Unit 6

Question 1

Characteristics of tall structure (5)

Answer 1

Lots of levels of hierarchy
Long chains of command 
Slow communication/decisions
Bureaucratic (paperwork)
Narrow spans of control

Question 2

Flat structure (4)

Answer 2

Few levels in hierarchy
Short chains of command
Fast communication/decisions
Managers have wide spans of control

Question 3

Delayering pros and cons (3,4)

Answer 3

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?

Question 4

Centralised structure pros cons (4,3)

Answer 4

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

Question 5

Decentralised pros cons (3,2)

Answer 5

\+motivation
\+local knowledge
\+quick day to day decisions
-may lack experience
-inconsistent

Question 6

Centralised approach cost wise

Answer 6

Saves money-middle management not needed

Question 7

When decentralising is suitable

Answer 7

Expanding. Created more levels of authority+delegation

Question 8

Internal recruitment pros cons

Answer 8

\+already know the business
\+faster+cheaper
\+motivates for promotion
-vacancy in existing job
-colleague resentment

Question 9

External recruitment pros cons (3,2)

Answer 9

\+new ideas
\+experience from other firms
\+wider pool of applicants
-longer expensive e.g induction
-wildcard, haven’t seen them in action

Question 10

On the job training pros cons

Answer 10

\+job specific
\+easy to organise
\+cheaper
-unproductive during training
-bad practices passed on
-no new ideas brought

Question 11

Off the job training pros cons

Answer 11

\+specialist trainers
\+new ideas brought
-may not be job specific
-expensive
-no benefit to business while training

Question 12

Taylor

Answer 12

Division of labour into small repetitive tasks. Increase productivity. Financial incentives. However quality falls

Question 13

Maslow hierarchy of needs

Answer 13

Basic physical>Safety>Social>Self esteem>Self actualisation

Question 14

Self esteem

Answer 14

Achievement-business offer promotion and recognition

Question 15

Self actualisation

Answer 15

Meeting potential-giving opportunity to develop new skills and take responsibility

Question 16

Herzberg

Answer 16

Hygiene-if aren’t good, dissatisfied. e.g pay, working conditions
Motivating-if aren’t there, demotivated. e.g interesting work, recognition

Question 17

Job design

Answer 17

The way a job is planned and organised

Question 18

Hackman & Oldman 5 Job characteristics to motivate

Answer 18

Skill variety-wide skills can motivate
Task identity-clear task
Task significance-important
Autonomy-make own decisions
Feedback-review performance and how to improve

Question 19

Flexible working pros cons (4,2)

Answer 19

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

Question 20

4 main methods of financial motivation

Answer 20

Piece rate pay
Salary
Commission
Performance related pay

Question 21

When is piece rate pay suitable?

Answer 21

When output is easy to quantify

Question 22

Piece rate pay pros cons (1,2)

Answer 22

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

Question 23

Salary schemes

Answer 23

Work a min amount of hours and min ouput

Question 24

Salary schemes pros cons (1,1)

Answer 24

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.

Question 25

Commission pros cons (1,2)

Answer 25

Increase motivation to improve service

Can lead to overselling, and overwhelmed customers
Unpredictable labour costs, hard to budget

Question 26

Performance related pay

Answer 26

Reward best workers based on individual or overall performance

Question 27

Performance related pay cons

Answer 27

Demoralising if only certain people get increased pay

Question 28

Non financial methods of motivation

Answer 28

Job enlargement
Job enrichment
Empowerment
Teamworking
Non pecuniary benefits e.g working conditions, free gym, food etc.

Question 29

How would a tall structure motivate it’s staff?

Answer 29

Piece rate/ performance related pay-lots of levels to monitor productivity

Question 30

How would a flat structure motivate it’s staff (non-financial method)

Answer 30

Not teamworking-as creates team leaders which add another level.

They may do through job enlargement or enrichment

Question 31

How would a business with lots of skilled workers motivate?

Answer 31

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.

Question 32

Is non financial motivation short or long term motivation

Answer 32

Long term, if a job needs done quickly then better to focus on financial incentives

Question 33

Job enlargement vs job enrichment

Answer 33

Enlargement is giving more work

Enrichment is more challenging work and more responsibility

Question 34

Labour turnover pros cons

Answer 34

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

Question 35

Why high turnover may not matter

Answer 35

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