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business > Unit 6 > Flashcards

Unit 6 Flashcards

1
Q

What is HRM?

A

“The design, implementation and maintenance of strategies to manage people for optimum business performance”

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2
Q

HARD

A

Treats employees simply as
JUST ANOTHER RESOURCE
of the business.

What resources do we need, how do we get them and how much will they cost? How do we use them most productively?

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3
Q

SOFT

A

Treats employees as the MOST IMPORTANT RESOURCE of the business
and a source of competitive advantage

How do we get the best out of our employees?

How can they help give the business an edge?

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4
Q

Features of a HARD approach to HRM

A

Focus: identify workforce needs of the business and recruit & manage accordingly (hiring, moving and firing)

-Short-term changes in employee numbers (recruitment redundancy)

-Minimal communication, from the top down

-Motivation - focus on financial methods (Link to Taylor’s scientific approach)

-Little empowerment or delegation

-Taller organisational structures

-Suits autocratic leadership style

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5
Q

Features of a SOFT approach to HRM

A

Focus: concentrate on the needs of employees - their roles, rewards, motivation etc.

-Strong and regular two-way communication

-Competitive pay with performance-related rewards

-Motivation greater use of non financial methods, including empowerment, delgation

-Focus on job design & job satisfaction

-Flatter organisational structures

-Suits democratic leadership style

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6
Q

HARD pros

A

-More cost-effective workforce (possibly), particularly if labour is used efficiently

-Quicker decision-making by senior managers

-Higher absenteeism; higher labour turnover; difficulties with employee retention

-Potential damage to business reputation

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7
Q

SOFT pros

A

-Higher employee costs may leave business at a competitive disadvantage

-Higher levels of motivation & productivity

-lower absenteeism; lower labour turnover and higher employee retention

-Benefit to business of reputation as a great place to work

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8
Q

Key Measures of HR Performance

A
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9
Q

Employee Retention

A

• All businesses lose staff
- Retirement / Maternity / Death / Long-term
Illness
- Unsuitability
- Changes in strategy (e.g. closure of locations)

• Labour turnover needs to be managed if the business is to succeed

• Employee retention = the ability of a business to convince its employees to remain with business

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10
Q

What is Labour Turnover?

A

The percentage of the workforce (employees) that leave a business within a given period (usually a year)

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11
Q

Labour Turnover Formula

A

Number of employees leaving during period

———————————————X 100
Average number employed during period

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12
Q

Problems of High Staff Turnover

A

• Higher costs
- Increased recruitment & training costs

• Increased pressure on remaining staff

• Disruption to production / productivity

• Harder to maintain required standards of quality and customer service

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13
Q

Factors that Affect Staff Turnover

A

• Type of business
- Some businesses have seasonal staff turnover (e.g. holiday parks)
- Some businesses employ many temporary staff (e.g. hotels)

• Pay and other rewards

• Working conditions

• Opportunities for promotion

• Competitor actions

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14
Q

Ways to Improve Staff Turnover

A

• Effective recruitment and training
- Recruit the right staff
- Do all you can to keep the best staff (role for training & other motivation tools)

• Provide competitive pay and other incentives
- Competitive pay levels & non-financial benefits

• Job enrichment

• Reward staff loyalty
- Service awards, extra holiday etc

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15
Q

What is Labour Productivity?

A

Labour productivity is concerned with the volume of output (units) or value (£) produced by each employee

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16
Q

Why Labour Productivity Matters

A

• Labour costs are usually a significant part of total costs

• Business efficiency and profitability are closely linked to productive use of labour

• In order to remain competitive, a business needs to keep its unit costs down

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17
Q

Labour Productivity Illustrated

A
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18
Q

Factors Influencing Labour Productivity

A

• Extent and quality of fixed assets (e.g. equipment, IT systems)

• Skills, ability and motivation of the
workforce

• Methods of production organisation

• Extent to which the workforce is trained and supported (e.g. working environment)

• External factors (e.g. reliability of suppliers)

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19
Q

Calculating Labour Productivity

A

Output in period (units)
——————————————
Number of employees at work

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20
Q

Ways to Improve Labour Productivity

A

• Measure performance and set targets

• Streamline production processes

• Invest in capital equipment (automation + computerisation)

• Invest in employee training

• Improve working conditions

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21
Q

Some Potential Problems When Trying to
Increase Labour Productivity

A

• Potential “trade-off” with quality - higher output must still be of the right quality

• Potential for employee resistance - depending on the methods used (e.g. introduction of new technology)

• Employees may demand higher pay for their improved productivity (negates impact on labour costs per unit)

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22
Q

Some Potential Problems When Trying to
Increase Labour Productivity

A

• Potential “trade-off” with quality - higher output must still be of the right quality

• Potential for employee resistance - depending on the methods used (e.g. introduction of new technology)

• Employees may demand higher pay for their improved productivity (negates impact on labour costs per unit)

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23
Q

What is Delegation?

A

The assignment to others of the authority for particular functions, tasks, and decisions

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24
Q

Benefits of Effective Delegation

A

-Lower management stress and workload

-Good method of on-the-job training

-Allows senior management to focus on key tasks

-Subordinates are empowered and motivated

-Better decisions or use of resources (potentially)

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25
Q

Drawbacks of Delegation

A

-Harder in a smaller business - fewer people!

-Cannot / should not delegate responsibility

-Depends on quality / experience of subordinates

-May increase workload and stress of subordinates

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26
Q

Authority & Organisational Design:
Who Makes the Decisions?

A

Decision-making is about authority. A key question is whether authority should rest with senior management at the centre of a business (centralised), or whether it should be delegated further down the hierarchy, away from the centre (decentralised)

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27
Q

Centralised Decision-Making

A

Businesses with a centralised structure keep decision-making firmly at the top of the hierarchy (amongst the most senior management)

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28
Q

Potential Benefits of Centralisation

A

-Easier to implement common policies and practices for the whole business

-Prevents other parts of the business from becoming too independent

-Easier to co-ordinate and control from the centre - e.g. with budgets

-Economies of scale and overhead savings easier to achieve

-Quicker decision-making (usually) - easier to show strong leadership

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29
Q

Possible Drawbacks of Centralisation

A

-More bureaucratic - often extra layers in the hierarchy

-Local or junior managers are likely to be much closer to customer needs

-Lack of authority down the hierarchy may reduce manager motivation

-Customer service: lost flexibility and speed of local decision-making?

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30
Q

Decentralised Decision-Making

A

In a decentralised structure, decision-making is spread out to include more junior managers in the hierarchy, as well as individual business units or trading locations

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31
Q

Possible Benefits of Decentralisation

A

-Decisions are made closer to the customer

-Better able to respond to local circumstances

-Improved level of customer service

-Can enable a flatter hierarchy

-Good way of training and developing junior management

-Facilitates empowerment: should improve staff motivation

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32
Q

Possible Drawbacks of Decentralisation

A

-Decision-making not necessarily “strategic”

-Harder to ensure consistent practices and policies at each location

-May be some diseconomies of scale - e.g. duplication of roles

-Who provides strong leadership when needed (e.g. in a crisis)?

-Harder to achieve tight financial control - risk of cost-overruns

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33
Q

Taylor Scientific Management

A

• American engineer & management consultant (1856 - 1917)

• Focused on efficiency and productivity

• Approach to management based on:
- Measurement of what can be done better and how
- Monitoring to ensure targets are met
- Control through analysis

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34
Q

Taylor’s “Scientific” Approach to Management & Motivation

A

Work study
• Identify most efficient methods of production

Identify
• Spot the most efficient
workers and see why they are so good

Train
• Train the remaining
workers to work like the best

Reward
• Pay workers based on
productivity (e.g. piece rates)

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35
Q

Taylor’s View on What Motivated People

Financial Rewards

A

Financial rewards

-Based on targets

-Reward those who meet

-Piece rate

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36
Q

Implications of Taylor’s Theory of Motivation

A

• Managers should maintain close control and supervision over their employees.

• Autocratic style of management & leadership (“them and us”)

• Motivate workers using piece-rate payment (pay based on how much they produce)

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37
Q

Maslow hierarchy of needs

A

• An American psychologist (like
Herzberg)

• 1943 published A Theory of Human Motivation

• People have five sets of needs, which come in a particular order

• Hugely influential (and still)

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38
Q

Maslow’s Theory of Motivation

A

• Five levels of human needs which employees need to have fulfilled at work

• Only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied

• A business should therefore offer different incentives to workers in order to help them fulfill each need in turn and progress up the hierarchy of needs

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39
Q

Maslow’s Hierarchy of Needs - In General

A
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40
Q

The Hierarchy of Needs and Motivation at Work

A
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41
Q

Some Criticisms of Maslow’s
Hierarchy of Needs

A

• Not everyone has the same needs

• Our perception of what is important at work will vary

• Not realistic that most employees will reach the top of the hierarchy

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42
Q

Two factor theory

Professor Frederick Herzberg

A

• American psychologist (1923 - 2000)

• Specialism in business management

• Disagreed with Taylor (Scientific Management) about importance of financial rewards (e.g. wages)

• Much more convinced about importance of non-financial factors

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43
Q

Herzberg’s Two Factors
Motivators

A

Factors that directly motivate people to work harder

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44
Q

Herzberg’s Two Factors

HYGIENE

A

Factors that can de-motivate if not present but do not actually motivate employees to work harder

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45
Q

Herzberg Two Factor Theory

Motivators

A

• Responsibility at work
• Meaningful, fulfilling work
• Achievement & recognition

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46
Q

Herzberg Two Factor Theory

HYGIENE

A

• Pay & other financial rewards
• Working conditions
• Appropriate supervision & policies

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47
Q

How Herzberg Would Suggest Motivating People

A
  1. Motivate by using motivators
  2. Ensure Hygiene factors are met
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48
Q

Some Possible Herzberg Motivators

Job enrichment

A

Job Enrichment

• Wider variety of tasks
• Greater complexity & challenge
• Manage own workload
• Greater sense of achievement

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49
Q

Some Possible Herzberg Motivators

Empowerment

A

Empowerment

• More responsibility & more autonomy
• Allow employees to make decisions independently
• Less supervision
• Demonstrates trust

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50
Q

Key Factors to Consider with Financial Motivation

A

-Employment Legislation

-Extent to which pay should be linked to performance

-Recruitment & Retention

-Individual v Team Incentives

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51
Q

Financial Methods of Motivation

A
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52
Q

Legal Requirement For Employers to Consult with Employees

A

• Proposed redundancy programmes

• When employees are transferred from one employer to another (e.g. the sale of the business)

• On changes to pension arrangements

• Proposed changes to working time arrangements

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53
Q

What is Employee Representation?

A

Where employees are part of a formal structure that involves them in business decision-making

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54
Q

What is Employee Representation?

A

Where employees are part of a formal structure that involves them in business decision-making

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55
Q

Reasons for Formal Employee Representation

A

• Make employees’ views known to management

• Help strengthen both management’s and employees’ understanding of workplace issues and other matters affecting the business

• Help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations

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56
Q

Benefits of Employee Representation

A

-Increased empowerment and motivation of the workforce

-Employees become more committed to the objectives and strategy of the business

-Better decision-making because employee experience and insights taken into account

-Lower risk of industrial disputes

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57
Q

Drawbacks of Employee Representation

A

-Time-consuming - potentially slows decision-making

-Conflicts between employer and employee interests may create resistance to necessary change in the business

-Managers may feel their authority is being undermined

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58
Q

Works Councils

A

EU legislation makes these
mandatory for firms that operate in two or more EU countries and have more than 1,000 employees

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59
Q

Typical Agenda for a Works Council

A

• Business objectives and performance

• Workforce planning issues (e.g.
recruitment, staffing levels)

• Employee welfare issues (working conditions, health & safety)

• Training and development programmes

• Compliance with legislation (e.g. discrimination)

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60
Q

Role of Trade Unions

A

• Protect and improve the incomes of their members

• Provide or improve job security

• Protect workers against unfair dismissal and other issues relating to employment legislation

• Lobby for better working conditions

• Offer work-related services (e.g. legal support)

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61
Q

Advantages for an Employer of a Good Relationship with
Trade Union

A

• Negotiating with trade unions (ideally a single union) saves time and cost rather than dealing with employees individually

• Unions are part of the communication process between the business and employees

• Employee morale and motivation may be improved if they know that their interests are being protected by a union

• The trade union can be a supportive partner in helping a business undergo significant change

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62
Q

What is a Human Resource Management Objective?

A

A specific goal or target of relating to the human resource management of a business

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63
Q

Human Resource Management has lots of parts…

A

-Recruitment & selection
-Training
-Talent development
-Employee engagement & involvement
-Motivating & rewarding employees
-Managing diversity
-Developing corporate culture

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64
Q

Key Human Resource Objectives

A
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65
Q

Key Human Resource Objectives

PART 2

A
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66
Q

Internal Influences on HR objectives

A
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67
Q

External Influences on HR objectives

A
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68
Q

What is a Financial Objective?

A

A specific goal or target of relating to the
financial performance, resources and structure of a business

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69
Q

The Value of Setting Financial Objectives

A

-A focus for the entire business

-Important measure of success or failure for the business

-Help reduce the risk of business failure

-Provide transparency for shareholders about their investment

-Help coordinate the different business functions

-Key context for making investment decisions (investment appraisal)

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70
Q

The Key Financial Objectives

A

-revenue
(Revenue growth (% or value)
,Sales maximisation, Market share)

-costs
(Cost minimisation, Unit costs)

-profit
(Specific level of profit (in absolute terms), Rate of profitability (% of revenues), Profit maximisation)

71
Q

The Key Financial Objectives

A
72
Q

Many Methods of Non-Financial Motivation

A

Delegation

Empowerment

Consultation

73
Q

Many Methods of Non-Financial Motivation

Part2

A
74
Q

Many Methods of Non-Financial Motivation
Part 3

A

-TEAM WORKING

-FLEXIBLE WORKING

75
Q

What is human resource management?

A

Human resource management is about managing people

76
Q

What is the purpose of Human resource management?

A

The purpose of human resource management is to ensure that business achieve the maximum benefit from its employees at the minimum cost.

The human resources department needs to make sure that the business has the right number of employees with the right skills, qualifications and qualities.

77
Q

What are human resource objectives?

A

Human resource objectives are the targets that the function of a business responsible for all employer related issues want to achieve in the given time period

78
Q

Examples of human resource objectives

A
  • Employee engagement and involvement
  • talent development
  • training
  • diversity
  • alignment of values
  • number, skills and location of employees
79
Q

What is alignment of values?

A

Alignment of values is bringing the core values or beliefs of all employees together to focus on achieving a common aim, this can lead to a strong corporate culture where all employees fit into ‘the way we do things around here’ mindset

80
Q

Internal influences on HR
objectives / values

A
  • Time
  • budget
  • correct resources
  • objectives of the business
  • objectives of other departments
81
Q

External influences on HR
objectives

A
  • Workforce skills and availability
  • technological change
  • market conditions
  • political factors
  • current ethical and environmental issues
  • Social factors
82
Q

What is hard HRM?

A

Staff are treated as a resource that must be managed in order for the business to control costs and output

83
Q

What is soft HRM?

A

Staff are treated as an asset to the business that can contribute and help the business achieve its objectives

84
Q

Typical characteristics of soft
HRM

A
  • Managers motivate employees through empowerment and development and think that working is natural for employees
  • Opportunities for development including training, talent development, internal promotion
  • consultation
  • greater autonomy and responsibility due to a flat organisational structure
85
Q

Typical characteristics of hard
HRM

A
  • Managers believe that employees are mainly motivated by money and think they will do as little work as possible
  • Training is only done to meet production needs
  • there are many control mechanisms in place, for example, judgemental
    appraisals, centralised decision-making and tall organisational structure
  • Fixed term contracts
  • minimum wage
  • external recruitment
86
Q

Formula for labour productivity

A

Labour productivity =

Output per period
——————————
Number of employees

87
Q

Formula for labour cost per unit

A

Labour cost per unit =
Total labour cost
———————————-
Number of units produced

88
Q

Formula for employee costs as a % of turnover

A

Employee costs as a % of turnover =

Employee costs
——————————X 100
Sales turnover

89
Q

What are some external causes of high labour turnover?

A

External causes of high labour turnover include changes in regional unemployment levels, and the growth of other local firms using staff with similar skills.

90
Q

What are some internal causes of high labour turnover?

A

Internal causes of high labour turnover include poor motivation of staff, low wages, and a lack of opportunities for promotion. Staff will join other firms to increase their pay and job responsibilities.

91
Q

Benefits of high staff turnover

A
  • Constant stream of new ideas through new staff
  • firms can recruit staff who have already been trained by competitors which saves money
  • if sales fall, firm can reduce workforce through natural wastage rather than a costly redundancy
  • enthusiasm of new staff influences other workers
92
Q

Disadvantages of high staff turnover

A
  • Lack of loyal and experienced staff who know the business
  • firm loses staff it has trained, often to direct competitors
  • training costs money and productivity drops when new staff get trained
  • recruitment costs are high
93
Q

What is the link between labour retention and labour turnover?

A

The higher the labour turnover the lower the labour retention
rate

94
Q

Define delegation

A

Delegation is where the responsibility for carrying out a task or role or decision making is passed onto someone else in a business

95
Q

Give three advantages of delegation

A

+ Reduces management stress
+ Subordinates are empowered
+ Good method of on-the-job training

96
Q

Give three disadvantages of delegation

A
  • Depends on experience of subordinates
  • harder in a smaller firm
  • may increase workload of subordinates
97
Q

Define delayering

A

Delayering is there a removable of one or more layers of hierarchy from the management structure of an organisation

98
Q

Give three advantages of delayering

A

+ Better delegation, empowerment and motivation
+ Improved communication (smaller chain of command)
+ Encourages innovation

99
Q

Give three disadvantages of delayering

A
  • Not all organisations suit a flat organisational structure
  • can cause job losses
  • causes disruptions
100
Q

Define authority

A

Authority is the power of a person to use and allocate the resources efficiently, to take decisions and to give orders.

101
Q

What is a centralised structure?

A

Centralised structures keep authority for decisions at the top and all decisions are made by senior managers

102
Q

Give 3 advantages of centralisation

A

+ Business leaders have lots of experience of making business decisions

+ Managers get an overview of the whole business, so decisions are consistent throughout the business

+ Senior managers aren’t biased towards one department so they can make the best decisions for the whole business

103
Q

Give three disadvantages of centralisation

A
  • Not many people are expert enough to make decisions about all aspects of the business
  • excluding employees from decision-making can be demotivating
  • the organisation reacts slowly to change, allowing its competitors to get ahead. This is because the senior managers who make the decisions don’t spend time on the shopfloor, so they are slow to notice consumer trends
104
Q

What is a decentralised structure?

A

Decentralised structure is share out the authority to make decisions to more junior employees.

105
Q

Give three advantages of decentralisation

A

+ Involvement in decision-making motivates employees

+ Employees can use expert knowledge of the sector

+ Day-to-day decisions can be made quickly without having to ask senior managers

106
Q

Give three disadvantages of decentralisation

A
  • Junior employees may not have enough experience to make decisions
  • inconsistencies may develop between the divisions in a business
  • junior employees may not be able to see the overall situation and needs of an organisation
107
Q

Define recruitment

A

Recruitment is the process of actively seeking out, finding in hiring candidates for specific position a job

108
Q

Define selection

A

Selection is the process of choosing the most suitable candidate for the vacant position in the organisation

109
Q

Define internal recruitment

A

Internal recruitment takes place when a business looks to fill the vacancy from within the existing workforce

110
Q

Define external recruitment

A

External recruitment occurs when a business invites applicants for vacant posts from any suitably qualified candidates

111
Q

Give three advantages of internal recruitment

A

+ Candidates already know the business and the business now is the candidates
+ Short and cheap process
+ Motivate workers to go for a promotion

112
Q

Give two disadvantages of internal recruitment

A
  • Leaves a vacancy in another department
  • can cause resentment among colleagues who aren’t selected
113
Q

Give three advantages of external recruitment

A

+ Brings in fresh new ideas
+ Brings an experience from other organisations
+ Large number of applicants

114
Q

Give three disadvantages of external recruitment

A
  • Long and expensive process
  • candidates will need a longer induction process
  • have only seen a candidate at recruitment - might not be representative of what they’re like at work
115
Q

If a company decides it does indeed have to take on a new worker it must go through a logical and ordered recruitment and selection process, what is this process?

A

1) Identify vacancy

2) Write a person specification and job description

3) Draft in place advertisement of job

4) Issue application forms/requesting CVs and letter of application

5) Shortlist the most suitable candidates

6) Interview most suitable candidates

7) Appoint and select the most suitable candidate

116
Q

What does a job description contain?

A

Job descriptions relate to the position rather than the person. Typically, job descriptions might contain the following information: job title, job purpose, responsibilities, location and hours, and company details

117
Q

What does a person or job specification include?

A

A person or job specification sets out the qualifications and qualities required by an employee these include: qualification requirements, experience and skills required, sensory demands and personal attributes

118
Q

Give eight ways of advertising vacancies

A
  • Radio advertisements/TV adverts
  • posters
  • social media
  • job fairs
  • billboards
  • websites
  • newspapers
  • recruitment agencies
119
Q

Give three advantages of on-the-job training

A
  • Easy to organise
  • lower cost of training
  • training is job specific
120
Q

Give three disadvantages of on-the-job training

A
  • Trainer and trainee are not productive during training
  • bad practices are passed on
  • no new ideas are brought to the business
121
Q

Give three advantages of off-the-job training

A
  • Trainers are specialised
  • new ideas about the business
  • No job distractions during training
122
Q

Give three disadvantages of off-the-job training

A
  • Can be expensive
  • no benefit to the business while training
  • training might not be specific to their day-to-day job
123
Q

Give three disadvantages of off-the-job training

A
  • Can be expensive
  • no benefit to the business while training
  • training might not be specific to their day-to-day job
124
Q

Internal factors that can influence HR plans

A
  • Corporate, marketing and production plans.
    For example if production is expanding they will need to recruit more staff and offer more
    training
  • changes in production style may lead to retraining, recruitment or redeployment of staff
125
Q

External factors that can influence HR plans

A
  • Employment legislation protects employees rights and restricts companies ability to dismiss or transfer workers
  • new technology might change the number of staff and the skills needed - businesses might have to re-train their staff
  • labour market trends like migration and the ageing population have an affect on the supply of workers
126
Q

External factors that can influence HR plans

A
  • Employment legislation protects employees rights and restricts companies ability to dismiss or transfer workers
  • new technology might change the number of staff and the skills needed - businesses might have to re-train their staff
  • labour market trends like migration and the ageing population have an affect on the supply of workers
127
Q

Define job enrichment

A

Job enrichment attempts to give employees greater responsibility by increasing the range and complexity of tasks they are called upon to complete and giving them the necessary authority

128
Q

Define job enlargement

A

Job enlargement involves the addition of extra and similar tasks to a job

129
Q

Define empowerment

A

Empowerment involves giving people greater control over their working lives

130
Q

Define empowerment

A

Empowerment involves giving people greater control over their working lives

131
Q

Define team working

A

A way of organising work that involves people working in separate teams to do different tasks

132
Q

What are the four non-financial incentives for motivation?

A
  • Job enlargement
  • job enrichment
  • empowerment
  • team working
133
Q

What are the four non-financial incentives for motivation?

A
  • Job enlargement
  • job enrichment
  • empowerment
  • team working
134
Q

Define piecework

A

Staff are paid according to the number of items they produce

135
Q

Define performance-related
pay

A

A financial reward to employees whose work is considered to have reached a required standard and/or above average. Performance related pay is generally use where employee performance cannot be appropriately measured in terms of output produced or sales achieved

136
Q

Define profit sharing

A

Profit sharing refers to any system whereby employees receive a proportion of the businesses profits

137
Q

Define share ownership

A

Share ownership is a program in which a business distribute shares to its employees

138
Q

Define salary

A

A salary is a fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to employee, especially professional or white-collar worker.

139
Q

What are the six types of financial incentives to motivation?

A
  • Piecework
  • performance related pay
  • profit sharing
  • share ownership
  • fringe benefits
  • salary
140
Q

Which motivational theorist was known to have developed the first motivational theory?

A

FW taylor

141
Q

What was the one reason that Taylor believed that people worked for?

A

Taylor believed that people work for one reason only: money.

142
Q

Taylor’s goal was to figure out the most efficient way to do a job, and then to make sure every single worker did it that way. What was this approach called?

A

This approach is called scientific management

143
Q

In Taylors theory, in what way should you pay an employee to maximise motivation?

A

Taylor believed in paying workers according to the quantity they produced - the most productive workers got a better rate. He believed that financial incentives would motivate workers and raise productivity.

144
Q

What did Maslow’s motivation theory consist of?

A

Maslow’s theory was based on a hierarchy of needs. Maslow said that people start by meeting the needs of the bottom of the pyramid. Once they have sorted out those needs, they can move on to the next level up.

145
Q

What are the five levels of Maslow’s hierarchy of needs?

A

1) Physiological - food, water, shelter, clothes

2) Safety - safe work environment with job security

3) Social needs - friendship, teamwork

4) Self-esteem - achievement, self-respect, level of status

5) Self actualisation - intellectual needs, fulfilling potential, achieving targets

146
Q

What is Herzberg’s two factor theory?

A

Hertzberg believed in a two factor theory of motivation. He argued that there were certain factors that a business could introduce that would directly motivate employees to work harder these are known as motivators.

However, there are also other factors that would demotivate an employee if they are not met, these are called hygiene factors.

147
Q

What is the critical physiological state caused by skill variety, task identity and task significance?

A

Workers have experienced meaningfulness of work

148
Q

What is this critical physiological state caused by autonomy?

A

Workers have experienced responsibility for work outcomes

149
Q

What is this critical physiological state caused by autonomy?

A

Workers have experienced responsibility for work outcomes

150
Q

What is the critical physiological state caused by feedback?

A

Employees know how well they are performing and aim to improve

151
Q

What does autonomy mean?

A

Autonomy means giving work as the freedom to make their own decisions

152
Q

What is a flexible workforce?

A

A flexible workforce is a workforce that can perform a variety of different functions due to different types of employment within the business

153
Q

Define outsourcing

A

Outsourcing is the delegation of one or more business processes to an external provider, who then owns, manages and administers the selected processes to an agreed standard

154
Q

Define downsizing

A

Downsizing is the reduction of the size of a firm to make it more responsive to market
conditions

155
Q

Give 4 advantages of a flexible workforce

A
  • Increase productivity and effectiveness
  • talent retention and engagement
  • more employment opportunities for greater talent diversity
  • resource efficient
156
Q

Give three disadvantages of a flexible workforce

A
  • It is hard to organise meetings and conferences
  • it is harder to train employees as each role is different
  • employees may be less cohesive as they may not be together much
157
Q

What does a successful employer-employee relationship maximise and minimise?

A

A successful employer-employee relationship maximise is the cooperation and minimises potential for conflict between these two groups. It is built on a culture of trust between the two groups.

158
Q

Give 3 benefits to the employer from having good employer-employee relations

A
  • The business will develop a great reputation among prospective employees, so it will attract the very best candidates during recruitment
  • if relations are good then productivity and efficiency are increased as new ideas and ways of working are picked up quickly by the employees, this allows the business to be more competitive
  • good communication will mean that the objectives of the employees are more aligned with the objectives of the business
159
Q

Give three benefits to the employee from having good employer-employee relations

A
  • Employees will feel involved in the business which will give them a sense of job security
  • the views of the employee are considered during decisions so they will feel valued and motivated and this will increase their job satisfaction
  • employees are able to communicate their personal objectives to the employer, which will help the employee develop skills and further their career
160
Q

Describe what a works council is

A

Works councils are committees made up of employer and employee representatives that are usually elected. They meet regularly to discuss general work issues and share ideas and information in a relatively relaxed atmosphere to improve relations.

161
Q

Describe what a works council is

A

Works councils are committees made up of employer and employee representatives that are usually elected. They meet regularly to discuss general work issues and share ideas and information in a relatively relaxed atmosphere to improve relations.

162
Q

In the works council how many employees does one representative represent?

A

There is one representative per
50 employees

163
Q

What is a trade union?

A

A trade union is an organisation with members who are usually workers or employees that pay to join in order to gain greater power and security at work.

Trade unions act on behalf of groups of employees in the workforce when negotiating rates of pay and working conditions etc with the employer.

164
Q

What is a trade union?

A

A trade union is an organisation with members who are usually workers or employees that pay to join in order to gain greater power and security at work.

Trade unions act on behalf of groups of employees in the workforce when negotiating rates of pay and working conditions etc with the employer.

165
Q

What is collective-bargaining?

A

By joining with others and belonging to a union, an employee strengthens their bargaining power in a way that wouldn’t be possible if they tried to bargain as an individual. If the union is formally recognised by an employer, it can negotiate with the employer over terms and conditions. This is known as collective bargaining.

166
Q

What does it mean if an employer recognises a trade union?

A

Recognition is fundamental to the legal position of a trade union; management must recognise the unions right to bargain on behalf its members.

167
Q

What is industrial action?

A

Industrial action is taken by employers or employees to settle workplace dispute about working conditions.

168
Q

Give four advantages of employee representation

A
  • It’s often more effective to approach an organisation as a group. Groups have a bigger influence and can be more forceful
  • collective bargaining can help achieve long-term aims because employers may sign contracts which lock them into agreements
  • it can be helpful for management to have a small representative group of workers to negotiate with rather than consulting every individual
  • senior management can get a direct insight into the concerns of the workforce
169
Q

Give four advantages of employee representation

A
  • It’s often more effective to approach an organisation as a group. Groups have a bigger influence and can be more forceful
  • collective bargaining can help achieve long-term aims because employers may sign contracts which lock them into agreements
  • it can be helpful for management to have a small representative group of workers to negotiate with rather than consulting every individual
  • senior management can get a direct insight into the concerns of the workforce
170
Q

Give five disadvantages of employee representation

A
  • Employee representation can lead to industrial action. This can take the form of deliberately decrease productivity or strike action
  • Strike action can get out of hand or turn violent
  • industrial action leads to lost profits
  • the majority votes within a trade union may overrule the demands of the individual. The individual is then denied the opportunity to represent themselves as they might want to
  • industrial action can undermine the trust between employer and employee. A breakdown in communication will damage the relationship
171
Q

Give five disadvantages of employee representation

A
  • Employee representation can lead to industrial action. This can take the form of deliberately decrease productivity or strike action
  • Strike action can get out of hand or turn violent
  • industrial action leads to lost profits
  • the majority votes within a trade union may overrule the demands of the individual. The individual is then denied the opportunity to represent themselves as they might want to
  • industrial action can undermine the trust between employer and employee. A breakdown in communication will damage the relationship
172
Q

What is a single union agreement?

A

A single union agreement is an agreement between an employer and a union such that the union will represent all the workers at a particular workplace.

173
Q

What is a no-strike agreement?

A

A no-strike agreement is an agreement between an employer and the trade union in which the latter undertakes not to initiate or support strike action by employees of the company

business (13 decks)

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