Business section 2

• Motivation is the reason why employees want to work hard and work effectively for the Business.
• Why work; - money to pay for necessities and some luxuries/ security a sense of security i.e. knowing that your job and pay are safe - you are not likely to lose your job/ social needs (affiliation) feeling part of a group or organization, meeting people, making friends at work / Esteem needs (self-importance) feeling important, feeling that your job you do is important / Job satisfaction enjoyment is derived from feelino that you have done a good job.
• well-motivated workers _ high productivity (employees work more effectively) _ increased output _ higher profits
• Unhappy workers _ do not work very effectively _ low output _ lower/no profit
• A wage is payment for work, usually paid weekly.
• Time rate is the amount paid to an employee for one hour of work
• Piece rate is an amount paid for each unit of output
• A salary is payment for work, usually paid monthly
• A bonuses is an additional amount of payment above basic pay as a reward for good work.
• Commission is payment relating to the number of sales made.
• Profit sharing is a system whereby a proportion of the company’s profits is paid out to employees
• Methods of payment - Commission; Bonus; wages (price rate, time rate); profit sharing, salaries
• Job satisfaction is the enjoyment derived from feeling that you have done a good job
• Job rotation involves worker swapping around and doing each specific task for only a limited time and then change around again
• Job enrichment involves looking at jobs and adding tasks that require more skill and/or responsibly
• Teamwork involves using groups of workers and allocating specific task and responsibilities to them
• Training is the process of improving a workers skills
• Promotion is the advancement of an employee in an organisation, for example, to higher job/managerial level
• motivating factors at all levels = A reasonable level of pay; fringe benefits; holidays; Prestige and recognition; chance to use creativity; chance to take responsibility; Independence; Chance for promotion; tasks which provides a sense of achievement; Interesting and stimulating task; working with colleagues who are friendly; Working hours; A clean and safe environment; Job security
• Organisational structure refers to the level of management and division of responsibility within an organisation.
• Orginisational chart refers to a diagram that outlines the internal management structure.
• Hierarchy refers to the levels of management in any organisation, from the highest to lowest.
• A level of hierarchy refers to managers/supervisors/ other employees who are given a similar level of responsibility in an organisation
• Chain of commands is the structures is an organisation which allows instructions to be passed down from senior management to lower levels of management
• The span of control is the number of subordinates working directly under a manager.
• directors are senior managers who lead a particular department or division of a business
• Line managers have direct responsibility for people below them in the hierarchy of an organisation.
• supervisors are junior managers who have direct control over the employees below them in the organisational structure.
• Staff managers are specialists who provide support information and assistance to line managers.
• Delegation means giving a subordinate the authority to perform particular tasks.
• Delegation= makes work more interesting; gives authority to others to take decisions and perform tasks; Employee development increases job satisfaction; Subordinate feels trusted if no training given; Some managers are reluctant to delegate; Manager loses some control over subordinates; Allows managers to give time to other issues
• Effective managers = tasks = plans for future; Organises and delegate; Coordinates departments;Command and guid others; Control and assess the work of departments
• Effective Managers= Qualities= Intelligence; Self-confidence; Determination; Initiative; Good communication skills; Enthusiasm.
• Leadership styles are the different approaches to dealing with people and making decisions when in a position of authority- autocratic, democratic or laissez-faire.
• Autocratic leadership is where the manager expects to be in charge of the business and to have their order followed.
• Democratic leadership gets other employees involved in the decision-making process
• Laissez-faire leadership make the broad objectives of the business known to employees, but then they are left to make discussions and organise their own work
• Autocratic = do x
• Democratic = do you think x or y is best
• Laissez-faire = do x or y as you think best