Mind map

Section 2: People in business

wehoward English

Map content

Motivating workers
- Motivation
  - The factors that influence the behaviour of workers towards achieving set business goals
- Benefits of having a well-motivated workforce
  - Improved productivity
  - Low rate of absenteeism - workers' non-attendance at work without good reason
  - Low rate of labour turnover - the rate at which workers leave a business
  - Better quality goods and services
  - More competitive
- The theory of economic man
  - The view that humans are only motivated by money
- Piece-rate
  - Paying workers for each unit produced
- Methods of motivation
  - Financial rewards
    - Cash and non-cash rewards paid to workers often used to motivate workers to increase their efforts
    - Hourly wage rate - payment to workers based on a fixed amount for each hour worked
    - Salary - fixed annual payment to employees
    - Piece-rate - payment to workers for each unit produced
    - Commission - payment to sales staff based on the value of the items they sell
    - Bonus - additional reward paid to workers for achieving targets set by managers
    - Performance-related pay - a bonus scheme used to reward staff for performing to the required standard
    - Fringe benefits - non-cash rewards often used to recruit or retain workers and to recognise the status of certain employees
    - Profit-sharing - an additional payment to workers based on the profits of the business
      - Organisation and managment
        Organisational structure
        The formal, internal, framework of a business that shows how it is managed and organised
        Functional departments
        The main activities of business: finance, marketing, operations, human resources and research and development
        Hierarchy
        The number of levels in an organisational structure
        Chain of command
        The route through which authority is passed down through an organisation
        Delegation
        Passing authority down through the organisational hierarchy to a subordinate
        Subordinate
        An employee who is below another employee in the organisation's hierarchy
        Span of control
        The number of subordinates reporting to each supervisor/manager
        Delayering
        Reducing the size of the hierarchy by removing one or more levels to save costs
        Centralised organisation
        One where all the important decision-making power is held at Head Office, or the centre
        Decentralised organisation
        One where the decision-making powers are passed down the organisation to lower levels
        Directors - most senior level of management in any limited company who have responsibility for determining and implementing the company's policy
        Annual General Meeting (AGM) - a meeting for sharehbolders that limited companies must hold once every year
        Chief Executive Officer (CEO) - the most senior manager responsible for the overall performance and success of a company
        Manager - an individual who is in charge of a certain group of tasks or a certain area or department of a business
        Supervisor - an individual who checks and controls the work of subordinates
        Functions of management
        Planning
        Organising
        Commanding
        Coordinating
        Controlling
        Leadership styles
        Autocratic leadership - the leader makes all the decisions
        Democratic leadership - workers take part in decision-making
        Laissez-faire leadership - most of the decisions are left to the workers
        Trade union - an organisation of workers aimed at improving pay and working conditions
        Recruitment, selection and training of workers
        Internal recruitment - filling a vacant post with someone already employed in the business
        External recruitment - filling a vacant post with someone not already employed in the business
        Job description - a written document providing all the details of what a job involves
        Person specification - a written document (usually produced by the Human Resource Department) analysing the type of qualifications, skills, experience and personal qualities the business is looking for in applicants
        Advertising
        Sending out application forms and job details
        Receiving applications and shortlisting applicants
        Shortlist - a list of candidates who are chosen from all of the applicants to be interviewed for the job
        Interviewing shortlisted candidates
        Selecting the right candidate
        The importance of training and methods
        Induction training - a training programme to help new recruits become familiar with their workplace, the people they work with and the procedures they need to follow
        On-the-job training - training at the place of work, watching or following an experienced worker
        Reasons for reducing the size of the workforce
        Resignation - termination of employment by a worker because perhaps they have found another job
        Retirement - termination of employment due to the worker reaching an age beyond which they do not need to work
        Redundancy - termination of employment by the employer because the employee is no longer needed
        Dismissal - termination of the employer because the worker has broken company rules or is not performing work to the required standard
        Legal controls over employment issues
        Contract of employment
        Discrimination
        Health and safety
        Minimum wage
        Unfair dismissal
        Internal and external communication
        Communication media - the methods used to communicate a message
        Feedback - the receiver's response to a message
        Effective communication - information passed between two or more people or groups with feedback to confirm that the message has been received and understtod
        Reduces the risk of mistakes
        Enables faster decision-making
        Enables quicker responses to market changes
        Improves coordination between departments
        Improves morale and motivation of the workforce
        Improves customer relationships
        Problems with ineffective communication/communication barriers
        Tasks not completed or done incorrectly
        Business's reputation gets damaged
        Workers' morale and motivation falls
        Risk of accidents in the workplace
        Poor sales
        Wrong type of worker recruited
        Two-way communication - the receiver is allowed to respond the the message and the sender listens to the response
        Written communication - a permanent record of a message that can be looked at more than once
        Electronic communication
        Visual communication
        Off-the-job training - training that takes place away from the workplace
  - Non-financial rewards
    - Methods used to motivate workers that do not involve giving any financial reward
    - Job rotation - increasing variety in the workplace by allowing workers to switch from one task to another
    - Job enlargement - increasing or widening tasks to increase variety for workers
    - Job enrichment - organising work so that workers are encouraged to use their full abilities
    - Job satisfaction - how happy and content a person is with their job
    - Quality circles - groups of workers who meet regularly to discuss work-related problems
    - Team-working - organising production so that groups of workers complete the whole unit of work
    - Delegation - passing responsibility to perform tasks to workers lower down in the business
Maslow's hierarchy
- Self-Actualisation
  - Esteem Needs
    - Social Needs
      - Safety Needs
        Physical Needs
        Water, food, shelter, clothing and rest
        Health and safety at work
      - Friendship, accepted, belonging to a group
    - Respect from others
  - Reading one's potential
Hygiene factors - the factors that must be present in the workplace to prevent job dissatisfaction
- Working conditions
- Relationships with others
- Salary and wage
- Job dissatisfaction - how unhappy and discontent a person is with their job

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Description: Mind Map on Section 2: People in business, created by wehoward on 25/08/2015.
Created by: wehoward · Aug 2015
Updated: Feb 19, 2016
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