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Business studies > Unit 6 > Flashcards

Unit 6 Flashcards

1
Q

What are the types of non-financial methods of motivation.

A

(1) Job rotation.
(2) Job enlargement.
(3) Job enrichment.
(4) Quality circles.
(5) Team working.
(6) Delegation.

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2
Q

Explain job rotation.

A

Employees do different tasks instead of doing the same task.

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3
Q

Explain job enlargement.

A

Employees are given a greater variety of similar tasks to do.

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4
Q

Explain job enricment

A

Ensures employees can use more of their skills and abilities.

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5
Q

Explain quality circles.

A

Groups of employees that meet regularly to discuss developments and issues in the work place.

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6
Q

Explain team working.

A

Production employees are organized into groups for the completion of a whole task.

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7
Q

Explain delegation.

A

This involves managers passing authority to employees.

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8
Q

Explain the advantage of job rotation.

A

Employees become more skilled and flexible.

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9
Q

Explain the advantage of job enlargement.

A

Jobs become more interesting and less boring.

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10
Q

Explain the advantage of job enrichment.

A

They feel more valued by employers and become involved in decisions regarding their job.

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11
Q

Explain the advantage of quality circles.

A

Good ideas and solutions can be presented to managers.

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11
Q

What are the types of methods of motivation?

A

(1) Financial.
(2) Non-financial.

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11
Q

Explain Maslow’s theory (Hierarchy of Needs)

A

All humans start at the lowest level of need: physical needs. Once they have satisfied physical needs, they satisfy safety needs and so on until they have accomplished self-actualization. Once a need has been achieved it is no longer a motivator.

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11
Q

What are the factors to consider before choosing motivation methods?

A

(1) Cost of using a particular method.
(2) Some motivator factors can only be used on certain types of employees.
(3) While some methods of motivation work with an employee or a group of employees, they may not work with other employees.

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11
Q

What are the factors in Maslow’s theory? (Hierarchy of needs)

A

(1) Physical needs.
(2) Safety needs.
(3) Social needs.
(4) Esteem needs.
(5) Self-actualization.

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11
Q

Explain esteem needs is Maslow’s theory of basic human needs.

A

Respect from others, being recognized for a job well done, having status.

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12
Q

Explain physical needs is Maslow’s theory of basic human needs.

A

Basic needs to survive, example: Water, clothing, food, shelter.

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12
Q

Explain safety needs is Maslow’s theory of basic human needs.

A

To be safe from physical danger and individuals. Health at work, job security, free from threats.

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13
Q

Explain social needs is Maslow’s theory of basic human needs.

A

Friendship, acceptance, being part of a group.

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14
Q

Explain self-actualization needs is Maslow’s theory of basic human needs.

A

Reaching one’s potential.

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15
Q

What are the limitations of Maslow’s theory of basic human needs?

A

(1) Difficult to identify which level employee is on.
(2) Money might satisfy esteem needs as well as those lower down the hierarchy.
(3) Not everyone has the same needs as Maslow’s theory.
(4) Self-actualization isn’t always possible.

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16
Q

What are the effects of motivation in a business?

A

(1) Employees work harder and more efficiently.
(2) Business achieves its objectives easily.
(3) Quality goods.
(4) Labor productivity.
(5) Reduced average costs.
(6) Increased competitiveness.
(7) Low rate of absenteeism.
(8) Lower labor turnover.
(9) Reduce recruitment costs.
(10) Easier to manage workforce.
(11) Employees will want to work with management to help business.

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17
Q

Explain Taylor’s theory.

A

Money is enough to motivate employees. So to increase employee efforts, they must be rewarded with more money.

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18
Q

What are the financial methods of motivation?

A

(1) Salary.
(2) Piece-rate.
(3) Commission.
(4) Hourly wage rate.
(5) Bonus scheme.
(6) Fringe benefits.
(7) Profit sharing.

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19
Explain salary.
Paid fixed amount per year, paid in months.
20
Explain piece rate.
Pay is based on the number of units made.
21
Explain commission.
Pay is linked to value of sales by staff.
22
Explain hourly wage.
Paid a fixed per hour worked.
23
What are the hygiene factors in Fredrick Herzberg's theory?
(1) Working conditions. (2) Relationship with others. (3) Salary and wage. (4) Supervision. (5) Company policy and administration
23
Explain bonus scheme.
It is a performance related pay, employees receive an additional payment for achieving a realistic target set by managers.
24
Explain fringe benefits.
Discount on things like company houses, company products, company cars, health insurance and pensions received. This benefit is usually dependent on the employee's status in the business. Advantage: Help in recruitment.
25
Explain profit sharing.
Additional payment to all staff based on the profit of the business. It may be given as a cash payment by calculated as percentage of wage or salary.
26
Explain Fredrick Herzberg's theory.
Labour productivity is affected by the hygiene of the workplace and motivators.
27
Explain hygiene factor: working conditions.
clean and safe workplace facilities for example: washroom, drink machines, canteen.
28
Explain hygiene factor: salary and wage.
Getting paid enough to be motivated to work.
29
What are the hygiene factors in terms of relationships with others?
(1) Friendship, (2) Relationship with manager, (3) Working relations with other employees, (4) Treated fairly with respect.
30
Explain hygiene factor: supervision.
Leadership style and supervision of employees.
31
Explain hygiene factor: company policy and administration.
Rules and procedures which control and affect work along with relations with others in the workplace.
32
What are the motivators at workplace?
(1) The work itself. (2) Responsibility. (3) Advancements. (4) Achievement. (5) Recognition of achievement.
33
Explain how the work itself is a motivator.
The tasks the employees do are an important influence.
34
Explain how responsibility is a motivator.
Giving employees more responsibility for tasks performed and make decisions, showing that they are trusted by the manager and higher ups.
35
Explain how advancements are a motivator.
When employees have an opportunity for promotion.
36
Explain how achievements are a motivator.
Employees need to feel that they have reached challenging goals.
37
Explain how recognition of achievements are a motivator.
Employees need to have their achievements recognized by management and the people they work with.
38
What is the advantage of salary?
Employees do not receive more pay for working longer hours.
39
What is the advantage of hourly wage rate?
Business pays only for number of hours at work.
39
What is the advantage of piece rate?
Pay is based on the number of units made.
40
What is the advantage of comission?
Pay is linked to the value of goods.
41
What is the advantage of bonus scheme?
(1) Helps in recruitment of staff. (2) Linked to performance target. (3) Reduce average costs.
42
What is the advantage of fringe benefits?
Help in recruitment.
43
What is the advantage of profit sharing?
Directly linked to performance of business.
44
What is the disadvantage of salary?
Pay is not linked to amount of effort by employees.
45
What is the disadvantage of piece-rate?
Quality of goods may be poor as employees may be more focused on making more products than quality products.
46
What is the disadvantage of hourly wage rate?
Employee pay is not linked to how much is produced.
46
What is the disadvantage of commission?
Employees aren't sure if they will be paid enough to sustain themselves.
46
What is the disadvantage of fringe benefits?
Often linked to status, not performance.
46
What is the disadvantage of profit sharing?
Any profit given to employees may decrease amount reinvested.
47
Define: motivation.
The factors that influence the behavior of employees towards achieving set business goals.
47
Define: labor productivity.
A measure of how efficient the employees are.
47
What is the disadvantage of bonus scheme?
(1) If target is unrealistic, employees become demotivated. (2) In group works, all employees get the same bonus even if some employees worked harder than others; this may cause conflict.
48
Define: labor turnover.
The rate at which employees leave a business.
49
Define: absenteeism.
Absence of employees in the workplace without a good reason.
50
Define: theory of economic man.
People are only motivated by money.
51
Define: piece-rate.
Paying employees for each unit produced.
52
Define: hygiene factors.
Factors needed in the workplace to avoid dissatisfaction.
53
Define: motivators.
The factors that influence a person to increase their efforts.
54
Define: job dissatisfaction.
When a person is unhappy with their job.
55
Define: financial rewards.
Cash and non-cash rewards paid to employees which are often used to motivate employees to increase their efforts.
56
Define: team working.
Responsibility for the completion of whole task given to organized groups.
56
Define: non-financial rewards.
Methods used to motivate employees that do not involve giving any financial reward.
57
Define: delegation.
Passing authority to inferior employees to get tasks done.
58
Define: quality circles.
Groups of employees who meet up regularly to discuss how improvements can be made to the workflow and the workplace and come up with solutions to problems.

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