Section 4 - People in Business Flashcards
What is motivation?
The will to work due to the enjoyment of the work itself
What are the benefits of having a motivated workforce?
- Lower absenteeism
- Efficiency
- More satisfied customers
- Better reputation; easier to recruit new staff
- Higher morale
- Higher quality of work
What are the financial methods of motivation?
- Benefits in kind: staff discounts, contribution to travel costs, staff uniforms
- Pensions
- Salary
- Time-rate pay: paid on amount of time worked
- Piece-rate pay: paid per item produced
- Performance-related pay: bonuses
- Commission: paid on value of sales achieved
- Shares
What are the non financial methods of motivation?
- Promotion: more responsibility
- Praise + commendation from manager
- Recognition + appreciation
- Working environment: making it better
- Job enlargement: reduce repetition
- Job enrichment: increasing range + complexity
- Job rotation
- Social events
- Training
- Fringe benefits
What laws must a business follow regarding pay?
- Equal Pay Act, 1970: men + women can’t be treated differently by pay
- Minimum Wage Act 1998: min. wage over 21 = £6.50
What law must a business follow regarding health and safety?
Health + Safety at Work Act, 1974
What are the advantages of internal recruitment?
- Cheaper
- Quicker
- Candidates already know the firm well
What are the disadvantages of internal recruitment?
- No new ideas
- May not be many candidates
- Limited skills
What are the advantages of external recruitment?
- More applicants
- More skills
- More ideas
What are the disadvantages of external recruitment?
- Expensive to advertise
- Time to familiarise
What are the benefits of having full time staff?
Always available to work
What are the benefits of having part time staff?
- Cheaper
- More motivated as rest more
What is job enlargement?
Giving a productive member of staff more tasks to do, increasing size of their job description, so the work is more varied and interesting, making the member of staff feel more valued
What is job enrichment?
Giving a worker greater responsibility, so they may need new training but are motivated to work harder
What are the stages in the recruitment process?
- Identify the vacancy
- Draw up a job description
- Draw up a person specification
- Advertise the vacancy
- Short list applicants
- Interview applicants
- Select a candidate
