Unit 3.4 revision Flashcards
What is an Organisational chart?
A diagram which shows the internal structure of an organisation.
What is Hierarchy?
Structure of different levels of authority in a business organisation one on top of each other.
What is a subordinate?
Workers in the hierarchy who work under the control of a senior worker.
What is De-layering?
Removing layers of management and workers in a hierarchy so that there are fewer workers in a chain of command.
What is Centralization?
A type of business organisation where decisions are made at the center of the organisation and then passed down the chain of command.
What is Decentralization?
A type of business organisation where the decision making is pushed down the hierarchy away from the center of organisation.
What is Chain of command?
The path down which orders are passed.In a company this goes from the board of directors down to the workers in the organisation.
What is span of control?
The number of people (subordinates) that a manger or supervisor is directly responsible for.
What is a organisational structure?
The different relationships between people in a organisation.
What are 3 disadvantages of having long chain of command?
- Slower decision making
- Higher labour costs for the business
- Little responsibility
What are 3 advantages of having a long chain of command?
- More opportunity for promotion
- Manageable workload for employee
- Roles are clearly defined in business
What are 3 advantages of having a short chain of command?
- Faster decision making
- Lower labour costs for the manager
- Workers have a wider job role
What are 2 disadvantages of having a short chain of command?
Less opportunity for promotion
Less quality assurance
What are 2 benefits of Tall organisational structure?
Less work per person
Opportunities for promotion.
What are 2 drawbacks of Tall organisational structure?
Slower decision making
Takes longer for communication to be passed down.
What are 2 benefits of a flat organisational structure?
Communication is more quicker
Decision making is faster
What are 2 disadvantages to a flat organisational structure?
Less opportunities for promotion
More work per person meaning lower productivity.
What are 2 advantages of a centralized structure?
1) Easier to co-ordinate and control from center e.g. budget
2) Decisions are not made closer to customers
What are 2 disadvantages of a centralized structure?
1) Central managers may lack specialist knowledge in market
2) May be slow to make decisions that need to be taken quickly
What are 2 advantages of decentralized structure?
1) Decisions are made closer to the customers
2) Improve staff motivation.
What are 2 disadvantages of a decentralized structure?
1) Training may be needed which will cost capital and time for manager
2) Extra responsibilities can cause stress meaning less staff motivation.
What is Maslow’s hierarchy of needs?
Workers are motivated by having each level of needs met in order as they move up hierarchy.
What are the 5 levels of Maslow’s Hierarchy of needs bottom to top?
Physiological needs, Safety needs Social needs Self-esteem needs Self actualization
What are Physiological needs?
It is at the lowest level and it is providing a clean and safe working conditions and well-paid jobs..
What are Safety needs?
Ensuring long term progression and job security.
What are Social needs?
Organizing the workforce into teams, creating opportunities employee to socialise.
What are Self-Esteem needs?
Creating promotion opportunities, empowering employees, using rewards to recognize the achievements of employees.
What are self actualization needs?
Reaching full potential, when all lower levels are met, having clear promotion opportunities.
Explain 4 benefits of Improved worker communication?
1) Better productivity ( leading to lower unit costs per product, meaning businesses can sell products at cheap price.
2) Improve product quality or customer service
3) Lower levels of absenteeism as the employees are content with their working lives
4) Lower levels of staff turnover (the number of employees leaving business (means fewer training and recruitment costs.
What is meant by communication?
The process by which a message or information is exchanged from a sender to a receiver through a medium such as a letter or an email.
What is internal communication?
Communication between people in the same business organisation.
What is external communication?
Communication with people outside the business organisation.
What 3 factors contribute to successful communication?
No mistakes
Polite
Clear and concise
What 3 factors are barriers to successful communication?
Not clear and concise
Rude
Use of Jargon
Give two examples of internal communication used by a business?
1) Email
2) Formal meetings
Give two examples of external communication used by a business?
1) Social media feeds
2) Online videos
What is financial motivation?
Financial motivation relates to the way in which an organization uses compensation structure to motivate workers to high performance.
What is Non-financial motivation?
These are methods of motivating employees by using non-momentary incentives
What name 3 examples of financial motivation a business would give to employee?
Bonuses
Staff discount
Commission
What name 3 examples of non-financial motivation a business would give to employee?
Promotion
More responsibility
Job rotation
What is Job rotation?
involves the movement of employees through a range of jobs in order to increase interest and motivation.
Name 4 benefits to a business of improved communication
1) Motivated employees (makes them feel apart of business)
2) Improve relationships with suppliers
3) Better communication with customers will increase sales
4) Improves chances of obtaining finance – e.g. keeping bank up-to-date about how business is doing
What are wages?
Income paid by hour
What is overtime?
Time worked over and above the basic working week
What is Basic pay?
Pay earned for working the basic working week
What is a salary?
Income paid on a yearly fixed contract, divided into 12 monthly payments
What is commission?
Paid on meeting certain targets or % of every sale.
What is a Bonus?
Paid for achieving targets which is in addition to wages or salary.
What is Remuneration?
Remuneration is the payments system adopted by a business to pay and reward its employees
What is Piece rate?
Paid on the number of products produced
What are fringe benefits?
Financial/ non financial added benefits with a job.
What are part time workers?
Employees who work 16 hours or less a week.( fraction a whole working week)
What are full-time workers?
35 hours or more ( the whole working week)
What are temporary workers?
Workers who have a short term position and no permanent contract of employment.
What are Zero hour contracts?
No set hour contract.
What are free lance workers?
Workers who tend to be self employed and do particular pieces of work for a business as a supplier.
What is the minimum wage?
The lowest payment for hours, day or week that can be given to a worker for their work.
What are disadvantages of wages to a business?
More time they work the more wages you have to work
What is an advantage of salary to a employee?
Set fixed salary you get paid for six days.
What is a disadvantage of salary to a employee?
No overtime pay
What is an advantage of salary to a business?
Pay a fixed amount do not have to pay overtime.
What is a disadvantage of salary to a business?
The employees are less hungry for success they have no motivation.
What is an advantage of Commission to a employee?
Increases wage each week.
What is a disadvantage of Commission to a employee?
Competitiveness for bonuses
What is an advantage of overtime to a business?
More productivity
What is a disadvantage of overtime to a business?
Cost the business more capital
What is an advantage of overtime to an employee?
Increased earning for employees
What is a disadvantage of overtime to a employee?
can cause fatiguesness.
What is an advantage of Basic pay for a business?
Easiest type of pay for employer.
What is an disadvantage of Basic pay for a business?
May be complacent in business.
What is an disadvantage of Basic pay for an employee?
Does little to encourage greater productivity
What is an advantage of Basic pay for an employee?
Easier to calculate
What are advantages of wages to a business?
Fewer hours less pay
Give 3 reasons why a business might delayer their organisation?
Reduce costs
Improve efficiency
Improve communication
Explain one drawback of a business having a wide span of control?
A wide span of control can make it difficult for superiors to manage the workforce who are their immediate subordinates.This could lead to communication problems and therefore reduced performance and organisation of employees.
What is meant by empowerment?
Giving workers more personality further down the chain of command.
List 4 things a motivated workforce can mean for the business.
1) Improved customer service
2) A hard working and flexible workforce, that is willing to go extra mile for the business
3) less time off with illness.
Improved communication within business.
What us Formal communication?
It lays down rules of communication within a business.
What is Informal communication?
It is used in a business such as gossip which can be an effective way of communication
Explain one benefit to a business of rewarding workers using a ‘Piece rate’ method of payment?
It will encourage manual workers to work harder and produce more units per hour. This will lower the average cost of production and lead to a greater profit margin on each product sold.
Give 1 reasons why increasing wages as a method of motivating workers employed in low skilled industries and one against.
1) Increasing wages is an important aspect of motivating low- skilled workers as this will help them achieve their physiological needs
2) However, wages are unlikely to help employees achieve their higher order needs, which can only be achieved through self-esteem and opportunities to further their career.
What does delegation mean?
Is when managers entrust tasks or decisions to subordinates.
Give 3 examples how businesses might delegate work.
1) Social media marketing:
2) Customer service
3) Accounting and bookkeeping
Give 3 advantages of delegating work to subordinates.
1) Reduces management stress and workload, allowing senior management to focus on key tasks.
2) Subordinates are empowered and motivated
3) Good method of on-the-job training
Give 3 disadvantages of delegating work to subordinates.
1) May increase workload and stress of subordinates
2) Depends on quality / experience of subordinates
3) Communication ( the manager may have a vision of how a task must be carried out but subordinate may have a different view. this is were miscommunication can occur.)
What does being redundant mean?
An employee is no longer needed because of business is closing down or because of a business wants to cut costs by reducing the amount of employees.
Identify two reasons why a manager might delegate work.
1) to spread work load
2) To motivate employees
Identify 2 benefit to a business of Improved communication. (with employees)
1) Fewer mistakes
2) Increase efficiency
Explain one problem a business might face as a result of excessive communication
.g. Workers will become DE-motivated since they will not be sure what they have to do (1 mark). This will cause lower productivity and the unit costs will increase .
Describe how an increase in pay might motivate sainsbury’s checkout staff?
An increase in pay will make checkout staff feel more valued . As a result workers will not apply for jobs at rival supermarkets such as Tesco . It will also give them the ability to satisfy their physical needs.
State 3 possible drawbacks to an employee of a piece rate system of payment.
1) Employees may worry about losing pay if sales or production is lowered, leading to lower motivation
2) Quality levels may fall due to the desire to produce more for more pay.
3) Workers do not get paid for work that is rejected, it has to be corrected.
