Human Resource Management: Organisational Structure, Leadership and Management, Motivation Flashcards Preview

IB Business and Management - 2016 Syllabus > Human Resource Management: Organisational Structure, Leadership and Management, Motivation > Flashcards

Flashcards in Human Resource Management: Organisational Structure, Leadership and Management, Motivation Deck (34)
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The process of entrusting a subordinate to perform a task for which the manager or superior retains overall responsibility.


Span of control

Refers to the number of subordinates under the control of a supervisor. Large spans require strong inclusive leadership and clear communication.


Bureaucracy (in business context)

The administrative system of a business, which relies on a set of rules and procedures, separation of functions and a hierarchical structure in implementing controls over an organization (clear lines of responsibility).



A method of organizational process where the formal power (authority) and responsibility of those higher up in the hierarchy influences both tactical and strategic decision-making. It allows for little if any discussion or involvement with subordinates and has been term "top-down" management, popular in government organizations.

Decentralisation = opposite: problem-solving focused.


Most effective use of "flat or horizontal" (aka. "tall or vertical") hierarchical structure

flat - in small- to medium-sized enterprises (SMEs)
tall - in large or multinational corporations (may provide clarity and clear clines of responsibility)


Handy's Shamrock organization

Handy identified the need to have a flexible workforce to allow firms to adjust faster to changing external environments.

Core -- full time, trusted, small-in-size workers
Contract -- short term for specific tasks
Peripheral -- flexible workers on part-time basis due to seasonal operations

Today, fewer core members are needed and an increased importances of flexibility.


Management versus leadership

Leaders do the right thing: managers do things right.

Effective leadership requires the setting of *clear aims and strategic goals* while the role of an effective manager is to ensure that objectives are met in pursuit the overall aim.


Five key functions for a manager

• planning a suitable course of action given the overall vision of the CEO
• organizing the human and material resources to achieve this vision
• manpower planning including recruitment and selection of key workers and specific tasks to achieve tactical objectives
• motivation to achieve goals once a plan of action has been put in place
• controlling, monitoring and maintaining performance to ensure that the vision is SMART


Autocratic leadership style

The decision-making process is determined solely by the leader or chief authority figure -- little or no consultation.

+ Autocratic leaders can be effective in crisis situations.
-- It can be demotivating for some workers not to have an input.

Example: armed forces


Democratic leadership style

Group decisions and consultations.

+ Increased motivation and productivity may result from some key skilled workers.
-- Decisions by committee can be time-consuming and expensive.
-- May not be effective in crisis situations.

Example: media industries like adverting and public relations


Laissez-faire leadership style

Effectively there is no leadership. Groups are unsupported and let to decide for themselves. Clear communication and mission is vital.

+ Creative freedom may bring innovative ideas.
-- Given no formal leadership, new employees may find the workplace environment confusing as they lack the knowledge of such leadership.
-- Setting overall organisation objectives may be difficult without formal leadership.

Example: many universities



"Fatherly" towards employees.

+ The leader will demand loyalty in return for his influence, which is beneficial in crisis.
-- This loyalty demand could lead to resentment especially when they see themselves as "outsiders" of the family.
-- May lead to jealously and favoritism.
-- May be too inward-looking and only rewarding bloodlines rather than ability.

Example: family businesses


Situational leadership approach

It takes the view that it is *the situation* in which the leader is trying to lead that is important, rather than any character attributes the leader may have. The nature of the task itself is to achieve a "group atmosphere". The leader is followed and obeyed not because of rank or power but due to positive group emotions such as loyalty, liking, trust and respect.


Basic elements of motivation

1. Ability
2. Opportunity

you want to = motivation
you don't want to = hygiene


Daniel Pink motivation theory

Three key motivators to the drive theory:
• mastery (getting batter at the activity)
• purpose
• autonomy (modern ICT have allowed this, also allows intrapreneurship)

(most recent attempt to find key drivers of motivation)


Motivation theories (five)

Taylor -- scientific management or "economic man" approach
Maslow -- hierarchy of needs
Herzberg -- two-factor of motivation
Adams -- equity theory
Pink -- mastery, purpose, autonomy (drive theory)

Apart from Pink, above theorists focused most of their research on US or other Western companies, and their samples were small. Maslow's sample consisted only of managers. Cultural factors may also have an impact on workers' motivation.

Moverover, not all motivation theories can be applied to all forms of employment. Struggling artists or musicians (or teachers) may sacrifice lower-order Maslow needs such as security (by refusing to take a higher-paying job) in order to have the time and space to attempt to achieve self-actualization. In Pink's model, an individual may seek mastery and purpose but be unable to afford autonomy.


Maslow -- hierarchy of needs

From top to bottom:

Transcendence: helping others to achieve self-actualization

Self-actualization: personal growth, self-fulfillment

Aesthetic needs: beauty, balance, form

Cognitive needs: knowledge, meaning, self-awareness

Esteem needs: achievement, status, responsibility, reputation

Belongingness and love needs: family, affection, relationships, work group

Safety needs: protection, security, order, law, limits, stability

Biological and physiological needs: basic life needs: air, food, drink, shelter, warmth, sex, sleep


Frederick Taylor motivation theory

scientific management or economic man
Based on the idea that a unit of wok carried out by a factor of production should be measured and a performance standard be created which was "fair and acceptable".

To set the standard, a performance measurement should be carried out once the worker has been shown the demands of the unit of work and trained how to complete it.

Those who achieved performance standard would be paid living wage; those who exceed would be paid more.

The idea is to produce greater outcomes for all employees.


John Adams motivation theory

equity theory
motivation is a function of workers perceiving that the reward they are receiving for their efforts fully reflects their contribution to the organisation. This reward is not limited to capital but can also be intellectual enjoyment.

However, workers' contribution cannot always be measured objectively.

Examples: giving a worker time off for compassionate reasons or allowing flexible working for part-time workers can create an environment of "fairness" and motivating.


Herzberg motivation theory

two-factor of motivation
dissatisfaction/hygiene & satisfaction/motivation
Hygiene's *presence* allows the motivators to work.


Types of financial rewards

1. Profit-related pay
2. Commission
3. Performance-related pay (PRP)
4. Benefits such as share options or company share
5. Fringe benefits / perks (eg. company car, health insurance)
6. Salary
7. Wages (piece rate or time rate)


Types of non-financial rewards

1. Job rotation
2. Purpose/the opportunity to make a difference
3. Job enrichment
4. Job enlargement
5. Empowerment
6. Teamwork


Job rotation

Used in systems that are have compartmentalized production processes and all workers are trained to complete all task but rotate to reduce boredom, especially if the task are repetitive (mass production). This also increases productivity and provides an automatic over for absent workers, though training must be extensive.


Job enrichment

Vertical loading, where an employee is offered more challenging work with increased levels of responsibility to stop boredom and increased satisfaction through increased purpose.

• It is personal and psychological growth.
• Meaningful work and self-checking of this work provides the individual to be responsible and have a degree of autonomy, which will lead to motivation.

Possible problems are the lack of "meaningful work" and insufficient, costly training.


Job enlargement

Horizontal loading, where an employee is challenged by preforming more tasks at the same level of responsibility , to stop boredom and increased satisfaction through increased purpose.

Critics see it as offering workers "more of the same" and not really developing an opportunity to develop talents.



The individual is given more control over their daily work routine with minimal supervision, creating a sense of trust.

Also, it cuts costs by removing managing and management layers, in the case of successful handling of the empowered employee.



That motivation can take many forms, depending on the nature of the team, task and reward offered.
• can reduce boredom
• meet the social needs of employees
• create a sense of belonging
• thereby reduce absenteeism and labour turnover
• whilst boost productivity.
• lead to greater flexibility and multitasking as workers learn from other members
• hence, workers can cover for on another without delaying the production process or reducing the quality of the service being delivered

Teamwork may be like a band, where everyone does their own thing, different specialities, limitations but together make a great music.

However, as Peter Drucker stated, unless we work out, and fast, what a given team is suited for, and what a given team is not suited for, teams will become discredited as just another fad.


workforce planning / work patterns (+ adaptions because of demographic change)

definition: ensuring that an organisation has suitable talent to ensure business success

• slowing birth rates in the developed world
• increased ageing of the working population (greying)
• trend towards migration of workers
• trend of 24/7 economy (ergo, job-sharing, online retailing)
• rising global female empowerment
• growing importance of part-time and *flexible* work
• unable to recruit workers in primary and secondary sector due to de-industrialisation (solution: robots)
• growth of childcare allows both parents to work
• work from home (Internet)

- online recruitment from other countries increased
- increasing overseas employment
- growing outsourcing market
- many business now recruit or search for new workers almost constantly


labour turnover

the rate at which employees leave an organization, expressed as percentage per annum

• Economist argue that employees moving into more productive jobs or seeking new opportunities is a positive move for the economy, however, a little simplified.
• High turnover can mean difficult working conditions or poor management
• Low turnover can mean stable labour force.
• From the perspective of younger newly recruited workers into an organization, a low turnover rate may signalize that there are few opportunities for advancement and growth in terms of increased responsibility.



usually, specialized global recruitment online agencies are able to locate highly skilled workers, though might be expensive