freelance
Tend to be self employed and do particular pieces of work for a business as a supplier
What is a part time worker
Employees who only work of fraction of the working week
What is piece rate
Workers who are paid for every item they product; the more produced the more they get paid e.g fruit pickets
What is a full time worker
Employees that work the whole of the working week
What is fringe benefits
Payments in kind over and above the wage or salary, such as a company car
What is the difference between a salaried worker and a freelance worker
Salaried work within a business getting a steady income whereas freelance workers are usually self employed working on a contract base earning a varied amount each time they work.
Salaries can not be added to if they work overtime but freelance can have extra.
Salary has set hours but freelance work their own hours and those who don’t meet the deadline don’t get paid but salary is guaranteed.
Freelance don’t get paid if it’s a holiday or have legal benefits like sick pay.
Why do businesses need structure
They need to be organised whether that structure is simple or complicated
