Year 12 Mock (june 2024) Flashcards
What is Maslow’s theory called and what does it mean?
The hierarchy of needs
- Provides 5 categories of needs which a business must cater to if its employees are to be as engaged and motivated as possible
What are the 5 tiers of Maslow’s hierarchy of needs?
- Self actualisation (giving employees the opportunity to meet their full potential)
- Esteem (giving employees access to opportunities for promotion)
- Belongingness/love (giving employees opportunities to build relationships)
- Safety and psychological needs (offering job security, a safe working environment and pay for food and accomodation)
What are the pros and cons of Maslow’s hierarchy?
- Offers a structured approach to improve motivation
- Assumes employees will place the same importance of their needs as ordered and this may not apply to all staff
What is Herzberg’s motivation theory?
Suggests two groups of factors which impact upon an employees motivation, safer conditions and motivating factors.
What is Taylor’s theory?
Piece rate: to motivate employees they should be paid based on the amount of output they have produced.
What is market mapping?
A market map illustrated the range of positions a product can take in a market based on two dimensions that are important to customers. eg low price vs high price
What are some advantages of market maps?
- Helps spot gaps in the market
- Useful for analysing competitions - where are their products positioned?
- Encourages use of market research
What are some disadvantages of market maps?
- Not all gaps needs to filled / doesn’t mean there is demand for the product
- Not a guarantee of success
- How reliable is the market research
What is meant inventory?
Inventories are the raw materials, wip and finished goods held by a business to enable production to take place and meet customer demand.
What influences the amount of inventory held?
- The need to satisfy customer demand
-The need to manage working capital - Risk of inventory losing value
What are some costs involved with holding inventory?
- Cost of storage (may require employees and equipment)
- Interest costs
- Obsolescence risk
- Stock out costs
What are the 4 management styles?
Autocratic, democratic, paternalistic and laissez-faire.
What is an autocratic management style?
An authoritarian style of leadership involving managers making all decisions without consulting with employees.
Benefits of an autocratic management style?
- Decisions made quickly
- Decisions made by most experiences organisation members
- Good in companies with low skilled employees
- Employees have clear instructions of requirement
Drawbacks of an autocratic management style?
- Employees ideas and creativity are not taken into account
- Employees may become demotivated by lack of input or responsibilities
- Amount of decision making can be stressful for managers
- Decisions based on managers capabilities
What is a Laissez-faire management style?
Managers let employees get on with their jobs with as little inference as possible.
What are benefits of a laissez-faire management style?
- Effective in situations where staff are highly skilled and motivated
- Employees may feel empowered and motivated by their responsibility
- Leaves room for innovative decision making
What are drawbacks of a laissez-faire management style?
- Poor performance can result if inexperienced staff are left without direction
- Employees may feel pressured if they have no support
- Unclear who takes responsibility - may lead to blame culture
What is a democratic management style?
Managers and employees working together to make decisions
What are some benefits of a democratic management style?
- Highly motivates employees who feel empowered
- Employees better prepared for promotion
- Employees more accepting of change
What are some drawbacks of a democratic management style?
- Decision can be slow
- A strong leader is required to lead discussion and supervise
What is a paternalistic management style?
A managerial approach where there is a dominant figure that decides what is best for employees
What are some benefits of a paternalistic management style?
- Creates loyalty among employees
- Employees feel more valued - more commitment
- High retention and job satisfaction
- Good for a low skilled workforce who require guidance
What are some drawbacks of a paternalistic management style?
- Ultimately still an authoritarian style so little communication or input from employees
- Employees can become dependent on leaders for supervision
What is employee engagement?
A human resources concept that describes the level of enthusiasm and dedication a worker feels towards their job.
What are some benefits of motivated and engaged employees?
- Produce higher quality product/service (which adds value and reduces waste)
- Reduces costs through better productivity and innovations
- Stays with the business, reduces costs of recruitment
What are some ways to increase employee engagement?
- Piece rate pay
- Pay commission
- Performance related pay
- Job enrichment
- Empowerment (delegating)
- Team working
What is the formula for margin of safety?
Actual sales - Break even sales
How is share price determined?
By the interaction of supply and demand
What are factors that affect supply and demand for share price?
Financial performance
Dividend policy
Relationship with key investors
Management reputation
State of the economy
General market sentiment
Industry developments
Better alternatives
What is customer service and what can it involve?
The interactions between a company and its customers
- Investigating customers needs
- Presenting products of offer
- post sales service
Benefits of good customer service?
Loyalty and repeat purchases (some business promote repeat purchasing through the use of a loyalty scheme eg Costa)
Customer satisfaction - spread the word of business
Customers willing to pay more for a product (business can become more profitable)
Drawbacks of good customer service?
Higher staff wages from hiring skilled employees
Paying for staff training
Extra costs for extra services offered
Higher wage costs from post sales service time
What are some dangers of poor customer service?
Can lead to dissatisfied customers who are unlikely to purchase products or service from business again.
Can also lead to a poor reputation therefore revenue due to fall in demand.
What is kaizen?
Constantly introducing small incremental changes in a business in order to improve quality and or efficiency
Benefits of kaizen?
Creates a culture that encourages and rewards employees for their contribution to the process
Drawbacks of kaizen?
Some firms set targets for individuals to come up with a minimum number of ideas in a period of time which can be a unwelcome pressure of employees
