UNIT 2: PEOPLE IN BUSINESS

• What is one reason why people work?

  To have a better standard of living
• How does having a job contribute to security?

  It allows individuals to maintain or grow their standard of living
• What is one benefit of gaining experience and status through work?

  It helps individuals get better at their jobs and earn a reputable status
• What is job satisfaction?

  It is the satisfaction of having a job
• Why is it important to motivate workers?

  Motivated workers are more productive and effective
• What are the consequences of well-motivated workers for a firm?

  Increased efficiency and output, leading to higher profits
• What does F.W. Taylor's theory of Scientific Management assume about worker motivation?

  Workers are motivated by personal gains, mainly money
• What is a piece-rate system proposed by F.W. Taylor?

  Workers get paid for the number of outputs they produce
• What is a limitation of the piece-rate system?

  It is impractical in situations where output cannot be measured
• What does Maslow's Hierarchy illustrate about employee motivation?

  Employees are motivated by each level of the hierarchy
• What is a limitation of Maslow's Hierarchy of Needs?

  It does not apply to every worker, as some may prioritize different needs
• What are hygiene factors according to Herzberg's 2-factor theory?

  Basic animal needs such as status, security, and work conditions
• What are motivators in Herzberg's 2-factor theory?

  Needs that allow human beings to grow psychologically, such as achievement and recognition
• What is the time-rate method of payment?

  Pay based on the number of hours worked
• What is a disadvantage of the time-rate payment method?

  It does not ensure that workers will use their time productively
• What is the piece-rate payment method?

  Pay based on the number of outputs produced
• What is a commission in terms of financial motivators?

  Pay based on a percentage of sales made by a salesperson
• What is a bonus?

  An additional amount paid to workers for good work
• What is performance-related pay?

  Pay based on performance measured through appraisals
• What is profit-sharing?

  A scheme where a proportion of the company’s profits is distributed to workers
• What is share ownership in the context of financial motivators?

  Shares in the firm are given to employees to increase loyalty
• What are the methods to ensure job satisfaction?

  • Job Rotation: Swapping jobs to avoid boredom
  • Job Enlargement: Adding extra tasks of similar level
  • Job Enrichment: Adding tasks that require more skill and responsibility
  • Team-working: Group responsibility for tasks
  • Opportunities for training: Valuing employee work through training
  • Opportunities for promotion: Encouraging efficiency and self-actualization
• What does organizational structure refer to?

  The levels of management and division of responsibilities within a business
• What is one advantage of having an organizational structure?

  Everyone knows their position in the business
• How does organizational structure help with communication?

  It shows the links and relationships between different departments
• What is the role of the HR department in recruitment and selection?

  Attracting and selecting the best candidates for job posts
• What is the purpose of job analysis?

  To identify and record the tasks and responsibilities related to the job
• What is a job specification?

  A document outlining the requirements and qualifications for a job
• What is business communication?

  The process by which information is exchanged between groups or individuals
• What is internal communication?

  Communication from the management to the people within the business
• What are the consequences of poor internal communication?

  Workers don’t understand what they have to do, leading to poor motivation and wastage
• What is external communication?

  Communication from people inside the business to people outside the business
• What are the consequences of poor external communication?

  Unhappy customers, bad business reputation, and problems with suppliers
• What are the types of communication methods in business?

  • Verbal Communication
  • Visual Communication
  • Written Communication
• What are the advantages and disadvantages of verbal communication?

  Advantages:

  • Immediate feedback
  • Personal interaction

  
  

  Disadvantages:

  • Misunderstandings can occur
  • No permanent record
• What are the advantages and disadvantages of visual communication?

  Advantages:

  • Clear representation of information
  • Engaging for the audience

  
  

  Disadvantages:

  • Can be misinterpreted
  • Requires proper design skills
• What are the advantages and disadvantages of written communication?

  Advantages:

  • Permanent record
  • Can be reviewed multiple times

  
  

  Disadvantages:

  • Delayed feedback
  • Can lack personal touch
• What is the span of control?

  The number of subordinates working directly under a manager
• What does the chain of command refer to?

  The structure of an organization that allows instructions to be passed on from senior managers to lower levels of management
• How does the autocratic leadership style function?

  Managers expect to be in charge and make all decisions without involving employees