BUSS 2 - People in Business

Sophie Davis
Mind Map by Sophie Davis, updated more than 1 year ago
Sophie Davis
Created by Sophie Davis over 4 years ago


A Levels Business Studies Mind Map on BUSS 2 - People in Business, created by Sophie Davis on 04/04/2016.

Resource summary

BUSS 2 - People in Business
1 Motivating Employees
1.1 Key Terminology:
1.1.1 Motivation: Factors that inspire an employee to complete a work task.
1.1.2 Job Design: Changing the nature of a job role to increase motivation/reduce desatisfaction.
1.1.3 Empowerment: Giving employees the power to do their job: trust, authority - decisions & encouraging feedback.
1.1.4 Job Rotation: Varying an employees job on a regular basis.
1.1.5 Job Enlargement: Expanding the number of tasks completed by employee.
1.1.6 Job Enrichment: Increasing Level of responsibility within a job, making it more challenging but rewarding.
1.1.7 Hygiene Factors: 'Herzburg': Pay levels, work conditions = Dissatisfaction. But, even if they're adequate, they won't motivate.
1.1.8 Motivators: 'Herzburg': Factors leading to motivation! e.g. recognition, achievement & responsibility.
1.1.9 Quality: How well the work is done: Complaints/Wastage/Quality
1.1.10 Quantity: Productivity on each employee/Output per person: Units per person-same pay?
1.2 Monetary Rewards
1.2.1 Price Rate - Pay by units: A: Increases output per person. D: Quality may drop.
1.2.2 Commission - Based on sales: A: Increased sales, leads to revenue. D: Tempting to use unethical techniques.
1.2.3 Fringe Benefits - Car, Medical Insurance etc. A: Often valued more than a wage. D: Long-term Commitment.
1.2.4 Profit sharing scheme: Profit to employees: A: Employees see their efforts/encourages teamwork. D: Some don't work as hard for same benefit = Divisive.
1.2.5 Quality related bonus: Contribution based on standards. A: Highest standards produced. D: Difficult to judge in service sector.
1.3 Non-financial motivation methods (Improving job design)
1.3.1 Job Enlargement: A: Less bordem = fewer mistakes & costs. D: Higher training costs & some may expect more pay.
1.3.2 Job Rotation: A: Multi-skill benefits: Staff shortages=easy cover. D: Complicated to organise, skill level varies.
1.3.3 Job Enrichment: A: Employees text & develop managerial skills. D: Higher training costs& difficult balancing work responsibility.
1.4 Empowering Employees
1.4.1 Adv.: Enhance motivation, increase commitment, team spirit& free's senior management time. / Dis: Training & education in decision making, role of manager becomes less clear, effectiveness of employee varies.
1.5 Teamwork
1.5.1 Adv: More satisfaction on completion, higher productivity, lean skills from others, easier problem solving, responsibility to team. / Dis: Productivity falls to weakest member, more meetings/discussions, those with potential may be overlooked, team success over business.
1.6 Theories
1.6.1 Taylor: Everyone works for money = Piece rate
1.6.2 Mayo: People work if thy feel valued = social interaction.
1.6.3 Maslow: Hierarchy of needs, suggested: we work up the hierarchy: physiological needs, safety, social, esteem & self-actualisation.
1.6.4 Herzburg: Hygiene factors & motivators.
2 Developing an Effective Workforce
2.1 Key Terminology:
2.1.1 Recruitment & Selection Process: How a business chooses the best candidate.
2.1.2 Job Description: Summary of main duties associated in the role.
2.1.3 Person Specification: Identifies the skills, knowledge & experience a successful applicant will have.
2.1.4 Internal Recruitment: Candidates selected from inside the organisation.
2.1.5 External Recruitment: Candidates selected from outside the organisation.
2.1.6 Methods of Selection: How businesses recruits the best candidate for a vacancy. Can be internal or external. Dependent on time, budge & skill.
2.1.7 Training: Giving employees the knowledge, skills & techniques to fulfil requirements.
2.1.8 Induction Training: Initial preparation for a post. Good to give skills from experienced staff.
2.1.9 Off-the-job Training: Away from place of work. e.g. College/Training Centre.
2.1.10 On-the-job Training: Learning on the job, under guidance of experienced staff.
2.2 The Recruitment Process
2.2.1 Job Description Job Titile Position Location Tasks
2.2.2 Person Specification Knowledge Experience Job Specified
2.2.3 Why Job Vacancies Occur Promotion Expansion Natural Wastage
2.2.4 EXTERNAL Vs. INTERNAL Int: Promotion/Transfer Ad: Cheaper/Ltd. time to complete/motivate employees. / Dis. Another vacancy to be filled/ideas generation may stagnate. Ex: Job Advertisement/Recruitment Agencies/Person Recommendations/Job Centres. Ad. Bigger Choice =Better chance to match specification & more ideas. / Dis. Expensive & Time Consuming - Induction training required.
2.3 Can R&S improve workforce
2.3.1 Audit of skills needed to make specification & description, enabling them to find the right person. If this is too vague/misleading, dissatisfaction & frustration for employer & employee.
2.4 The Selection Process
2.4.1 Methods of Selection Interview Presentations Work Samples Peer Assessments Assessment Centre Psychometric Tests
2.4.2 Factors to Consider Money Time Specialists
2.5 Training
2.5.1 OFF THE JOB: Ad. Specialist staff & facilities/employees focus on training & not work distracted/Mix with businesses = support. / Dis. Employee needs learn motivation/may not be directly relevant/Costs:transport,course,exams, etc.
2.5.2 ON THE JOB: Ad. Direct Experience/more confidence/easier for managers to assess problems/productive-working as learning/more cost effective. / Dis. Requires skill & knowledge/Trainer-Bad Habits.
3 Workfore Effectiveness
3.1 Key Terminology
3.1.1 Workforce Performance: Methods of measuring effectiveness of employees, inc. labour productivity, staff turnover & absenteeism.
3.1.2 Labour Turnover: % of total workforce who leave in a year.
3.1.3 Labour Productivity: Output per employee over given time period.
3.1.4 Absenteeism: No. of working days lost as a result of absent employees.
3.2 Labour Turnover
3.2.1 'Classified into 2 types': 1. Voluntary: Employee leaves for personal reasons. 2. Involuntary: Referring to dismissal or redundancy.
3.3 Labour Productivity
3.3.1 'Commonly measured by': 1. Output per employee (See LP formula). 2. Labour cost per unit of output & UK Productivity (See Formulas). We calculate productivity because... 1. A business must ensure they are using resources efficiently. 2. If output per employee is falling, these is room for efficiency.
3.4 Absenteeism
3.4.1 High rising absenteeism represents costs = It should be investigated. (See Formula).
3.5 Formulas
4 Improving Organisational Structures
4.1 Key Terminology
4.1.1 Organisational Structure: The way jobs, responsibilities & power are organised in a workforce.
4.1.2 Organisational Chart: Diagram showing job titles, line of responsibility & communication
4.1.3 Lines of Hierarchy: No. of layers of management & supervision existing in a business.
4.1.4 Chains of Command: Lines of authority in a business.
4.1.5 Lines of Communication: How information is based up, down & access an organisation.
4.1.6 Span of Control: No. of subordinates, one job/post-holder is responsible for.
4.1.7 Workload: How much work one-employee/team/department have to complete in a given time.
4.1.8 Job Role: Tasks involved in a particular role.
4.1.9 Delegation: Passing authority to make specific decisions further down the hierarchy.
4.1.10 Communication Flows: How information is passed around an organisation. e.g. downwards, upwards, sideways or through the grapevine.
4.1.11 Workforce Role: The tasks involved in a particular level or grade of job within an organisation.
4.2 Organisational Chart
4.2.1 Features: Responsibility/Authority - Decision Making, Job titles/roles & persons name, Lines of authority - employees accountable for & responsible for, Lines of communication through business. Owners must take account for: Business Environment (Commutative market/costs/up-to-date? etc.), Skills of Employees (Small no./highly trained Vs. larger no.-unskilled), Culture of Organisation (Market share from originality/design). Key Elements: 1. Levels of Hierarchy. 2. Span of Control. 3. Work Load/Allocation. 4. Delegation. 5. Communication Flows.
4.3 Improving OS to enhance performance
4.3.1 Cutting Overheads / Revising Workloads / Growth of Business / Responding to Market Conditions / Ownership Changes / Customer Needs / Entrepreneurial Culture.
4.4 Types of Structures
4.4.1 Hierarchal Structure, Matrix Structure, Entrepreneurial Structure & Informal Structure.
4.5 Types of Worforce Roles
4.5.1 Supervisors, Team Leaders, Managers & Directors.
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