-Fewer defects as the employee becomes specialised
-Benefits the best employees
-More control over employees
Disadvantages of Taylor
-Costly to implement
-Work becomes repetitive
-Alienation
-Increased unemployment as workers can be replaced by technology
-Deskilling
-Limited applicability
-Workers are exploited
Deskilling
Workers become overspecialised and cannot perform any other tasks
Mayo: Human Relations
-Communication between managers and workers
-Greater management involved
-Teamwork as group norms influences the behaviour of workers
Works with paternalistic leadership
Advantages of Mayo
-increased production
-cheap to implement
-improved morale and empowerment
-increased employee retention
-increased motivation
Maslow: Hierarchy of Needs
There are 5 tiers of needs: physiological, safety, social, esteem and self-actualisation which employers can fulfil in the workplace eg. job security meets safety needs
Advantages of Maslow
-Higher employee satisfaction
-Increased motivation
-Improved employee performance
Disadvantages of Maslow
-Needs to be tailored to fit individual needs
-Expensive
-Time-consuming
Disadvantages of Mayo
-Time-consuming
-Lack of control
-Workers may resist change
-Potential conflict due to increased communication
-Limited applicability
Hygiene Factors
Elements that can lead to job dissatisfaction if absent eg. poor teamwork
Use of Hygiene Factors
-Pay fair wages
-Offer excellent working conditions
-Offer contracts with job security
Use of Motivators
-Build a recognition and rewards culture
-Offer opportunities for growth and development
-Provide challenging work
Mayo in the Workplace
-Empowering employees
-Team-building activities
-Providing feedback
-Create a positive work environment
-Encouraging employee development
Taylor in the Workplace
-Workers perform one task (specialisation)
-Workers are only paid a piece-rate
Piecework
Workers are paid per unit of output
Advantages of Piecework
-Incentive to work
-Home workers can start and finish when they want
-Benefits better workers
Disadvantages of Piecework
-Quality decreases as workers cut corners
-Workers may fall under the national minimum wage
Commission
A percentage of sales revenue paid to workers
Benefits of Commission
-Skilled workers earn more
-Employer does not pay for downtime
-Motivates employees to increase sales
Limitations of Commission
-Unstable income
-Employees prioritise sales over customers
Bonus
A lump sump paid in addition to wages
Limitations of Bonuses
-Expensive
-Employee is taxed on their bonus
Benefits of Bonuses
-Incentivises employees to meet sales objectives
-Motivates workers as their work is appreciated
Profit Share
An annual dividend paid to employees based on the firm's profits
Benefits of Profit Shares
-High motivation
-Employees identify with the company so increased retention
-Employees will focus on profitability
Limitations of Profit Shares
-Salaries rise equally not based on contribution
-Employees' earnings can vary greatly at small firms
-Prioritise profit over quality
Performance Related Pay
Staff are paid based on the performance goals they have met
Benefits of Performance Related Pay
-Improved performance
-Easy to choose who to promote
Limitations of Performance Related Pay
-Can cause jealousy and unrest
-Employees may be demotivated if they do not reach goals
Delegation
Allocating tasks to employees thus giving them more responsibility
Benefits of Delegation
-empowers managers to make decisions
-maximises team's potential
-builds trust between managers and employees
Limitations of Delegation
-Managers delegate tasks when overloaded instead of to motivate
-Managers may not choose the most suitable employee
Consultation
Including employees in the decision making process
Benefits of Consultation
-Prevents minor issues getting bigger
-Helps avoid union action
-Increased motivation as their views matter
Limitations of Consultation
-Employees may not know how to run a successful firm
-Employees may have grudges
Empowerment
Giving employees more authority to delegate tasks to others
Benefits of Empowerment
-Staff feel recognised for their effort
-Increased productivity
-More effective problem-solving as they are local
-Increased employee retention
Limitations of Empowerment
-Makes managers insecure as it may lead to delayering