Studied by 0 peopleWhy people work
Money, job satisfaction, passion, security
Motivation in business
Want to work, look for extra work, want to improve, barely take time off
Motivational theories
Maslow’s hierarchy, Taylor and Herzberg’s theories
Maslow’s Hierarchy
Each level of the hierarchy must be achieved before an employee can be motivated by the next level.
Taylor’s theory
All individuals are motivated by personal gain, if workers are paid more, they will work more effectively
Herzberg’s theory
Humans have two sets of needs, basic needs (hygiene factors) and motivational needs (motivators)
Hygiene factors
Basic needs
Motivational needs
For a human being able to grow psychologically.
Hygiene factors e.g.
Status, security, work conditions, work/life balance
Motivational needs e.g.
Recognition, advance/promotion, personal growth/development
Motivating factors
Financial rewards, Non-financial rewards (fringe benefits)
Financial reward
Are used to provide incentives to employees to encourage them to work harder and effectively
Non-financial reward (fringe benefit)
Non-money related incentives given to employees to motivate them
Financial reward e.g.
Wages (time rate or piece rate), salaries, additional payments
Non-financial rewards e.g.
Company vehicle (car), healthcare paid for, children’s education fees paid for, free accomodation (housing allowance)
Non-financial methods e.g.
Job enrichment, job enlargement, job rotation
Job enrichment
Adding tasks that require more skill and/or responsibility
Job rotation
Workers swapping around and doing each specific task for only a limited time before swapping round again
Teamworking
Using groups of workers and allocating specific tasks and responsibilities to them
Training
The process of improving a worker’s skills
Job satisfaction
The enjoyment from feeling that you have done a good job
Promotion
The advancement of an employee in an organisation to a higher job/managerial level
Job satisfaction e.g.
Pay, opportunities for promotion, working conditions, the way the employee is treated
Organisational chart
A diagram to show the levels of management and division of responsibilities
Span of control
The number of subordinates directly under a supervisor
Chain of command
How instructions/messages are passed down the organisational chart
Flat structure
Wide span of control, a short chain of command
Tall structure
Narrow span of control, a long chain of command
Delegation
The passing down of authority to complete a task to a subordinate
Delayering
The removal of one or more layers of the organisational structure
Functions of a manager
Planning, Organising, Commanding, Coordinating, Controlling
Planning
Setting aims and targets for the future to give the organisation a sense of direction
Organising
Tasks are delegated to others in the organisation, and it is the manager’s responsibility to organise people and resources effectively
Commanding
Making sure that all supervisors and workers are keeping to targets and deadlines by guiding and supervising them
Coordinating
‘Bringing together’ by making sure that all departments in an organisation work together to achieve goals set by the manager
Controlling
Measuring and evaluating the work of individuals and groups to make sure they are on target, monitoring performance
Importance of having good managers
Motivate employees, to give guidance and advice, to keep costs under control, to increase profitability
Leader
A person who can inspire and get the best out of others, by getting them to work towards a common goal
Leadership styles
Autocratic, Democratic, Laissez-faire
Autocratic
Where the manager expects to be in charge of the business and to have their orders followed, one-way communication
Democratic
Gets other employees involved in the decision making process, two-way communication
Laissez-faire
Managers make the objectives of the business known to the employees but then employees make their own decisions and organise themselves
Trade union
A group of workers who have joined together to ensure their interests are protected
Benefits of joining trade unions
Strength in numbers, Improved working environment, Improved job satisfaction
Disadvantages of joining trade unions
Have to pay a subscription to be a member, may be forced to take industrial action (strikes) even if you don’t agree with it or can’t afford to
Recruitment
To find/attract/convince someone to come and work for you
Why businesses need to recruit
Employees leave, to cover maternity leave, an employee is promoted, business expands
Stages of recruitment
Identify the vacancy 2. Job description 3. Person specification 4. Job advertisement 5. Longlist and shortlist applicants 6. Interviewing the candidates 7. Selecting and appointing the candidate
Internal recruitment
Recruitment from within a firm
External recruitment
Recruitment from outside the firm
Internal recruitment benefits
cheaper and quicker to recruit, employee knows the business
Internal recruitment drawbacks
Limits number of potential applicants, creates a new vacancy which needs to be filled
External recruitment benefits
No limit to the number of potential applicants, new idea introduced
External recruitment drawbacks
Expensive and takes longer to recruit, business doesn’t already know the strengths and weaknesses of candidates
Longlist applicants
All the people that apply for the job
Shortlist applicants
The people the business wants to interview
Full-time employees
Employees who work 35-40 hours a week e.g. teachers
Part-time employees
Employees who work less than 35-40 hours a week e.g. students
Benefits of full-time employees
Need less staff, easier to manage fewer staff, more involved in the business
Benefits of part-time employees
Saves on wages, costs and additional benefits, more flexible
Drawbacks of part-time employees
Take longer to recruit as more workers are required, less committed to the business, more likely to leave
Importance of training
Better customer services, improves output and quality of products, understand the business better
Benefits of training to the employee
May get increased pay, improved chance of promotion, easier to apply for jobs at other businesses
Benefits of training to the business
Increased productivity, motivated workers, greater flexibility of the workforce
Induction training
When you are new to a job, you are introduced to the job and told of your expectations. It can last for several days
Induction training benefits
helps new employees settle into their job quickly, workers are less likely to make mistakes
Induction training drawbacks
Time consuming, delays the start of the employee starting their job
On-the-job training
A person is trained by watching a more experienced worker doing the job
On-the-job training benefits
Is tailored to the specific needs of the business, cheap
On-the-job training drawbacks
The trainee may pick up bad habits from watching the trainer, training qualifications may not be recognised outside of the business
Off-the-job training
Workers leave the workplace to learn about their job or industry
Off-the-job training benefits
Broad range of skills can be taught using these techniques
Off-the-job training drawbacks
Costs are high, wages are being paid but the worker is not working, additional qualifications make it easier for the employee to leave for another job
Dismissal
Losing your job because of something you have or have not done
Downsizing
Making the business smaller
Redundancy
Worker’s job no longer exists
When downsizing is necessary
Reduced demand for products, takeover/merger, automation
Who to make redundant
Length of time employed by the business, employment history of the worker, voluntary redundancy
Employees need protection
Against unfair discrimination at work, health and safety at work, against unfair dismissal, wage protection (minimum wage)
One-way communication
Communication that does not allow for a response e.g. television, radio
Two-way communication
Communication is a process by which to people or groups communicate with each other e.g. text message, email
Communication
To pass on or share information
For communication to be effective:
Information given should be simple and clear, should be between the right people, communication method should be appropriate
Internal communication
Communication between people in the same organisation
External communication
Communication between people in different organisations
Methods of communication
Written, Verbal, Visual
What to consider when communicating
The cost, how detailed the message is, who the receiver is, the urgency in getting the message to the receiver
Verbal communications
Speaking on the phone, meeting, telephone conferences, face-to-face conversations
Written communications
Emails, financial documents, minutes taken in meetings, letters, reports
Visual communications
Graphs and charts, advertisements, catalogues and brochures, videos and powerpoints
Communication barriers
Factors that stop effective communication
Barriers to communication
Time differences, language barriers, chain of command is too long, method of communication
Formal communication
Messages are sent through established channels using formal language e.g. letters
Informal communication
Information is sent and received casually using everyday language e.g. worker communicating with colleague
Note 
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