Unit 2 - HR

Question 1

Explain “changes in working practices”.

Answer 1

Working practices have changed overtime due to factors such as trade influence, legislation, worker preferences and technological advancements. Due to these changes, there has been more flexibility in working practices than ever.

Question 2

What is a flexible workforce?

Answer 2

A flexible workforce is one that is ready to meet organisational needs when required. i.e. having the right quantity of labour when firms need it. This requirement for labour comes from many factors including seasonal demand and economic conditions.

Question 3

What is the key aim of having a flexible workforce?

Answer 3

The aim is to meet ever-changing demand patterns of a business by providing labour specifically when needed.

Question 4

What are the types of flexible working arrangements? Explain each.

Answer 4

. Flexible hours - worker has an agreed number of hours which is made up of core hours with the remainder of the contracted hours which can be worked on a flexible basis

. Home working/remote working - this is more popular in professional stakes jobs. Most of the time, it requires a good PC, broadband connection and access to communication platforms. Advantages of using this include time/money saved from travelling, flexibility with domestic responsibilities, absenteeism is not a problem, lateness is not an issue (maximum productivity). Disadvantages include lack of social interaction, difficult to impress management/stand out, miss out on learning from others, difficulty monitoring staff, and communication issues.

. Part-time employment - working less than the standard number of full time hours per week. During busy periods, part time workers are employed to meet the needs of the employer(cost-saving implications)

. Temporary employment - employment contract for a specific period of time - may be arranged through employment agencies

. Job-sharing - where 2 people share the same job (50/50) Advantages include retained employees who may be valued and experienced, meets employee requests which leads to increased motivation, new ideas generated. Disadvantages include increased administration costs, conflict, poor communication (passing info on etc.)

. Multi-skilling - this involves businesses training the workforce to be able to work effectively across a wide range of tasks which then allows for a greater degree of flexibility. Advantages include cost-cutting implications, improved efficiency and workflow throughout the business. Disadvantages include less motivated employees via increased pressure, higher training costs, time lag (workers need time to adjust to new tasks), employees may not perform each task to the highest standard

. Zero-hour contracts - employee must be available for work but is not guaranteed any work i.e. total flexibility - this working arrangement depends on the demand for labour. Issue of income insecurity

. Hot-desking - this is where employee has no fixed workspace within an office environment - this is helpful in cutting down the need for office space. Advantages include greater innovation and encourages new networks to be established in the workplace. Disadvantages include breakdown of workplace relationships, feeling disconnected from the organisation.

Question 5

What are some types of technology which businesses could use to enhance employee flexibility?

Answer 5

. Computers
. Internet
. Broadband
. Communication platforms
. Specialist telephone systems
. Bespoke company software

Question 6

What are the advantages and disadvantages of using new technology as a means of improving working practices?

Answer 6

Adv: increased productivity due to less interruptions and distractions, improved flexibility (save commute time for employees), improved motivation (as employees work around their personal circumstances), improved job satisfaction

Disadv: connection problems/faults, may be unreliable and can disrupt business operations, difficult to monitor activities of employees (unproductive/unprofessional), difficult to evaluate performance of employees.

Question 7

What is workforce planning?

Answer 7

Workforce planning is about trying to predict future demand for different types of staff and seeking to match this with supply. Workforce planning isn’t just about recruitment., it also means making the workforce smaller through means of redundancy (voluntary and compulsory), early retirement schemes, natural wastage

Question 8

How can firms assess future demand for labour?

Answer 8

Firms can compare the present workforce with the desired future workforce. This can be carried out by a skills audit of the current workforce to assess what skills the current workforce has. If any gaps are identified then these gaps become the focus of a detailed workforce plan. The workforce plan will develop and implement strategies that will build the relevant skills and capacity needed for business access.

Question 9

What are the two types of reasons which give rise to long-term staffing issues?

Answer 9

. Internal staffing reasons - staff loss, retirement, training, promotion, flexibility
. External reasons - change in population structure, government policy, changing nature of industry, unemployment and availability of skills

Question 10

What are some of the components of a workforce plan?

Answer 10

. Plan how many workers will be needed in the future
. Estimate the costs of employing the workforce
. Estimate the balance between part time/full time workers
. Identify skills necessary for the vacancies to be filled
. Predict when workers will be needed -> recruitment plans
. Identify who may need training

Question 11

What are the advantages and disadvantages of a workforce plan?

Answer 11

Adv: helps businesses control staffing costs, helps businesses avoid staffing shortages, ensure output produced meets consumer demand, produce quality goods (employing those with apt skills)

Disadv: may not be carried out effectively, may be rigid (doesn’t allow for possible changes in the external environment. lack of detail/info to make sufficient and informed decisions

Question 12

What is recruitment?

Answer 12

Recruitment is the process of identifying suitable candidates to fill job vacancies within a business
It is a process of:
. identifying the need for a job
. defining requirements of the position and the job holder
. advertising the position
. choosing the most appropriate person for the job

Question 13

What are some of the reasons which job vacancies arise?

Answer 13

. Expansion
. Retirement of existing workers
. Workers leaving for a new job elsewhere
. Workers being promoted
. Temporary reasons such as maternity

Question 14

What is the recruitment process for a smaller business?

Answer 14

Managers/owners often understand what tasks are involved in a job and will know the type of person required to perform the job well. They often find someone to fill a vacancy via word of mouth or use of job centres to find suitable candidates.

Question 15

What is the “flow” process of recruitment for larger businesses?

Answer 15

. Job analysis
. Job description
. Person/job specification
. Job advert
Short listing
. Interview

Job specification is made, business chooses to recruit internally and/or externally, candidates see the advert/vacancy and apply based on the job description and job specification and create a CV + application, team managers will then shortlist candidates, shortlisted candidates will be interviewed and business may even use psychometric, personality and skills test, reference check will take place and then a job offer is given and then induction training begins

Question 16

What is a job specification?

Answer 16

A job specification includes must haves and desirables

Question 17

What is a job description?

Answer 17

A document which outlines duties, responsibilities and purpose of the advertised job

Question 18

What is internal recruitment and what are the advantages and disadvantages of using it?

Answer 18

Internal recruitment involves finding someone already employed by the organisation to fill a vacancy. it may be placed on a notice board, published on the intranet and even advertised in an in-house magazine

Adv: Applicants will already know the business which will help them settle into their new role easier than external candidates, increased motivation, cheaper - no need for recruitment agencies

Disadv: limited range of applicants -> potential of finding new talent is limited, less likelihood of inputting new ideas, one person’s promotion creates another vacancy which must be filled

Question 19

What is external recruitment and what are the advantages and disadvantages of using it?

Answer 19

External recruitment involves when someone is hired that is not currently employed by the business hiring them

Adv: larger pool of workers, fresh ideas (leads to improved innovation and creativity within the business), don’t need to replace workers or fill any other vacancies

Disadv: higher costs (advertising, recruitment agencies), time-consuming, less morale boost (demotivates existing employees who miss out on promotion opportunities), cultural fit risk -> conflict?, longer induction period

Question 20

What are some evaluation points when it comes to choosing internal and external recruitment?

Answer 20

.Cost - internal is cheaper, external can be expensive
. Time available - internal is faster and external takes longer
. Skill requirements
. Business culture
. Promotion opportunities
. Business situation

Question 21

What are some of the different methods of selecting employees? Explain each briefly.

Answer 21

. Selection - process of hiring the best person for a job vacancy
. Interview (face-to-face/online) - best carried out by a panel consisting of specialist personnel managers whereby candidates explain their suitability, and managers gather as much relevant about the candidate
. Telephone interview - held over the phone rather than in person - given to those who have passed the application process and any tests included within the process.
. Work trials - it is a way of trying out a potential employee before offering them a job. Potential employees are introduced to the core tasks of the job and will try to complete them effectively
. Testing and selection exercise e.g. personality test - psychometric testing and aptitude and ability tests

Question 22

What is training?

Answer 22

Training provides workers with the knowledge and skills which enhance them to work and carry out tasks more effectively. Without training, workers are unlikely to reach their potential and may feel let down by their employers. Provision of good skills can ensure that production of goods/provision of services are of the best quality possible

Question 23

What are some methods of training? Explain each.

Answer 23

. Induction training - training which takes place at the beginning of someone’s employment. Successful induction training will motivate staff and reduce the risk of staff leaving early
. On-the-job training - “learning by doing” - employee is shown and taught how to complete tasks by a more experienced worker
. Off-the-job training - takes place away from the workplace e.g. college and university courses, online courses and external training providers

Question 24

What are the advantages and disadvantages of on-the-job training?

Answer 24

Adv: cheaper - no external risks and therefore reduced risk, hands-on training helps improve confidence, build relationships with mentor and also improve communication skills and become more familiar with the work culture

Dsiadv: mentor’s ability (skills and teaching ability), mentor’s time (time constraints may lead to decreased quality), causes friction amongst team -> opportunity cost

Question 25

What are the advantages and disadvantages of off-the-job training?

Answer 25

Adv: Focused (day off to really focus and develop skills), mentor is an expert , new skills Disadv: expensive to the business (day off work, pay for training and other costs like food, travel etc), not at work -> short term disruptions to production -> decreased productivity, training may not be bespoke (generic training)

Question 26

What are the overall benefits and costs of training?

Answer 26

Benefits: increased productivity (motivational tool), increased quality of labour, workforce are able to adapt to new technology or working practices Costs: financial costs, cost productivity during training (opportunity cost), higher labour costs, employees may leave (high risk)

Question 27

What is an appraisal?

Answer 27

An appraisal is a formal assessment or evaluation of the performance of an employee over a particular time period in terms of meeting set objectives or performance targets. These are usually conducted by line managers once a year. Training needs are discussed and career prospects are examined.

Question 28

What are some methods of appraisal? Explain each briefly.

Answer 28

. Superior's assessment - most common type of appraisal and involves the employees direct line manager conducting the appraisal . Peer assessment - having fellow employees (of a similar level of responsibility) critically comment upon the performance of a co-worker and suggest methods of improvement - could be less critical and more friendly . Self-assessment - having the employee reflect upon their own performance, recording progress and suggesting targets for the future . 360 degree feedback - receiving feedback from people whose views are considered helpful and relevant e.g. staff and other stakeholders - this may be inside and outside of an organisation

Question 29

What are the benefits of conducting appraisals?

Answer 29

Benefits: employee performance can be improved, communication and target is clear, organisational objectives can be met, improves motivation which then increases productivity, identifies training and development needs, career progression

Question 30

What are the potential costs of conducting appraisals?

Answer 30

Costs: tension in the workplace (reallocation of bonuses), puts workers under pressure to keep improving performance, places alot of power in the hand of line managers who may be ill equipped to use the system effectively(abuse their power), success of appraisal depends on acting upon staff problems which are highlighted, appraisals must be based on clear criteria and managers must be trained to solve problems that can arise as a result of any poor performance indicated in appraisals

Question 31

What is workforce performance? What are its key advantages and disadvantages?

Answer 31

It is a measure of how effectively a business' employee contributes to achieving its objectives. The significance of measuring workforce performance is that it essentially allows managers to examine the effectiveness of HR policies. Adv: Increased productivity and efficiency, high profitability and revenue growth, improved customer satisfaction and brand reputation, increased employee retention and motivation, competitive advantage Disadv: poor customer experience and brand damage, high employee turnover and decreased morale, competitive disadvantage

Question 32

What is employee performance?

Answer 32

Employee performance is how an employee fulfils their job duties and executes their required tasks - this refers to the effectiveness, quality and efficiency of their output

Question 33

What are the three measures of workforce performance?

Answer 33

. Absenteeism rates . Labour turnover . Labour productivity

Question 34

What is absenteeism rates?

Answer 34

Absenteeism rates concern employees who should be at work but aren't. Absenteeism rate = total number of workers x number of working days in a year number of sick days/absenteeism rate Businesses must address absenteeism as it increases costs for a business and may impact the performance of the business.

Question 35

What is labour turnover?

Answer 35

Labour turnover is the measure of the rate at which employees are leaving an organisation. Staff turnover (%) = number of leavers/average full time employees over a given period of time Refinement of this measure is to examine staff turnover among core workers and can then in turn help businesses focus more on the important members of staff Businesses can improve staff turnover by many means such as effective recruitment and training, providing competitive pay, job enrichment and rewarding staff loyalty

Question 36

List some factors affecting labour turnover.

Answer 36

. Industry/type of business . Motivation of staff . Pay and working conditions . Opportunities for promotion . Competitors' actions . Economic downturns

Question 37

What is labour productivity?

Answer 37

Productivity is a measure of the efficiency which a business turns production into output - this impacts the labour costs per unit produced (increased productivity leads to lower labour costs which then lead to increased competitiveness via cheaper prices and more innovation (reinvestment)). Labour productivity (output per worker) = total output per time period/average number of employees per time period Labour productivity can be improved by many means including measuring performance and set targets, streamline production process, invest in capital equipment, employee training, improve working conditions However, this may come at the cost of trade-off with quality, employee resistance and employees demanding higher pay for increased productivity

Question 38

What is organisational design?

Answer 38

It is the process of aligning the structure of an organisation with its objectives with the aim of improving efficiency and effectiveness

Question 38

List some factors which affect labour productivity.

Answer 38

. Are products simple to make? . Employee motivation . Pay and working conditions . Access to machinery/equipment . Skills of employees . External factors e.g. reliability of suppliers

Question 39

What is authority?

Answer 39

Authority is defined as the right to give orders, supervise others and make decisions

Question 40

What is responsibility?

Answer 40

It is the person's obligation to carry out assigned activities to the best of their abilities. Each level of hierarchy within a business will have their own level of responsibility

Question 41

What is the chain of command?

Answer 41

It is the paths along which communication takes place and instructions/orders are passed down

Question 42

What are some pros and cons of having an organisational structure?

Answer 42

Pros: clear chain of command, clear span of control (know who you report to and who reports to you), clarifies job role, clarifies functional areas in which you work in, allows meeting HR objectives Cons: reduced flexibility (slow decision-making?), communication barriers (info distorted/delayed), potential for conflict, higher costs (more managers and need for wage and admin costs), demotivation of employees

Question 43

What is span of control?

Answer 43

It is the number of subordinates that a superior/manager has direct responsibility for - it can be both wide and narrow

Question 44

What are some factors which determine span of control?

Answer 44

. Nature of work involved . Degree of autonomy granted to employees . Number of layers in the hierarchy

Question 45

What are some characteristics of narrow and wide spans of control?

Answer 45

Narrow span of control - closer supervision of employees, more layers in the hierarchy may be required, helps for more effective communication Wide span of control - gives subordinates more autonomy, more appropriate if labour costs are high as a way of reducing number of managers within a business, consistent with flatter structures

Question 46

What does it mean by "hierarchy"?

Answer 46

It refers to the ranking of the workforce in terms of importance and power, where people at the top have the most power/importance and those at the bottom have the least

Question 47

What is centralisation?

Answer 47

When decision-making is kept to the top level of an organisational structure and there is little to no delegation to the lower levels - this is commonly associated with taller structures with many layers and a narrow span of control

Question 48

What is decentralisation?

Answer 48

Refers to when decision-making is spread throughout the organisation and is delegated to lower levels of the hierarchy - this is most commonly associated with a flat structure, fewer layers and a wide span of control.

Question 49

What is the difference between tall and flat structures?

Answer 49

Tall structures are centralised in nature, has authoritarian management, more skilled labour and is compliant/obedient in nature. Flat structures are decentralised and decision-making is delegated by highest layers of management to middle/lower layers of managements or departments; it has democratic managers, less skilled labour and are often innovative/creative

Question 50

What is delegation and what are its advantages and disadvantages?

Answer 50

Delegation involves the assignment of particular functions, task and decisions Adv: Lower management stress and workload, good method of on-the-job training, allows senior management to focus on key tasks, subordinates are empowered and motivated, better decisions/use of resources Disadv: Harder in smaller businesses (fewer people), depending on the quality of delegation, may increase workload and stress of subordinates.

Question 51

What is empowerment?

Answer 51

Empowerment is giving someone the power/responsibility/authority to perform various acts and carry out specific duties or to make certain decisions

Question 52

What does it mean by "delayering"? What are the advantages and disadvantages?

Answer 52

It is the action/process of reducing the number of levels in the hierarchy of employees in an organisation - through redundancies and taking out layers of management - this results in a flatter organisational structure with a wider span of control e.g. as bigger businesses hit times of turbulence it will look to minimise costs through making managers redundant - "taking out layers of the tall structure) Adv: less layers of management mean lower labour costs, faster internal communication, remaining employees feel empowered Disadv: redundancy costs , decreased motivation of remaining employees, initial costs (need for training, slower productivity) Eval: this depends on whether a flatter structure will suit the business, what the magnitude/number of layers are removed

Question 53

What is a matrix structure?

Answer 53

This type of organisational structure is used by businesses that work with multiple projects simultaneously and require cross departmental collaboration - it blends elements of functional and project-based structures. Employees report to more than one manager (typically both a functional and project manager). Matrix structures break down silos (isolated departments) and encourages collaboration and efficiency, and is often used in industries like construction, consultancy, technology and pharmaceuticals where teamwork across different expertise areas are crucial

Question 54

What are some advantages and disadvantages of matrix structures?

Answer 54

Adv: encourages teamwork across departments, efficient use of resources, flexible and responsive to changes in market demand, breaks down barriers to communication and coordination, helps innovation and forming new ideas Disadv: role confusion, potential conflicts between functional and project managers (culture and methods of operation in each department may be different), higher administrative costs due to complex coordination

Question 55

What are some advantages and disadvantages of tall hierarchical structures?

Answer 55

Adv: Control is at the centre - senior management fully understand the roles and responsibilities, paths of communication are clearly defined, departments understand their roles/functions, each worker knows how they fit into the organisation Disadv: Senior management are distanced from those who implement decisions, vertical communication is difficult

Question 56

What are some advantages and disadvantages of flat hierarchical structures?

Answer 56

Adv: increased motivation as a result of delegation of authority, decisions are made quicker by those nearest the "ground", communication is quicker and less distortion, empowerment of workers Disadv: loss of central control of the workforce, different departments may not be working towards the same objective(s)

Question 57

What are the positive and negative impacts of all the organisational structures on the key stakeholders?

Answer 57

Owners/shareholders: Positive impacts: .Tall structure - clear accountability ensures controlled decision making, reducing risk . Flat structure - lower management costs can improve profitability . Matrix structure - encourages innovation and efficiency and competitive advantage Negative impacts: .Tall structure - bureaucracy slows decision-making (potentially harming growth) . Flat structure - less control over employees, increasing risk . Matrix structure - conflicts between managers which leads to decreased levels of efficiency and increased costs Managers: Positive impacts: . Tall structure - clear leadership roles and authority, making management more structured . Flat structure - greater decision-making freedom, encouraging leadership development . Matrix structure - managers collaborate across departments Negative impacts: . Tall structure - slow communication and decision-making may frustrate managers . Flat structure - heavy workload due to fewer layers of management . Matrix structure - conflicts between managers over authority and priorities Employees: Positive impacts: . Tall structure - clear career progression and well-defined roles . Flat structure - more autonomy which leads to better job satisfaction . Matrix structure - exposure to multiple departments which improves skills and career development Negative impacts: . Tall structure - less employee involvement which could lead to job dissatisfaction . Flat structure - limited promotion opportunities due to fewer management levels . Matrix structure - conflicting instructions from multiple managers which creates stress Customers: Positive impacts: . Tall structure - consistent customer service due to clear policies and procedures . Flat structure - faster response times and better problem solving . Matrix structure - more innovative and tailored solutions due to teamwork across departments Negative impacts: . Tall structure - slow response times due to bureaucratic decision-making - means that adapting and responding to customer demand is timely . Flat structure - lack of structure may lead to inconsistent service quality . Matrix structure - confusion over responsibility may also lead to inconsistent service quality Suppliers: Positive impacts: . Tall structure - clear processes for ordering and contracts which reduced errors . Flat structure - quick decision-making may result in faster payments and agreements . Matrix structure - collaboration across teams can improve supplier relationships Negative impacts: . Tall structure - slower bureaucratic decision-making may delay payments . Flat structure - lack of oversight may lead to inconsistent orders . Matrix structure - unclear authority can cause miscommunication with suppliers Competitors: Positive impacts: . Tall structure - stability and well-managed competition strategies . Flat structure - faster decision-making allows quick adaptation to market trends . Matrix structure - encourages innovation, helping the business stay ahead Negative impacts - Tall structure - slow innovation may allow competitors to gain an advantage . Flat structure - risk of mismanagement, giving competitors an edge . Matrix structure - internal conflicts may reduce efficiency, making competitors stronger Government: Positive impacts: . Tall structure - Strong compliance with laws and regulation due to clear reporting lines . Flat structure - faster decision-making can help meet regulatory deadlines . Matrix structure - encourages collaboration and helps businesses comply with complex regulations Negative impacts: . Tall structure - bureaucracy can slow responses to government policies . Flat structure - lack of formal processes may lead to non-compliance . Matrix structure - complex decision-making can lead to regulatory confusion Banks/lenders: Positive impacts: . Tall structure - reliable financial management makes lenders more confident . Flat structure - low operational costs may indicate strong financial health . Matrix structure - focus on efficiency and innovation can increase investment and attractiveness Negative impacts: . Tall structure - slower decision-making may delay financial reporting . Flat structure - lack of financial oversight may concern lenders . Matrix structure - increased costs from inefficiencies may deter loans

Question 58

What is the definition of a manager?

Answer 58

A manager is someone who takes control of administrating, directing and ensuring that things are happening as they should be

Question 59

What is a leader?

Answer 59

A leader is someone who creates a vision that inspires people to follow it and move forwards towards achieving it. Leaders may perform similar functions to managers, but in addition they also inspire/motivate the workforce. They may also consider long-term strategy and challenges facing the business and how to overcome them.

Question 60

What may define a successful business owner?

Answer 60

A successful business owner should be both a strong leader and manager to get their workforce to follow them towards their vision of success

Question 61

What are some functions and roles of a manager?

Answer 61

Functions: . Planning . Organising . Controlling . Leading . Coordinating . Allocating resources . Monitoring . Communicating Roles: . Interpersonal roles - activities such as hiring, firing, training, motivating and organising . Information roles - acting as a channel for information between departments . Decision-making roles - access to information that enable managers to use their formal authority to make key decisions within a business

Question 62

What are the roles and characteristics of leaders?

Answer 62

Roles: . Creating a vision . Motivating staff . Empowerment of workers . Anticipating problems Characteristics: . Intellectual skills . Interpersonal skills . Realistic aspirations . Visions . Communication skills

Question 63

What is MBO (Management by Objectives)?

Answer 63

It is a philosophy whereby objectives are defined within an organisation so that the management and workers agree to the objectives and understand what they need to do to achieve them. This involves breaking down and subdividing aims and goals of an organisation into targets for specific departments/divisions. Working together to meet the same objectives can provide a clear structure and long-term strategy

Question 64

Explain the MBO process briefly.

Answer 64

. Review objectives for the entire business . Set objectives for the management for the different functions of the business . Set objectives for individual departments . Monitor progress . Evaluate the performance and give reward if objectives are reached

Question 65

What are some of the advantages and disadvantages of using MBO?

Answer 65

Adv: . Improved management control . Improved financial control . Allows managers to be known for their responsibilities . Coordination . Motivation of workforce . Employee empowerment . Improvement of communication systems Disadv: . Opportunity cost - timely . Ever-changing business environment -> objectives can become unrealistic . Potential conflict . Demotivation of workforce Over emphasis on short-term objectives

Question 66

Who created the Theory X and Theory Y management styles?

Answer 66

Douglas Mcgregor

Question 67

What is a "Theory X" manager?

Answer 67

Theory X managers believe that employees are naturally lazy, dislike work and constantly need to be supervised and motivated through punishments and rewards. They make several assumptions including money is the only motivator, workers do not want to be involved in the decision-making process, workers have little ambitions. Some of the consequences to businesses due to this management style is that tasks must be designed so that they can be broken down to their simplest form, responsibilities must be clear, supervisors must maintain quality etc.

Question 68

What is a "Theory Y" manager?

Answer 68

Theory Y managers believe that employees enjoy work, are self motivated, and will take responsibility if they are trusted and supported. They make several positive assumptions including workers cannot be money alone, workers are ambitious, workers will be more efficient if left to their own devices, workers want to contribute to improving efficiency. Workers are usually given a wide range of responsibilities and tasks - theory y managers are facilitators and will therefore adopt a more democratic style. Consequences on businesses due to this management style include requirement for training, use of cell working, setting formal communication channels, promotion structures and flexible working

Question 69

List and briefly explain all of the different types of leadership.

Answer 69

. Autocratic leadership - leader gives orders which are obeyed without questions (theory x manager) - this type of leader could be effective at times of rapid restructuring e.g. during a recession . Paternalistic leadership - similar to autocratic leadership but leaders may persuade employees that decisions are made in their best interest "considering the welfare of the employees" . Democratic leadership - consults with subordinates in the decision-making progress. Democratic leaders will have to communicate effectively to ensure that the right decisions are made. This results in a motivated workforce committed to the organisation and can also promote creativity and better quality decisions . Laissez-Fare - leaders have minimal input and subordinates are largely left to get on with their jobs - limited guidance offered . Bureaucratic leadership - focuses on developing the specialisation of jobs and departments where there is a reliance on formal procedures. this means that employees know precisely what their duties are and therefore tasks are performed more quickly and efficiently. However there may be a lack of innovation and creativity due to the rigid nature of this leadership style

Question 70

Explain the Fiedler's contingency theory?

Answer 70

This theory was developed as a way of helping people know what type of leader they are in order to help them become more effective. Fiedler believed that most people are effective in some situations but not in others. His model states that the effectiveness of a group or am organisation depends on two interacting contingent factors: . Factor 1 - personality of the leaders which determines their leadership styles . Factor 2 - the amount of control/influence that the situation provides leaders over their group's behaviour, task and outcome i.e. situational control To identify a leadership style, Fiedler got managers to fill in a questionnaire about the person which they would least like to work with (LPC (Least preferred co-worker scale)). The LPC was used to identify two types of leadership style: . Relationship-motivated - effective in less extreme situations - relatively peasant and sincere even if they find it difficult to work with .Task - motivated - sees co-workers in negative terms and are usually determined to get their work done and is most effective in extreme situations

Question 71

Explain Wright and Taylor's leadership approach.

Answer 71

Wright and Taylor focused on improving leadership skills. They believed that it is possible to improve the leader's performance through education. They also believed that there is no "one size fits all" leader and that leaders must be able to adapt to particular situations. The both also believed that ability and motivation are the key factors in improving an individual's performance. They devised a checklist in order to help leaders analyse performance problems

Question 72

What may the leadership style chosen depend on?

Answer 72

. Nature of task (easy/complicated) . Organisational culture . Urgency . Leader's personality and skill . Business objectives

Question 73

What does employee relations describe?

Answer 73

It describes the relationships between employees and employers. This concept has an increasing emphasis on helping line managers to establish trust-based relationships with employees. In the UK, employee/employer relationships are found on the contract of employment

Question 74

What are some legal requirements for employers to consult with employees?

Answer 74

. Proposed redundancy programs . Employees being transferred from one employer to another . Changes in pension arrangements . Proposed changes to working time arrangements

Question 75

What is employee representation and its advantages and disadvantages?

Answer 75

Employee representation is where employees are part of a formal structure which involves them in business decision-making. This is crucial as it makes employees' views known, helps strengthen both management's and employees' understanding of workplace issues, atmosphere of mutual trust and improved workplace relations Adv: . Empowerment and motivation increases . Employees are more committed to the objectives . Better decision-making . Lower risk of industrial disputes Disadv: . Time-consuming . Conflict . Managers may feel that their authority is undermined

Question 76

What are work councils?

Answer 76

It is a formal committee made up of employer and employee representatives that allows for consultation on workplace matters. They usually tackle agendas such as business objectives/performance, workforce planning issues, employee welfare issues, training and development and compliance with legislation e.g. discrimination

Question 77

What are trade unions?

Answer 77

These are organisations which exist to promote the interests of its members i.e. employees. They tackle agendas such as representation, job security, unfair dismissals, working conditions and other work-related services

Question 78

Explain what a contract of employment is.

Answer 78

All employees have an employment contract with their employers. This contract sets out an employee' s conditions, rights, responsibilities and duties. Also, the contract must state levels of pay, holiday entitlement, pension rights and length of notice period

Question 79

Explain what dismissals are.

Answer 79

A dismissal occurs when an employer ends your employment. If you are dismissed, your employer must show they have the following: a valid reason for dismissal, acted reasonably in the circumstances, they have been consistent and they they have fully investigated the situation.

Question 80

What is a minimum wage?

Answer 80

It is the minimum amount per hour that businesses can pay employees. The hourly rate for the min. wage depends on age and whether you are an apprentice

Question 81

State The Equality Act 2010

Answer 81

The Equality Act 2010 protects people from discrimination in the workplace and in the wider society.

Question 82

What are some of the protected characteristics which are against the law to discriminate against?

Answer 82

. Age . Marriage . Pregnant/having a child . Disability . Race . Religion, culture, belief . Sex

Question 83

List and explain the 4 types of discrimination.

Answer 83

. Direct discrimination - treating someone with protected characteristics less favourably than others . Indirect discrimination - putting rules or arrangements in place that apply to everyone but someone with protected characteristics is at an unfair disadvantage . Harassment - unwanted behaviour linked to a protected characteristic that violates someone's dignity . Victimisation - treating someone differently because they have complained about discrimination/harrassment

Question 84

What does "industrial action" mean and what are the types. List and explain each briefly.

Answer 84

Industrial action is any action taken by employees to protect against their employer, usually to improve pay, conditions or to resolve any disputes. . Overtime ban - workers work the basic hours and refuse to do any extra work . A work-to-rule - workers stick very closely to every rule in the workplace - which then leads to slow productivity . Strikes - withdrawal of labour

Question 85

What are the three ways of resolving disputes? Explain each simply.

Answer 85

. Advice - employers, employees or unions seek guidance from an independent body on how to resolve disputes e,g ACAS. Advice helps provide clarity and recommendations without imposing a solution . Conciliation - a neutral third party facilitates discussion between employer and employees to help them reach a voluntary agreement. This helps encourage open communication and compromise and also focuses on mutual agreement, maintaining good working relationships . Arbitration - A neutral third party makes a binding decision on the dispute if the parties cannot agree. This method helps provide a definitive resolution and ensures absolute fairness

Question 86

What is motivation?

Answer 86

Motivation refers to the reasons for acting in a particular way. It usually refers to the reasons that employees have to work harder and to want to do their job better

Question 87

What are some of the benefits of improved motivation within a business?

Answer 87

. Increased productivity . Increased quality . Low levels of staff turnover . Improved communication . Higher levels of innovation . Greater work satisfaction . Lower levels of industrial action . Improved customer service . Better reputation

Question 88

What are the two types of increasing motivation? Provide examples for each.

Answer 88

. Financial - remuneration, promotion, bonus, commission, fringe benefits . Non-financial - job rotation, job enrichment, autonomy

Question 89

List the 5 motivational theories. (names)

Answer 89

. Taylor's scientific management . Mayo's human relations approach . Maslow's hierarchy of needs . Herzberg's two factor theory . Vroom's/Porter and Lawler's expectancy theories

Question 90

Provide an overview for Taylor's scientific management. (money)

Answer 90

Taylor's investigations into how jobs were performed allowed him to break tasks down into their basic components. He was then able to design jobs so that completion of tasks were done in the most simple and efficient way. "Don't think just do" - get rid of the responsibility for decision-making and planning. He also believed that workers should be taught/trained to work to use the model used by those who produce the most output. Essentially, a "task-orientated" approach to managing workers His ideas were based on financial rewards and firmly believed in "piece-rate payments" (paid by unit produced) Some limitations of this include that it is too crude and only considers financial incentives and then also doesn't account for knowledge of the economy and whether creativity, innovation are relevant.

Question 91

Provide an overview of Mayo's human relations approach. (attention/social factors)

Answer 91

Elten Mayo and others attempted to build upon Taylor's scientific management theory. They discovered that group dynamics (teamwork) could be more important than financial motivation. Their research also showed the effects of how workers worked based on the way that they were treated. Initially, Mayo explored the effects of changing factors in the environment e.g. lighting, humidity. He then went on to look at the effects of employment arrangements e.g. breaks, hours and managerial leadership. He suggested that motivation at work was promoted by factors such as: . greater communication . better teamwork . showing interest in others . involving others in decision-making . well being of others . job enrichment - making work interesting and non-repetitive

Question 92

Provide an overview of Maslow's hierarchy of needs. (hierarchy of needs)

Answer 92

Maslow argued that all humans have a hierarchy of needs and that they wish to attain the highest level of the hierarchy. He believed that humans were always motivated by the next need in the hierarchy. But to achieve the higher needs all the lower and basic needs must be met. Starts from psychological/basic needs, security/safety needs, love and belonging, esteem need and self actualisation

Question 93

Provide an overview of Herzberg's two factor theory (motivators vs hygiene factors)

Answer 93

Herzberg investigated what caused satisfaction and dissatisfaction in the workplace where he focused on white collar workers e.g. accountants, engineers etc. Motivators - factors which provide job satisfaction e.g. recognition, responsibility, opportunity to improve skills, promotion Hygiene factors - prevent dissatisfaction but don't motivate e.g. working condition, status, wages, job security, relationships in the workplace Businesses should ultimately aim to improve hygiene factors and focus on motivators to boost performance

Question 94

Provide an overview of Vroom's expectancy theory. (effort - performance - reward)

Answer 94

He believed that people were motivated if they believed that effort leads to performance which leads to reward, and that the reward is worth it. He identified 3 key elements: . Expectancy - belief that effort leads to good performance . Instrumentality - belief that good performance will be rewarded . Valence - how much the individual value the reward

Question 95

Provide an overview of Porter & Lawler's expectancy theory.

Answer 95

Porter & Lawler expanded on Vroom's theory making it more realistic by linking motivation, performance and satisfaction. That actual performance also depends on ability and role perception, not just effort. (effort - performance - rewards - satisfaction - future motivation They also distinguished the two types of rewards: .Intrinsic rewards - rewards which come from within the individual e.g. sense of achievement, pride, responsibility/autonomy etc. . Extrinsic rewards - rewards that come from outside the individual e.g. pay/bonuses, promotion/status, raise or formal recognition and fringe benefits.