Business 1
What are 2 methods employers can use to motivate workers?
Financial and non-financial
Mayo's theory was referred to as____?
Mayo (human relations theory)
Maslow's theory was referred to as____?
– Maslow (hierarchy of needs)
Herzberg theory was referred to as____?
Herzberg (two factor theory)
What were the 2 factors in Herzberg's theory?
Hygiene factors and Motivators
Taylor's theory was referred to as____?
Taylor (scientific management)
According to Taylor's theory, what leadership style and approach did he think worked best with employees?
Autocratic / close monitoring & supervision, workers were inherently lazy, theory X,
What did Taylor believe motivated employees and what 'system' did he feel would work best?
Money, piece rate system
___ don’t motivate people to work harder, but will demotivate people if not available.
Hygiene factors
Define an Autocratic leadership style:
The leader strictly controls all of the decision making. Used when employees may be new, or unskilled and require a lot of supervision and guidance or when you need to be decisive.
What are 2 advantages and 1 disadvantage of a democratic leadership style?
It invites creativity, can be seen as motivational, encourages employees to feel part of a team and make contributions, empowers employees. Disadv - can slow down the decision making, not good for unskilled
What are 2 advantages and 1 disadvantage of a autocratic leadership style?
Adv-works in crisis situation, fast decision making, improves productivity & efficiency, clear communication, Disadv - lack of creativity, micro mgnt, less room for employee growth
What are 2 advantages and 1 disadvantage of a paternalistic leadership style?
Adv-managers involve employees in decision making, manage meets employee social needs, can be motivational, Disadv- team become competitive, if wrong decisions made, employees blame leader, employees rely a lot on leader
What are 2 advantages and 1 disadvantage of a laissez-faire leadership style?
Adv- greater job satisfaction, creativity/innovation, positive motivation/empowerment, Disadv - Lack of guidance, unsuitable for less skilled employees
Define Entrepreneur and Intrapreneur:
Entrep - business owners who take risks & their own personal finances when developing a business idea. Intrapren - are employees, usually in large businesses who use entrep skills to find & develop new products/ services, but carry no financial risk
List 4 different Leadership styles that we learnt about:
Auto, demo, Paternalistic, Laissez-faire
What is the difference between Management & Leadership?
Mgnt - the organisation of the day-to-day activities that enable a business to achieve their goals
Ldership - the ability to inspire and influence others to follow you and share your vision. individual's ability to influence, motivate, and enable others to contribute toward organizational success.
Identify the 4 categories of the Boston Matrix:
Define Cash Cows:
Stars, ? , Cash cows and Dogs. Product with relatively high Mkt share, but weak/slow growth
Define: 1) Chain of command 2)Delayering 3)Span of control
CC-the way authority & power is organised in an organisation, Del- removing layers of mgnt from the hierachy of an orgn, Span - the number of people a person is directly responsible for in a business
Define empowerment & profit sharing:
Em - giving authority to employees to make decisions & control their own work activities. Prof sh - where workers are given a share of the profits, usually as part of their pay
List 5 Financial Methods of Motivation:
Salaries and wages
Piece Rate
Performance-Related Pay (PRP)
Profit Sharing
Share Ownership
Bonuses / Commission
List 5 Non-Financial methods of motivation:
Job enlargement / enrichment / empowerment / rotation)
Fringe Benefits
Appraisal systems
Team working
Better work environment
Flexible working arrangement
Identify 5 benefits of having a motivated workforce/ being motivated:
To improve job performance , To increase job satisfaction, To reduce turnover, To enhance employee engagement, To increase productivity and efficiency
Improved reputation for the organisation, Improved opportunities of meeting the firm’s objectives, Improved work ethics, Competitive advantage
What are the 5 steps/stages (in order) of Maslow's Hierarchy of Needs?
Basic/Physiological, Safety, Love belonging, Self-esteem, Self Actualization
Identify 5 Pricing Strategies:
Cost-plus, Price skimming, Penetration pricing, Predatory pricing, Competitive pricing, Psychological pricing