IB Business Management Unit 2

What are the five factors that affect situational leadership styles? (Hint: think of the mnemonic CLOTS.)

-Culture -Leadership -Organizational structure -Task -Subordinates

Outline the human resource strategies for reducing the impact of change and resistance to change.

-Educate -Participate -Facilitate -Negotiate -Manipulate -Intimidate (coerce)

What are the types of appraisals?

-Formative appraisal -Summative appraisal -360 degree feedback -Self-appraisal

What are the five elements (or determinants) of organizational culture? (hint: NORMS)

-Nature of the business -Organizational structure -Rewards -Management style -Sanctions

State the sources of conflicts in the workplace.

-Needs and wants -Perceptions -Values -Power -Feelings and emotions

Describe any three changes to work patterns and practices that have affected businesses and employees (such as teleworking, portfolio working, migration of workers, and flexitime).

-Teleworking: Remote work that can improve work-life balance but may also lead to communication issues. -Flexitime: Allowing employees to choose their start and end times within certain limits, which can improve productivity but requires careful management. -Portfolio working: Having multiple part-time jobs or contracts with different employers, which can provide flexibility but requires strong time-management skills.

The outcome of any negotiation or collective bargaining process depends on several factors. State five of these factors.

-the union's size and unity -the state of the economy -demand for labor -substitution between labor and capital -public/media opinion -government involvement in negotiations

Identify the general steps in the recruitment and selection process.

1. Conduct a Job analysis to determine the firm's need to hire new employees 2. Produce a job description and person specification 3. Advertise the vacant post 4. Check applications and shortlist suitable candidates 5. Interview the shortlisted candidates 6. Perform aptitude testing (if applicable) 7. Check references for shortlisted candidates 8. Job offer made to the best candidate 9. Issue and sign the contract of employment 10. Carry out induction of new recruits

What is a 'culture gap'?

A 'culture gap' refers to the difference or disconnect that occurs when people from different cultural backgrounds encounter each other, resulting in misunderstandings, miscommunications, and clashes. This can occur within organizations or between organizations and their customers, suppliers, or other stakeholders.

What is a job analysis and why is it important?

A job analysis is the process of gathering and analyzing job-related information. It's important as it provides details on job tasks, requirements, and helps in creating job descriptions, compensation, and identifying training needs. Additionally, it ensures fair hiring, identifies safety hazards, and ensures employees are equipped to perform their jobs effectively.

Differences between job description and person specification.

A job description is a document that outlines the details of a particular job. A person specification is a document that profiles the ideal candidate, such as the qualifications, skills, and experiences sought by the employer.

What is a project-based organization?

A project-based organization is structured around completing specific projects, rather than functional departments or products. Teams are assembled for each project and disbanded once the project is completed.

Distinguish between a wide and a narrow span of control.

A wide span of control means a manager has many subordinates reporting to them, while a narrow span of control means a manager has fewer subordinates. A wide span of control leads to efficient decision-making, but less direct supervision. A narrow span of control allows for more supervision but may lead to slower decision-making.

What is the difference between accountability and responsibility?

Accountability is about being answerable for a task or job, while responsibility is about having the authority to oversee someone or something.

Outline the advantages and disadvantages of using appraisals for workforce planning.

Advantages of appraisals for workforce planning: -Provide performance data -Help with goal setting -Improve feedback and communication -Offer legal protection Disadvantages of appraisals for workforce planning: -Can be biased -Time-consuming -Inconsistent standards -Focus on past performance

How might organizational culture be affected following a takeover or merger?

After a takeover or merger, organizational culture may be affected due to differences in management style, communication, and values between the two companies. This can create a culture gap and may require significant effort to align the cultures of the two organizations.

Why is testing often used in the recruitment process?

Although testing is time-consuming, it increases the chances of hiring the best candidate for a job. This reduces costs incurred in the long run if the wrong applicant is hired. The main types of testing used in recruitment are: -Psychometric tests -Aptitude tests -Intelligence tests -Trade tests

What is an aging population and what are the consequences of this for workforce planning?

An aging population is when the average age of the population increases. It has the following effects: -Increased dependent population -Reduced labor mobility -Changes in consumption patterns -Changes in employment patterns

What is an organizational chart?

An organizational chart is a visual representation of an organization's structure that shows the different roles, responsibilities, and reporting relationships within the organization.

What is an appraisal?

Appraisal is the formal assessment of an employee's performance in fulfilling his/her job based on the tasks and responsibilities set out in their job description.

Distinguish between autocratic, democratic, paternalistic, laissez-faire, and situational styles of leadership.

Autocratic leadership is characterized by a single decision-maker who exercises complete control over the organization. Democratic leadership is characterized by a more participative approach where leaders involve others in decision-making. Paternalistic leaders treat their employees as if they were family members by guiding them through a consultation process and acting in the best interest of their subordinates. Laissez-faire leadership involves a hands-off approach where leaders provide minimal direction and guidance Situational leadership is a style that adapts to the situation at hand, with the leader varying their approach based on the needs of the situation or team.

What is bureaucracy?

Bureaucracy refers to a formal organizational structure that emphasizes strict procedures, rules, and hierarchies, often resulting in slow decision-making and a focus on maintaining the status quo.

Why do businesses need to recruit people?

Businesses need to recruit people to fill positions, replace employees, expand operations, bring new skills, and maintain a competitive edge.

Why do businesses use outsourcing and offshoring, whilst others choose re-shoring?

Businesses use outsourcing and offshoring to reduce costs, increase efficiency, and access specialized expertise. Re-shoring may be chosen to improve quality control, reduce risks, and support local employment and economic growth. The decision to use these strategies depends on various factors, including the nature of the business, the costs, and risks involved, and strategic goals.

Distinguish between centralized and decentralized structures.

Centralized structures are those in which decision-making authority is concentrated at the top of the organization, while decentralized structures are those in which decision-making authority is distributed among lower-level employees or units.

In the context of human resources, what is meant by communication?

Communication in the context of human resources refers to the process of exchanging information, ideas, and opinions between employees and management to facilitate understanding and coordination in the workplace.

How do new communications technologies influence human resource planning?

Communication technology advancements bring both opportunities and threats to human resource planning. Opportunities such as remote work are made possible by mobile and internet technologies. However, capital-intensive businesses may require fewer workers. Examples: -Recruitment -Meetings -Appraisal -Flexitime and teleworking -Online training course

What is meant by conflict and why does it become a / problem if not managed properly?

Conflict refers to a situation of friction or mutually exclusive goals between two or more parties, such as employees and employers. If not managed properly, it can lead to negative consequences such as decreased morale, lower productivity, increased absenteeism, high turnover rates, and even violence.

Explain the meaning of cultural intelligence and why high CQ is important.

Cultural Intelligence is the ability of an individual to blend into occupational, corporate and national cultures. High CQ is essential for individuals to work effectively in a globalized world and in culturally diverse organizations, as it allows them to adapt to cultural differences and to communicate and collaborate more effectively.

What are cultural clashes and why do they occur?

Cultural clashes exist when there is conflict or incompatibility between two or more cultures within an organization and it can occur due to growth of firms, mergers and acquisitions and change in leadership.

Outline how cultural differences have an impact on communication in an organization.

Cultural differences affect communication in organizations by influencing how people interpret messages and communicate. Organizations can address this by promoting cultural awareness, providing training, and adapting communication strategies to fit different contexts.

What is delegation and how does it relate to the span of control?

Delegation is assigning authority and responsibility to subordinates to carry out specific tasks. It relates to the span of control as it enables managers with a wide span of control to manage their workload more effectively.

What are demographic changes and how do these influence workforce planning?

Demographic changes in a workforce impact the supply of human resources in a country. Understanding these changes is crucial for businesses to respond appropriately. Demographic changes can be caused by changes in various factors: -The net birth rate -The net migration rate -The retirement age -Women entering or returning to the workforce

How do cultural differences and ethical considerations affect leadership style?

Different cultures have different expectations and perceptions of leadership styles, and leaders must adapt their style to be effective in different cultural contexts. Additionally, ethical considerations such as the importance of fairness and respect for individuals may also impact the choice of leadership style.

When can employment be terminated? Describe each one.

Dissmisal-termination of a worker's employment due to: incompetence, misconduct, gross misconduct, and legal requirements. Redundancy-when a business can no longer afford to employ the worker or when the job ceases to exist. There are two options for redundancy: voluntary and compulsory Retirement-voluntary termination at a certain age or after a certain number of years of service Resignation-voluntary termination by providing notice to the employer

What are the various types of organizational cultures?

Edgar H. Schein-Artefacts, Espoused values, Shared basic assumptions Charles Handy- Power, Role, Task, Person cultures Deal and Kennedy-Tough guy macho (high Risk, rapid Feedback), Work hard play hard (low risk, rapid feedback), Bet the company (high risk, slow feedback), Process (low risk, slow feedback) Kotter and Heskett-Adaptive (adaptive to change) and Innert (resistant to change) cultures Goffee and Jones- "double-S model"- Sociability (extent to which people have concerns for their colleagues) and solidarity (degree of unity in an organization) Geert Hofstede- Power distance, Individualism vs Collectivism, Masculinity vs Femininity, Uncertainty avoidance, Long vs Short term orientation, Indulgence vs Restraint

Why might employee participation and industrial democracy lead to a win-win outcome?

Employee participation and industrial democracy can lead to a win-win outcome by increasing employee satisfaction and engagement, resulting in higher productivity and profitability. It fosters collaboration and harmony, benefiting both employees and employers.

State five methods of financial and non-financial ways to motivate individuals.

Financial: -salary -wages (time and piece rates) -commission -profit-related pay -performance-related pay (PRP) -employee share ownership schemes -fringe payments (perks) Non-financial: -job enrichment -job rotation -job enlargement -empowerment -purpose/the opportunity to make a difference teamwork

Explain the difference between flat and tall hierarchical structures.

Flat hierarchical structures have few levels of management with more employee autonomy and decentralized decision-making, while tall hierarchical structures have many levels of management with more opportunities for promotion, centralized decision-making, and slower communication.

Distinguish between formative and summative appraisal.

Formative appraisal is a planned (formative) and ongoing process in which appraisal evidence is used by employees to inform them about what to do to improve their work practices. Summative appraisal is a written description of an employee's performance at work, summarising personal performance and achievements during the year.

What is meant by human resource management?

Human resource management (HRM) is the management function of using and developing people within a business to meet its organizational objectives.

What is workforce planning?

Human resource planning (or workforce planning) - the management process of anticipating and meeting an organization's current and future staffing needs.

How do individuals influence organizational culture? How does organizational culture influence individuals?

Individuals can influence organizational culture by their behavior, attitudes, and values, which can shape the norms and beliefs within the organization. At the same time, organizational culture can also influence individuals by shaping their behavior, attitudes, and values, and by providing a sense of identity and purpose within the organization.

Differentiate between the internal recruitment and external recruitment.

Internal recruitment involves hiring people who already work for the business to fill a vacant post. External recruitment is the process of hiring people from outside the business.

Distinguish between intrinsic and extrinsic methods of motivation.

Intrinsic motivation comes from within an individual and involves doing something for its inherent satisfaction or enjoyment. Extrinsic motivation comes from outside an individual and involves doing something to receive a reward or avoid a punishment.

Distinguish between job enlargement, job enrichment, and job rotation.

Job enlargement: increasing the scope of a job by adding tasks of similar complexity. Job enrichment: adding more meaningful tasks to a job, such as greater responsibility or decision-making power. Job rotation: periodically switching employees from one job to another to increase their knowledge and skills.

What is labor turnover and how is it calculated?

Labor turnover measures the percentage of the workforce that leaves the organization in a given time period, usually one year.

What are labor unions (trade unions)?

Labor unions, also known as trade unions, are organizations that represent workers in negotiations with employers to promote their interests, such as better wages, working conditions, and benefits.

What are the differences between 'management' and 'leadership'?

Management involves planning, organizing, directing, and controlling resources to achieve specific goals, while leadership involves inspiring and motivating individuals to work towards a shared vision or goal.

What is meant by motivation?

Motivation refers to the desire, effort, and passion to achieve something. It is the willingness to complete a task or job with enthusiasm.

Distinguish between negotiations and collective bargaining.

Negotiation is a process of discussing to resolve differences between two parties. Collective bargaining is a specific type of negotiation that involves a group of employees (usually represented by a union or other labor organization) negotiating with an employer or management team over wages, benefits, and working conditions.

How might no-strike agreements help to improve the image of a labor union?

No-strike agreements can improve a labor union's image by assuring employers and stakeholders that members will not engage in strike action, helping to sustain membership and avoid disruptions to the business community.

Explain how different methods of non-financial rewards work in different circumstances.

Non-financial rewards can be effective in motivating employees in various circumstances, such as job enrichment for challenging tasks, job enlargement for more diverse tasks, and job rotation for learning new skills. Other non-financial rewards like flexible work hours, opportunities for personal development, and recognition programs can also motivate employees.

Describe the four main types of training.

On the job- is delivered at the workplace by a skilled colleague Off the job-is carried out off-site by external specialists Behavioral- aims to improve workplace performance by developing desired behavior changes in the workforce Cognitive-is about improving mental skills such as memory, attention, and problem-solving

What is meant by organizational culture?

Organizational culture is the collection of values, expectations, and practices that guide and inform the actions of all team members.

Why is it important to understand organizational culture?

Organizational culture understanding is vital for business success as it shapes the behavior, beliefs, and values of employees, influencing how they interact with each other and external stakeholders.

What is meant by organizational structure and what is its purpose?

Organizational structure is the formal arrangement of jobs, tasks, and reporting relationships within an organization, with the purpose of facilitating efficient and effective goal achievement by coordinating activities, clarifying roles and responsibilities, and optimizing resource utilization.

Differentiate between organizations by product, function, and region.

Organizations can be structured by product, function, or region. Product-based structures focus on the products, function-based structures focus on departments or functions, and region-based structures are based on geographic regions.

What are employer's associations?

Organizations that represent the general views and interests of all businesses within a certain industry by negotiating with unions and influencing government action.

What are outsourcing, offshoring, and re-shoring?

Outsourcing: Transferring internal business activities to an external firm to reduce costs. Offshoring: Transferring ownership or activities of a business process to a different country. Re-shoring: Bringing back business operations to their countries of origin from offshore locations.

What are the reasons for resistance to change in the workplace?

Reasons for workplace resistance to change can include fear of the unknown, lack of trust in leadership, perceived loss of control, and a lack of understanding of the benefits of the proposed change.

Distinguish between the theories of Taylor, Maslow, Herzberg, Adam, and Pink.

Taylor's scientific management focused on productivity through efficiency and pay. Maslow's hierarchy of needs emphasized the importance of satisfying lower-level needs before progressing to higher ones. Herzberg's two-factor theory distinguished between hygiene factors and motivators. Pink's self-determination theory emphasized autonomy, mastery, and purpose. Adams suggested that remuneration should reflect individual efforts because workers naturally compare themselves to others in the workplace.

How have innovations in technology impacted communication in businesses?

Technological innovations have significantly impacted communication in businesses by providing more efficient and faster means of communication such as email, video conferencing, instant messaging, and social media platforms.

Explain how Charles Handy's Shamrock organization changes traditional organizational structures.

The Shamrock organization is a flexible and adaptable structure that replaces traditional hierarchical structures. It consists of a core group of permanent employees, contracted specialists, and temporary or part-time workers, enabling quick adaptation to changes in the business environment.

What are the benefits to a business in having a highly motivated workforce?

The benefits of a positive work environment include higher morale, job satisfaction, productivity, and quality, improved industrial relations, lower absenteeism, and staff turnover, a better corporate image, and increased profitability.

What is the chain of command?

The chain of command is the formal hierarchical structure in an organization that establishes authority and communication channels from the top to the bottom, ensuring clarity and accountability.

What are the main functions of management?

The main functions of management are planning, coordinating, organizing, commanding, and controlling.

What are the objectives and benefits of training?

The objectives of training and development are: -enhancing staff efficiency -improving quality of work -facilitating career and personal development -creating a multiskilled workforce -helping staff adapt to change Benefits of training are: -a better-skilled workforce -meeting organizational targets -reducing recruitment time and costs improving efficiency and -productivity -higher staff morale -better chances for promotion -helps employees adjust to change, be more confident and competent -improve customer service quality

What are the signs of a demotivated workforce?

Warning signs of poor workplace motivation are high absenteeism, high labor turnover, high wastage, increased customer complaints, low-quality output, poor punctuality, and more disciplinary problems.

What are industrial/employee relations methods used by employers?

collective bargaining (negotiations)-does not require the involvement of third parties. skilled negotiators representing employers who may use tactics like short deadlines to pressure the opposition threats of redundancies-Employers may use intimidation to pressure or threaten employees, but employment laws protect employees from mistreatment or termination changes to employment contracts-Changes in contracts can be made legally, but it may be seen as coercion closures- is an extreme method which involves closing the business and can result in loss of wages and redundancy lock-outs-involve temporarily stopping employees from working during an industrial dispute, which can put pressure on employees to return to work

What are industrial/employee relations methods used by employees?

collective bargaining (negotiations)-unions give employees collective bargaining power, making them better equipped to negotiate with management, who are more likely to listen to the views of a united workforce. go-slows (slowdowns)- employees work at the minimum pace allowable in their employment contract work-to-rule-employees do the absolute minimum required according to the rules set by the employer overtime bans-directive from the labour union for members to disengage in any overtime activity (operating beyond contracted hours of work) strike action-collective refusal of employees to work. Strike action is usually the result of major industrial unrest such as widespread pay disputes or serious grievances

List the ways to resolve a conflict in the workplace.

conciliation and arbitration - Conciliation uses a neutral third party to facilitate negotiation and reach a voluntary agreement. Arbitration involves a third party who listens to evidence and makes a binding decision that parties must follow. Conciliation focuses on voluntary agreement, while arbitration imposes a solution. employee participation and industrial democracy-means that employees are given responsibilities and authority to complete tasks and are involved in the decision making process no-strike agreements-agreement between a union and an employer where the union agrees not to engage in strikes as a form of industrial action single-union agreements-agreement between an employer and a single union that represents the workers