3.6 AQA A Level Business Already Passed

3.6 AQA A Level Business Already Passed calculate labour turnover no. of employees leaving / no. of employees X100 calculate labour cost per unit labour costs/units produced calculate labour productivity output per period/number of employees employee costs as a percentage of turnover equation total employe costs/total turnover X100 Define labour turnover % of employees leaving a business over a period of time why is high labour turnover often a negative thing? More capital has to be spent on recruitment and training why is it good for a business to have low labour costs per unit? if a workforce is operating efficiently, they should be producing more units per hour and therefore labour costs should be low. it means a business is productive and efficient define labour productivity the volume of output produced from each employee. its a measure of efficiency how might a business improve their labour productivity? give 2 ways - recruiting new and well trained employees - training existing employees to improve their skills calculate average labour costs per unit average wage per hour X average labour hours training objectives focuses on how to help employees attain and achieve company goals whilst also developing their skills give 3 external influences on HR objectives political factors, economic factors, social factors what is HARD HR? Employees are treated as a resource to be monitored and used to achieve the companies goals. Its an authoritarian approach and employees have no input on decisions as they aren't deemed useful enough. soft hr definition Employees are treated as valuable assets. this approach focuses on motivating employees and listening to them. its linked to a democratic leadership style. give 2 internal influences on HR objectives financial constraints, organisation structure and the overall objectives of the business why might employee engagement and involvement be an objective? if employees are committed to the business goals and values, this will help motivate them and result in higher job satisfaction. this will lead to lower absenteeism and higher output. define the role of human resources the management go people in the workplace to assist the organisation to achieve its overall objectives what is talent development? aligning the strategic training and career opportunities in a business for its employees. includes 3 main aspects: training, education and development whats a disadvantage of the span of control in a flat organisation? managers in flat structures have wide spans of control meaning that have a LOT of workers directly answering to them. if the span of control is too wide, its hard to manage people effectively when and why might a business become decentralised? when expanding and operating in different locations as it created more levels of authority and delegation give 2 advantages of a decentralised structure involvement in decision making motivates employees and day to day decisions can be made very quickly whats a disadvantage of having a decentralised structure? junior employees may not have enough experience to make decisions, leading to inconsistencies in the divisions of the business give a disadvantage to a centralised structure excluding employees from decision making can be demotivating which may lead to higher labour turnover. What is decentralization? an organizational pattern focused on distributing power broadly within an organization what is chain of command? the path of communication of authority up and down the hierarchy in a business give 2 disadvantages of having a tall organisation structure slow communication and it can take a long time to make decisions what is an organisational chart? it shows who has authority and responsibility. it shows how the organisation is separated by department what is a tall organisation structure? an organisation with many levels in its hierarchy. Tall structures have long chains of command what is a flat organisation structure? a business with few levels within its hierarchy. employees are given more responsibility what is span of control? the number of people working directly under a manager what is a centralised business? all decisions are made by senior managers at the top of the business. give 3 advantages of centralised businesses the leaders are very experienced. big decisions can be made quickly as managers don't need to consult with anyone. managers have an overview of the whole business so decisions are consistent throughout the organisation what is delayering? Reducing the number of levels in the organization's job structure give 2 advantages of delayering lower costs and better communication between departments and employees what is the span of control in tall organisational structures? narrow - managers can monitor closely. give a disadvantage of a narrow span of control workers may feel micromanaged leading to an unmotivated workforce Maslow's Hierarchy of Needs (level 1) Physiological Needs, (level 2) Safety and Security, (level 3) social needs, (level 4) Self Esteem, (level 5) Self Actualization Herzberg's Two-Factor Theory proposed that work satisfaction and dissatisfaction arise from two different factors - work satisfaction from so-called motivating factors and work dissatisfaction from so-called hygiene factors hygiene factors factors that eliminate job dissatisfaction but don't motivate workers. Such as pay, working conditions and company policies. motivating factors (Herzberg) - factors which by their absence, do not inhibit performance, but any addition in them increases efficiency and motivation. e.g. recognition of achievement, personal development, interesting work. why is Herzberg theory criticised? too small a sample - doesn't consider that people have different hygiene and motivation needs give two advantages of Herzberg's theory of hygiene and motivating factors recognizes that motivation comes from the individuals needs & has influenced motivational techniques used today. define job design The process by which managers decide how to divide tasks into specific jobs Hackman an oldhams model of job design Identify the factors that influence the motivating potential of the job. Highlights aspects of job design that can influence how motivating it is and the impact of jobs on an individual performance: task identity, task significance, task variety, autonomy and feedback. Hackman and Oldham thought job design needed to focus on... ... the person as an individual and the person would then be motivated how is Hackman and Oldham's model broken down? skill variety, task identity, task significance, autonomy, and feedback hackman and Oldham - changing job designs impact on HR objectives changing job designs has an immediate impact on HR objectives as employees feel engaged and involved less immediate effect on overall corporate objectives from the changing job design - Hackman and Oldham can you help reduce costs, improve productivity of the workforce, and improve quality of the product. piece rate employees are paid according to how much output they produce Salary schemes A basic rate payment system where employees are paid an annual salary. commission An amount paid to an employee based on a percentage of the employee's sales - a bonus from their salary Performance related pay A bonus scheme to reward staff for above-average work performance when is piece rate pay used? when the quantity produced can be measured easily. this can help motivate workers to produce a high quantity of products which will increase output give 2 disadvantages of piece rate pay lower quality products produced and lower morale of workers give a disadvantage of salary schemes workers can't earn any extra money by working harder or producing better quality work give a disadvantage of commission based pay it can lead to over selling and customers can feel overwhelmed by staff when they enter the store which may demotivate new customers fringe benefits Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement Flexi-time contract employees work full-time hours but they can decide when to work around fixed core hours compressed hours Employees work full time hours but the total amount of hours are completed over less days. They will work more hours per day to have less days of work. give 2 advantages of flexible working suits families, disabled workers, and those living in remote places this can help diversify the workforce. it can also improve motivation so employee productivity should be more give three examples of non-financial motivation Job enlargement, job enrichment, empowerment. Define job enlargement gives the employee more work at the same level Define job enrichment adding tasks, duties, and responsibilities to the job what is a successful employer employee relationship maximize the cooperation and minimizes the potential for conflict between the two groups. It is built on a culture of trust between the two groups. how can empowerment help improve communication can help reduce negative attitudes which makes communication between groups more positive and productive. it also gives employees a sense of purpose Gift for vantages to the employer of maintaining a good employer - employee relationship productivity and efficiency are increased as new ideas and ways of working are picked up quickly by employees. having employees point of view in discussion can help make better informed decisions and diversify the opinions leading to better motivation. objectives of the employees will become more aligned with the objectives of the business. advantages to the employee of maintaining a good employer-employee relationship feel more involved in business decisions which gives them a sense of job security. The views of the employee I consider during decisions which makes him feel more valued and motivated and will increase their job satisfaction. Employees are able to communicate their personal objectives to the employer which will help the employee develop skills and further their career individual bargaining for pay means that employers can decide to pay an employee what they think he or she is worth to the firm. It might be more or less than other employees in the same role. This provides a financial incentive to the employee to work productively. work councils groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. they meet regularly to discuss general work issues. The sharing of ideas and information is relatively relaxed and helps improve relations quality circles Voluntary groups of people drawn from various production teams who make suggestions about quality. they meet regularly to discuss ways of improving quality. They include employees from all levels of the business trade unions groups that tried to improve pay and working conditions. they act on behalf of A group of employees in the workforce when negotiating rates of pay and working conditions. By joining with others and belonging to a union the employee strengthens there bargaining power trade unions on a national level can put pressure on the government to bring in legislation that will serve the interest of the trade union members. Pushed the government to make redundancy payments compulsory. Helped introduce the minimum wage. how can trade unions influence the decisions of the business? can communicate the employees ideas and questions to the employers. stand up for employees rights if employers want to make redundancies they can help negotiate with employers to make fewer redundancies. If current staff are overworked trade unions can convince employers to take on more staff. give three advantages of employee representation Often more effective to approach an organization as a group - groups have a big influence and can be more forceful. collective-bargaining can help achieve long-term aims. Senior management gets a direct insight into the concerns of the workforce give disadvantages to employee representation employee representation can lead to industrial action which can take the form of strikes or decreased productivity. Industrial action of the lead to the loss of profits give 2 things that may be included in a job description The responsibility of the job and the salary give two things that may be included in a person specification The individual qualities desired and the qualifications required Give two advantages of internal recruitment motivates workers and candidates already know the business and it's way of operating give two disadvantages of internal recruitment can cause a resentment from colleagues who werent excepted. And might not bring in fresh ideas or knowledge give 2 advantages of external recruitment brings in fresh ideas and brings experience from other organizations give a disadvantage of external recruitment Time consuming and expensive process give 2 advantages of on the job training lower costs and training is specific to the organization Give three disadvantages to on the job training - Bad practices are passed on - no new ideas are bought in - trainer and trainee aren't productive give three advantages to off the job training - specialist trainers - new ideas bought in - no job distractions during training give three Disadvantages to off the job training can be expensive. Might not be specific to the business is day-to-day operations. No benefit to the business while employee is training When Mike the HR department re-deploy staff? when there's too much labor - this is often due to a drop in demand or new technology has increased efficiency leading to employees being less needed what happens if there's no way to redeploy staff across departments? redundancies give two external factors that influence HR plans New technology - Buisiness may need to retrain staff. Labor market trends e.g. migration or aging population - affects the supply of workers Give an internal factors that influences HR plans changes in the production style - May lead to the retraining of redeployment of staff Would Taylor's theory of scientific management work for modern business? no - it would be seen as exploitation - it also ignores the demotivating effects of doing repetitive tasks In the 20th century what did Taylor think motivated workers? money what was Taylor's goal? to figure out the most efficient way to do a job and ensure each worker did it in that way. It's called the scientific management approach Taylor favor division of... Labor. Breaking work down into small repetitive tasks how did Taylor believe in paying his workers? according to the quantity they produced - the most productive workers got a better pay