1.4 Managing People (Edexcel A Level Business)

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  • What is the main goal of effective human resource management (HRM)?

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  • What is the main goal of effective human resource management (HRM)?

    The goal of effective human resource management (HRM) is to have the right people in the right roles, with the right support and with opportunities to succeed.

  • What is meant by the phrase staff as an asset?

    Staff as an asset is when workers bring knowledge, skills, and expertise to the business. This can increase productivity and innovation, as well as enhance customer service.

  • True or False?

    The introduction of a national minimum wage mainly affects businesses that employ workers on a salary basis.

    False.

    The introduction of a national minimum wage is less likely to affect businesses that employ workers on a salary basis, as they already pay a fixed amount regardless of the number of hours worked.

  • What is meant by the term multi-skilling?

    Multi-skilling is the process of training workers to fulfill multiple job roles within a business.

  • Define part-time working.

    Part-time working occurs when someone works up to 32 hours per week, or a reduced number of days.

  • Define the term outsourcing.

    Outsourcing is when a business hires a third-party company to perform specific tasks or services instead of having an in-house department or its own employees complete the work.

  • What is the distinction between dismissal and redundancy?

    Dismissal is the termination of employment by an employer against the will of the employee, usually due to misconduct or poor performance.

    Redundancy is when the job is no longer available and the business reduces the size of its workforce, not as a result of any fault on the part of the employee.

  • What is an individual approach in employer/employee relationships?

    An individual approach assumes that each employee is unique and has their own goals, motivations, and interests. It involves tailored compensation packages between the two parties.

  • True or False?

    Employees have more bargaining power when they negotiate collectively, rather than as individuals.

    True.

    Employees have more bargaining power when they negotiate collectively, rather than as individuals.

  • What is a trade union?

    A trade union is an organisation that represents the interests of the workers in a particular industry.

  • Define the term recruitment.

    Recruitment is the process of attracting and identifying potential job candidates.

  • What is the purpose of selection in the recruitment and selection process?

    The purpose of selection in the recruitment and selection process is to choose the best candidate for the job.

  • True or False?

    A job description outlines the qualifications, skills, experience, and personal qualities required of a candidate for a specific job.

    False.

    A job/person specification outlines the qualifications, skills, experience and personal qualities required of a candidate for a specific job.

    A job description outlines the duties, responsibilities and requirements of a particular job.

  • What is meant by the term internal recruitment?

    Internal recruitment is the process of hiring employees from within the organisation, through promotion or redeployment.

  • Define the term induction training.

    Induction training is provided to new employees when they start working for a business. It introduces them to the firm, its culture, policies, procedures, and their job roles and responsibilities.

  • What is meant by the term on-the-job training?

    On-the-job training takes place while employees are working, allowing them to learn new skills and knowledge from colleagues.

  • What is the meaning of the term off-the-job training?

    Off-the-job training takes place away from the workplace, in the form of workshops, seminars, conferences, or online courses.

  • What is an interview?

    An interview is a formal meeting with an applicant for a vacancy, where their skills, experience, knowledge and suitability for the job are discussed.

  • True or False?

    Off-the-job training can be expensive to organise, especially if travel and accommodation are required.

    True.

    Off-the-job training can be expensive to organize, especially if travel and accommodation are required.

  • What is meant by the term shortlist?

    A shortlist is a small group of applicants who best meet the vacancy criteria and are invited to the next stage of the recruitment process.

  • Define the term hierarchy.

    Hierarchy refers to the levels of authority within an organisation, describing the ranking of positions from top to bottom.

  • What is meant by the term tall organisational structure?

    A tall organisational structure has multiple levels of management and a more centralised decision-making process, with a long chain of command.

  • What is meant by the term chain of command?

    The chain of command is the formal line of authority that flows down from top management to lower-level employees. It determines who reports to whom and who is responsible for making decisions.

  • Define the term centralised structure.

    Centralised structures concentrate decision-making authority at the top of the organisation, with senior management making most of the decisions.

  • What is meant by the term flat organisational structure?

    A flat organisational structure has few levels of management, a short chain of command, and a more decentralised decision-making process.

  • True or False?

    Matrix structures promote cross-functional collaboration and communication.

    True.

    Matrix structures promote cross-functional collaboration and communication.

  • True or False?

    A tall organisational structure encourages creativity and innovation, as employees have more autonomy and flexibility.

    False.

    A flat organisational structure encourages creativity and innovation, as employees have more autonomy and flexibility.

  • Define the term span of control.

    The span of control is the number of employees a manager or supervisor directly controls.

  • True or False?

    Decision-making can be slow in flat organisational structures as information must pass through multiple layers of management.

    False.

    Decision-making can be slow in tall organisational structures as information must pass through multiple layers of management.

  • What is meant by the term bureaucracy?

    A bureaucracy is a situation where many rules and processes exist that slow down decision-making and communication.

  • Define the term motivation.

    Motivation is the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome.

  • True or False?

    Motivation can only be intrinsic.

    False.

    Motivation can be intrinsic, coming from within a person, or extrinsic, from external factors.

  • What is meant by the term specialisation of labour?

    Specialisation of labour is where workers are trained to perform only one task which they become very skilled at.

  • Define the term hygiene factors.

    Hygiene factors are elements in a workplace that do not necessarily lead to job satisfaction but whose absence can cause dissatisfaction, such as poor working conditions.

  • What is meant by the term non-financial incentives?

    Non-financial incentives are rewards not directly related to money, including methods that lead to recognition, praise, job satisfaction, and work-life balance.

  • True or False?

    Scientific management emphasises the use of financial incentives to motivate workers, such as bonuses or piece-rate pay.

    True.

    Taylor's scientific management emphasises the use of financial incentives such as bonuses or piece-rate pay to motivate workers.

  • State two types of financial incentive.

    Financial incentives include:

    • Piecework payments

    • Commission

    • Bonuses

    • Profit sharing

    • Performance-related pay

  • True or False?

    Financial incentives always lead to job satisfaction.

    False.

    Financial incentives may not always lead to job satisfaction. Some workers are motivated by other factors, such as the working environment.

  • What is meant by the term empowerment?

    Empowerment means giving staff the authority and resources to make decisions without first receiving management approval.

  • True or False?

    Offering employment contracts that provide job security is an example of a motivator in Herzberg's Two-Factor Theory.

    False.

    Offering employment contracts that provide job security is an example of a hygiene factor in Herzberg's Two-Factor Theory.

  • Define the term leadership.

    Leadership involves having a vision, sharing that vision with others, and providing direction.

  • True or False?

    Leadership focuses on executing plans.

    False.

    Leadership focuses on creating a vision, setting direction, and inspiring others to follow. Management focuses on executing plans.

  • Define the term management.

    Management involves the day-to-day organisation of the business, its resources, and its staffing.

  • True or False?

    Leadership focuses on the long-term vision and strategy, while management focuses on short-term goals and targets.

    True.

    Leadership focuses on the long-term vision and strategy, while management focuses on short-term goals and targets.

  • Define the term autocratic leadership style.

    An autocratic leadership style is where a leader has complete authority over decision-making with little or no input from others.

  • True or False?

    An autocratic leadership style is more appropriate where there is a need for quick decision-making, such as during a crisis.

    True.

    An autocratic leadership style is more appropriate where there is a need for quick decision-making, such as during a crisis. It may also be more suitable in a small business where the owner is the primary decision-maker.

  • What is meant by the term democratic leadership style?

    A democratic leadership style is one where a leader involves others in the decision-making process.

  • True or False?

    A democratic leadership style often encourages creativity, innovation, and employee engagement.

    True.

    A democratic leadership style often encourages creativity, innovation, and employee engagement.

  • Define laissez-faire leadership style.

    A laissez-faire leadership style involves minimal supervision, allowing experienced staff to work independently and make key decisions.

  • True or False?

    A laissez-faire style of leadership is most appropriate where staff are uneducated or inexperienced and require guidance and support from their leader.

    False.

    A paternalistic leadership style is most appropriate where staff are uneducated or inexperienced and require guidance and support from their leader.