People in Organisations

This cheat sheet would cover :

Management and Leadership

Motivation

Human Resource Management

Management -
Authority -
Leadership -

is planning, organising, directing is the power or ability to carry Includes the functions of ruling,
and controlling all or part of a through a task or action. guiding and inspiring other
business enterprise. people within an organisation in
pursuit of agreed objectives

Functions of Management
Purpose of Leadership

1. Planning
- Decision- making

2. Organising
- Advisory support

3. Directing
- Goal setting

4. Controlling - Structure of Organisation

Leadership Behavioural Style

Benefits Disadvantages

Autocratic • Rapid decision-making can be • Ineffective when project

concluded in times of crisis
requires many input from
1. One-way Communication different expertise and skills

2. Minimal delegation or Important Message is passed

• Restricts Creativeness and
Decentralisation •
down quickly throughout the Motivation of Employees

3. Close Supervision of chain of command

Employees • Employees can only follow

directives from the higher
• Managers can manage large
management and have no say
number of subordinates at a
time (Usually unskilled workers)

Democratic 1. Delegation of activities -> • Decision making process

Decentralisation
may be slow as feedback
1. Two- way Communication process needs to go up and
2. Delegation and 2. Employee participation in down the chain

Centralisation Decision Making - Offer

3. Employees have control in feedbacks and derive • Workers may need to be a
their own area of work Satisfaction
level of skilfulness to offer
valuable feedback 

3. Subordinates have greater (Usually knowledge-intensive
control over own working lives industry)

Laissez-faire I. Highly independent I. May be inappropriate when

employees who are willing to employees are not aligned to
1. Leader has minimal input voice out opinions
business’s objectives
2. Employees make majority of
decisions II. Self-motivated workforce

Versatility of Leadership Style is based on SITUATION.

The best leader is able to adapt and adopt different leadership style based on the circumstances of the
situation and as such a combination of all leadership style is necessary/ best for the organisation.

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 Douglas McGregor’s Theory X and Y

X Y
- Workers are motivated solely by • Workers seek satisfaction from
money.
employment and not just
financial benefits

Used of financial methods such

as Piece-rate pay and close • Workers possess creativity and
supervision knowledge

• Workers commit themselves to

organisational objectives

• Employees wish to contribute

to decision-making

Motivation
Defined as internal and/or external factors that arouse, maintain and channel behaviour towards a goal.

Indicators of Highly Motivated Workforce

Labour Productivity -
Labour Turnover -
Absenteeism -

Measures the output per time Percentage of workforce that Situation in which an employee is
period of an employee
leaves its employment with a absent from work without a good
business over some period of reason

time

High Labour Productivity Low Labour Turnover Low level of Absenteeism

Benefits of a Highly Motivated Workforce :

1. Increased productivity brings about lower production costs ( Increased Profits)

2. Motivated Employees (Pride and Reputation) - Attract employees easily

3. Positive Corporate Image

4. Sales-based/Customer oriented businesses need to depend on motivated employees

Motivation Theories

1. Frederick Winslow Work Study Workers only interested

Taylor of Scientific - Measured output and in financial payouts and
Management studied the time taken hence Piece-rate
to complete a system is most
production process
appropriate to increase
- Create benchmark output.

based on best workers

in these methods
Close Supervision of
- Broke down Workers to monitor
production process efficiency .
into smaller activities

- Workers given
elementary training
and clear instructions
and adhere to
Benchmarked timing

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 Motivation Theories

2. Mayo’s Hawthorne Mayo’s emphasis is on Mayo concluded that Team-working is the

Effect social participation. He motivation was process of breaking
stressed on the dependent upon :
down production into
importance of the ‘Social large units and using
Man’ 1. Type of job being groups of employees to
carried out and type complete these tasks.

of supervision given

Organisations to create
2. Group relationships, personnel department to
group morale, sense boost employee’s
of worth satisfaction and
workplace happiness
rather than solely based
on cash.

3. Maslow Hierarchy of Key point: 1. Physiological Need

Needs Business could motivate 2. Security

employees by offering 3. Social

- Theory that employees them the chance to fulfil 4. Esteem

have successive a higher level of need 5. Self-actualisation

requirements that can be once a lower level one
fulfilled through work. was satisfied

4. Frederick Herzberg’s Hygiene factors are a Hygiene Factors:

two-factor theory group of influences that • Company policies

may result in employee • Supervision

- theory that people face dissatisfaction at work

• Working conditions

two major sets of • Relationship with peers

influence at work Motivators are a series

of factors, such as
promotion, that may
have positive influence Motivators:

on employee’s • Recognition

performance at work • Achievement

• Passion and
Responsibility

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 Motivation Methods
Financial Motivators Non- Financial Motivators

Time-based pay ( per hour $) Job Redesign - changing group of tasks or duties
which make up a specific job

Salaries and Wages ( per month $ based on Job Enrichment - Occurs when employee’s jobs are
contractual agreement ) redesigned to provide them with more challenging
and complex tasks. (Depth)

Piece Rate ( per unit /$) Job Enlargement - Giving employees more duties of
a similar level of complexity. (Breadth)

Bonuses and Commission (% of sales / $) Job Rotation - Regular switching of employees

between tasks of similar degree of complexity.

Profit Sharing (% of net earnings ) Employee Empowerment involves redesigning

employee’s jobs to allow them greater control over
their working lives.

Performance-related pay (PRP)

Team-working e.g Production Teams, Quality Circle
(Grading of Performance)
Teams and Management Teams.

(Achievement of Targets)
Quality circle - Small teams designed to propose
solutions to existing problems and to suggest
improvements in production methods.

Human Resource Management (HRM)

Covers the key areas : HRM - Personnel Management Workforce plan assesses
1. Recruitment
Process of making the - Describes a range of the current workforce and
2. Training
most efficient use of an discrete tasks necessary actions necessary to
3. Motivation
organisation’s employees. to administer the human meet business’s future
4. Reward
dimension of business labour needs.

5. Workforce Planning activities.

E.g Number of Employees
/ Skills required

Labour Turnover is the percentage of a business’s Why is HRM important?

workforce that leaves a business over a given period Improper planning of resource would lead to higher
of time
costs. E.g Loss of sales to meet expected sales target

LTO = (NO.STAFF/AVG NO STUFF) X 100% Incorrect skills employed would disrupt operations.

HRM 1. RECRUITMENT & SELECTION

Recruitment and selection

Process of Recruitment and Selection:
is the process of filling an organisation’s job vacancies
by appointing new staff. • Determine requirement based on HR Plan

• Prepare Job Adverts, Description, Specifications

• External/Internal Recruitment

• Shortlisting of applicants

• Selection for Interview

External Recruitment -
Internal Recruitment -
Selection of Employees
Hiring of employees from Hiring of employees from 1. Interviews

outside the organisation within the organisation

2. Online Tests

E.g Different Departments

3. Personality/Aptitude

• Expensive as 4. Assessment

advertising is required
• Employees already
• accustomed to
• New Talents recruited Organisation’s Culture

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 HRM 1 RECRUITMENT AND SELECTION

Job Description -
Job Specification -
Contract of Employment - Legal
List the duties and responsibilities Outline the skills, knowledge and Agreement between an employer
associated with a particular job experience necessary to fill a given and an employee setting forth the
position successfully terms and conditions of
employment.

HRM 1 REDUNDANCIES & DISMISSAL

Redundancies take place when Dismissal occurs when an Disciplinary procedures state
an employee is dismissed because employer terminates the what behaviour is unacceptable in
a job no longer exists.
employee’s contract .
the workplace and what action will
be taken if the rules are broken.

- Needs to be compensated Incompetency, Gross Misconduct,

appropriately based on service Long term illness
Have to state clearly in standing
term of local law. orders on what should not be
Employers must issue warning first. flouted. E.g Theft

HRM 1 TRAINING

Training is the process whereby an individual acquires job-related skills and knowledge

On the Job Training - Off the Job Training -

Whereby employees need not leave the workplace Involves training outside the workplace, either at
and that he/she will learn from experienced employees college, university or training agency.

through observation and shadowing.

E.g External Courses

For : Against:

• Improve employee performance

• Training uses up valuable resource and time

• Improve employee motivation and productivity

• Employees may leave the organisation once trained

• Reputation for training aids business in recruitment • Managers may find that training would leave
of high quality employees employees more degree of control

Employee welfare covers a wide rage of facilities Appraisal is the process of considering and
that are essential for the well-being of a business's evaluating the performance of an individual employee.
employees.

Management By Objectives (MBO)

Objectives set at each level should be coordinated to ensure that business achieves its corporate
objectives. Each member, no matter how small should make a contribution towards the whole business
achieving its overall objectives.

Managers should :

• Identify and agree targets for achievement with subordinates

• Negotiate the support that will be required to achieve these objectives

• Evaluate over time the extent to which these objectives are met
Benefits of MBO: Disadvantages of MBO:

• Mangers and Employees understand the roles and • Some Employees may find the setting of targets as
responsibilities they play in working towards threatening

objectives set.

• All employees within the organisation must be

• Achievement of Business Objectives may give committed to achieving the objectives set.

Employees a sense of fulfilment as achieved in

Maslow’s Hierarchy of needs . • Objectives may be redundant in a fast-paced,
competitive business environment

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 HRM 2 - Labour Legislation

Importance of recognising Common instances when Cooperation between

Labour Legislation regulations are violated: management and workforce :

- Vital to business operations A. Workplace Discrimination

Work Councils - Forum within
when business follows Business where workers and
regulations
B. Unfair Dismissal
management discuss issues

- Workplace productivity may be C. Health and Safety

Quality Circles - Group of workers
increased when workers is and management meet to discuss
aware that business follows D. Unfair wages
improvement to workplace
regulation laws
E. Overworking of hours

Trade unions -
Organisations of workers established to protect and improve economic position and working conditions of
members

Function of Trade Union: Benefits of Trade Union

• Maximising Pay
Membership to Employees:
• Higher average rates of pay

• Achieving safe and secure working conditions

• Improved Working Conditions

• Participating in and influencing decisions in workplace

• Better training negotiations

• Lobbying for higher social security benefits

• Members lesser possibility of

• Protection of members under the Trade Union Discrimination

• Better Job security

Consequences of conflict amongst employees: Benefits of Trade Union

Involvement to Employers:
• Better Communication (Less
1. Collective Bargaining - negotiations between management and riots / strikes )

employee’s representatives over pay and other conditions.

• Improvements in Health and

2. Individual Bargaining Safety (Kept in Check)

3. Arbitration - attempt to settle an industrial dispute through the use • Improved Employer Branding
of a neutral third party.

4. Conciliation - Negotiations undertaken with the aim of reconciling

differences between the parties to an industrial dispute.

HRM 3 - Organisational Structure

Organisational Structure is the way in which a Authority is the power to Responsibility is the
business is arranged to carry out its activities.
control situations or duty to complete a task
decisions and actions of and be accountable for
• Routes by which communication passes through others. one’s action.
business

• Authority and Responsibility within the organisation

Factors that influence Organisational Structures: Levels of hierarchy Span of Control is the
• Business size
Refer to number of layers number of subordinates
• Product offerings
of authority within an directly responsible to a
• Business objectives organisation. manager.

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 HRM 3 - Organisational Structure

Formal Business Structure : Chain of Command is Delegation is the passing

the line of communication down of authority through
• Levels of Hierarchy
authority existing within a the organisation
• Chains of Command
business.
• Spans of Control

• Delegation

• Centralisation

• Decentralisation

Informal Business Structure is structure where Types of Organisational How and why
organisation does not have an obvious hierarchy. Structures organisational
1. Hierarchical Structure
structures change with
2. Functional Structure
growth
3. Matrix Structure 1. Increasing levels of
hierarchy (Depth)
2. Delayering ( -)

3. New divisions or
departments
(Breadth)

Line Managers normally hold departmental Staff managers only indirectly contribute towards
responsibilities achieving corporate objectives. Instead a staff
Manager ensures that all the supports are in place.

Business Communication

Communication is the exchange of information between people

Feedback is a response to communication that may confirm receipt and comprehension

Why do businesses communicate ?

How do businesses communicate?

• Marketing ( Communicate product information)

• Spoken

• Operational
• Written

• Management of Workforce
• Electronic

• Financial communication
• Visual
• Legal/Political Communication

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 Business Communication

Barriers to Improving Selecting Methods of Effective

Communication: Communication: Communications : Communication

• Use of Jargons or - Train Employees on • Cost

occurs when information
Technical terms
Communication skills
is passed on to other
• Target Audience
people or groups and
• Lack of Understanding - Avoid danger of • Speed of
feedback is received
by Managers
generating too much confirming that the
information
• Communication
communication has been
• Inappropriate understood.
management
- Recognise cultural and • Need for record
linguistic difference keeping
• Merger and Takeover
exists

• Changes in Business
practices

• Reliance on IT

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