Flashcards · 7115 · Topic 2

People in business flashcards

30 cards on Topic 2, subtopics 2.1 to 2.4. Pick a subtopic or study them all.

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2.1 Motivating employees

Benefits of a well-motivated workforce: Higher labour productivity, reduced absenteeism and lower labour turnover.
Labour productivity, absenteeism rate and labour turnover formulas: Labour productivity = total output ÷ number of employees. Absenteeism rate = working days lost ÷ working days available × 100. Labour turnover = leavers in the year ÷ average number employed × 100.
Maslow’s hierarchy of needs, lowest to highest: Physiological (a living wage), safety (secure job, safe conditions), social (friendship, teamworking), esteem (respect, recognition, promotion), self-actualisation (reaching one’s potential).
Herzberg: hygiene factors and motivators: Hygiene factors cause dissatisfaction if poor but do not motivate if good (pay is mainly a hygiene factor). Motivators give real satisfaction, such as achievement and responsibility.
Taylor’s theory of motivation: Workers are motivated mainly by money. Break work into small tasks, set output targets, link pay to output and supervise closely. It ignores social and esteem needs.
Wage and salary; bonus and commission: Wage: tied to hours worked. Salary: a fixed yearly amount paid monthly. Bonus: rewards meeting a target. Commission: a percentage of each sale.
Job rotation and job enrichment: Job rotation: moving employees between tasks at a similar level (sideways). Job enrichment: giving employees more responsibility and challenge (upwards).
Output rises from 200 to 220 items per worker. What is the percentage change in productivity?: (220 − 200) ÷ 200 × 100 = 10%

2.2 Organisation and management

Span of control and chain of command: Span of control: the number of people reporting directly to one manager or supervisor. Chain of command: the line of authority from the top to the bottom of the business.
Tall and short structures compared: Tall: many levels, narrow spans, slower communication, close supervision, higher management salaries. Short: few levels, wide spans, faster communication, looser supervision, lower salaries.
Delegation: Passing authority to carry out a task, and to make decisions about it, to someone lower in the hierarchy. The manager stays accountable.
Benefits and risks of delegation: Benefits: frees managers for planning, uses staff skills, motivates, trains future managers. Risks: mistakes, lack of skill or time, a task done differently from how the manager would do it.
The five functions of management: Planning, organising, coordinating, commanding and controlling.
Commanding versus controlling: Commanding gives instructions before the work; controlling checks results afterwards.
Autocratic, democratic and laissez-faire leadership: when each fits: Autocratic: urgent decisions, inexperienced staff, emergencies. Democratic: skilled staff and complex decisions needing commitment. Laissez-faire: expert or creative staff.
Trade union: An organisation of workers formed to protect and improve its members’ pay, conditions and interests, acting together.
Effects of a trade union on the business: Higher costs from pay and conditions agreements, possible disruption and slower change; but a single channel to talk to staff, fewer unresolved disputes and often lower labour turnover.

2.3 Recruitment, selection and training of employees

Recruitment and selection: Recruitment: attracting suitable applicants for a vacancy. Selection: choosing the best applicant from those who applied.
Job description and person specification: Job description: what the post involves (title, duties, responsibilities). Person specification: the skills, qualifications and qualities wanted.
When to recruit internally and when externally: Internal: when speed and low cost matter, reliability is known, or you want to reward loyalty. External: when new skills or ideas are needed, no suitable person is employed, or the business is expanding fast.
Induction, on-the-job and off-the-job training: Induction: introduction for new starters. On-the-job: learning while doing the work; the trainer’s output falls and bad habits can pass on. Off-the-job: learning away from the workplace; suits specialist skills but costs more.
Dismissal and redundancy: Dismissal: the employer ends the contract because of the employee’s conduct or performance (about the person). Redundancy: the job is no longer needed, for example after automation (about the job).
Part-time and full-time employees compared: Part-time: matches cover to busy periods and pays only for hours needed, but means more people to train and manage. Full-time: reliable, committed cover, but paid even in quiet spells.
Legal controls over employment (in general terms): Employment contracts, unfair dismissal, discrimination, health and safety, and the legal minimum wage.

2.4 Internal and external communication

Effective communication; internal and external communication: Effective: the message is received, understood and acted on. Internal: within the business. External: with customers, suppliers and others outside it.
How do you choose a communication method?: By urgency, complexity, the number of receivers, and the need for a record or feedback.
Email: one strength and one weakness: Strength: fast, detailed and recorded. Weakness: overload, and it can be ignored.
A closure must reach 40 staff within the hour. Which method suits?: A text or messaging app for speed and reach, followed by a short email for a record. A letter would be too slow.
Communication barriers and their fixes: Jargon or language: plain words or translation. Long chain: fewer levels. Overload: prioritise and summarise. Wrong method: match method to message. Technical failure: a back-up channel.
Problems caused by poor communication: Mistakes, delays, low morale, lost customers and orders, and conflict.