UNIT 6 BUSINESS REVISION
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What is employee representation?
Where employees can have an individual to represent them for the purpose of negotiating with management on such issues
as wages, hours, benefits and working conditions.
as wages, hours, benefits and working conditions.
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Advantages
More empowerment and motivation of the workforce.
Employees become more committed to the objectives and strategy.
Better decisions because of employee experience and insights.
Lower risk of industrial disputes.
Creates mutual trust.
Employees become more committed to the objectives and strategy.
Better decisions because of employee experience and insights.
Lower risk of industrial disputes.
Creates mutual trust.
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Disadvantages
Time-consuming
Conflicts of interests may cause resistance to needed change.
Managers might feel their authority is being undermined.
Conflicts of interests may cause resistance to needed change.
Managers might feel their authority is being undermined.
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Staff Appraisal
A formal opportunity to analyse the work of an employee. It is a chance to talk to your employer about work or future plans.
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Industrial Action
Strike - Where workers refuse to work.
They can damage a business. Customers don't like businesses that strike. Customer trust takes time to come back. Loss of profit and reputation. Other businesses can take advantage of strikes.
They can damage a business. Customers don't like businesses that strike. Customer trust takes time to come back. Loss of profit and reputation. Other businesses can take advantage of strikes.
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Salaries and Commission
Salary - where a worker in on a fixed monthly payment.
Wages - Paid hourly based on how much they work.
Commission - Paid based on the number of sales.
Wages - Paid hourly based on how much they work.
Commission - Paid based on the number of sales.
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Labour turnover
The amount of people that leave a business over a specific timescale.
(Total Leavers / Average number of employees) x 100
(Total Leavers / Average number of employees) x 100
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Delayering
Reducing the number of levels in the hierarchy of employees in an organisation.
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Trade Union
An organised association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests.
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Soft approach
Treating your employees as a resource and not a commodity. Emphasises empowering employees to pressure their own interests and passions.
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Hard approach
Less care for employee satisfaction, see employees as something that can be replaced easily.
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Hertzberg theory of motivation
Two Factor Theory
Convinced more about non-financial factors.
Two factors - motivators and hygiene.
Motivators are factors that directly motivate employees to work harder.
Hygiene - factors that will de-motivate if not present but not motivate employees
Convinced more about non-financial factors.
Two factors - motivators and hygiene.
Motivators are factors that directly motivate employees to work harder.
Hygiene - factors that will de-motivate if not present but not motivate employees
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Motivators
Responsibility at work
Meaningful and fulfilling work.
Achievement and recognition.
Job enrichment and empowerment.
Meaningful and fulfilling work.
Achievement and recognition.
Job enrichment and empowerment.
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Hygiene
Pay & other financial rewards.
Working conditions
Appropriate supervision and policies.
Working conditions
Appropriate supervision and policies.
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Hackman and Oldham's model
Job characteristics model
How does the TASK that an employee does affect their motivation?
How does the TASK that an employee does affect their motivation?
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5 job characteristics...
Skill Variety - what the job requires from the employee. It is repetitive or varied.
Task Identity - Clear beginning, middle and end of a task. Feeling of completion.
Task Significance - Does the job or task matter?
Autonomy - How much freedom someone h
Task Identity - Clear beginning, middle and end of a task. Feeling of completion.
Task Significance - Does the job or task matter?
Autonomy - How much freedom someone h
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Labour Costs
Total weekly wages - output = labour costs per unit.
Can be reduced by increasing production. Incentivising performance and improving staff turnover are ways of doing this.
Can be reduced by increasing production. Incentivising performance and improving staff turnover are ways of doing this.
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Centralisation and decentralisation
Centralised organisation - Where the majority of decisions are made by people at the top (or centre) of the business. Ensures decisions meet objectives + decisions are fast.
Decentralisation - The business gives more authority to lower employees. It brin
Decentralisation - The business gives more authority to lower employees. It brin
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Benefits of decentralisation...
Improves motivation + reduces labour costs through a lower labour turnover. Reduces workload on senior managers so that they can focus on more important long-term things. Gives junior employees more chance to develop skills and can get experience in makin
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Organisational Structure and Design
Organisational Structure:
- Hierarchy
- Spans of control
- Delegation and authority
Job design and organisational design:
- Job enlargement and rotation
- Job enrichment
- Empowerment
- Hierarchy
- Spans of control
- Delegation and authority
Job design and organisational design:
- Job enlargement and rotation
- Job enrichment
- Empowerment
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Organisational Structure Explanation:
Shows how people and management are organised into a business.
It determines authority, job titles and roles, the people to whom others are accountable, routes of communication.
Works from top to bottom.
It determines authority, job titles and roles, the people to whom others are accountable, routes of communication.
Works from top to bottom.
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Factors affecting structure:
Size of the business
Type of business
Management and leadership style
Competitive environment
Type of business
Management and leadership style
Competitive environment
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What is the span of control?
The number of employees that a manager is responsible for.
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Narrow span of control
Allows for closer supervision of employees.
Helps for more effective communication.
Might need more layers in the hierarchy.
Helps for more effective communication.
Might need more layers in the hierarchy.
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Wide span of control
Gives subordinates the chance for more independence.
If labour costs are significant, it is more effective, because they don't have to pay for more managers.
If labour costs are significant, it is more effective, because they don't have to pay for more managers.
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Span of control depends on...
The experience and skill of manager(s).
Size and complexity of business.
Whether the business is centralised or decentralised.
Size and complexity of business.
Whether the business is centralised or decentralised.
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Chains of command
Describes the lines of authority in a business.
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Employee empowerment
Giving employees the power to do their job.
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Delegation
Assigning staff with authority to particular jobs and tasks.
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Other cards in this set
Card 2
Front
Advantages
Back
More empowerment and motivation of the workforce.
Employees become more committed to the objectives and strategy.
Better decisions because of employee experience and insights.
Lower risk of industrial disputes.
Creates mutual trust.
Employees become more committed to the objectives and strategy.
Better decisions because of employee experience and insights.
Lower risk of industrial disputes.
Creates mutual trust.
Card 3
Front
Disadvantages
Back
Card 4
Front
Staff Appraisal
Back
Card 5
Front
Industrial Action
Back
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