Business Management Unit 3 - AOS2 Managing Employees

These flashcards cover key concepts and terms from the Business Management Unit 3 - AOS2 Managing Employees, useful for exam preparation.

Human resource manager

Responsible for maintaining the relationship between employees and the business.

Motivation

What drives a person to apply individual effort over a sustained period of time.

Maslow's Hierarchy of Needs

A theory describing the stages of human needs: physiological, safety, love/belonging, esteem, and self-actualization.

Physiological needs

The most basic human needs to be satisfied, such as water, food, shelter, and clothing.

Safety needs

The need to feel safe, secure, and stable.

Social needs

The need for love, companionship, and friendship.

Esteem needs

The need for self-esteem, achievement, and respect from others.

Self-actualization

Where people realize their full potential.

Locke and Latham's Goal Setting Theory

Theory of motivation that focuses on the process of setting and attaining goals.

Clarity (Goal setting)

Giving goals that are unambiguous and measurable.

Challenge (Goal setting)

Goals that should extend the employee but still be achievable.

Commitment (Goal setting)

An employee will actively pursue a goal where they are committed.

Feedback (Goal setting)

Regular opportunities for feedback to the employee.

Task complexity (Goal setting)

Tasks should not overwhelm the employee.

Lawrence and Nohria's Four Drive Theory

A motivational theory that states that there are four drives that shape human behavior.

The drive to acquire

The desire to own material goods and encompasses the desire for power, status, and recognition.

The drive to bond

The strong need to form relationships with other individuals and groups.

The drive to comprehend (learn)

The desire to satisfy our curiosity, to learn new skills and explore the world.

The drive to defend

The desire to remove threats to our safety and security.

Performance-related pay

A financial reward to employees whose work has reached or exceeded a set standard.

Commissions

Incentive pay calculated as a percentage of sales.

Bonus

A one-off payment given as a reward for meeting particular targets.

Profit sharing

The distribution to employees of a percentage of the company's profits.

Career advancement

Promotions or job changes that offer increased responsibility and salary increases.

Investment in training

Investment in training leads to the development of knowledge and skills among employees.

Sanction

A penalty or form of discipline imposed in response to an employee's wrongdoing.

On-the-job training

Training that takes place in the work setting.

Off-the-job training

Sending employees to specialized training institutions.

Performance management

Aims to improve both business and individual employee performance.

Performance appraisal

A formal assessment of how well an employee is doing their job.

Management by objectives (MBO)

A process of setting mutually agreed upon goals to evaluate employee performance.

Employee self-evaluation

Involves employees carrying out a self-assessment based on agreed criteria.

Employee observation

A type of performance appraisal collecting feedback from those who work closely with the employee.

Retirement

When an employee voluntarily leaves the company and the workforce.

Resignation

The voluntary ending of employment by the employee.

Redundancy

When a job is no longer required due to business changes.

Dismissal

When an employee's behavior is unacceptable and their employment is terminated.

Entitlement issues

The rights of a terminated employee to certain privileges.

Transition issues

Matters that must be considered as an employee leaves the business.

Workplace relations

The interaction between employers and employees regarding working conditions.

Trade unions

Organizations formed by employees to represent their interests.

Employer associations

Provide advice and represent employers on workplace relations issues.

Fair Work Commission

Australia's national workplace relations tribunal.

Industry-wide Awards

Set minimum conditions of employment for employees within a particular industry.

Collective agreements

Negotiated employment contracts between employers and employees.

Individual agreements

A workplace agreement negotiated between an individual employee and an employer.

National Employment Standards (NES)

10 minimum employment entitlements that must be provided to employees.

Strike action

The organized withdrawal of labor from a firm by a union.

Lockout

A refusal to let employees work until management demands are met.

Protected industrial action

A tactic during the negotiation of an enterprise agreement.

Mediation

A dispute resolution method involving a third party helping negotiate a solution.

Arbitration

A tribunal making a legally binding decision to resolve a dispute.

Performance-related pay disadvantage

It may reduce teamwork and cooperation among employees.

Career advancement as a motivator

It builds sustained commitment and loyalty over time.

Peter Principle risk

The risk of promoting an employee beyond their actual capability.

Risk of investing in training

Employees may leave the business after receiving training.

Support as a motivation strategy

Builds a positive workplace culture and encourages open communication.

Sanctions short-term effect

Quickly corrects poor behavior.

Commonality across motivation strategies

They all aim to improve employee motivation and performance.

Investment in training cost

Characterized by high financial cost and long-term impact.

On-the-job training advantage

It is low cost and allows the employee to remain productive.

On-the-job training disadvantage

The trainer may pass on bad habits.

Off-the-job training advantage

Provides exposure to industry best practices.

Off-the-job training productivity effect

The business loses productive time because the employee is absent.

Difference between training type locations

On-the-job occurs at the workplace, off-the-job occurs at external venues.

Theories similarity

They all acknowledge that non-monetary factors motivate employees.

Maslow's Hierarchy core structure

Hierarchical; lower-level needs must be met before higher-level needs.

Five levels in Maslow's Hierarchy

From physiological to self-actualization.

Locke & Latham's Goal Setting focus

Clear, specific, and challenging goals drive motivation.

Lawrence & Nohria's four drives

To acquire, bond, comprehend, and defend.

Lawrence & Nohria's theory order difference

Drives are independent and can be active simultaneously.

Similarity between Maslow's need and Lawrence's drive

Both recognize the importance of social needs.

Best motivation strategy for poor behavior

Sanctions.

Long-term risk of sanctions

Can create fear and damage morale.

Skills gained difference

On-the-job focuses on job-specific skills, off-the-job on broader skills.

Locke & Latham's theory hierarchy

Non-hierarchical; focuses on five elements that must be present.

Primary goal of Management by Objectives (MBO)

To align individual goals with business objectives.

Disadvantage of MBO

Goals may become outdated if the environment changes.

Subjectivity of performance appraisals

Prone to manager bias.

Limitation of performance appraisals

May not reflect full performance picture over time.

Benefit of self-evaluation

Encourages reflection and builds self-awareness.

Hawthorne effect

Behavior changes as employees are being observed.

Mediation vs. arbitration outcome difference

Mediation is non-binding; arbitration is legally binding.

Dispute resolution method adversity

Arbitration is generally more adversarial.

Primary reason for redundancy

The role is no longer needed by the business.

Primary reason for dismissal

Related to employee behavior or performance.

Difference between redundancy and resignation

Redundancy entails entitlement payouts; resignation does not.

Purpose of National Employment Standards (NES)

To provide a non-negotiable safety net of basic rights for employees.

Modern Awards vs. Enterprise Agreements scope

Modern Awards apply industry-wide; Enterprise Agreements apply to specific businesses.

Advantage of Enterprise Agreements

Offer more flexibility tailored to business needs.

Compliance requirement for awards and agreements

Both must comply with the National Employment Standards (NES).

Disadvantage of retirement for a business

Loss of experienced staff and institutional knowledge.

Dismissal as high-risk termination

Risk of unfair dismissal claims if due process is not followed.

Mediation vs. arbitration similarity

Both involve a neutral third party to resolve disputes.

Disadvantage of self-evaluation

Can be inaccurate due to self-rating biases.

Common benefit of performance management strategies

They aim to improve employee performance and achieve business objectives.

Goal-setting process of MBO participants

Both the manager and the employee are involved.

Disadvantage of employee observation for manager

It is time-intensive and can feel invasive.

Difference between dismissal and redundancy

Dismissal is personal; redundancy is structural.

Document setting minimum industry standards

Modern Awards.