Unit 6 Flashcards
Characteristics of tall structure (5)
Lots of levels of hierarchy Long chains of command Slow communication/decisions Bureaucratic (paperwork) Narrow spans of control
Flat structure (4)
Few levels in hierarchy
Short chains of command
Fast communication/decisions
Managers have wide spans of control
Delayering pros and cons (3,4)
Removing levels of hierarchy
+lowers costs of managers
+communication fast
+job enrichment/enlargement for managers controlling more
- however expensive short term as remaining staff retrained + redundancy
- can be too much responsibility
- loss of skills/experience reduces flexibility in future, so maybe not long term
- may fear job security-who next?
Centralised structure pros cons (4,3)
Decisions made by the top. \+experience \+consistency-have overview of whole business \+no bias towards one dep \+quick -may not know about all parts -demotivating for workers -far from consumer so slow to react
Decentralised pros cons (3,2)
\+motivation \+local knowledge \+quick day to day decisions -may lack experience -inconsistent
Centralised approach cost wise
Saves money-middle management not needed
When decentralising is suitable
Expanding. Created more levels of authority+delegation
Internal recruitment pros cons
\+already know the business \+faster+cheaper \+motivates for promotion -vacancy in existing job -colleague resentment
External recruitment pros cons (3,2)
\+new ideas \+experience from other firms \+wider pool of applicants -longer expensive e.g induction -wildcard, haven’t seen them in action
On the job training pros cons
\+job specific \+easy to organise \+cheaper -unproductive during training -bad practices passed on -no new ideas brought
Off the job training pros cons
\+specialist trainers \+new ideas brought -may not be job specific -expensive -no benefit to business while training
Taylor
Division of labour into small repetitive tasks. Increase productivity. Financial incentives. However quality falls
Maslow hierarchy of needs
Basic physical>Safety>Social>Self esteem>Self actualisation
Self esteem
Achievement-business offer promotion and recognition
Self actualisation
Meeting potential-giving opportunity to develop new skills and take responsibility
Herzberg
Hygiene-if aren’t good, dissatisfied. e.g pay, working conditions
Motivating-if aren’t there, demotivated. e.g interesting work, recognition
Job design
The way a job is planned and organised
Hackman & Oldman 5 Job characteristics to motivate
Skill variety-wide skills can motivate Task identity-clear task Task significance-important Autonomy-make own decisions Feedback-review performance and how to improve
Flexible working pros cons (4,2)
Motivation-Productivity
Allows a larger pool of applicants if more flexible+retain better
Savings on costs,does not have to provide office if from home
Can lower productivity-distracted at home etc
Red tape/bureaucracy associated with flexible working
4 main methods of financial motivation
Piece rate pay
Salary
Commission
Performance related pay
When is piece rate pay suitable?
When output is easy to quantify
Piece rate pay pros cons (1,2)
Increase motivation>productivity>output>profit
Speed over quality, cost increase, quality control needed
Unpredictable labour costs, hard to budget, may have too much working capital tied up
Salary schemes
Work a min amount of hours and min ouput
Salary schemes pros cons (1,1)
If work not completed, expected to work longer to complete. Motivates to work fast but not compromise quality
Worker’s arent motivated to do more than asked.
Commission pros cons (1,2)
Increase motivation to improve service
Can lead to overselling, and overwhelmed customers
Unpredictable labour costs, hard to budget
Performance related pay
Reward best workers based on individual or overall performance
Performance related pay cons
Demoralising if only certain people get increased pay
Non financial methods of motivation
Job enlargement Job enrichment Empowerment Teamworking Non pecuniary benefits e.g working conditions, free gym, food etc.
How would a tall structure motivate it’s staff?
Piece rate/ performance related pay-lots of levels to monitor productivity
How would a flat structure motivate it’s staff (non-financial method)
Not teamworking-as creates team leaders which add another level.
They may do through job enlargement or enrichment
How would a business with lots of skilled workers motivate?
Greater emphasis on non-financial motivation, as pay may be high already. May prefer job enrichment/enlargement.
Good evaluation for saying why financial motivation won’t always work.
Is non financial motivation short or long term motivation
Long term, if a job needs done quickly then better to focus on financial incentives
Job enlargement vs job enrichment
Enlargement is giving more work
Enrichment is more challenging work and more responsibility
Labour turnover pros cons
New ideas from new staff
Can recruit readily trained workers-save costs
Lack of loyal/experienced staff
Often lost staff to competitors
Recruitment+Training costs and productivity falls initially
Why high turnover may not matter
In industries where people leave a lot e.g part time jobs people use as stepping stone
May not be related to business, e.g maternity, other family reasons etc etc
