AS Business Studies Section 2.3.4a

?
Reducing Labour Costs
Labour costs are a significant cost to a business, and in difficult financial situations business will look to reduce these costs. This can be achieved by:
1 of 23
Delegation
Used to improve perfomance of staff. This involves passing authority down the hierarchy to a subordinate. Can make them feel more involved in the workplace and therefore more motivated, however it can increase pressure at work, who would be negative
2 of 23
Consultation
A method used to improve performance. Asking for the views of other people within the workplace. Can motivate some staff as they feel appreciated and involved at work (Mayo, and Maslow)
3 of 23
Empowerment
Another method used to improve performance at work. This allows subordinates to exercise power over their working lives. Empowerment implies a degree of self regulation and the freedom to make decisions.
4 of 23
Flexible Working
A method used to improve performance in the workplace. Flexible working allows indivudals within a workplace to complete their working hours slightly differently to the norm (9am -5pm for example). It allows greater work life balance.
5 of 23
Job Enrichment
A way to motivate employees by offering them the opportunity to use their own abililties. Links to Herzberg, as he stated that an enriched job should allow a range of tasks and challenges to individuals.
6 of 23
Job Rotation
Widening the activities of the worker by swithcing them aorund a number of different work tasks. Can improve performance by relieving boredom and gives the worker the opportunity to develop new skills.
7 of 23
Piecework
A method of payment, used as a financial incentive and linkled to Taylor's theory of motivation. A worker is paid for every completed tasks of piece of woork. Improves productivity but is mainly used for repetitve and low skilled jobs
8 of 23
Bonus
A financial incentive given to motivate staff. Usually a one-off lump payment, can be linked to the success of the company or the performance of a deparmtent.
9 of 23
Performance Related Pay
PPR - is an increase in salary awarded after review to an employee for achieving their objectives and working well. Usually follows a period of performance appraisal and can be used to motivated staff to improve performance.
10 of 23
Profit Share
If a business has performed well, they may decide to share these profits with their employees - usually after the final yearly accounts have been completed. Everyone is given the same, not based on performance of an individual but the company
11 of 23
Motivation - Taylor
Taylor, recognised the need to be more efficient and developed a theory of specialisation where everyone only completed small tasks within a factory type environment. He believed that people were only motivated by money so developed "piece rate".
12 of 23
Motivation - Maslow
Maslows hierarchy of needs has 5 levels from the most basic to higher order needs. He stated that people needed to satisfy the lowest levels first and then they could be motivated by the next level. Employees need to be motivated differently
13 of 23
Maslow's Hierarchy
Level 1: Physiological needs, Level 2: Safety Needs, Level 3: Belongingness and Love needs, Level 4: Self-Esteem needs, Level 5: Self- Actualisation
14 of 23
Motivation - Herzberg
Herzberg has the two factor theory of motivation. There are hygiene factors that can dissatisfy people at work (too much admin, supervision, unsafe conditions) and there were motivators; recognition, job enrichment, team work
15 of 23
Internal Recruitment
Recruiting staff from within the business. Promotion opportunityies can motivate people within the business and they already know the policies and proceedures, however it can stop new ideas being brought into the business.
16 of 23
External Recruitment
Businesses often chose to recruit from outside of the business, although expensive the business may want new ideas, or may simply not have the skills already within the business to use internal promotion.
17 of 23
Positive Attitude
Employers may recruit for a postive attitude over skills in some situations. Where skills can be taught, and a lack of job knowledge can be improved by training - attitude comes from the individual and businesses do not look to improve individuals
18 of 23
Labour Turnover
Labour turnover is a measure of how many staff leave the business over a period of time (# staff elaving/ # staff employed * 100). The lower the % to fewer people leaving. Staff retention is important for the retention of skills & motivation
19 of 23
Centralisation
Where business decisions are made at a centralised location (head office), does ensure that all decisions are consistent throughout the business and all parts are working towards a common objective.
20 of 23
Decentralisation
Where decision making power is dispersed to other areas of the business (branches and sections). They are given more power to make their own decisions. Decisions are therefore quicker and business can adapt to customer needs.
21 of 23
Chain of command
A vertical line of authority wtihin an organisation enabling orders to be passed down through the layers of the hierarchy
22 of 23
Span of control
The number of subordinates that are directly answerable to the member of staff. Those below them on the hierarchy.
23 of 23

Other cards in this set

Card 2

Front

Used to improve perfomance of staff. This involves passing authority down the hierarchy to a subordinate. Can make them feel more involved in the workplace and therefore more motivated, however it can increase pressure at work, who would be negative

Back

Delegation

Card 3

Front

A method used to improve performance. Asking for the views of other people within the workplace. Can motivate some staff as they feel appreciated and involved at work (Mayo, and Maslow)

Back

Preview of the back of card 3

Card 4

Front

Another method used to improve performance at work. This allows subordinates to exercise power over their working lives. Empowerment implies a degree of self regulation and the freedom to make decisions.

Back

Preview of the back of card 4

Card 5

Front

A method used to improve performance in the workplace. Flexible working allows indivudals within a workplace to complete their working hours slightly differently to the norm (9am -5pm for example). It allows greater work life balance.

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »