Unit 2

2 reasons why training is important for a business

2 reasons why training is important for a business

To help new workers be accustomed to their duties.

Familiarise the traniees to the workplace and its health and safety laws

Improves motivation

On the job training

training that takes place in the work setting as employees perform their job tasks

Job rotation

Pros and cons of on the job training

Pros: Output is released Cheaper

Cons: Output is lost if trainee makes a mistake Staff may get frustrated for being unpaid trainers

Off the job training

Training that takes place away from the work area.

Pros and cons of off the job training

Pros: Motivates employees Output is not affected at all Cons: Trainees wouldn't be used to work environment Expensive

Induction Training

Training given to new employees when they first start a job

Importance of motivation in the workplace

Increases productivity

Improves Job Satisfaction

Helps attracting and retaining employees

What is Herzberg's two-factor theory?

Hygiene (personal) and Motivation (business)

hygiene: Salaries, Fringe benefits

motivation: Engage and motivate employees

Pros and Cons of Herzbergs

Pros: Direct focus on Employee

Cons: Too much focus on job satisfaction, not enough on external factors

What is Maslow's hierarchy of needs?

1. Self actualization

2. Self esteem

3. social needs

4. Safety and Security

5. Physiological needs

Job enrichment

increasing the number of tasks in a particular job to motivate workers

Pros and Cons of job enrichment

Pros: More rewarding for employees

Cons:Employees may get burnt out

job rotation

involves moving employees from one job to another

Pros and cons of Job rotation

Pros: Increase knowledge for employees

Cons: Employees may be against constant change

Time Rates

Money paid per week or hour of work

Piece rates

Money paid according to how much is produced

cons: products may not be of good quality as it would be rushed by workers

Performance related pay

Pay which is related to the effectiveness of the employee and when they reach company targets

Bonus schemes

Where extra payments were made to workers for improving individual production targets

Commission

An amount paid to an employee based on a percentage of the employee's sales

Promotion

An advance an employee earns by being productive, cooperation, dependable, and highly skilled.

fringe benefits

Extra perks of being part of the job

types of perks

Accomodation, company car, insurance etc.

Chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

Span of Control

the number of subordinates who report directly to a manager

Flat structure

Fewer layers of hierarchy

Comms is quicker management costs is lower

Tall structure

More layers of hierarchy

Comms are poor More expensive Motivate staff due to clear route for promotion

Centralised

Only senior management has authority in the business

Decentralized

All employees have authority in the business

What does HR do?

Recruitment, training, Dismissal, Staff welfare, Redundancy

What does finance do?

handles wages, cash flow forecasting, accounts, recording transactions

What does marketing do?

Market research, product planning, PR, advertising, pricing, packaging, distribution

What does production do?

Research and development, Suppliers, maintenance, design, purchasing