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Flashcards · 7137 · Topic 3.2
Managing people and operations flashcards
27 cards on Topic 3.2, subtopics 3.2.1 to 3.2.2. Pick a subtopic or study them all.
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3.2.1 People management
- HR objectives
- Targets for the number and skills of employees, turnover and retention, engagement, employee costs, and equality, diversity, inclusion and belonging.
- HR planning
- Matching the workforce to future needs through recruitment, training, retention, redeployment and redundancy.
- Flexible employment
- A mix of employment types and patterns so the workforce can change with demand.
- Zero-hours and freelance contracts: main plus and minus
- Zero-hours: hours track demand, but insecurity and higher turnover. Freelance: specialist skill on demand, but little control.
- Productivity, sales per employee and employee turnover
- Productivity = output ÷ employees. Sales per employee = revenue ÷ employees. Employee turnover = leavers ÷ average employees × 100 (9 of an average 60 = 15%).
- Employee costs as a percentage of revenue
- Employee costs ÷ revenue × 100. Example: £84,000 ÷ £420,000 × 100 = 20%.
- Delayering
- Removing one or more levels of hierarchy.
- Tall vs flat structures
- Tall: many levels, narrow spans, close supervision, many promotion steps, but slow communication and high management cost. Flat: few levels, wide spans, faster communication and lower cost, but limited supervision.
- Centralised vs decentralised
- Centralised: decisions at the top; consistency and control, but slow and demotivating. Decentralised: decisions lower down; speed, local knowledge and staff development, but less control.
- Autocratic, democratic and transformational leadership
- Autocratic: leader decides; fits a crisis or unskilled team; risks resentment. Democratic: leader consults; fits a skilled team; slow. Transformational: vision and inspiration for change; depends on the leader.
- Hackman's five conditions for team effectiveness
- A real team; compelling direction; enabling structure; supportive context; expert coaching.
- Taylor, Maslow and Herzberg
- Taylor: pay is the main motivator; simple timed tasks and piece rate. Maslow: hierarchy of physiological, safety, social, esteem, self-actualisation needs. Herzberg: hygiene factors (such as pay) prevent dissatisfaction; motivators raise motivation.
- Financial and non-financial rewards
- Financial: wages, salaries, piece rate, commission, performance-related pay, shares, fringe benefits. Non-financial: delegation, empowerment, job enrichment, training, remote, hybrid and flexible working.
- Individual vs collective representation
- Individual: flexible and personal, but low bargaining power. Collective (trade unions, employee forums): strong voice and protection, but may bring conflict and delay.
3.2.2 Operations management
- Operations objectives named in 7137
- Efficiency, quality, volume of goods and services, flexibility, and environmental impact.
- Added value
- Selling price less the cost of bought-in inputs. Example: price £85, bought-in materials £52 → £33, which is 38.8% of the price.
- Employee productivity, unit costs and capacity utilisation
- Employee productivity = output over a time period ÷ number of employees. Unit costs = total costs ÷ number of units of output. Capacity utilisation = actual output ÷ maximum possible output × 100.
- 7,200 units, 18 staff, total cost £28,800, capacity 9,000. Productivity, unit cost, utilisation?
- Productivity = 400 per employee. Unit cost = £4.00. Utilisation = 80%.
- Ways to increase productivity, and difficulties
- Training, motivation, better equipment, workflow changes, less waste, technology. Difficulties: costs come before gains, staff resistance, pressure on quality, extra output may not sell.
- Lean production in 7137
- Reducing inventory, re-works, waiting times and transportation times; kaizen (continuous small improvements suggested by staff); and standardised processes.
- Benefits and difficulties of JIT
- Benefits: lower holding costs, less storage, less cash tied up, less obsolete stock. Difficulties: needs reliable suppliers; delays stop output; no cover for demand spikes; lost bulk discounts.
- Network analysis: float time and the critical path
- Float time = latest finish time − duration − earliest start time. Example: LFT 9, duration 3, EST 4 → float 2 days. Activities with zero float form the critical path, which sets the shortest project time.
- Quality assurance vs checking finished goods
- Quality assurance builds quality into every stage to prevent faults. Checking finished goods only detects faults after they are made.
- Consequences of poor quality
- Returns, wasted materials, lost sales, damaged reputation, compensation, and low staff morale.
- Ways of matching output to demand in 7137
- Changing production scheduling; increasing or decreasing inventory; part-time, temporary, zero-hours or freelance staff; outsourcing; investment in capital and technology; increasing or decreasing capacity.
- Inventory turnover: formula and example
- Inventory turnover = cost of sales ÷ average inventories held. Cost of sales £300,000; inventory £22,000 at the start and £28,000 at the end, so average £25,000: turnover = 12 times a year.
- Economies and diseconomies of scale in 7137
- Economies (unit costs fall with size): technical, purchasing, financial. Diseconomies (unit costs rise with size): problems of control, communication and coordination.