1.4 Managing People Flashcards
Why is effective human resource management important to businesses?
Because it ensures that the organisation has the right people, in the right roles, with the right support, with opportunities to succeed.
This will lead to higher productivity, more profits and a positive work environment
What does human resource management focus on?
How employees can be:
- effectively recruited
- effectively used
- effectively developed and trained
- effectively motivated
- effectively managed and led
Why are staff an asset to a business?
Because they bring knowledge, skills, and expertise to the business.
Staff can increase productivity, drive innovation and enhance customer service - all of which contribute to the success and profitability of the business
Staff can help to build a positive reputation for the business through their interactions with customers, suppliers, and other stakeholders
Why do staff generate costs to a business and what are the costs associated with?
Hiring and training workers
Managing workers as managers have to be hired
Paying the salaries of full time workers
Paying wages of hourly staff
Additional benefits, such as company cars, pensions, healthcare etc
Letting workers go (redundancy payments)
What is the impact of a national minimum wage on staffing costs?
Business that employ workers on a wage basis will face higher labour costs
Businesses that employ workers on a salary basis are less affected by the introduction of a minimum wage as they already pay a fixed amount regardless of the number of hours worked
What does it mean to have a flexible workforce?
Where workers are equipped to do different roles or where they work in a range of employment patterns (full-time, part-time, zero hour contracts, work from home, etc)
What are the ways of developing a flexible workforce?
Multi-skilling
Flexible hours and home working
Outsourcing
Part-time and temporary
What is multiskilling and what are the advantages and disadvantages?
Multi-skilling is the process of training workers to fulfil multiple job roles within a business
Advantages:
Business utilise their workforce more efficiently which reduces labour costs and increase productivity
It can help to improve patient outcomes in healthcare industries as workers with a broader range of skills can provide more comprehensive care
Disadvantages:
May require significant investment in training and development
May not be appropriate for all job roles, especially those that require a high level of expertise
What is part-time and temporary working and what are the advantages and disadvantages ?
Someone who works part-time may only work two or three days a week
Someone who works temporarily shows up for work whenever the business needs them
E.g. amazon employs temporary workers to handle seasonal spikes in demand such as Christmas
Advantages:
Flexible working arrangements can help businesses to attract and retain talent, especially staff who value work-life balance
This may improve productivity, as staff can work during their most productive hours and avoid distractions
Disadvantages:
Flexible working arrangements can create challenges in terms of communication and collaboration (especially if staff are working remotely)
Monitoring and managing flexible workers can be more difficult
What is outsourcing and what are the advantages and disadvantages?
Outsourcing is where companies use external providers to carry out business processes, that would otherwise be handled internally
Apple outsources much of its manufacturing to Foxconn in china
This allows the company to produce products at a lower cost and maintain competitive pricing
Advantages:
This may allow businesses to access specialised skills that may not be available in-house
May reduce labour costs
Disadvantages:
This may lead to a loss of control over quality and delivery, especially if the outsourcing partner is based in another country
This may create ethical concerns, especially if the partner is based in a country with lower labour standards or human rights abuses
What do flexible working hours involve and what do they allow employees to do?
A flexible hours schedule usually involves working some set hours, with the remainder of hours organised according to the employees’ needs
E.g. an employee may be expected to be at work between then hours of 10am and 2pm, but can choose when they complete the rest of their working hours
Flexible hours allow employees to schedule working hours around their individual needs and accommodate their commitments outside of work
What has allowed more employees to work from home?
Advances in communication technology
What are the advantages and disadvantages for a business of home working?
Advantages:
Smaller or fewer premises may be required, reducing costs
High quality workers may be attracted from a wide geographical area
Workers may be more productive if they work in isolation, away from distractions
Disadvantages:
The cost of equipping workers with technology to work remotely may be significant
There may be less opportunity for collaboration between workers, reducing innovation
Careful monitoring will be required to ensure remote workers remain focused on tasks
What are the advantages and disadvantages for the employee of home working?
Advantages:
Commuting costs, such as train fares, are eliminated
Stress reduced as a result of not having to travel to work
Some flexibility may be possible, allowing workers to manage other commitments
Disadvantages:
Staff may feel isolated from colleagues
Household costs such as electricity and heating may increase
A healthy division between work and home life may be difficult to manage
What is dismissal (firing or sacking)?
The termination of employment by an employer against the will of the employee
Employees are usually terminated due to their misconduct (e.g. violating company policy) or poor performance
The employer may choose to dismiss them immediately (without notice or compensation) or provide a notice period which they can work out
What is being made redundant?
When the job is no longer available and the business reduces the size of its workforce
The termination is not due to any fault of the employee
The employer must follow certain legal procedures, including providing notice and paying redundancy compensation
What is the individual approach to employer/employee relationships?
Focuses on the relationship between an employee and their employer
Assumes that each employee is unique and has their own
goals, motivations, and interests
It emphasises the need for tailored compensation packages that cater to each employee’s unique skills and needs
The employment relationship is a voluntary agreement between two parties in which both negotiate their respective roles, responsibilities and benefits
The employer has the power to hire, fire, and set the terms and conditions of employment
What is the collective bargaining approach to employer/employee relationships?
A process whereby a group of employees (represented by a trade union) negotiate with their employer for better wages, working conditions and benefits
Employees have more bargaining power when they negotiate collectively rather than as individuals
The employment relationship is seen as a power struggle between two parties with conflicting interests
- The employer wants to maximise profits by keeping labour costs low
- The employees want to maximise their wages and benefits
- The union acts as the collective voice of the employees and bargains with the employer on behalf of all workers
What is recruitment?
The process of attracting and identifying potential job candidates who are suitable for a particular role
What are the different types of recruitment activities?
Job advertising
Job fairs
Social media outreach
Referrals
What is the goal of recruitment?
To create a pool of qualified candidates who can be considered for the role
What is selection in the recruitment process?
The process of choosing the best candidate
What do selection activities include in the recruitment process?
Reviewing CVs
Conducting interviews
Assessment tasks
What is the goal of selection in the recruitment process?
To hire the most suitable candidate for the job
What are the 5 steps in the recruitment and selection process?
- Define
- Source
- Advertise
- Receive applications
- Selection
What happens during the define the role of the recruitment and selection process?
Businesses should determine exactly what is required and part of that is developing a job description and a person/job specification
A job specification outlines the qualifications, skills, experience, and personal qualities required from a candidate for a specific job e.g. problem solver, good communicator, able to code in Java etc.
A job description outlines the duties, responsibilities, and requirements of a particular job
What happens during the source stage of the recruitment and selection process?
The business determines the best source of candidates
(If they should advertise the role internally, externally, or a combination of both)
What is internal recruitment?
The process of hiring employees from within the organisation
It can involve the promotion or redeployment of staff to fill a vacant post
Vacancies are advertised internally on staff notice boards, in newsletters or via in-house electronic communications
What are the advantages of internal recruitment?
Advantages:
Internal candidates are already familiar with business culture and processes, so they can adapt to the role quickly, and there will be little need for induction training.
The Business will already have a good understanding of the candidate’s strengths, weaknesses, skills and aptitudes, Meaning it will be less risky than employing an external candidate whose abilities are less well-known
Opportunities to progress can be motivating for existing employees
- Improves loyalty and commitment
Cheaper and quicker to promote or redeploy existing staff rather than recruit externally
What are the disadvantages of internal recruitment?
Can lead to conflict or resentment as it may affect motivation and working relationships between successful/rejected internal candidates
A further vacancy is created when an employee is promoted/redeployed therefore external recruitment may be necessary to fill vacated job roles
A limited number of suitable applicants may be available internally
Missed opportunity to inject new ideas, experience or skills into the business
What is external recruitment and what is a positive and negative of it?
External recruitment is the process of hiring employees from outside the organisation
Advantages:
External recruitment can bring fresh ideas, experiences and perspectives to the organisation
Disadvantages:
Often more expensive than internal recruitment
Greater degree of uncertainty as external candidates are unknown to the business
What are the methods of external recruitment?
Referrals/personal recommendations
Online advertising
Newspaper advertising
Specialist trade publications
Employment agencies
Headhunting
Job centres
Careers fairs
What is the referrals/personal recommendations method of external recruitment?
Where current employees recommend a suitable candidate for a vacancy
Employees may be rewarded if a candidate is successfully appointed
What is the online advertising method of external recruitment?
Vacancies can be advertised on a businesses own website or on a specialist recruitment website such as glassdoor or charity jobs.com
This method is relatively low-costs with a wide reach
What is the newspaper advertising method of external recruitment?
Where adverts are places in district or regional newspapers to attract local candidates
High-profile vacancies, such as public sector roles, may be advertised in national newspapers
Although relatively expensive, these ads can be highly targeted
What is the specialist trade publications of external recruitment?
Roles are advertised in magazines of newsletters that are read by professionals in a particular industry
For example in the fashion industry journal drapers and education journal the times educational supplement (TES)
What is the employment agencies method of external recruitment?
Where specialist recruitment agents advertise roles on behalf of the business
Some also conduct interviews of other selection activities
A recruitment fee is charged when the business appoints a candidate
What is the headhunting method of external recruitment?
Where a headhunting agency makes attractive approaches to highly-qualified specialist in a particular industry/with desired skills, experience or knowledge
A significant fee is payable once a candidate is appointed.
What is the job centres method of external recruitment?
Low level vacancies can be advertised free of charge in government-funded centres and increasingly online
What is the career fairs method of external recruitment>
Events are hosted by universities or industry bodies to promote available opportunities
Attracts a significant numbers of highly-qualified, interested candidates
What happens during the advertise stage of the recruitment and selection process?
Businesses with a strong social media presence can use these platforms to advertise cost-effectively, e.g. Facebook, LinkedIn, TikTok
Depending on the nature of the business, there may be specialist recruitment portals through which they can advertise and these tend to cost more
e.g. The Times Educational Supplement is one of the main publications used to recruit teaching staff
What happens during the receiving applications process of the recruitment and selection process?
The application stage involves collecting information from potential candidates
A business may have its own application form, which should gather information such as personal details, qualifications, and work experience
Applicants may also be asked to submit their curriculum vitae (CV) and cover letter explaining why they believe they are the right person for the role
Someone within the business must be nominated to manage the application process:
This person (possibly together with others) will draw up a shortlist of candidates from the many applications received
The shortlist usually includes 3-5 candidates who are invited to interview
What happens during the selection process of the recruitment and selection process?
This process varies significantly between organisations
Businesses must decide on the most appropriate method which will help them identify the best candidate
The most commonly used methods include interviews and assessment tasks
What is an interview?
Involves meeting (face-to-face or virtually, e.g. Zoom) and asking questions about their skills, experience, and knowledge.
It is important to prepare a set of relevant questions to ask all candidates and to ensure that the interview is conducted in a fair and consistent manner
What is an assessment task and what does it provide?
Provide shortlisted candidates with the opportunity to demonstrate their skills and suitability for the job.
The assessment tasks may include psychometric tests, group exercises, presentations, and interviews
What are the costs of recruitment?
Recruitment costs refer to the expenses incurred in the process of hiring new employees
These include advertising, recruiting, interviewing, and screening candidates
High labour turnover rates can significantly increase these costs
- When employees leave the business they have to spend money and time recruiting and training new employees to fill the vacant positions
What are the costs of training?
Training costs refer to the expenses incurred in the process of providing training to new or existing employees
These include the cost of trainers, training materials, and facilities
The effectiveness of training can impact these costs
- If the training is not effective, employees may require additional training or take longer to learn new skills, which can increase the cost of training
What are selection costs?
Selection costs refer to the expenses incurred in the process of selecting candidates for employment
These include background checks and visa costs
High labour turnover rates can increase selection costs as the business has to spend more regularly
What does reducing labour turnover rates and improving the effectiveness of a businesses training programmes do?
Can minimise the businesses costs and improve their overall profitability and competitiveness
What are the 3 types of training provided by a business?
- induction training
- on the job training
- off the job training
What is induction training?
A type of training that new employees receive when they start working for a company.
It introduces them to the company, its culture, policies, procedures, and their job roles and responsibilities.
E.g. when new employee joins Marks & Spencer they receive induction training that covers customer service, product knowledge, store policies, and safety procedures
What are the advantages of induction training?
Advantages:
Helps new employees understand their job roles and responsibilities
Introduces employees to the company culture, policies, and procedures
Improves employee confidence and motivation
Reduces the time taken for new employees to become productive
What is on the job training?
A type of training that takes place while employees are working in their job roles
It allows employees to learn new skills and knowledge from colleagues while performing their job duties
E.g. A sous chef at The Ivy Restaurant in York may receive on-the-job training from the Chef to learn how to prepare new dishes, use new equipment, or improve their cooking techniques
What are the advantages of on the job training?
Advantages:
Employees learn new skills and knowledge while performing their job duties
Training is tailored to the employee’s specific job role and responsibilities
Training is often more practical and relevant to the employee’s job duties
Can be cost-effective as it takes place during working hours
What are the disadvantages of induction training?
Disadvantages:
Can be time-consuming and expensive to organise
May not cover all aspects of the job role
May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates
What are the disadvantages of on the job training?
Disadvantages:
Employees may make mistakes while learning, which can impact productivity and quality
Can be disruptive to the workplace as it requires the trainer to devote time to training the employee
May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates
What is off the job training?
A type of training that takes place outside of the workplace
It can be in the form of workshops, seminars, conferences, or online courses
E.g. Teachers can attend exam board training days at which they learn how to better teach the syllabus and help their students prepare for their exams
What are the advantages of off the job training?
Employees learn new skills and knowledge outside of the workplace, which can bring fresh ideas and perspectives to the workplace
Training can be tailored to the employee’s specific needs and interests
Training can be used as a reward or incentive for high-performing employees
Can be cost-effective if training is provided online or through webinars
What are the disadvantages of off the job training?
Can be expensive to organise, especially if travel and accommodation are required
Employees may miss work while attending training, which can impact productivity
The training may not be directly applicable to the employee’s job role or the needs of the firm
What is a hierarchy?
The levels of authority within an organisation
It describes the ranking of positions from top to bottom
The higher the position in the hierarchy, the more authority and power it holds.
The hierarchy usually includes top-level management, middle-level management, and lower-level employees
What is the chain of command and what does it define?
the formal line of authority that flows down from the top management to lower-level employees
It defines who reports to whom and who is responsible for making decisions
The chain of command helps establish a clear communication channel and helps to maintain accountability within the organisation
What is span of control?
Span of control refers to the number of employees that a manager or supervisor can effectively manage
It is based on the principle that a manager can only effectively manage a limited number of employees
A narrower span of control means that there are more layers of management
A wider span of control means that there are fewer layers of management
Who makes decisions in a centralised structure?
Decision-making authority is concentrated at the top of the organisation, with senior management making most of the decisions
Centralisation can promote consistency and control
Who makes decisions in a decentralised structure?
Decision-making authority is distributed throughout the organisation, with lower-level employees having more decision-making power
Decentralisation can promote flexibility and innovation
What are the 3 different types of organisational structures?
- tall organisational structures
- flat organisational structure
- matrix organisational structure
What are the characteristics of a tall organisational structure?
Tall organisational structures are characterised by multiple levels of management and a more centralised decision making process
A long chain of command
A tall organisational structure is common in large organisations with complex operations
E.g. government agencies and universities
What are the advantages of a tall organisational structure?
Provides a clear hierarchy of authority and defined roles and responsibilities
Promotes specialisation and expertise within each department or function
Offers opportunities for career advancement and promotion within the organisation
All of the above increases efficiency and motivation
What are the disadvantages of a tall organisational structure?
Can create communication barriers between the upper and lower levels of the hierarchy
Decision-making can be slow as information must pass through multiple layers of management
This can lead to bureaucracy and excessive levels of management
All of the above reduce efficiency and motivation
What are the characteristics of a flat organisational structure?
Fewer levels of management and a more decentralised decision making process
A short chain of command
Flat organisational structures are common in small organisations or start-ups
E.g. tech startups-ups and small businesses
What are the advantages of a flat organisational structure?
Promotes a culture of collaboration and open communication
Decision-making can be faster and more efficient
Encourages creativity and innovation as employees have more autonomy and flexibility
All of the above increases efficiency and motivation
What are the disadvantages of a flat organisational structure?
This can lead to role ambiguity and a lack of a clear hierarchy
May not provide clear opportunities for career advancement or promotion
This may require employees to take on multiple roles and responsibilities, leading to burnout and overwhelm
All of the above reduce efficiency and motivation
What are the characteristics of a matrix organisational structure?
Usually built around specific products or projects e.g. KitKat has its team within Nestle
They combine the functional areas of a business (HR, finance, marketing, sales) with a specialist team that operates inside the business
What are the advantages of matrix structures?
Promotes cross-functional collaboration and communication
Allows for specialisation and expertise within each functional area
Enables efficient allocation of resources and coordination of multiple projects
All of the above increases efficiency and motivation
What are the disadvantages of matrix structures?
can lead to conflicts over priorities and resources
This can create confusion over roles and responsibilities, particularly when multiple managers are involved
Requires a high degree of communication and coordination, which can be challenging
All of the above reduce efficiency and motivatio
What is motivation?
The inter desire or willingness that propels a person to take action and achieve a specific goal or outcome
What is intrinsic motivation?
Motivation that comes from within a person (values, beliefs etc)
What is extrinsic motivation?
Motivation that comes from external factors (rewards or punishments)
What impact does motivation have on productivity?
Motivated employees are more productive and efficient, as they are more likely to be engaged in their work and take initiative to meet or exceed their goals
They will generate higher levels of output and quality
Increased productivity results in higher profits for the business
What is the impact of motivation on the reliability of workers?
Motivated employees are more likely to be reliable and dependable
They take pride in their job, show up on time, meet deadlines, and take fewer sick days
This leads to increased trust between the business and its employees and higher productivity
What is the impact of motivation on turnover rates?
Motivated employees are more likely to stay with the company long-term, which reduces the turnover rate
(a measure of the number of staff leaving over a given period of time in relation to the workforce as a whole)
Lower turnover rates reduce the need for costly recruitment and training
What is Taylor’s scientific management?
Starts with a scientific analysis of what is involved in a job and then breaks it down into parts for which employees can be trained
- Study and analyse the work process:
Carefully analyse each step of the work process
Break down complex tasks into simpler ones and identify the most efficient and effective way to perform each task
- Standardise the work process:
This involves creating detailed procedures and instructions for each task so that workers can follow these procedures consistently - Select and train the workers
Workers should be carefully selected based on their skills and abilities
Train workers to perform their tasks efficiently and effectively
This training includes both technical skills and the proper attitudes and behaviours required to be successful (e.g. patience in a repetitive task) - Provide incentives for performance
Scientific management emphasises the use of incentives to motivate workers
This may include bonuses or piece-rate pay (payed for the number of tasks completed)
Give some examples of ways businesses use Taylor’s approach
Workers are trained to perform only one task, which they become very skilled at
Workers are usually only paid for the completed work (piece rate pay) e.g. $0.16 per T-shirt completed by garment workers in Bangladesh
What are the advantages of Taylor’s scientific management?
Increased efficiency, which lowers costs
Standardised procedures for work processes that everyone follows can help reduce errors and inconsistencies
Specialisation of labour leads to greater efficiency and productivity
Clear hierarchy and lines of authority can lead to more efficient decision-making and communication
Improved training and development can lead to better performance and job satisfaction
What are the disadvantages of Taylor’s scientific management?
Overemphasis on efficiency reduces worker satisfaction and creativity
Workers may disengage from work if they are reduced to working in a machine-like system
Limited applicability as this approach may not work for roles that require high levels of creativity, problem-solving, or interpersonal skills
Potential for exploitation as this approach may be used to extract more work from workers without compensating them fairly, e.g many ‘sweat shop’ labourers get paid using this method
What is Mayo’s human relations theory?
Focuses on the importance of social factors in the workplace such as communication, motivation and job satisfaction
Mayo suggests that the key to improving productivity and job satisfaction lies in understanding and improving the relationships between workers, supervisors, and management
How do businesses use Mayo’s approach?
Empowering employees in decision-making, e.g, creating teams which decide their priorities
Team-building activities are used to build relationships
Providing feedback and recognition to employees, e.g. Worker of the Week
Creating a positive work environment by promoting open communication and providing support to employees, e.g.
offering wellness programmes
Encouraging employee development by offering training programmes, mentorship opportunities, and career advancement paths
What are the advantages of Mayo’s approach?
Improved job satisfaction
Increased productivity as workers feel valued and supported
Better communication as workers value open and honest communication, which reduces misunderstandings and conflicts
Employee empowerment increases worker’s sense of ownership and responsibility
Stronger teams as there is a sense of community and team spirit
What are the disadvantages of Mayo’s approach?
Time-consuming as building positive relationships requires time and effort
Lack of control as workers take more decisions
Resistance to change, as some workers and managers may be resistant to the changes required by Mayo’s theory
Potential for conflict as attempts to build stronger relationships can also lead to conflicts and disagreements
Limited applicability as it may not work for businesses which require a high degree of individual autonomy and independence
What is Maslow’s hierarchy of needs and what are the 5 tiers?
A theory of human motivation that outlines five tiers of human needs that must be met for individuals to reach their full potential
The five tiers are:
Self-actualisation: morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts
Esteem: self-esteem, confidence, achievement, respect of others, respect by others
Love/belonging: friendship, family, love
Safety: security of body, of employment, of resources, of morality, of the family, of health, of property
Physiological: breathing, food, water, sex, sleep, excretion
How is Maslow’s hierarchy of physiological needs applied to a business?
Businesses can provide necessities for their employees
E.g. comfortable work environment, access to clean water and food, and adequate rest breaks
How is Maslow’s hierarchy of safety needs applied to a business?
Businesses can provide job security, fair pay, benefits, and safe working conditions for their employees
How is Maslow’s hierarchy of love and belonging needs applied to a business?
Businesses can encourage teamwork and generate a sense of community within the workplace
How is Maslow’s hierarchy of esteem needs applied to a business?
Businesses can provide recognition for employees’ accomplishments and provide a positive work culture that values individual contribution
How is Maslow’s hierarchy of self-actualisation needs applied to a business?
Businesses can help employees achieve this need by offering opportunities for employees to pursue their passions and interests,
E.g. Barclay’s was known for supporting elite sportspeople by allowing them time off work in the day to continue their training (the focus was on getting the job done, not having to be in at a certain time)
What are the advantages to a business of applying Maslow’s hierarchy?
Higher employee satisfaction: By meeting the needs of employees, businesses can create a more satisfying work environment, which can lead to increased productivity and lower turnover rates
Increased motivation: Businesses can motivate their employees by offering incentives that align with their specific needs and desires
Improved employee performance: Employees who feel valued and supported by their employers are more likely to perform at a higher level
What are the disadvantages to a business of applying Maslow’s hierarchy?
One size does not fit all: Businesses need to tailor their approach to meet the individual needs of their employees
Expensive: Meeting many individual needs can be costly, especially when offering perks such as the use of a company car
Time-consuming: Requires significant effort from management to connect individually to understand which opportunities for personal growth are desired
What is Herzberg’s two factor theory and what are hygiene factors and motivators?
Herzberg’s theory suggests that there are two types of factors that affect employee motivation and job satisfaction
HYGIENE FACTORS are elements that do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction, which decreases motivation
E.g. poor teamwork in the workplace
MOTIVATORS are elements that lead to job satisfaction and motivation
E.g. increased responsibility
What does improving the motivator factors in Herzberg’s Two-factor theory cause?
An increase in job satisfaction
What does improving the hygiene factors in Herzberg’s Two-factor theory?
Decreases job dissatisfaction
What is job satisfaction influenced by in Herzberg’s two factor theory?
Motivator factors:
- achievement
- recognition
- responsibility
- work itself
- advancement
- personal growth
What is job dissatisfaction influenced by in Herzberg’s two factor theory?
Hygiene factors:
- working conditions
- coworker relations
- policies and rules
- supervisor quality
- based wage, salary
How can businesses use hygiene factors to decrease dissatisfaction in Herzberg’s two factor theory?
Pay fair wages and salaries:
If an employee is not paid a fair wage for their work, they may become dissatisfied and demotivated
Offer excellent working conditions:
If the workplace is dirty, unsafe, or uncomfortable, employees may become dissatisfied and demotivated
E.g. Google has a reputation for providing amazing workplaces, which include gourmet restaurants, laundry services and dog care
Offer employment contracts which provide job security:
If employees feel that their job is not secure, they may become anxious and demotivated and contribute less to the business goals
How can businesses use motivating factors to increase satisfaction in Herzberg’s two factor theory?
Build a recognition and reward culture:
When employees are recognised and rewarded for their hard work, they are motivated to continue performing well
E.g. salesperson of the month award
Offer opportunities for growth and development:
When employees are given opportunities to learn new skills and advance in their careers, they are motivated to continue working for the company
E.g. set a 3 year growth plan which helps the worker move towards and advanced roles.
Provide challenging work which requires problem solving:
When employees are given challenging work that allows them to use their skills and abilities, they are motivated to continue performing well
What are financial incentives?
Rewards of payments given to employees in return for their labour or improved performance
What is piecework and what motivational theory does it link to?
Piecework is where employees are paid according to the number of units or pieces they product
Piecework is commonly used in manufacturing or assembly line settings and encourages workers to produce more and increase their output
Taylor’s scientific management theory
What is commission and what motivational theory does it link to?
Commission is where workers are paid A percentage of sales revenue paid to workers who sell products or services
It is Commonly used in sales roles and motivates staff to sell more and increase their sales revenue
Connects to the hygiene factors in Herzberg’s theory and connects to esteem needs in Maslow’s hierarchy (sales person of the month)
What is bonuses and what motivational theories does it link to?
Bonuses are An additional payment is given to staff as a reward for achieving specific goals, completing projects on time, or exceeding performance expectations
Bonuses motivate staff to work harder and achieve better results
Connects to esteem needs in Maslow’s hierarchy (achievement).
And Herzberg’s believed bonuses as the main form of payment would negatively influence individual behaviour in the workplace (this was part of the problem in the banking industry leading up to the 2008 financial crash
What is profit share and what motivational theory does it link to?
Profit share is where A portion of the company’s profits are distributed among staff, which encourages them to think like owners, work collaboratively and focus on the company’s overall goals
This links to Motivator in Herzberg’s Theory as it creates buy in to increased responsibility (help the organisation succeed; be an owner) and is seen as a form of recognition.
What is performance related pay and which motivational theory does it link to?
Where Staff are paid based on their performance, which theoretically motivates staff to work harder and achieve better results
However this form of payment has been severely criticised as discriminatory and open to abuse by managers
Links to hygiene factor in Herzberg’s theory and has been proven to cause significant dissatisfaction when utilised
What are the different financial incentives to improve performance?
Piecework
Commission
Bonus
Profit share
Performance related pay
What are the non-financial incentives to improve performance?
Delegation
Consultation
Empowerment
Team working
Flexible working
Job enrichment
Job rotation
Job enlargement
What is delegation and which motivational theory does it link too?
Delegation involves transferring responsibility from a manager to their staff, delegation gives employees a sense of ownership and control over their work, which can lead to improved productivity.
Links too Maslow’s ‘esteem’ needs as stage contribution is valued
Also is a ‘motivator’ in Herzberg’s Two factor theory (increase in responsibility)
What is consultation and what motivational theory does it link too?
Consultation involves seeking the input of staff on decisions that affect their work
This inclusion can increase staff engagement and commitment, leading to improved productivity
Links to Maslow’s ‘esteem’ needs as staff contribution is valued.
What is empowerment and which motivational theories does it link too?
Empowerment Involves giving staff the authority and resources to make decisions and take action without first receiving management approval
Empowerment Increases staff sense of ownership and responsibility, leading to improved productivity
Links too Maslow’s ‘esteem’ needs as staff contribution is valued and is also a ‘motivator’ in Herzberg’s Two factor theory (increase in responsibility)
What is team working and which motivational theory does it link too?
Team working Involves creating opportunities for staff to work collaboratively
Staff can share ideas and expertise, leading to improved productivity and innovation
Links too Mayo’s human relations theory as it encourages teamwork
What is flexible working and which motivational theory does it link too?
Flexible working Involves providing staff with the option to work remotely or to adjust their hours to suit their lifestyle
Can increase staff satisfaction and work-life balance, leading to improved productivity and reduced turnover
Links too Maslow’s ‘Self Actualisation’ as schedules can be adjusted to allow staff to attack their aspirations And is A ‘motivator’ in Herzberg’s Two Factor Theory (personal growth)
What is job enrichment and which motivational theory does it link too?
Job enrichment Involves adding more challenging or meaningful tasks to a job
Staff feel more motivated and engaged, leading to improved productivity
Links too Mayo’s Human Relations Theory as it encourages the development of staff And is a ‘motivator’ in Herzberg’s Two Factor Theory
What is job rotation and which motivational theory does it link too?
Job rotation Involves moving staff between different roles in the business
Exposes staff to new challenges and experiences, which can increase motivation, understanding and skill
It is a ‘motivator’ in Herzberg’s Two factor theory (the work itself)
What is job enlargement and which motivational theory does it link too?
Job enlargement Involves expanding staff’s job duties to include additional tasks or responsibilities
Engaging with a variety of tasks can increase motivation and job satisfaction, leading to improved productivity
Links too Mayo’s Human Relations Theory as it encourages the development of staff And is a ‘motivator’ in Herzberg’s Two factor Theory (the work itself)
What factors should you consider when assessing a compensation package?
- The context of the business: is it a manufacturing facility or a team of creative designers?
- The industry norms: does the data provide any insight into what competitors are doing?
- The balance of the compensation package: ideally, it should include appropriate financial and non-financial incentives to maximise employee productivity and retention
What is leadership?
Having a vision, sharing that vision with others and providing direction
What is management?
Day-to-day organisation of the business, its resources and its staffing
What are the key differences between leadership and management?
Vision vs. Execution
Leadership focuses on creating a vision, setting direction, and inspiring others to follow
Management focuses on executing plans, organising resources and ensuring tasks are completed on time
Influence vs. Control
Leadership focuses on influencing others to achieve a common goal by inspiring and motivating
Management focuses on controlling resources and processes to ensure that objectives are met
People vs. Processes
Leadership focuses on people, their needs, and their motivation
Management focuses on processes, structures and systems
Long-term vs. Short-term
Leadership focuses on the long-term vision and strategy
Management focuses on short-term goals and targets
Creativity vs. Efficiency
Leadership encourages creativity and innovation
Management focuses more on efficiency and productivity
What are the 4 different types of leadership?
Autocratic
Paternalistic
Laissez-faire
Democratic
What is the autocratic leadership style?
Where the leader has complete control over decision-making, with little or no input from others
This style is more appropriate where there is a need for quick decision-making, such as during a crisis
It may also be more suitable in a small business where the owner is the primary decision-maker and has complete control over the business
What is the paternalistic leadership style?
Leader takes on a parental role, making decisions in the best interest of their staff
This style is more appropriate where the staff are uneducated or inexperienced
They require more guidance and support from their leader
It can also be effective where the leader needs to build a strong sense of loyalty from their employees
What is the democratic leadership style?
Leader involves their team in the decision-making process
This style is more appropriate when the business needs to encourage creativity, innovation, and employee engagement
It is also effective in larger firms where decisions require input from multiple stakeholders or where there is a need to build consensus
What is the laissez-faire leadership style?
Leader takes a hands-off approach and allows their team to manage their own work
This style is more appropriate where the staff are very experienced and require minimal supervision
It is also effective where the leader wants to build a culture of independence and self-motivation
