Unit 2: People in business

Benefits of a well-motivated workforce

Improved productivity, lower absenteeism, lower turnover, better quality of goods/services, increased internal competition.

Maslow's hierarchy of needs

A theory that prioritizes needs: physiological, safety, social, esteem, and self-actualization.

F. W. Taylor theory

Proposes that employees are motivated by money alone.

Herzberg's theory

Distinguishes hygiene factors (to avoid dissatisfaction) from motivation factors (to enhance effort).

Hygiene factors

Basic working conditions necessary to prevent job dissatisfaction.

Motivation factors

Elements that encourage employees to increase their effort, such as achievements.

Hourly wage

A fixed payment per hour worked, not linked to the output.

Salary

An annual payment to employees regardless of hours worked.

Piece-rate

Payment based on individual work output, leading to fluctuating pay.

Commission

Payment based on the value of sales made by the employee.

Bonus-scheme

Extra payments for employees who meet set objectives.

Fringe benefits

Non-cash rewards provided to retain employees, such as discounts.

Profit sharing

Additional pay based on the profit made by the business.

Job rotation

Assigning employees new tasks to diversify skills.

Job enrichment

Enhancing a job's content to increase employee satisfaction.

Job enlargement

Increasing the scope and importance of a job.

Quality circle

A group of employees who meet to discuss and solve work-related issues.

Delegation

Passing responsibility to others while maintaining accountability.

Hierarchy

Levels of authority and responsibility in an organizational structure.

Chain of command

The order in which instructions are passed down within an organization.

Span of control

Number of employees an individual manager oversees.

Wide span of control

Less supervision and cost-effective, but reduces promotion opportunities.

Narrow span of control

More supervision and control, but can lead to higher costs.

Tall organizational structure

Multiple layers of management, slow communication, and specialized roles.

Flat organizational structure

Fewer management layers, promoting direct responsibility and communication.

Delayering

The process of removing levels of management to streamline operations.

Centralised organization

Decision-making is confined to top executives, limiting employee autonomy.

Decentralised organization

Involves employees in decision-making to enhance autonomy.

Autocratic leadership

A style where executives make all decisions, restricting employee input.

Democratic leadership

A style that encourages employee participation in decision-making.

Laissez-faire leadership

Leaders provide support while employees have most decision-making authority.

Roles of a manager

Includes planning, organizing, commanding/control, and coordinating.

Trade unions

Organizations that aim to improve working conditions and provide legal support.

Internal recruitment

Filling jobs with current employees through promotion or transfer.

External recruitment

Hiring individuals from outside the organization.

Stages of the recruitment process

Identify, produce job description, advertise, shortlist, interview, select.

Job description

A detailed document outlining job requirements and responsibilities.

Induction training

Training to familiarize new employees with their roles and environment.

On-the-job training

Training provided within the workplace with experienced colleagues.

Off-the-job training

Training conducted outside the workplace by specialists.

Resignation

Employee-initiated termination of employment.

Retirement

Termination based on age-related policies.

Redundancy

Termination due to the elimination of a job position.

Dismissal

Ending employment due to failure to meet job requirements.

Legal controls over employment issues

Laws preventing exploitation, including unfair dismissal and discrimination.

Effective communication

Reduces mistakes, speeds decision-making, and improves morale.

Types of communication

Electronic, oral, written, and visual formats.

Barriers of communication

Issues that hinder effective communication, such as environment and conflict.