People in Business

• Why people work -

  • they need to earn money for necessities and luxuries
  • a sense of security - knowing your job is safe
  • social needs - being part of a group
  • esteem needs - feeling the job you do is important
  • job satisfaction - the enjoyment derived from doing a good job
• Well-motivated workforce

  • High productivity
  • Helps to keep costs low and increase profits
  • A willingness to accept change
  • Two-way communication with management
  • More suggestions are given to increase quality of products
  • Low labour turnover
  • Low rates of absenteeism
  • Low rates of strike action
• 1. basic salary
  2. pension plan
  3. cordial relationships with colleagues
  4. job title
  5. achievement of goals

  
• hygiene factors:

  • status
  • security (contract gives you job security)
  • work conditions
  • company policy and administration
  • relationship with supervisor
  • relationship with subordinates
  • salary
• Trust motivators:

  • achievement
  • recognition
  • growth & development
  • promotion
  • the work itself
• Financial rewards are used to provide incentives to encourage them to work harder:

  • wages
  • salary
  • bonus
  • commission
  • profit sharing
  • fringe benefits
• FW Taylor -

  • his believed that if employees were paid more, they'll work more effectively
  • however, there were criticisms of his ideas:
  • his ideas were too simplistic, employees are motivated by other things, not just money
  • no guarantee that paying a worker more money will lead to an increase in effectiveness
• Job rotation - 

  • involves worker swapping around and doing each specific task for a limited time
  • makes it easier for managers to move workers around if someone is ill
  • it increases the variety in the work but doesn’t necessarily make it more interesting
• Job enrichment - 

  • looking at jobs and adding tasks that require more skill and responsibility
  • workers will feel more committed if managers can design jobs to that they fulfil higher human needs (self-actualisation - maslow's hierarchy)
  • this will then lead to higher rates of productivity
• Teamworking - 

  • groups of workers being given responsibility for a process/product/development 
  • workers become more involved in the decision making
  • gives  a feeling of control, become more committed and increases job satisfaction
  • working as a group improves morale and gives a greater sense of belonging to the company
• Training - 

  • improving a workers level of skill can lead to increased motivation
  • first, they feel a sense of achievement which can lead to more challenging work to perform
  • being selected for a training course gives a worker a feeling of recognition
• Opportunities for promotion - 

  • businesses prefer to fill vacant posts of responsibility from within the existing workforce
  • this internal recruitment offers opportunities for advancement
  • business benefits from better motivated workers
  • employees offered promotion will have a higher status
  • these benefits are linked to Maslow and Herzberg
• Organisational structure - 

  • refers to the levels of management and division of responsibilities within an organisation
  • this can be shown as an organisational chart with levels of hierarchy
  • an organisation hart shows how everyone is inked together
  • the chain of command can clearly be seen and allows instructions to be passed down to lower levels
  • everyone is aware of the communication channel and can see their own position in the company
  • gives employees a sense of belonging
• • in recent years, many organisations have have made their structure wide, with a shorter chain of command
  • this has been done by removing layers of management = delayering
  • delayering is done due to:
  • increase efficiency of communication
  • delegate more responsibilities
  • cut cost
• Advantages of short chain in command -

  • communication is quicker
  • top managers are less remote from the lower level of the hierarchy
  • each manager will be responsible for more subordinates, this will encourage delegation
  • less direct control of workers, workers will be able to make more decisions themselves = job satisfaction
• Disadvantages of having a short chain in command -

  • wider spans of control could mean that managers lose control of what subordinates are doing (e.g. a manger has to supervise 30 subordinates, there is a high chance that one or two subordinates go unnoticed by the manager)
  • this could lead to mistakes being made
• Roles and functions of management -

  • planning (future target):
  • this creates an aim or target and gives the organisation a sense of direction
  • to achieve the aim, a manager must plan the resources which will be needed
• Roles and functions of management -

  • organising (resources):
  • tasks must be delegated to others who should have the resources to complete these tasks
  • managers must organise people effectively
  • the organisational chart shows who has the authority
  • makes sure that specialisation occurs and people don't end up doing the same tasks
• • Roles and functions of management -
  • coordinating (labour):
  • a manager must ‘bring people together’ in the organisation
  • departments should make contact with each other
  • marketing must coordinate with the operations department
  • a good manager makes sure that all departments work together to achieve the plans
  • example = meetings
• Roles and functions of management -

  • commanding (labour):
  • as well as guiding, leading, and supervising, managers also need to tell people what to do
  • they have to make sure targets and deadlines are being met
  • it’s also their responsibility to make sure that the tasks are carried out by people below them in the organisation
• Roles and functions of management -

  • controlling (factors of production)
  • managers measure and evaluate the work of all individuals
  • have to take corrective action when required
  • may involve disciplining staff
  • it’s the managers job to find out why targets aren’t being met
• Delegation - 

  • giving a subordinate the authority to perform particular tasks
  • manager gives the subordinated the authority, not the responsibility
  • if a job is done badly, the manager has to accept the responsibility
  • because the manager had delegated that task to someone
• Advantages of delegation for the manager:

  • by delegating, a manger can concentrate on other important management functions
  • managers are less likely to make mistakes if some of the tasks are performed by subordinates
  • managers can measure the success of their staff more easily

  Advantages of delegation for the subordinate:

  • work becomes more interesting and rewarding
  • employee feels more important now that trust has been put in them
  • helps to train workers giving them career opportunities
• Why do some managers choose not to delegate?

  • fear some subordinates will fail and want to control everything themselves
  • there’s also a risk the subordinate might do a better job that the manager

  Why it’s important to have good managers - 

  • they motivate employees
  • give guidance and advice to employees
  • can inspire employees
  • manage resources and keep costs under control
  • increase profitability of the business
• Autocratic leadership - 

  • the manager expects to be in charge and have order followed
  • example = when a teacher gives students an exam
  • they make all the decisions themselves
  • they tell employees only what they need to know

  Advantage - 

  • good for quick decision making

  Disadvantage - 

  • can be demotivating (as your opinions aren’t taken into account so it feels as if no one is listening to you)
• Democratic leadership - 

  • gets other employees involved in the decision making
  • information is openly discussed
  • communication is both downward and upwards

  Advantage - 

  • can result in better decisions being made

  Disadvantage - 

  • unpopular decisions, such as redundancy, couldn't be made using this style
  • can also slow down decision making
• Laissez-faire leadership - 

  • french for ‘leave to do’ - sets broad objectives
  • employees are left to make their own decisions
  • leader has a limited role and clear direction isn’t given

  Advantage - 

  • encourages creativity and responsibility

  Disadvantage - 

  • not appropriate when clear decision making is required
• Trade union - 

  • a group of employees who have joined together to ensure their interests are protected
  • help employees to achieve improvements in their work such as training and a safe environment
  • can be seen in any industry such as hospitals, school, factories and shops
  • once a worker joins a union they become eligible for a number of benefits
• Benefits of a trade union -

  • strength in numbers when negotiating with employees
  • improved working conditions (e.g. pay and holidays)
  • improved environment influence health and safety and heating
  • benefits for members who aren’t working because the are sick or have been made redundant
  • improved job satisfaction through training
  • advice and financial support if a worker thinks they have been unfairly treated or dismissed
  • discount in certain shops
  • secure employment when there is a closed shop
  • closed shop = means all employees must belong to the same trade union
• Advantages of a trade union - 

  • it can help improve communication between workers and managers
  • wage negotiations are easier with a trade union

  Disadvantages of a trade union - 

  • costs money to be a member
  • workers may be required to take industrial action (strike) even if they don't agree
• Photosynthesis

  • an endothermic reaction (meaning it takes in energy)