Business Management U3 AOS2

Human resource management

is the organisation of employees' roles, pay, and working conditions. ​can retain employees, increase motivation, and job satisfaction

Motivation

is the force that drives people to exert effort over a period of time.​ If businesses can find ways to motivate employees, it should lead to improved staff morale, greater productivity and greater success in achieving business objectives.​

Lawrence and Nohria’s Four Drive Theory

is a motivational theory that suggests thatpeople strive to balance four fundamental desires. It highlights four universal driveswhich can be applied to business settings to understand employee motivation, relatingto their desires to acquire, bond, learn, and defend.​

drive to acquire

is the desire to achieve rewards and high status. In a business setting, the drive to acquire motivates employees who want to receive financial rewards and non-financial rewards in recognition of their effort and performance.

drive to bond

is the desire to participate in social interactions and feel a sense ofbelonging. Employees that are motivated by the drive to bond seek to engage in socialactivities with other people and develop positive relationships.​

drive to learn

is the desire to gain knowledge, skills, and experience. Employees that are motivated by the drive to learn seek to improve their capabilities at work through training, mentoring, and taking responsibility for new tasks.​

drive to defend

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

Maslow’s Hierarchy Of Needs

1. Self Actualisation needs - the need for self fulfilment

2. Esteem needs - the need to respect oneself and be respected by others

3. social needs - having a supporting family, friendships, intimacy

4. safety needs - financial security, safe from crime, health and wellbeing

5. physiological needs - drinking, eating, breathing

Maslow believed

• Human needs are deficiencies that a person feels compelled to satisfy.​

• Needs are arranged in a hierarchy, where people begin with the lowestlevel of needs.​

• Once a needs is satisfied, it stops being a motivator of behaviour.​

• People then seek to satisfy needs higher up the hierarchy. ​

Locke and Latham’s Goal Setting Theory

is a motivation theory that states that employees are motivated by clearly defined goals that fulfil five key principles – clarity, commitment, challenge, complexity, and feedback. ​

Clarity​

When managers are setting goals with employees, it is essential that goals are clear and specific

Commitment​

• It is essential that the employee commits fully to the goal through to its completion. To increase the likelihood of commitment, managers can ensure that the employee has input in the decision-making process.​

Challenge

• Goals need to be challenging or difficult because people tend to exert more effort and try harder (i.e., they are more motivated) to attain more difficult goals. ​

Complexity​

• While goals should be challenging, it is important that the level of complexity does not overwhelm the employee.​

Long Term Motivation strategies

employee motivation generally requires employees to have a high level of job satisfaction that acts as a source of motivation over a sustained period of time. A business can create a positive work environment when employees consistently feel valued and have strong relationships with management and their colleagues in the workplace.​

short-term

effect on employee motivation business and boost employee performance over a short period of time. Short-term motivation strategies are usually easy to implement in a business and there fore can be quickly used by managers to rapidly increase employee motivation.​

Performance-related pay

is a financial reward that employees receive for reaching or exceeding a set business goal. Employees are motivated by performance-related pay as it links their performance to increased remuneration

Career advancement

is the upwards progression of an employee’s job position. This can be achieved through promoting employees or giving them more challenging tasks.​

Investment in training

is allocating resources to improve employee skills and knowledge. It equips employees with the expertise required to perform at a higher level and can motivate them by providing opportunities to develop their abilities through their work. ​

Support

involves providing employees with any assistance that improves their satisfaction at work. Support motivates employees as it allows them to feel valued, understood, and considered by their managers

Sanction

involves penalising employees for poor performance or breaching business policies. Employees are motivated by sanctions as they fear punishment for failing to fulfil a business’s expectations. When sanction strategies are utilised, employees are more likely to abide by the business’s policies, minimise errors, and put effort into their work. ​

Termination

is the process whereby a business ends its employment relationship with an employee. Employees may leave a business for various reasons, some of which are voluntary, whilst others are out of their control. ​

Retirement

occurs when an employee decides to permanently leave the paid workforce. ​(no hard or fast retirement age)

Redundancy

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

Voluntary redundancy

occurs when a business allows employees to nominate themselves to become redundant after the business announces that this process will occur. Employees are often enticed by financial incentives to nominate themselves for voluntary redundancy. ​

Involuntary redundancy

occurs when a manager notifies employees that their position in the business has been made redundant, providing them with no choice in the matter.​

Resignation

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

Dismissal

involves the involuntary termination of an employee who fails to meet required work standards or displays unacceptable or unlawful behaviour. Informally, this is known as ‘firing’ or ‘sacking’ of an employee. ​

Transition considerations

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

performance management

• is the system used to improve organisational, departmental, and individual performance through linking the objectives of each.​

Management by objectives

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

Performance appraisals

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

Self-evaluation

provides an opportunity for the employee to reflect upon their performance against a set criteria. They assess their level achievement towards individual and business objectives. ​

Employee observation

is useful to seek a variety of opinions on the performance of employees against a set criteria. The aim is to get feedback from a variety of different parties in order to arrive at a more comprehensive picture of past and current performance.​

Training

is the process of providing staff with the knowledge and/or skills required to undertake a particular job. Training can either occur on-the job (onsite) or off-the-job(externally). ​

On-the-job training

involves employees improving their knowledge and skills within the workplace.

Off-the-job training

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

Workplace relations

historically referred to as industrial relations, is concerned with the contractual, emotional, physical and practical relationship between employer and employee.​

Human resource managers

are individuals who coordinate the relationship between employees and management within a business. These individuals are involved in several processes within a business, including the employment of staff, dispute resolution, and upholding legal requirements.​

Employees

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

Employer associations

are advisory bodies that assist employers in understanding and upholding their legal business obligations. Employers can apply to become part of an association to improve their legal protection and gain assistance when negotiating their employees’ wages and conditions.

Unions

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

Fair Work Act 2009, an Australian law created to ensure the rights of employees are protected. These rights include the right to engage in industrial action and the right to be protected from unlawful discrimination.​

Awards

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

Agreements

are legal documents that outline the wages and conditions of employees and are applicable to a particular business or group of businesses. The process of establishing an agreement for a group of employees is known as collective bargaining.​

Industrial action

such as strikes are no longer legal during the term of the agreements. Such action can occur once an agreement has expired if both parties fail to agree on a revised arrangement. These actions must however be applied for an approved via the FWC

dispute

is a conflict between workplace participants as a result of a disagreement.​

dispute resolution process

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

Mediation

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

Arbitration

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