Managing People in Business

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Questions and Answers

Which leadership style involves a leader who makes decisions and considers the well-being of employees?

Paternalistic leadership (correct)

Autocratic leadership

Laissez-faire leadership

Democratic leadership

What characterizes a democratic leadership style?

The leader enforces strict rules and expectations

The leader allows others to participate in decision making (correct)

The leader makes all decisions without consultation

The leader provides minimal supervision and guidance

How do effective leaders approach their strengths and weaknesses?

They believe they have no weaknesses

They ignore their weaknesses and focus only on strengths

They typically downplay their strengths

They appreciate both their strengths and weaknesses (correct)

Which of the following best describes the transition of an entrepreneur to a leader in a small business?

Entrepreneurs actively engage in strategy execution Signup and view all the answers

What is a key factor that effective leaders possess regarding problem-solving?

Expertise in specific fields and an ability to resolve problems with radical solutions Signup and view all the answers

What is a key advantage of job enrichment for employees?

Provides recognition and greater responsibility Signup and view all the answers

What might discourage workers from job enrichment?

Increased workload leading to demotivation Signup and view all the answers

What is a disadvantage of job rotation?

Employees may dislike the change in routine Signup and view all the answers

Job enlargement is criticized for potentially being what?

A way to simply increase the workload without new challenges Signup and view all the answers

One key function that distinguishes leaders from managers is their ability to:

Envision and implement organizational change Signup and view all the answers

Which of the following is NOT a typical function of a manager?

Set the vision for the organization Signup and view all the answers

Under laissez-faire leadership, workers typically have:

Complete freedom to make decisions Signup and view all the answers

Transitioning from entrepreneur to leader may require developing which characteristic?

A clear vision for organizational growth Signup and view all the answers

Which of the following is a key challenge for entrepreneurs transitioning to leadership roles?

Difficulty in trusting specialists to manage departments Signup and view all the answers

What is an effective strategy for leaders to reduce stress?

Engaging in a balanced work/leisure lifestyle Signup and view all the answers

What is a common misconception about leadership abilities among entrepreneurs?

They lack skills needed for larger scale situations Signup and view all the answers

What is a primary benefit of delegation for leaders?

It helps leaders trust their specialists better Signup and view all the answers

Which of the following actions can leaders take to earn respect from stakeholders?

Treat stakeholders with fairness and consideration Signup and view all the answers

How can leaders effectively share ownership and control to minimize conflict?

By being transparent and inclusive in decision-making Signup and view all the answers

Which technique can leaders use to manage their stress levels effectively?

Share feelings and maintain a sense of humor Signup and view all the answers

What is a valuable area of education for leaders seeking to enhance their skills?

Courses in communication and negotiation Signup and view all the answers

Study Notes

Managing People

Businesses employ staff members in addition to owners.
Business size is measured by the number of employees:
- Small Businesses: 1-49 employees
- Medium-sized Businesses: 50-249 employees
- Large Businesses: 250+ employees
Different businesses view staff differently, impacting staff productivity.
- Some businesses see staff as an asset.
- Other businesses see staff as a cost.

Staff as an Asset

Asset-oriented businesses value employees.
Staff welfare is prioritized with attempts at retention via:
- Competitive wages exceeding industry average
- Acceptable compensation, including pensions, and paid time off (holidays, sick leave, maternity leave)
- Safe and comfortable work environment
- Training and development opportunities
- Job security and social opportunities
- Clear, effective leadership, and promotion opportunities
Opportunities for problem-solving and creative contributions.

Staff as a Cost

Businesses view staff as a cost when they try to minimize time and expenditures on them.
Aiming for minimal cost entails:
- Paying the legal minimum wage
- Using low-hours contracts
- Reducing training investment
- Providing only minimum legal leave.

Flexible Workforce

A flexible workforce adapts to fluctuating market demands in quantity and type.
Multi-skilling: developing employee skills to handle various roles.
Part-time and temporary staff: hired to meet fluctuating demand or temporary needs.
Zero-hours contracts: workers are called upon as needed without guaranteed hours.

Outsourcing, Penalties

Outsourcing is the use of external contractors or businesses to handle certain tasks previously performed internally.
Penalties are imposed on workers who are not meeting expectations (e.g., tardiness).
Utilizing cheaper recruitment methods has downsides with reduced staff motivation and higher chances of conflicts.

Dismissal vs. Redundancy

Employee dismissal is due to legal infractions or poor performance.
Employee redundancy is due to insufficient work.

Employer-Employee Relationships

These relationships start when a person is hired.
Conflicts of interest are possible between employers and employees.

Individual vs. Collective Bargaining

Individual approach: direct employee-employer communication (salary negotiations, leaves etc.)
Collective bargaining: representatives (such as trade unions) negotiate on behalf of employees.

Recruitment, Selection, and Training

Recruitment and selection: choosing suitable employees for the business.
Stages of recruitment: identifying requirements, describing a role, advertising, evaluating/shortlisting applicants, conducting interviews, and providing feedback.
Job description: outlines tasks, duties, and responsibilities.
Person specification: describes desired qualifications, skills, and experience.
Types of recruitment: internal and external.
Costs of recruitment and selection: recruiting, advertising, and handling recruitment applications.
Training: increasing employee knowledge and skills.
Types of training: on-the-job and off-the-job.
Costs of training: cost of courses, materials, staff time.

Organizational Design

Structure: internal arrangement of positions and responsibilities within a business.
Organisational chart: visual representation of roles, responsibilities, and reporting lines.
Hierarchy: ordering of responsibility levels from lowest to highest.

Motivation Theories

Taylor's (scientific management) theory: efficient work methods.
Mayo (human relations) theory: workers as social beings.
Herzberg (two-factor) theory: hygiene factors and motivators.
Maslow (hierarchy of needs) theory: fulfil lower needs to become motivated.

Financial Methods

Piecework: payment related to items produced.
Commission, Bonus: employee incentives for meeting sales goals.
Profit-sharing: worker's share in company profits.
Performance-related pay (PRP): incentives for meeting targets.

Non-financial Methods

Delegation: giving subordinates responsibility to carry out tasks.
Consultation: seeking input before decisions.
Empowerment: enabling employees to decide.
Teamwork: collaborating to attain goals.

Leadership Styles

Autocratic: Leader makes decisions alone.
Paternalistic: Leader considers employee well-being.
Democratic: Leader seeks input from employees.
Laissez-faire: Leader delegates decisions to employees.

Adaptation to Business Growth

The need for shared ownership, greater accountability, and motivation.
Coping with increasing stress and conflicting demands, and maintaining trust.

Overcoming Leadership Difficulties

Delegation and trust
Maturity and experience
Education

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Description

This quiz explores the dynamics of managing staff within different sizes of businesses. It delves into the contrasting views of employees as either an asset or a cost, highlighting how these perspectives affect productivity and employee retention strategies. Test your understanding of the principles of staff management in a business context.