1.4 Managing People
- Created by: AmyBennet
- Created on: 09-04-17 16:57
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- 1.4 Managing people
- 1.4.1 Approaches to staffing
- Staff as an asset
- Employers are more likely to value their staff if they think of them as an asset
- Employers may provide:
- Reasonable holidays
- A safe and comfortable environment
- Training
- Job security
- Staff as a cost
- Employers may try to minimise this cost by:
- using zero-hours contracts
- Paying minimum wage
- No training
- Using financial incentives
- Using cheap recruitment methods
- Productivity could be low due to low motivation
- Employers may try to minimise this cost by:
- Flexible workforce
- Multi-skilling
- Employees have a greater variety of skills and can respond to more issues
- Can respond more quickly and effectively to problems
- can increase motivation
- Individuals are expected to work harder for same pay
- Outsourcing
- Costs are lower
- Capacity can be increased
- Loss of control
- Specialists can be employed
- Part-time work and temporary staff
- Flexible hours and home-working
- Advantages
- Businesses can expand and contract quickly
- May be wasteful to have full-time staff for a specific task
- Temporary staff may be cheaper
- No training of temps
- Disadvantages
- Less loyalty
- Quality could decrease
- Communication problems
- Can be expensive
- Could demotivate full-time workers
- Multi-skilling
- Dismissal
- Can be legally dismissed
- For misconduct, incapability, with too little notice
- Can be illegally
- For joining a trade union
- Can be legally dismissed
- Redundancy
- There is insufficient work for the employee to do
- Get redundancy pay
- Likely during recession
- Employee/ employer relationships
- Individual approach
- Negotiation between an individual employer and employee
- Better bargainers get better wages which could cause conflict
- Collective bargaining
- Employees have representative negotiators
- Workers can strike
- Employees must be free to join bodies like trade unions
- Individual approach
- Staff as an asset
- 1.4.2 Recruitment, selection, and training
- Recruitment and selection process
- Internal recruitment
- Cheaper to advertise
- Recruits are already familiar with business processes
- Employer knows the employee better
- Can motivate staff
- External recuitment
- New ideas
- Attracts a larger number of candidates
- Internal recruitment
- Recruitment and selection costs
- Human resources costs
- Administration costs
- Advertisement costs
- Time
- Interviewing process
- Salary negotiations
- Training costs
- Training courses
- Loss of output
- Employees leaving
- Induction training
- helps new employees settle in
- Shows workers health and safety procedures
- On-the-job training
- Learning from other workers
- Mentoring
- Job rotation
- Training apprenticeships
- Graduate training
- Off-the-job training
- Training which takes place outside the business
- Expensive
- Can provide courses the business would be unable to offer internally
- Benefits of training
- Workers are more motivated and productive
- Customers get higher quality products
- Recruitment and selection process
- 1.4.3 Organisational design
- Structure
- Hierarchy and chain of command
- Hierarchy is the levels of management in a business
- Hierarchy shows the chain of command, the way authority is organised
- Orders pass down the chain and information passes up
- Businesses try to keep chains as small as possible for highest efficiency
- Span of control
- The number of people a person directly controls
- A wide span of control means a person controls more people
- The ideal span of control s between 3 and 6 because:
- There should be tight managerial control from the top of the business
- There are physical and mental limitations to any single manager's ability to control people and activities
- Responsibility and authority
- Responsibility- Being accountable or being able to justify an action
- Authority- The ability to carry out a task
- Employees lower down the hierarchy have less responsibility and authority
- Centralisation
- Major decisions are made at the centre of the business
- Advantages
- Senior management has control
- Procedures like purchasing can be standardised leading to economies of scale and low costs
- Can make decisions about what is best for the whole business
- Senior management may have more experience and skill
- Communicaton may be clearer
- Decentralisation
- Decision making is pushed down a chain of command
- Advantages
- Empowers and motivates workers
- Allows greater flexibility
- Reduces stress on senior management
- Greater job satisfaction
- Subordinates have a better understanding of issues specific to their area
- Hierarchy and chain of command
- Types of structure
- Tall
- Narrow span of control
- Long chain of command
- Managers have tighter control over subordinates
- Clear management structure and route for promotion
- Management costs are higher
- Communication can be poor due to long chain of command
- Close-quarters control may be resented by employees
- Flat
- Fewer layers of hierarchy
- Chain of command is short
- Span of control is wide
- Employees have more freedom ad responsibility
- Communication is better
- Management costs are lower
- Decision making may be quicker
- Managers may be over-burdened
- Matrix
- Allow businesses to connect people with particular specialist skills
- People from different parts of the business form a project team
- Teams are fluid
- Individuals have responsibilty
- Lets employees lower down the structure use their skills
- Motivates employees
- Tall
- Structure
- 1.4.4 Motivation theory in practice
- The importance of employee motivation to a business
- If an employee's needs aren't satisfied, they won't be motivated to work
- Leads to high absenteeism, disputes, low productivity, reduced profit
- Negative motivation is where employees are motivated by the negative consequences of them not working hard
- If an employee's needs aren't satisfied, they won't be motivated to work
- Motivation theories
- Taylor
- Thought that money motivated people
- Problems
- Doesn't take into account individual differences
- Doesn't think about other motivators apart from money
- Ignores the other needs of workers
- Wanted to work out the most efficient way to complete the task
- Thought employees not working hard enough should suffer a pay cut
- Mayo
- The Hawthorne studies
- Changes were made and new productivity was recorded
- Output continued to rise after all the changes
- Greater output was due to greater communication and cohesion
- Workers were more motivated by working together and by an interest being taken in their work
- Problems
- Assumes workers and management have the same goals
- Assumes communication breaks down barriers
- The Hawthorne studies
- Maslow
- Physiological needs, safety needs, love and belonging, esteem needs, self-actualisation
- Each level of needs is addressed once the levels below are met
- Problems
- Some levels don't apply for some people
- Can be difficult to tell if a level has been satisfied
- Herzberg
- Motivators
- Factors which give workers job satisfaction
- Hygiene factors
- Factors that can lead to dissatisfaction
- Problems
- Job enrichment is expensive
- Things can get taken for granted
- Can be difficult to do this in a recession
- Motivators
- Taylor
- Financial incentives to improve employee performance
- Piecework
- Payment for each unit produced
- An example of payment by results
- Recommended by Taylor
- Only suitable where it's easy to identify the contribution of individual workers
- Can lower quality
- Commission
- Payment by results
- Incentives people to sell more
- Bonus
- Paid in addition to the basic salary
- Usually paid if targets are met
- Help to motivate workers to meet required standards
- Some staff are paid loyalty bonuses
- Profit share
- Some of the profits were distributed to workers as well as shareholders
- Can motivate employees to meet business objectives
- Shows staff they are appreciated- Maslow
- No direct link between an individual's effort and their share of the profit
- Performance-related pay
- Designed to motivate staff
- Extra pay is given to workers who achieve targets
- Targets are set from appraisals where the performance of staff is reviewed
- Piecework
- Non-financial techniques
- Delegation
- Manager passes a complex task onto a subordinate
- Makes employees feel trusted
- Manager has responsibility but subordinate has authority
- Consultation
- Employees feel their opinions are valued
- Empowerment
- Team working
- Flexible working
- Job enrichment
- Job rotation
- Motivates the worker
- Can motivate the worker
- Fall in productivity as workers get new skills
- Job enlargement
- Delegation
- The importance of employee motivation to a business
- 1.4.5 Leadership
- The different types of leadership style
- Autocratic leadership
- Manager sets objectives
- Manager allocates tasks and insists on obedience
- Group is dependent on manager
- Could lead to poor motivation
- Democratic leadership
- Encourages participation in decision making
- Leader mixes informally with the group
- Guides rather than dictates
- Employees feel more motivated and valued
- Paternalistic leadership
- Similar to autocratic leaders
- Places lots of importance on employee welfare
- Makes all decisions and expects the subordinates to obey
- Want to develop employee skills through regular training
- Laissez-faire leadership
- Set the initial agenda then give employees complete freedom
- Trust employees to complete the task without direct instruction
- Effective with skilled and motivated employeed
- Autocratic leadership
- The difference between management and leadership
- Leaders have people who follow them but managers have people who work for them
- Managers need to maximise business efficiecy
- Entrepreneurs need to be good leaders and managers
- Encouraging staff to develop their skills is important for both leaders and managers
- The different types of leadership style
- 1.4.1 Approaches to staffing
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