Unit 2: Human Resource Management

Question 1

Define human resource management

Answer 1

The strategic approach to the effective management of employees so that they help the business gain a competitive advantage.

Question 2

HRM key focuses

Answer 2

• Workforce planning to plan how many employees, and what skills, are needed for the business in the future.
• Recruitment & selection of employees.
• Training & staff development.
• Preparing employment contracts.
• Dismissal and redundancy.
• Managing workforce relations.
• Monitoring and improving employee morale and welfare.
• Payment & incentive systems.
• Monitoring employee performance.

Question 3

Define workforce planing

Answer 3

Forecasting the numbers of workers and the skills that will be required by the organization to achieve its objectives.

Question 4

Define workforce audit

Answer 4

A check on the skills and qualifications of all existing workers/managers.

Question 5

Factors that influence the number of employees required

Answer 5

• Forecast demand for the product: influenced by market and external conditions, competitors’ actions and changes on consumer trend.
• Productivity level: If this is forecast to increase, then fewer workers are needed to produce same lvl of output.
• The objectives of the business: If business expands, then employee numbers have to rise. Or if business aims to increase customer-service levels, more workers need to be recruited.
• Changes in law regarding workers’ rights.
• The labour turnover and absenteeism rate: The greater this number is, the greater the need to recruit employees.

Question 6

Requirements of the skills needed by workers depend on:

Answer 6

• The pace of technological change in the industry.
• The need for flexible and multi-skilled workers to avoid excessive specialization. Businesses often choose workers with more than one skill who can be used in a varierty of different ways. This gives the business greater felxibility to meet changing market conditions and can make the employee’s job more rewarding.

Question 7

Define labour turnover and how it is measured

Answer 7

• Measures the rate at which employees leave the business.
• Formula:
  no. of employees leaving in 1 year / average no. of employees employed x 100

Question 8

Costs of high labour turnover

Answer 8

• Costs of recruiting, selecting and training new staff.
• Difficult to establish team spirit.
• Difficult to establish customer loyalty due to a lack of regular, familiar contact.

Question 9

Benefits of high labour turnover

Answer 9

• Low-skilled and less-productive staff might be leaving and could be replaced with more carefully selected workers.
• New ideas and practices brought into an organization by new workers.
• Can help a business plan to reduce employee numbers, as workers who leave won’t be replaced.

Question 10

Define recruitment

Answer 10

The process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, and attracting suitable candidates for the job.

Question 11

Define selection

Answer 11

The series of steps by which candidates are interviewed, tested and screened to choose the most suitable person to a vacant post.

Question 12

Define recruitment agency

Answer 12

A business that offers the service of recruiting applicants for vacant posts.

Question 13

What is meant by a job description

Answer 13

A detailed list of the key points about the job to be filled, stating all its key tasks and responsibilities.

This attracts the right type of people to apply for the job, as it gives them an idea whether they are suited to the job or not.

• Job title
• Details of the tasks to be performed
• Responsibilities
• Place in hierarchal structure
• Working conditions
• How the job will be assessed and how performance will be measured.

Question 14

Define person specification

Answer 14

A detailed list of the qualities, skills and qualifications that a successful applicant will need to have.

Question 15

Purpose of job advertisements

Answer 15

• The job advert reflects the requirements of the job and the skills required. It can be displayed in business premises, job centers, recruitment agencies, and online job adverts.
• Can be completed in an application form online.

Question 16

Define application form

Answer 16

A set of questions answered by a job applicant to give a potential employer information about the applicant, such as educational background and work experience.

Question 17

Define curriculum vitae (CV)

Answer 17

A detailed document highlighting all of a person’s professional and academic achievements, work experience and awards.

Question 18

Define resume

Answer 18

A less detailed document than a CV, which itemises work experience, educational background and special skills relevant to the job being applied for.

Question 19

Define reference

Answer 19

Comment from a trusted person about an applicant’s character or previous work performance.

Question 20

Define assessment centre

Answer 20

A place where a range of tests are used to judge job applicants on their potential ability to perform a particular role.

Question 21

Define internal recruitment

Answer 21

When a business aims to fill a vacancy from within its existing workforce.

Question 22

Define external recruitment

Answer 22

When a business aims to fill a vacancy with a suitable applicant from outside of the business.

Question 23

Advantages and disadvantages of internal recruitment

Answer 23

Advantages:
- Applicants will already know the organization and its internal methods so there is no need for induction training and this makes the process less time-consuming and reduces costs.
- Applicants are already known to the selection team.
- Culture of organization will be understood by applicants.

Disadvantages:
- It does not bring in any new ideas as another better candidate may have been available outside the workplace.
- Could cause conflict within the workplace if other internal candidates feel that they should have got the job.

Question 24

Advantages and disadvantages of external recruitment

Answer 24

Advantages:
- External applicants will bring in new ideas and practices to the business, which helps to keep existing employees focused on the future rather than the past.
- There is a wider choice of applicants, not just limited to internal staff.

Disadvantages:
- It is more expensive due to advertising costs and the time spent interviewing candidates.
- External candidates will need induction training, which increases their expenses.

Question 25

Define employment contract

Answer 25

A legal document that sets out the terms and conditions governing a worker’s job.
They contain:
- The employee’s work responsibilities and main tasks to be undertaken.
- Whether the contract is permanent or temporary.
- Working hours and the level of flexibility expected.
- Holiday entitlement and benefits such as pensions.

Question 26

Define redundancy

Answer 26

When a job is no longer required, the employee doing this job becomes unnecessary through no fault of their own. This occurs when workers’ jobs are no longer required due to fall in demand, change in technology or the need to cut costs.

Question 27

Define dismissal

Answer 27

Being dismissed or fired from a job due to incompetence or breach of discipline.

• When employee does not meet the obligations set in the contract of employment.

Question 28

Define unfair dismissal

Answer 28

Ending a worker’s employment contract for a reason that the law regards as being unfair.

Question 29

Define employee morale

Answer 29

Overall outlook, attitude and level of satisfaction of employees when at work.

Question 30

Define employee welfare

Answer 30

Employees’ health, safety and level of morale when at work.

Question 31

Define work-life balance

Answer 31

A situation in which employees are able to allocate the right amount of time and effort to work and to their personal life outside of work.

• HR departments use methods to allow workers to have a work-life balance which reduces stress and increases efficiency.
  Methods include:
• Flexible working
• Teleworking - working from home
• Job sharing - allows two people to fill one full-time vacancy (but each worker will receive a proportion from the full-time pay).
• Sabbatical periods - extended period of leave of up to 12 months.

Question 32

Define equality policy

Answer 32

Practices and processes aimed at achieving a fair organization where everyone is treated the same way without prejudice and has the opportunity to fulfill their potential.

Question 33

Define diversity policy

Answer 33

Practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workplace.

Question 34

Impacts of promoting equality in the workplace

Answer 34

• Creating an environment with high employee morale and motivation.
• Developing a good reputation and the ability to recruit top talent based on fairness.
• Measuring employee performance by their achievements at work, not by any discriminatory factor.

Question 35

Impacts of promoting diversity in the workplace

Answer 35

• Capturing a bigger market share as consumers are attracted by a diverse sales force.
• Employing a more qualified workforce as selection is based on merit and not on discrimination.
• Increasing creativity because individuals from different backgrounds approach problem solving in a different way.
• Achieving cultural awareness. leading to improved knowledge about foreign markets.
• Promoting diverse language skills, which allows businesses to provide products and services internationally.

Question 36

Define training

Answer 36

Work-related education to increase workforce skills and efficiency.

Question 37

Define induction training

Answer 37

Introductory training program to familiarize new recruits with the systems used in the business and the layout of the business site.

Question 38

Define on-the-job training

Answer 38

Instruction at the place of work on how a job should be carried out.
- It is cheaper than sending recruits on external training courses and the content of the training is controlled by the business itself.

Question 39

Define off-the-job training

Answer 39

Training away from the workplace, potentially in a specialist training centre, a course, college, university, etc.
- Outside training has the added potential of being a source to new ideas. These courses are expensive.

Question 40

Impact of training on a business and its employees.

Answer 40

• Training can be expensive.
  Can lead to well-qualified employees leaving for a better-paid job once they have gained qualifications from a business with a good training program.
• Workers can be less productive during training program.
• The costs of not training are substantial as untrained employees will be less productive, flexible and adaptable. Poorly trained workers give unsatisfactory customer service.
• Without being trained to achieve a higher standard of skills, workers become bored and demotivated.
• Training to be multi-skilled is a huge benefit for the business.

Question 41

Define multi-skilling

Answer 41

The training of an employee in several skills to allow for greater flexibility within the business.

Question 42

Define employee appraisal

Answer 42

The process of assessing the effectiveness of an employee judged against pre-set objectives.
- This allows the future performance of the worker to be linked to the objectives of the business.

Question 43

Employees can demonstrate intrapreneurship if they are:

Answer 43

• Encouraged to be independent thinkers and creative.
• Given opportunities to mix and work with other skilled employees from different departments.
• Empowered with the authority and resources they need to introduce innovations.
• Assured that some failure is expected and acceptable.
• Encouraged to start with small ideas and innovations - before moving on to bigger issues.

Question 44

Benefits of cooperation between management and the workforce

Answer 44

• Fewer days are lost through strikes and other forms of industrial action.
• It will be much easier for management to introduce change in the workplace.
• Agreement on more efficient operations will increase the competitiveness of the business.

Question 45

Define industrial action

Answer 45

Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favor of employees.

Question 46

Impact of trade union involvement in the workforce

Answer 46

• Trade unions have a power of solidarity as trade unions engage in collective bargaining, negotiating on behalf of all the other members in the business. This puts workers in a stronger position than if they negotiated individually to gain higher pay deals and better working conditions.
• Unions provide legal support to employees who claim unfair dismissal or poor working conditions.
• Collective industrial action should result in more influence over employers during industrial disputes.

Question 47

Define collective bargaining

Answer 47

The process of negotiating terms of employment between an employer and a group of workers who are usually represented by a trade union official.

Question 48

Define trade union recognition

Answer 48

When an employer formally agrees to conduct negotiations on pay and working conditions with a trade union rather than bargain individually with each worker.

Question 49

Benefits of collective bargaining

Answer 49

• Employers can negotiate with one trade union officer rather with individual workers. This saves time and prevents workers from feeling that one individual has obtained better pay and working conditions.
• Union officials can provide a useful channel of communication with workers. This two-way communication through trade unions allows workers’ problems to be raised with management and employers’ plan can be discussed with workers.

Question 50

Disputes between trade union and management

Answer 50

Trade union leaders can use several forms of industrial action during a dispute with employers over improvements in pay and working conditions:

• Continue collective bargaining.
• Go slow - a form of industrial action in which workers keep working but at the minimum pace demanded by their contract of employment.
• Work-to-rule - A form of industrial action in which employees refuse to do any work outside the precise terms of employment contract.
• Overtime bans.
• Strike action - most extreme form of industrial action in which employees totally withdraw their labour for a period of time. Strike action leads to production stopping and the business shutting down during industrial action.

Question 51

What methods employers may use to resolve an industrial dispute

Answer 51

• Negotiations to reach a compromise solution with the aim of avoiding industrial action.
• Threats of redundancies to pressurize unions to agree to settle the dispute.
• Changes of contract, which require workers to work overtime, accept more flexible working or agree not to take industrial action.
• Closure of the business, leading to redundancy of all workers.

All these actions are damaging to industrial relations in the long-term. It’s much more beneficial for the long-term interests of the business and employees if effective cooperation takes place between the management and the workforce.

Question 52

Define motivation

Answer 52

The internal and external factors that stimulate the desire in workers to be continually interested in and committed to doing a job well.

Question 53

Benefits of well-motivated workers

Answer 53

• Lowe absenteeism and labour turnover.
• High productivity which increases competitiveness of the business.
• Workers will make suggestions for improvements for business to achieve its objectives.
• Work hard to seek promotion and prepared to accept responsibility.

Question 54

What are the factors of satisfying human needs at work?

Answer 54

• Social connection: by working in groups/teams.
• Significance: by praising and recognizing performance.
• Challenge: by providing different work tasks and chance of promotion.
• Certainty: by providing employment contracts and some job security.

Question 55

What is Taylor’s scientific approach (theory of the economic man) about?

Answer 55

The economic man theory suggests that people are motivated by money alone and the only factor that could stimulate further effort is the chance of earning more money.
- Wage levels are based on output from workers.
- The amount paid should be directly linked to output through piece-rate.
- To encourage high output, a low rate per unit can be set for the first units produced. Higher rates then become payable if output targets are exceeded.
- Taylor’s emphasis on increasing efficiency and productivity can be the route to achieving greater profits.

Question 56

Define piece-rate

Answer 56

Payment to a worker for each unit produced.

Question 57

Evaluation of the relevance of Taylor’s views and methods are today

Answer 57

• Economic man - Apart from money motivating workers, employees have a wider range of needs to be met from work.
• Select the right people for each job - The importance if this today is reflected on the emphasis on effective employee selection in all businesses.
• Observe and record the performance of workers - This was viewed with suspicion by workers as a way of making them work harder. It is still used today but with cooperation and involvement of employees.
• Establish the best method of doing a job - Still considered important as efficiency depends on using the best ways of working. However, Taylor’s use of managers to give instructions to workers with no discussion is demotivating. Nowadays, worker participation is one of the best working methods.
• Piecework payment systems - It is difficult to measure the output of each individual worker in service industries.

Question 58

Mayo and human relations theory

Answer 58

• Best known for his Hawthorne effect conclusions. Firstly, he assumed that working conditions, such as lighting, heating and rest periods had a significant impact on workers’ productivity.
• Result of experiment: As conditions of work improved/worsened, productivity rose in all groups. The is due to workers acknowledging that they were being observed, which altered their performance.

Mayo has shown that:
- Working conditions in themselves were not important in determining productivity levels.
- Other motivational factors needed to be investigated before conclusions could be drawn.

Question 59

The Hawthorne effect: the conclusions of Mayo’s work

Answer 59

• Changes in working conditions and pay levels have little or no effect on productivity.
• Consultation with workers improves motivation.
• Working in teams and developing a team spirit can improve productivity.
• Giving workers some control over their working lives, such as deciding when to take breaks, improves motivation.
• Groups can establish their own targets, and these can be greatly influenced by the informal leaders of the group.

Question 60

Evaluation of Mayo’s research

Answer 60

• There has been more importance in giving workers more of a role in business decision-making (worker participation).
• HRM departments have been established to put the Hawthorne effect into practice.
• Team or group working is applied in many types of business organizations. It offers the greatest opportunities for workers and businesses to benefit from the Hawthorne effect.

Question 61

What is Maslow’s concept of human needs about

Answer 61

• Our needs determine our actions - we will always try to satisfy them, and be motivated to do so.
• If work can be organized so that some/all needs of employees can be satisfied. then they will become more productive and satisfied.

Question 62

Define self-actualization

Answer 62

A sense of self-fulfillment reached by feeling enriched and developed by what one has learned and achieved.

Question 63

How the different levels of need of Maslow’s hierarchy can be satisfied at work

Answer 63

Self-actualization - Challenging work that stretches the individual will give a sense of achievement’ opportunities to develop and apply new skills will increase potential.

Esteem needs: Recognition for work done - status, advancement and responsibility - will gain the respect of others.

Social/belonging needs - working in teams or groups and ensuring good communication to make workers feel involved.

Safety needs - a contract of employment with some job security; a structured organization that gives clear lines of authority to reduce uncertainty; ensuring health and safety conditions are met.

Physical needs: income from employment high enough to meet essential needs.

Question 64

Limitations of Maslow’s approach

Answer 64

• Not everyone has the same needs, it is assumed by the hierarchy.
• It is difficult to identify which need has been met and which level a worker is on.
• Money is necessary to satisfy physical needs, yet it might also play a role in satisfying the other levels of needs. High incomes can increase status/esteem.
• Self actualization is never permanently achieved. Jobs must continually offer challenges and opportunities for fulfillment, or regression occurs.

Question 65

What is Herzberg’s two-factor theory

Answer 65

• Job satisfaction results from: achievement - recognition for achievement - the work itself - responsibility -advancement. (The motivators).
• Job dissatisfaction results from: company policy and administration - supervision - salary - relationships - working conditions. (Hygiene factors).
• Herzberg emphasized how hygiene factors has to be addressed by management to prevent dissatisfaction, however these hygiene factors themselves don’t create a well-motivated workforce.

Question 66

Define motivators (motivating factors)

Answer 66

Aspects of a worker’s job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work, responsibility, and advancement at work.

Question 67

Define hygiene factors

Answer 67

Aspects of a worker’s job that have the potential to cause dissatisfaction, such as pay, working conditions, status and over-supervision by managers.

Question 68

Limitations of Herzberg’s two factor theory

Answer 68

• Offering higher pay, improved working conditions and less heavy-handed supervision at work only reduce dissatisfaction, however, they will be taken for granted.
• Motivation to do the job well will only exist if the motivators were in place.
• The work needs to be interesting, rewarding and challenging for workers to be satisfied/motivated to offer their full potential. This does not change depending on their pay level.
• If job enrichment is incorporated, motivators exist.

Question 69

Define job enrichment and its features, according to Herzberg to motivate workers

Answer 69

Aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work.

Features:
- Complete units of work - Herzberg says that complete and identifiable units of work should be assigned to workers. Could involve teams of workers rather than individuals on their own. (Example: sub-assemblies of manufactured goods, or in service industries: it could mean a small team of multi-skilled people, such as waiters, chefs, etc).

• Feedback on performance - Regular two-way communication between workers and managers should give recognition for work well done and provide incentives to workers to achieve more.
• A range of tasks - To stretch out beyond the workers’ current experiences (self-actualization).

Question 70

Evaluation of Herzberg’s work for todays businesses

Answer 70

• Teamworking is more widespread, with whole units of work being delegated to these groups.
• Workers tend to be made much more responsible for the quality of their own work rather than being closely supervised by quality-control inspectors.
• Most firms are continually looking for ways to improve effective communication, and group meetings allowing two-way communication.

Question 71

What job enrichment does in the workplace nowadays:

Answer 71

• Have a considerable variety of tasks to test/improve skillsets of workers.
• Require high knowledge and skills.
• Give workers more autonomy.
• Require workers to show responsibility.
• Create chances for personal development.
• Produce a meaningful unit of work.

Question 72

McClelland and motivational needs theory

Answer 72

Achievement motivation - Will seek to reach realistic and challenging goals and job advancement. There is a constant need for feedback regarding progress and achievement. This sense of achievement is common for successful business people.

Authority/power motivation - A person with a dominant need is motivated by having authority. The desire to control others is a powerful motivating force. Includes the need to be influential, to be effective and to make an impact. They value the personal status and prestige gained.

Affiliation motivation - This kind of person will have a need friendly relationships and is motivated by interaction with people. They tend to be good team members as they need to be liked and popular.

• These motivational theories are found in varying degrees in all workers and managers.
• Achievement motivated people are the ones who make things happen and get results. However, they may demand too much of their staff in achieving targets and prioritise this over the other varying needs of workers.

Question 73

Explain the Vroom and expectancy theory - how do workers get motivated and what is the expectancy theory based on?

Answer 73

• Vroom emphasized how individuals choose to behave in ways which they believe will lead to results that they value.
  Individuals can get motivated if they believe that:
• There is a positive link between effort and performance.
• Favorable performances will result in a desirable reward.
• The reward will satisfy an important need.
• The desire to satisfy the need is strong enough yo make the effort worthwhile.

High expectancy theory is based on:
- Valence - the depth of the desire of an employee for an extrinsic reward: money, or an intrinsic reward: satisfaction.
- Expectancy - The degree to which people believe that putting effort into work will lead to a given level of performance.
- Instrumentality - the confidence of employees that they will actually get what they desire.

Question 74

Financial motivator: Time-based wage rate - Advantages and Disadvantages

Answer 74

• Paying per hour weekly.

Advantages:
- Offers security over pay levels.
- Different rates can be offered to different types of workers.

Disadvantages:
- No incentive, as pay lvl is not linked to output.
- Labour cost per unit will depend on output.

Question 75

Financial motivator: Piece-rate - Advantages and Disadvantages

Answer 75

• Fixed for production of each unit.

Advantages:
- It motivates workers to increase output.
- It is easy to calculate the labour cost per unit.

Disadvantages:
- Quality might fall.
- No security over lvl of pay.
- Workers may feel stressed/pressured by trying to earn more.

Question 76

Financial motivator: Salary - Advantages and disadvantages

Answer 76

Advantages:
- Offers the security of a pay level to employees.
- Different salary levels for different grades of workers.
- Suitable for jobs where output is not measurable.
- Fixed for one year, so labour costs are easier to forecast.

Disadvantages:
- Not linked to output, complacency may be a problem.
- May lead to low achievement/motivation if effort and achievement of employees are not checked with appraisal.

Question 77

Define salary

Answer 77

Annual income that is usually paid on a monthly basis.

Question 78

Define time-based wage rate

Answer 78

Payment to a worker made for each period of time worked (e.g. 1 hour).

Question 79

Financial motivator: Commission - Advantages and Disadvantages

Answer 79

Advantages:
- It creates the incentive to increase sales.
- It may be in addition to a basic salary so it offers security of pay too.

Disadvantages:
- Discourages teamwork amongst sales employees.
- May lead to pressurized selling which damages customer relationships.

Question 80

Define commission

Answer 80

A payment to a salesperson for each sale made.

Question 81

Financial motivator: Bonus - Advantages and Disadvantages

Answer 81

Advantages:
- Paid to individuals for outstanding work or to teams for reaching targets.
- Creates the incentive for employees to do well.
- In addition to basic salary, offers security.

Disadvantages:
- Can cause resentment in bonus is not achieved.
- Damages team spirit if some members receive a bonus and others don’t.
- It reduces motivation if no bonuses are paid.

Question 82

Define bonus

Answer 82

A payment made in addition to the contracted wage or salary.

Question 83

Define performance-related pay

Answer 83

A bonus scheme to reward employees for above-average work performance.

Question 84

Financial motivator: Performance-related pay - Advantages and Disadvantages

Answer 84

Advantages:
- Individual bonuses for meeting predetermined targets encourages workers to work hard to achieve those targets.
- Target setting can form part of the hierarchy of objectives to meet the company’s aims.

Disadvantages:
- It requires frequent target setting and appraisal interviews.
- If the bonus is low, it may not lead to greater effort as motivation will not be increased.
- Managers may show favoritism to specific employees.

Question 85

Define profit sharing

Answer 85

A bonus for employees based on the profits of the business, usually paid as a proportion of basic salary.

Question 86

Financial motivator: Profit sharing - Advantages and Disadvantages

Answer 86

Advantages:
- Aims to increase the commitment of the workforce to make the business profitable.
- Can lead to suggestions for cost cutting/ways to increase sales.

Disadvantages:
- Might only be a small proportion of profits (not motivating).
- Shareholders may object as it can reduce profit for them.
- Reduces profit retained.

Question 87

Define share-ownership scheme

Answer 87

A scheme that gives employees shares in the company they work for or allows them to buy those shares at a discount.

Question 88

Financial motivator: Share-ownership scheme

Answer 88

Advantages:
- Reduces conflict of objectives between owners or workers.
- It encourages an increased sense of belonging and commitment.
- Workers are more likely to participate in decision making aimed at business success.

Disadvantages:
- May be a very small number of shares so is not motivating.
- Shares might be sold so there is no long-term commitment.
- Managers receive more shares so workforce may feel resentment.

Question 89

Define fringe benefits

Answer 89

Benefits given, separate from pay, by an employer to some or all employees.

Question 90

Examples of fringe benefits

Answer 90

• Company cars.
• Free insurance.
• Pension schemes.
• Private health insurance.
• Discounts on company products.
• Low interest rate loans.

Question 91

Define job rotation

Answer 91

A scheme that allows employees to switch from one job to another.

Question 92

Non-financial motivator: Job rotation - Advantages and Disadvantages

Answer 92

Benefits:
- Rotation relieves the boredom of doing one task.
- Can give the worker several skills, makes the workforce more flexible.
- Workers are able to cover for colleague’s absence.

Limitations:
- More limited in scope than job enrichment.
- It does not increase empowerment or responsibility for the work performed.
- Does not give the worker a complete unit of work to produce.

Question 93

Define job enlargement

Answer 93

An attempt to increase the scope of a job by broadening or deepening the tasks undertaken.

Question 94

Unfinancial motivator: Job enrichment - Advantages and Disadvantages

Answer 94

• Involves a reduction of direct supervision as workers take more responsibility for their own work.

Benefits:
- Complete units of work are produced so that the worker’s contribution can be identified and more challenging work can be offered.
- Direct feedback on performance.
- Challenging tasks are offered as part of a range of activities, some of which are beyond the worker’s recent experience.

Disadvantages:
- Lack of employee training/experience to cope with the greater depth of tasks can result in lower productivity.
- Employees may see the enrichment process as just an attempt to get them to do more work.
- Employees may feel frustrated or demotivated if they aren’t able to cope with challenges imposed by job enrichment.

Question 95

Define job redesign

Answer 95

The restructuring of a job to make the work more interesting, satisfying and challenging.

Question 96

Define development

Answer 96

The gaining of new or advanced skills and knowledge as well as opportunities to apply what is gained.

Question 97

Non-financial motivator: Training and development - Advantages and Disadvantages

Answer 97

Advantages:
- Improving and widening the skills of employees can increase productivity and flexibility of workforce.
- Training and development increase the status of workers and give them access to more challenging and better paid jobs in the business.
- Developing employees/encouraging them to reach their full potential leads to self-actualization.

Disadvantages:
- Training is expensive.
- Training & developing programmes take employees away from the workplace so other employees need to cover for them.
- Training could lead to employees leaving a business as they become better qualified to gain employment.

Question 98

Define employee promotion

Answer 98

The advancement of an employee within a business to a higher level of responsibility and status.

Question 98

Define employee status

Answer 98

The level of recognition offered by an employer to a worker in terms of pay, level of responsibility and benefits.

Question 98

Define employee participation

Answer 98

Active encouragement of employees to become involved in decision-making within an organization.

Question 99

Benefits and limitations of employee participation

Answer 99

Benefits:
- Job enrichment.
- Improved motivation.
- Greater opportunities for workers to show responsibility.
- Better decisions result from worker involvement due to in-depth knowledge of operations.

Limitations:
- Time-consuming to involve workers in every decision.
- Difficult to adapt to the idea of asking workers for their opinions.

Question 100

Define teamworking

Answer 100

Production is organized so that groups of workers undertake complete units of work.

Question 101

Non-financial motivator: Team-working - Advantages and disadvantages

Answer 101

Advantages:
- Teams are empowered by being given decision-making authority over their work and the planning of it.
- Absenteeism will fall as workers do not want to disappoint their team.
- More likely to be motivated as social & esteem needs are being met.
- Increased productivity.
- Reduced labour turnover.

Disadvantages:
- Not everyone is a team player - some prefer to work alone.
- Teams can develop a set of values/attitude which conflict with those of the organization. They need clear goals so they are working towards the objectives of the organization.
- The introduction of teamworking will require training to improve employee flexibility which is costly.

Question 102

Define empowerment

Answer 102

The giving of skills, resources, authority and opportunity to employees so that they can take decisions and be accountable for their work.

Question 103

Non-financial motivator: Empowerment - Benefits & Limitations

Answer 103

Benefits:
- Empowerment leads to quicker problem solving.
- Increased motivation/morale as workers are given challenging work and are recognized for it.
- Higher levels of involvement and commitment improve two-way communication and reduce labour turnover.

Limitations:
- Lack of experience increases risk, so employees must be trained.
- Reduced supervision and control might lead to poor decisions.
- May be a lack of coordination between teams.
- Some employees may be reluctant to accept more accountability but feel that they should to keep their job secure.

Question 104

Define quality circle (QC)

Answer 104

A voluntary group of workers who meet regularly to discuss, and try to resolve, work-related problems and issues.

Question 105

Non-financial motivator: Quality circles - Advantages & disadvantages

Answer 105

Advantages:
- Workers have hands-on experience with work problems and they often suggest the best solutions.
- The results of the quality circle meetings are presented to management. The most successful ideas are often adopted.
- Quality circles are an effective method of allowing the participation of all employees.

Limitations:
- Quality circle meetings can be time-consuming and reduce the time available for production.
- Not all employees will want to be involved in quality circles.
- They may not have the management power to make the changes that they recommend.