Effective People Management

Remuneration

Motivation Theorys

Organisational structure

Payment Systems - methods of organising the payments of workers, such as piece rates or salaries

Communication

Chain of Command

Passing messages between people or organisation. These messages take place through a medium.

organisation charts

Centralisation

decenturalisation

One way communication: receiver cannot respond to the message

a type of business organisation where decisions are made at the centre or core of the organisation and then passed down the chain of command.

a type of business organisation where decision making is pushed down the hierarchy and away form the centre of the organisation.

Fax

Adverts

Time based system

Manual or blue collar workers - workers who do mainly physical work like an assembly line worker

Problems with centralisation -
it can take long periods of time to make decisions and respond to the needs of the market

Wages - tend to be paid to manual workers for working a fixed number of hours per week plus overtime

Leaflets

Two way communication: receiver can respond to the message.

UK workers tend to be paid wages on a time based system

benefits to decentralisation -
encourages workers to change quickly according to the business making changes to the environment.
it gives power to those who are closest to customer, suppliers and to the market.

Text messages

Emails

Phone calls

Talking

Paid 'so much' per hour worker

Written, visual, verbal

Overtime - time worked over and above the basic working week

usually a higher rate

a diagram which shows the internal structure of an organisation

Vertical communication - communication between staff of different levels in the organisational hierarchy.

Salaries - pay, usually of non-manual workers, expressed as a yearly figure but paid monthly

White Collar or Non manual workers - workers who do non-physical work, like an office worker or teacher

Horizontal communication - communication between staff of the same level in the organisational hierarchy.

it shows the hierarchy which is the structure of different levels of authority in a business organisation, one on top of the other. The most senior members of the company are at the top.
The person immediately above the worker to whom her or she reports to is called the line manager.

Channel of communication -
path taken by a message

Results-based system

paid per how much they produce

Importance of Communication

Piece rate - are paid for every item they produce; they get paid more if they produce more

Commission

Sales staff

payment system usually operated for sales staff where their earnings are determined by how much they sell

Customers - enjoy if they are able to communicate with the business.

Bonuses - addition to the basic wage or salary, for instance, for achieving a target

reward for doing well

Staff - understand what they need to do and when the deadlines are.

Either set by the company or agreed with the workers as part of the performance review

workers specialise in the jobs the do. Each is given a job to do and they need to know
What job they are supposed to do;
Who is in charge of them;
Who they are in charge of;
How they relate to the wider organisation
all of this can be shown in an organisational chart.

Staff motivation - improves when manages listen to suggestions.

group bonus may be given if a department performs well

Temporary and Freelance Work

Part-time - employees who work only for a fraction of the working week

the path (or chain) down which orders (or commands) are passed. In a company, this goes form the board of directors down to other workers in the organisation.

Full -time -employees who work the whole of the working week

The person at the top of the organisational pyramid is in a position of authority over workers lower down the pyramid. They can give orders to workers down the hierarchy their subordinates.
Therefore there is a chain of command form the top to the bottom.

Monetary tactics

Temporary Workers - workers who have no permanent contract of employment with a business and so tend to work only for a short period of time for an employer

  • Piece rate, payer workers for everything they make.
  • Higher wages
  • Commission

Temporary contract; maybe daily, weekly or monthly

Non monetary tactics

used to cover emergencies and peaks in work

Span of contol

Sales director will supervise some workers (sales managers) then each of the sales managers controls other workers in their department. The number of people that a worker directly controls is called a span of control.

Freelance Work - workers who tend to be self employed and do particular pieces of work for a business as a supplier

paid to perform a particular task

  • Holliday

The extent to which an individual gives their best at all times.

  • Healthcare
  • charity work
  • Sabbaticals

they submit invoices to business

  • Fringe benefits

Fridge Benefits - payments in kind over and above the wage or salary, such as a company car

not in the form of money

Importance of motivation:

Increase output - extra effort from workers

Groups, Teams and delayering

Improved quality - staff take a greater pride in their work.

some businesses have very long chains of command they try to solve their problem by delayering which is when the business changes the way it is organised by removing some of the levels of management and Changing job roles. They cut out large numbers of middle managers, pushing responsibility and decision making down the line.

A higher level of staff retention - staff want to stay with the business and don't take unnecessary days off work.

  • Bonuses

Which Payment System?

  • Time rate, paid of number of hours worked

what is possible?

cannot do piece rate for store manager

have to think of the role being done

Tradition

Workers do not like a change in payment system as they are worried they will get paid less

it varies how big it is depending on circumstances.
With a more complex supervision task there will be a smaller span of control

someone who produces a lot would not like to change from piece rate to time based system

Maslows hierarchy of needs

  1. Self Actualisation
  1. Self Esteem

Tax and other employment costs

  1. Social needs

Some payments systems are used because they reduce tax bill

  1. Safety

Fridge benefits

  1. Basic needs

Motivation

(most important)

(least important)

e.g. piece rate engourage people to produce more