People in Business

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What is motivation?
The reason why employees want to work hard and work effectively for the business.
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What are 5 reasons why people work?
Money, social needs, esteem needs, job satisfaction, security
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Who was Maslow?
A psychologist who proposed a hierarchy on needs in a triangular diagram to explain what motivates workers in general.
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In which order did he place these needs?
Pphysiological needs, safety/security needs, social needs, esteem needs and self-actualisation.
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What was Herzberg's theory?
Herzberg suggested that needs were separated into 'hygiene' factors. The 'hygiene' factors must be satisfied - if not, they can act as demotivators.
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Give some examples of hygienic factors.
Status, security, work conditions, company policies and administration, relationship with supervisor, relationship with subordinates, salary
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Give some examples of motivators.
Achievement, recognition, personal growth/development, advancement/promotion, work itself
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What are 8 financial rewards?
Performance-related pay, wages, piece rate, time rate, salary, bonus, commission, profit sharing.
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What is a wage?
A payment for work, usually paid weekly. Workers can get paid overtime.
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What is time rate?
When payment for work is given to a worker based on the amount of hours (generally) that they've spent working. Payment by the hour.
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What is piece rate?
A payment per unit of products made. The more workers make, the more they get paid.
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What is salary?
A payment for work, usually monthly. They stay the same regardless of the output or time spent .
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What is commission?
A payment relating to the number of sales made. The more sales they make, the more money they earn. Similar to piece rate.
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What is profit sharing?
This payment is added to salaries and involves giving workers a share of the business' profits, motivating them to work hard.
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What is a bonus?
An additional amount of payment above basic pay as a reward for good work. A lump sum handed out at the end of the year or intervals during the year.
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What is performance-related pay?
Pay which is related to the effectiveness of the employee where their output can be easily measured.
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What are the advantages of wages?
1) The worker gets paid on a regular basis so doesn't have to wait long for money. 2) If the employee works longer than normal hours, they can get paid overtime.
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What are the disadvantages of wages?
1) As they're paid weekly, they have to be calculated every week, which takes time and money. 2) Wages clerks are often employed to perform this task.
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What are the advantages of time rate?
1) Makes it easy to calculate the worker's wages and the worker knows exactly what they will be paid for working a certain period of time.
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What are the disadvantages of time rate?
1) The hours worked are often recorded on a time sheet. This system takes time. 2) Good and bad workers get paid the same amount of money 3) Often supervisors are needed to make sure the workers keep working and producing good quality products.
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When is time rate most often used?
When it's difficult to measure output.
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What are the advantages of piece rate?
1) Encourages workers to work faster and produce more goods.
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What are the disadvantages of piece rate?
1) Workers may concentrate on making a large number of products instead of quality. 2) Workers who are careful in their work won't earn as much as those who rush 3) If the machinery breaks down, the employees will earn less money.
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What are firing benefits?
Non-financial rewards given to employees.
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What are some examples of fringe benefits?
Company vehicles, discounts, health care, free accommodation, children's education, pension paid for, free trips abroad...
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What is job satisfaction?
The enjoyment derived from feeling that you have done a good job.
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What is organisational structure?
The levels of management and division of responsibilities within an organization.
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What is a chain of command?
The structure in an organization which allows instructions to be passed down from senior management to lower levels of management.
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Advantages of an organization chart?
1) Shows how everyone is linked together in a business 2) Every individual can see their own position 3) Shows the links and relationship between different departments within the organization 4) Everyone is in a department - a sense of belonging.
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What is span of control?
The number of subordinates working directly under a manager.
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What is chain of command?
The number of people or layers of levels of management below the owner or senior management member.
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Advantages of short chains of command?
1) Communication is quicker and more accurate 2) Top managers are less remote from the lower levels 3) Spans of control are wider, encouraging delegation and motivation.
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Other cards in this set

Card 2


What are 5 reasons why people work?


Money, social needs, esteem needs, job satisfaction, security

Card 3


Who was Maslow?


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Card 4


In which order did he place these needs?


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Card 5


What was Herzberg's theory?


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