Business chapter 6,7,8,9

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13 Terms

1

Maslow’s hierarchy of Needs

Maslow believed that humans have five levels of need:

  • Physical needs - these are the basic needs we must have to be able to survive.

  • Safety needs - we need to be safe from physical danger and individuals need to know that they have job security.

  • Social needs - most people want to be accepted by others and to feel that they are loved and trusted. It is important to have friends.

  • Esteem needs - individuals want to be respected and to have their achievements recognised by others.

  • Self-actualisation - the ability to become the best version of oneself

    Once a need is satisfied, they are motivated to reach the next. That need is then also no longer a motivation. If managers want to motivate workers then they have to organise work so that individuals are able to satisfy their needs.

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2

Limitations of Maslow

  • It is often difficult to identify how much of each need has been met and which level each worker is on.

  • Money might also satisfy esteem needs as well as those lower down the hierarchy.

  • Not everyone has the same needs as those in Maslow's Hierarchy.

  • Self-actualisation is rarely, if ever, achieved. Therefore, unless more challenging tasks are always being provided, it is unlikely that work will help to satisfy this need. There is the risk that if jobs are no longer challenging that the worker becomes demotivated.

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3

F.W. Taylor Scientific Management Theory

Taylor believed that employees are only motivated by money.

Pay employees a ‘piece-rate’. A fixed price per unit produced. Therefore employees will work harder, produce more, and be paid more as a reward.

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4

Limitations of F.W. Taylor

  • Not all workers are motivated solely by money. What about social needs etc.

  • Staff may become bored over time (negative of division of labour/specialisation)

  • Piece-rate pay can lead to lower quality (employees rush to produce more products - quality declines)

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5

Herzberg’s Two Factor Theory

Herzberg identified two groups of motivating factors. Hygiene factors and motivators.

Hygiene factors must be present in the workplace to prevent job dissatisfaction.

Motivators influence a person to increase their effort.

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6

Hygiene Factors

Working conditions -includes things such as how clean and safe the workplace is and what facilities are provided

Relationships with others -  the importance to a worker of having good working relationships with other workers

Salary and wage- Herzberg argued that people had to be paid enough to encourage them to do a job

Supervision - this factor considers the importance of leadership style and how closely workers are supervised.

Company policy and administration - these are the rules and procedures which control and affect the way that workers work

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7

Motivating Factors

The work itself - the tasks that workers do are an important influence on the motivation of workers. The work needs to  be varied and challenging and

Responsibility - giving workers more responsibility for the tasks they perform

Advancement - workers have the opportunity for promotion. 

Achievement - workers need to feel that they have reached challenging goals.

Recognition of achievement - workers need to have their achievement recognised by management and the other people they work with.

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8

Limitations of Herzberg

People are motivated for different reasons

Doesn’t consider external factors

Something can be both a dissatisfier and a motivation

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9

Motivating employees

Financial rewards:

Hourly wage rate

Salary

Piece-rate and commission

Bonus schemes

Fringe benefits

Profit-sharing


Non Financial rewards: 

Job rotation, enlargement, and enrichment

Quality Circles

Team working and delegation

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10

Factors that affect the Span of control

The difficulty of tasks - if the work that subordinates do involves simple and repetitive tasks, then a wide span of control can be used. The more complex the task subordinates the narrower

The experience and skills of workers - The span of control will often be wider when subordinates are more skilled and more experienced.

The size of the business - larger businesses are often able to afford to employ more managers than smaller businesses. (Tall organisational structure)

Levels of hierarchy - managers in tall organisation structures will usually have narrower spans of control than managers in flat organisation structures.

Management Style - some businesses use a management style that has greater control over the workforce than others. In this type of business, managers have a narrow span of control.


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11

Leadership Styles

Autocratic - You make all the decision without any discussion with others. This is good as is causes faster decision-making and this could be well - suited to situations that require an immediate response. A con is that there is no opportunity for employee input into key decisions, which can be demotivating.

Democratic - We decide together. Leaders will discuss with workers beforehand. This causes better decisions could result from consulting with employees and using their experience and ideas – as well as being a motivating factor. A con is that it is time consuming to involve everyone in decision making. 

Laissez Faire - You decide on your own. A style of leadership which involves workers being able to make decisions and carry out tasks with little to no input from the leader. This encourages employees to show creativity and responsibility. A con is that it is unlikely to be appropriate in organisations where a consistent and clear decision

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12

Training types

Induction: focuses on making a new employee familiar with the way the business functions. This includes welcoming, creating a feeling of acceptance, training, going over company procedures and expectations

On the job: employees are trained while on the job. e.g mentoring

Off the job: employee given time off from work to attend training.

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13

Methods of Communication

Oral, written, electronic, and visual

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