Business Management Unit 3 AOS 2

Human Resource Management (Definition)

involves the organisation of the employees' roles, pay and working conditions

Motivation (Definition)

is the willingness of an individual to expend energy and effort in completing a task

Maslow's Hierarchy of Needs (Definition)

is a motivational theory that suggests people have five fundamental needs, and their sequential attainment of each need acts as a source of motivation.

Ads of Maslow's Hierarchy of Needs

- helps managers determine which level is motivating an employee

- motivation can occur quickly through the lower levels of hierarchy

- employees can work in an engaging environment

- satisfying social needs may not increase business expenses

Disads of Maslow's Motivational Theory

- Not all employees will be motivated by the same needs at once.

- It may be time consuming for a manager to determine the level of each individual employee and implement appropriate strategies for each.

- Satisfying physiological and esteem needs may result in a direct increase in business expenses.

- It is difficult to measure success, as the levels of satisfaction gained at each stage can vary among people.

Physiological Needs (Definition)

are an individuals basic requirements for human survival, such as food, water, and shelter

Safety & Security Needs (Definition)

are an individuals desires for protection from dangerous or threatening environments

Social Needs (Definition)

are an individual’s desires for a sense of belonging and friendship among peer groups, both inside and outside the workplace.

Esteem Needs (Definition)

are an individuals desires to feel important, valuable, and respected.

Self-actualisation Needs (Definition)

are an individuals desires to reach their full potential through creativity and personal growth.

Lawrence & Nohria's Motivational Theory (Definition)

is a motivational theory that suggests that people strive to balance four fundamental desires.

Ads of Lawrence & Nohria's Motivational Theory

- simple and easy for managers to implement

- All four drives can be attained simultaneously

- Satisfying drives can improve employee performance

- four drives act to motivate and engage employees

Disad's of Lawrence & Nohria's Motivational Theory

- difficult to manage four drives simultaneously.

- some drives can be overlooked
- employees may not value all drives equally

- individual employees may have different drives

- fulfilling the drive to learn can increase business expenses.

Drive to Acquire (Definition)

is the desire to achieve rewards and high status.

Drive to Bond (Definition)

is the desire to participate in social interactions and feel a sense of belonging.

Drive to Learn/Comprehend (Definition)

is the desire to gain knowledge, skills, and experience.

Drive to Defend (Definition)

is the desire to protect personal security as well as the values of the business

Locke and Latham's Motivational Theory (Definition)

is a motivational theory that states that employees are motivated by clearly defined goals that fulfil five key principles.

Ads of Locke and Latham's Motivational Theory

- aligning employee goals and business objectives improves performance

- the process of goal setting can improve trust

- aligning employee goals and business objectives achieves business's financial aims

- increased motivation if goals align with personal interests

Disads of Locke and Latham's Motivational Theory

- difficult to align personal goals with business objectives

- too many goals may cause stress
- failure to meet a goal decreases confidence and motivation

- time consuming to set and provide feedback

Key Principles of Locke and Latham's Motivational Theory

Clarity, Commitment, Challenge, Task Complexity, Feedback

Motivation Strategies (List)

Performance related pay, Career advancement, Investment in training, Support, Sanction

Performance Related Pay (Definition)

is a financial reward that employees receive for reaching or exceeding a set business goal.

Career Advancement (Definition)

is the upwards progression of an employee's job position achieved by promoting or giving them more challenging tasks.

Investment in Training (Definition)

is the allocation of resources to improve employee skills and knowledge.

Support (Definition)

is providing employees with any assistance that improves their satisfaction at work.

Sanction (Definition)

is penalising employees for poor performance or breaching business policies.

On-the-job Training (Definition)

involves employees improving their knowledge and skills within the workplace.

Ads of On-the-job Training

- employees can perform their role while training

- employees can quickly become familiar with work equipment

- less expensive

Disads of On-the-job Training

- may not have the amount of experienced staff to train employees

- employees may become distracted by the workplace

- experienced employees are taken away from other duties

Off-the-job Training (Definition)

involves employees improving their knowledge and skills in a location external to the business.

Ads of Off-the-job Training

- access to expert knowledge

- a broader range of skills can be taught or learned

- being away from the workplace minimises distractions

Disads of Off-the-job Training

- expensive

- employees are absent from work duties

- coordinating logistics of training adds complexity to process

- may not provide unique skills required by a business

Performance Management Strategies

Management by objectives, performance appraisals, self-evaluation, employee observation

Management By Objectives (Definition)

involves both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives

Ads of Management By Objectives

- Aligning employee goals with business objectives means employees are working towards business objectives

- Collaboration when setting goals fosters positive workplace relationships

- Employees feel motivated when reaching their individual goals

Disads of Management By Objectives

- employees may take shortcuts to achieve their individual objectives

- failure to achieve individual objectives is demoralising

- employees feel demotivated if they don't receive compensation or recognition after achieving objectives

Performance Appraisals (Definition)

involves a manager assessing the performance of an employee against a range of criteria, providing feedback, and establishing plans for future improvements

Ads of Performance Appraisals

- Communication during reviews increases workplace relationships

- The strategy outlines areas for improvement, allowing training to be implemented

- Communication provides employees with clear direction on how to improve performance

Disads of Performance Appraisals

- employees lose motivation from receiving multiple poor performance appraisals

- time consuming

- training courses provided increase business expenses

Self-Evaluation (Definition)

involves an employee assessing their individual performance against a set of criteria

Ads of Self-Evaluation

- manager sees an employees understanding of their strengths and weaknesses

- employees are empowered to improve performance

- saves manager time

Disads of Self-Evaluation

- Employees can be biased or dishonest

- Employees may underestimate or exaggerate their own skills

- Time consuming for managers to develop the criteria

Employee Observation (Definition)

involves a range of employees from different levels of authority assessing another employee's performance against a set of criteria

Ads of Employee Observation

- accurate analysis of performance if they are unaware

- employees observing may identify and mimic strengths

- more responsive to feedback provided by peers

Disads of Employee Observation

- Misleading results if employee is aware of observation

- Disrupts employees workflow and productivity

- Developing criteria can be time consuming

Retirement (Definition)

involves an individual deciding to leave the workforce permanently as they no longer wish to work.

Redundancy (Definition)

involves an employee no longer working for a business because there is insufficient work, or their job no longer exists.

Resignation (Definition)

involves an employee voluntarily terminating their own employment, usually to take another job position elsewhere.

Dismissal (Definition)

involves the involuntary termination of an employee who fails to meet required work standards or displays unacceptable or unlawful behaviour.

Entitlement Considerations (Definition)

are legal obligations an employer owes to its employees following the termination of their employment contact.

Transition Considerations (Definition)

are the social and ethical practises that a manager can consider implementing when terminating employment.

Workplace Relations (Definition)

is the interactions between employers and employees, or their representatives, to achieve wages and conditions that satisfy both the business and employees.

Human Resource Managers (Definition)

are individuals who coordinate the relationship between employees and management within a business

Employees (Definition)

are individuals who are hired by a business to complete work tasks and support the achievement of business objectives.

Employer Associations (Definition)

are advisory bodies that assist employers in understanding and upholding their legal business obligations.

Unions (Definition)

are organisations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions.

Fair Work Commission (Definition)

is Australia's independent workplace relations tribunal that has a range of responsibilities outlined by the Fair Work Act.

Awards (Defintion)

legal documents that outline the minimum wages and conditions of work for employees across an entire industry.

Ads of Awards

- Employees all receive the same wage and conditions

- Saves time

- Cost effective

Disads of Awards

- Limited flexibility

- Employees unsatisfied with minimum wage

- Lack opportunity for relationship with employee

Agreements (Definition)

are the legal documents that outline the wages and conditions of employees and are applicable to a particular business or group of businesses.

Ads of Agreements

Dispute Resolution Process (Definition)

is a series of steps that disputing parties follow in order to resolve a disagreement and reach a resolution.

Mediation (Definition)

involves an impartial third-party facilitating discussions between disputing parties to help each side of the conflict reach a resolution themselves.

Ads of Mediation

- Reaching decisions together promotes positive workplace relationships

- Communication breakdown is reduced

- Both parties have control of final decision

- Less expensive

Disads of Mediation

- Final decision may not be reached

- Decision is not legally binding

- Unbalanced power dynamic

- Time consuming

Arbitration (Definition)

involves an independent third-party hearing arguments from both disputing parties and making a legally binding decision to resolve the conflict.

Ads of Arbitration

- Guarantees final decision

- Decision is legally binding

- Power imbalance is reduced

Disads of Arbitration

- Workplace relationships may be harmed

- Time consuming

- Expensive

Similarities (Mediation/Arbitration)

-Individual body or party is required

- More formal than without a third party

Differences (Mediation/Arbitration)

- Role of the third party

- Control of final decision

- Who makes the decision

- Binding

- Setting