Exam Technique for Unit 12
1. Learn all key terms e.g. functions of managers, types of structure
e.g. matrix – A01 MARKS
2. Apply to the case studies – Using extract A etc – Application marks
A02 – failing to do so could limit your mark to 2/12 !!!!!!
3. Analysis = Effects – on workers, the business, on managers A03 –
see point 5 below 4. On 12 mark questions you must make a judgment – In my opinion,
I believe that …….. There is 7 marks for this. A04
Your ENGLISH and use of business terms is being judged in these
questions
5. Most answers require common sense ---- A lot of people don’t like being told what to do
 Changing the way of business takes time and some people do
not like change
 People / managers who have worked in a certain way might
find it difficult to change
 All workers are motivated by different things so any policy might
not work for all
DISRUPTION, TIME, PROFIT, COST, EFFECTS ON MOTIVATION
are common ideas that can often be discussed.
The link below is a fantastic revision presentation for unit 12 made on
Prezi.
https://prezi.com/hrdzjpm0zo4r/aqa-applied-business-unit-12managing-people/
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Extra Revision Notes for Unit 12
A centralized business is one where most decisions are taken either at the top
of the business or in one place e.g. in the London head office. Decision making is
therefore concentrated in one place.
Good points – clear where decisions made, decisions can be made quickly
Bad points – only certain people get to make decisions, are they the best people
to make these decisions, bad managers could make many poor decisions,
demotivating for people not making the decisions
Decentralisation – is where decision making is more evenly spread. Decision
making could take place in more than place or at different levels in the business.
Good points – more people making decisions so more ideas, motivating as
more people have responsibility and feel that they are trusted
Bad points – decisions could be slower as takes more time for information to be
passed around, could be confusing on who is responsible for something
Matrix structure – this is a flexible way of organizing a business. People who
have the relevant skills are brought together to form a project team. This is a task
based way of organizing things. So if a business created a matrix team to launch
a new chocolate bar the team could include design experts, production staff,
marketing staff, finance staff etc. They would have the best people from all the
needed areas involved in the team. Once the project is finished then the team or
structure would be broken up.
Good points – include the best people for the job, people work with new staff so
get change, can be very focused on the task in hand
Bad points – are expensive, staff may still have their existing job to do, people
may have two bosses their normal boss and the matrix team boss – so people
can get confused
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A hierarchical structure is one with many levels of responsibility. If it was drawn
out it would have a pyramid shape. At the top there are few people with a lot of
responsibility. At lower levels of responsibility there are more workers.
Good points – workload and responsibility can be shared out, departments can
be created within the structure e.g. finance, so it is clear who is in charge of what
Bad points – communication can be bad as orders are passed down the
hierarchy, people can try and pass the buck – it is not my fault it is the person
above me etc Workers can feel demotivated - especially if they are lower down
the hierarchy and they feel they have no responsibility are their work is not
valued.
Types of decision making
Type
 Routine



Non Routine
Tactical
decisions
Strategic
decisions
Explanation
 Taken regularly
 Not unexpected
 People are ready to
make them
 Lower level
decisions taken by
more junior staff
 Do not happen
often
 Often because of
an unexpected
event
 Can be taken by
managers at all
levels within the
business
 Based on short
term factors
 Often in response
to what rivals are
doing



3
Long term
Are likely to affect
the whole business
Could have major
implications on the
success or failure of
the business
Example
 E.g changing the layout in
a store

Ordering new stock /
materials

Responding to an
emergency
Moving part of business
to a new location
Deciding to sell to a new
market




Lower price because a
rival has just done this
Increase overtime pay
available as a new large
order has been received
and more production is
needed quickly

Moving production abroad
as it is cheaper to make
there

To close all shops and
sell exclusively online

To stop selling certain



Proactive



Reactive




Not taken quickly
Made by managers
with most authority
Taken before
events happen
Managers at all
levels can make
these
Taken by more
innovative firms that
want to lead a
market and stay
ahead of events
and the competitive
Decisions made
respond to events
Less risky
Less profits could
be made as other
rivals have got their
first
Business could
rush to respond and
then make mistakes

products and focus on a
certain segment of the
market
Junior managers order in
more stock before an
expected busy sales time

Samsung brings out its
tablet in response to the
Apple IPAD

Local café lowers prices
in response to a Greggs
setting up in town
Sources of Power
Source
Coercive
Explanation
Where a worker fears the
leader
Involves threats or
punishment e.g loss of
job, bonus etc
Reward Power
Workers follow a
manager because if they
do they may get a reward
e.g. a pay rise, praise –
good job etc
Boots gives staff
discounts to all workers
John Lewis gives a
bonus to all worker based
on profits
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Issues
Many staff do not perform
well
Does not encourage
creativity or risk taking
Communication poor as
workers scared to say
something
Encourages workers to
show initiative
Staff can respond
positively and be more
motivated
Expert power
Linked to more
democratic style of
leadership
Where managers have
skills, knowledge and
expertise and are able to
make good decisions workers may be more
willing to follow these
decisions as they believe
they are the best ones
Can be difficult to replace
an expert leader
Expert managers may
stifle other rivals or make
sure only they have the
needed information
Legitimate power
Power that comes from a Does not mean that a
persons position e.g. they manger is effective just
are head of that
because they have that
department or section or position
managing director of the
Can be demotivating for
business
workers lower in the
Very strong in the army
hierarchy
and police force
Referent power
This power comes from
Charisma does not mean
charisma – where
that the best decisions
workers admire the
are being made
leader
E.g. Richard Branson
Can be difficult to replace
Staff can be very willing
if they leave
to follow such as leader
Staff at all levels can
have this power
Power - when a manager has the ability to get a worker to do something that
they do not want to do (this could be the opposite of what they think is the right
thing to do).
Authority - when workers do something by voluntary agreement. They accept
the legitimacy of the instruction
Sources of authority Tradition or custom e.g. the son/ daughter takes over control of the business
Charismatic - the personality of the leader
Rational / legal authority - relating to position within the business e.g. managing
director in the business
Motivation - what is it?. It is having a positive attitude and enjoying work. Then
workers will be more willing to help work towards meeting business objectives.
There are a number of benefits of having motivated workers -
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 Less worker absenteeism (less skipping work)
 Workers more productive
 Workers more likely to contribute and offer ideas
 Workers less likely to leave (lower labour turnover) so do not need to
recruit
 THESE IDEAS ARE REALLY IMPORTANT.
Maslow's Hierarchy
Maslow produced a pyramid which identified the different needs of workers from
basic needs - physiological, safety to the higher needs of social, esteem and self
actualisation
Maslow believed that unless basic needs were met it would be unlikely that a
worker would be able to have their higher needs fulfilled.
Level
Examples
Business can satisfy by
1. Physiological
Food, shelter, heat
Pay a decent wage
2. Safety Needs
Job security, safe equipment Have longer job contracts,
and environment
check equipment and
premises carefullly
3. Social Needs
Interacting with other workers Work in teams, social events
4. Self esteem
Promotion, recognition and
status
Allow teams or workers to
make decisions, provide good
training so workers confident
in what they doing
5. Self actualisation
Workers use their talents to
their fullest
Allow staff to develop new
skills and take larger
responsibility
Herzberg's Two Factor Theory
He identified two sets of factors - motivators and hygiene factors (sometimes
called demotivators)
Motivators
Hygiene
These will enhance job satisfaction and
motivation
These lead to worker dissatisfaction if they
are not sorted properly
Achievement
Company policy
Recognition e.g. praise, promotion
Supervision
Work itself
Security
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Responsibility
Working conditions
Growth
salary
Advancement
Status
Herzberg suggested that jobs needed to be designed to build in motivators e.g.
targets should be given which if met could lead to praise, rewards etc
McGregor's Theory X and Y
He identified two sets of managers
Theory X Managers
Theory Y Managers
Workers dislike work and will avoid it if they Effort in work is natural
can
Unsupervised workers will not perform
effectively
Workers can work effectively without
supervision
Employers are not motivated by money
Workers usually accept and seek
responsibility
Most workers want to be told what to do
Most workers want to use their skills
Most workers do not want responsibility
Workers can be motivated by work itself
Employees are not ambitious
Not just motivated by pay
Theory X managers more likely to use an autocratic style of management, theory
Y a more democratic style.
Motivation in Practice
Aspect
Comments
Skilled workers
They would be highly trained. Team work
On good salaries
Chance of promotion
Recognition
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How to Motivate
Unskilled workers
On lower wages, temporary
or part time contracts
Longer contracts, higher pay tackle basic needs
Herzberg - this would only
lessen motivators
Manual workers
Physical labour, often
repetitive jobs
Extend the range and
complexity of work to give
more challenge - job
enrichment (more
responsibility) and job
enlargement (different jobs)
Knowledge based workers
They use mental skills rather Give greater responsibility than physical skills
job enrichment
Younger workers
Hold more junior positions, on Better pay, better job security
temporary contracts and
lower rates of pay
Older workers
More financially secure,
higher up in the business
Voluntary workers
Do not get paid for work. May Working in teams, praise,
get expenses e.g. travel
from job itself e.g. helping a
good cause
Give more responsibility,
make sure promotion
available
Flat organisational structures Have only two levels of
Gives more responsibility to
responsibility. Some
junior workers in the business
businesses have taken out
whole layers of management
- delayering - to achieve a
flatter structure
Matrix structure
Project teams which collect Focused on reaching targets,
together a series of experts in producing an outcome. Can
different fields e.g. finance, have performance bonuses if
marketing etc.
targets met. Challenge of
meeting goals
Tall structures (hierarchies)
Lots of levels of responsibility. Promotion
Close supervision of workers
Less scope to delegate
Delegation is more difficult
responsibility
than with a flat structure
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EVALUATION !!!!!!
A lot of these theories suggest that giving workers extra responsibility will
motivate them. Workers are human beings and not everyone will be motivated by
the same things. Also delegating more will increase workload and could place
additional stress on workers. Have they got the time to take on more
responsibility? Also do the workers have the skills and knowledge to take on
more responsibility? If they do not then bad decisions and work could be the
result.
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