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Managing People

Theme1

TermDefinition
F.W Taylor Workers do not naturally enjoy work and so need close supervision and control. Autocratic style of management. Piece rate pay should be used.
Abraham Maslow There are five hierarchies of need that explain why people work. Staff first want to meet their survival needs by earning a good wage. Safety needs such as job security then become important, followed by social, self-esteem and self-fulfilment needs.
Herzberg Factors that would motivate employees to work harder (motivators) e.g. empowerment and factors that would de-motivate an employee if not present but would not actually motivate employees to work harder (hygiene factors) e.g. working conditions
McGregor Two types of people X&Y.X people don't like work and will try to avoid it so you need to pressure them, they don't want responsibility. Y's like work and want responsibility, self actualization and are creative.
Non-Financial ways of motivating Time off, promotion, free health care,school fees payes, company car, free trips,pension,share options,free accomodation, expense accounts, gifts and privileges.
Job Enlargement It's where extra tasks are added to a job description giving more of a variety of work therefore increasing job satisfaction but do not add responsibility.
Job Enrichment Extra tasks that require more skill/responsibility are added. They fulfil higher human needs and make employees more committed.
Teamworking Groups of workers are given responsibility for a particular process, product or development. They become more involved in the decision making process giving them a sense of control and increasing job satisfaction.
Job Rotation Workers on a production line switch jobs for a while and it gives a change of work, it's very good for when someone's sick and their job needs covering: more people will know how to do the job. This does not make work more interesting.
Job Satisfaction People need to be happy when they work, so if they are treated badly by management and the company gives them fringe benefits it won't make much of a difference.
Piece rate People are paid according to the amount of products they make so the more they make the more money. It's used only when you can measure performance and workers usually work faster but quality is often ignored. Taylor would agree.
Commission A payment system usually operated by sales staff where their earnings are determined by how much they sell.
Bonus It's like commision but is given as a reward for doing well, non sales staff may be given bonuses.
Profit Sharing Staff are sometimes given dividends of profit as well as their basic pay and is used to motivate people. Often used in service sectors.
Performance Related Pay Pay linked to the effectiveness of a worker where it cannot be readily measured-Teachers, Police officers etc.It's when their immediate boss looks over them and then gives them a bonus.
Empowerment Involves giving people greater control over their working lives.
Delegation This occurs when managers pass a degree of authority down the hierarchy to their subordinates.
Quality Circles Group of workers that meet at regular intervals in order to identify any problems with quality within production, consider alternative solutions to these problems, and then recommend to management the solution
Works Council This is a type of worker participation and it consists of regular discussions between managers and representatives of the workforce over such issues as how the business can improve its processes and procedures (in production for example).
Issues with Maslow Hierarchy Not everyone has the same needs/Peoples perceptions on what is important at work will vary/Not realistic that everyone will reach the top of the hierarchy
Theory Y Workers like to work and seek new challenges/Seek responsibility
Theory X Workers dislike work/Lazy/Must be controlled and punished where appropriate
Motivators Responsibility/ Recognition for good work/ Opportunities for promotion
Hygiene Factors Pay/Working conditions/Job security
Self Actualisation needs Achieving ones full potential/achieving targets/ fulfilling potential
Psychological needs Basic needs e.g. food/shelter/warmth and rest
Safety needs Safe working environment/ Job security
Esteem needs Prestige and feeling of accomplishment/Self respect/level of status
Social needs Feeling wanted/sense of belonging/part of a team
Autocratic Leadership Senior managers make all decisions/ supervise and control workers/one way communication/managers do not trust workers. Suitable when quick decisions needs to be made.
Democratic Leadership Style involving consulting with subordinates and evaluating their opinions before making a decision.
Laissez faire Leadership Employees are set objectives and they have to decide how best to achieve them. This method of leadership can result in high levels of enthusiasm for the task in-hand, but it can at times rely too much on the skills of the workforce.
Paternalistic Leadership Autocratic in its approach but employees social and welfare needs are taken into account when a decision is made. The leader is likely to consult the workforce before implementing any decision, but he is unlikely to listen to much of the feedback.
Fringe Benefits Items an employee received in addition to their wages/salary. Known as 'perks' e.g. free meals/health insurance/company car
Dismissal When an employee’s contract is terminated due to a breach of the terms of that contract by the employee e.g. Incompetence or a Disciplinary matter such as theft or behaviour
Unfair Dismissal When an employee’s contract is terminated but the reason is seen as unfair in the eyes of the law e.g. being pregnant or an unrelated criminal record
Redundancy A form of dismissal when an employee’s contract of employment is terminated because the job no longer exists. This may occur as a result of a change in the businesses needs including: Closure, Restructuring, Relocation, New technology and Rationalisation
Hard HRM Staff are treated as a resource that must be managed in order for the business to control costs and output Features include;Centralised decision making, Tall organisational structure, Fixed term contracts, Minimum wage and External recruitment
Soft HRM Staff are treated as an asset to the business that can contribute and help the business achieve its objectives. Features include; Staff development, Training, Internal promotion, Empowerment, Consultation and Flatter organisational structure
Employee representation The systems put in place to aid communication between employers and employees.
Employer/employee relations The defining features of how employers and employees interact with each other on a day to day basis
Trade Unions National organisations with a remit to protect its members and improve their economic and working conditions e.g. NUT. Objectives of TUs; Securing jobs, maximising pay, Ensuring safe and acceptable conditions and Fair treatment of members by employers
Part-time employees Contracted to work less hours than a full time employee e.g. 3 days a week. Hours can be increased if there is an increase in demand. Legally, part-time workers should not be treated less favourably than full time workers
Temporary Employee A person who is contracted to work for a business for a specified period of time e.g. 6 months to cover maternity leave
Flexible hours Give some degree of independence to the employees to choose their own hours of work. Normally there are certain boundaries e.g. 36 hours a week must be done anytime between 7am and 5pm per day but the employee must be in between 10hrs and 4hrs each day.
Homeworking The ability to work from home rather than travelling into the workplace. Increases flexibility to the employee, Reduces costs to the employer and is made easier by advances in technology
Outsourcing The practise of using the services of other organisations to complete all or parts of the manufacturing process
Zero Hours Contracts This means that employees are on call to work when required by employers. However, the employers don’t have to give the employees work and the employees don’t have accept work when asked.
Individual Approach An employee could opt to take an individual approach to employer/employee relations. Each employee would negotiate individually with management for their own interest e.g. pay or working conditions
Leadership The ability to influence and direct people in order to meet the goals of a group
Management The process through which company resources are used and decisions made in order to meet the objectives of the firm
Leaders People that can inspire and motivate people to meet objectives
Managers Set objectives and decide how to go about achieving them. They lead/motivate, make decisions and review performance
Recruitment The steps undertaken by a business to identify a vacancy and attract suitable candidates; this can be internal or external
Selection The actions taken by a business to help identify the best candidate for a job
Recruitment and Selection Process 1. Identifying the vacancy 2.Job description 3.Person specification 4.Advertising the vacancy 5.Receiving applications 6.Short listing and References 7.Assessing candidates 8.Offering the position
Internal Recruitment Internal recruitment occurs when candidates for a position are recruited from within the organisation. Leads to lower recruitment costs and improved promotion prospects. But, limits the number of applicants and reduces talent available
External recruitment External recruitment occurs when candidates are recruited from outside of the organisation. Increases the talent available and increases the number of applicants. However, higher recruitment costs and may upset overlooked internal candidates.
Psychometric testing Involves a mixture of the following; 1. Aptitude – measures the ability to develop skills and acquire knowledge 2. Attainment – measuring levels of understanding e.g. maths 3. Personality – measuring aspects of a candidate’s behaviour
Alec Rodger’s Seven Point Plan The 7 Point Plan for carrying out selection interviews: Physical make-up – appearance Attainments – education Intelligence – ability to evaluate Aptitudes – special skills Interests – active Disposition – maturity Circumstances – availability
Costs of Recruitment 1.Time drawing up job descriptions and person specifications (if these do not already exist) 2.Placing advertisements in newspapers or journals 3. Fees paid to a recruitment consultancy
Costs of Training 1. Productivity time lost by employee receiving training 2. Productivity time lost by a second employee if training is provided in house 3. Fees paid to an external training provider plus employees travel costs
Costs of Selection 1. Managers time shortlisting and interviewing 2. Candidate expenses if reimbursed for interviews 3. Fees paid to assessment centres
Training The process of equipping employees with the skills and knowledge necessary to carry out their job effectively
On-the–job training Employee learns in the workplace from experienced employees. Supervisor coaches the worker through the job stage by stage. Experienced worker may also demonstrate how the work is to be carried out
Off-the–job training Any form of education that takes place outside of the workplace. Can involve sending workers away or having training in the same building but away from where they will be working. Likely to be more for general skills rather than job specific
Induction Training Introductory training for employees new to an organisation
Decentralisation Widespread delegation/ passing of power down to lower levels in the hierarchy for decision-making
Delayering The removal of one or more layers from a hierarchy. The removal of middle managers.
Centralisation Centralisation means that only the top levels of the hierarchy have the authority to make decisions
Organisational Structure The way in which a business is arranged to carry out its activities Can be shown in an organisation chart
Hierarchy The structure of the workforce within an organisation showing who is accountable to whom
Tall and Thin structures This occurs where each superior is responsible for a few subordinates. This allows for closer supervision and communication between the two levels
Wide and Flat Structures This means that each superior is responsible for a large number of subordinates. This requires greater delegation but fewer levels allowing for quicker communication through the firm
Chain of command The way authority and power is passed down the levels of hierarchy. The longer the chain of command the slower communication and potentially decision making
Span of control Shows the number of subordinates that a manager or supervisor is directly responsible for
Wide Span of Control If a manager has many subordinates. A wide span of control offers greater decision making authority for subordinates
Narrow Span of Control If they have few subordinates. Narrow span of control allows tight supervision and close control
A matrix structure A structure where teams are put together from different functional areas to work on specific projects
Created by: durquhart1