Studied by 2 people
Motivation:
factors that influence the workers' behaviour towards achieving business goals.
Factors that inuence motivation at work:
better standard of living
job security
gain experience and status
promotion
money
Benefits of a Well-Motivated Workforce
Improved productivity
Low rate of absenteeism
Low rate of labour turnover
Better quality goods and services
More profit
F.W. Taylor - Scientific Management Theory
theory that money was the only motivational factor. The piece rate method of paying production came from his research.
piece rate method
workers get paid for the number of output they produce
Disadvantages of F.W Taylor’s Scientific Management Theory
ideas too simplistic
if employees are unfullfiled with their work, productivity won’t be gained, no matter how high the wage.
If employees’ output can’t be measured, practical problems arise.
Maslow’s pyramid/hierarchy of needs
self actualisation (succeeding to your full potential, feeling that you have done a good job)
esteem needs (respect, recognition, status)
social needs (acceptance, friendships, trust)
safety needs (job security, physical danger)
physical needs (basic needs for human survival)
Disadvantages of maslow’s pyramid of needs
difficult to identify how much of the needs have been met or which level each worker is on
doesnt include money
doesnt apply to every worker
advantages of maslow’s pyramid of needs
easy to set goals and objectives
simple to understand
Fredrick Herzberg - Two-Factor Theory
people have two sets of needs:
Basic animal needs called ‘hygiene factors’
and needs that allow the human being to grow psychologically, called the ‘motivators’:
the hygiene factors need to be satisfied, if not they will act as de-motivators to the workers. However hygiene factors don’t act as motivators as their effect quickly wear off. Motivators will truly motivate workers to work more effectively.
example of hygiene factors
status
security
work conditions
company policies and administration
relationship with superiors
relationship with subordinates
salar
example of motivators
achievement
recognition
personal growth/development
promotion
work itself
methods of motivation
financial rewards
non financial rewards and methods
Financial Rewards
cash and non-cash rewards paid to workers motivate them to increase their efforts.
Hourly Wage rate:
payment to workers based on a fixed amount every hour worked.
advantages of hourly wage rate
Business only pays workers for the number of hours worked
disadvantages of hourly wage rate
Pay is not linked to how much they produce or quality
salary
Salary: fixed annual payment to specifc grades and types of staff not based on hours worked or output
advantages of salary
They do not receive more payment if they have to work long hours to complete the task
disadvantages of salary
not linked to eort or the amount produced
Piece Rate:
Payment to workers based on the number of units produced.
advantages to piece rate
Workers are only paid for the number of items produced
disadvantages to piece rate
Quality of goods may vary because of the need to produce more goods to increase pay
Commission:
Paying sales staff based on the value of items they sell
advantages to comission
Pay is linked to the value of goods sold
disadvantages to commission
Workers are never sure of how much they will earn
Bonus scheme:
an additional reward paid to workers for achieving target set by managers. Method of performance-related pay.
advantages to bonus scheme
Linked to a performance target
disadvantages to bonus scheme
If the target is unrealistic, it can be demotivating
Fringe benefits:
non-cash rewards used to recruit and retain workers and recognise certain employees' status. (insurance, healthcare)
advantages of fringe benefits
Helping recruitment and retaliation of workers
disadvantages of fringe benefits
Linked to status, not performance
Profit sharing:
an additional payment to workers based on the business's profit
advantages to profit sharing
Linked to the performance of the business
disadvantages to profit sharing
Profit to employees may reduce dividends to shareholders or the amount reinvested in the business.
Non-financial rewards and methods:
methods used to motivate workers that do not involve giving any financial rewards.
examples of non financial methods for motivation
job rotation
job enrichment
teamworking
training
opportunities for promotion
job enlargement
job rotation
workers swapping around jobs and doing each specific task for only a limited time and then changing round again
benefits of job rotation
ncreases the variety in the work itself and will also make it easier for managers to move around workers to do other jobs if somebody is ill or absent
may avoid boredom
Job Satisfaction:
: how content and happy a person is with their job
job enlargement
where extra tasks of similar level of work are added to a worker’s job description. These extra tasks will not add greater responsibility or work for the employee, but make work more interesting.
Job Enrichment:
involves adding tasks that require more skill and responsibility to a job. This gives employees a sense of trust from senior management and motivate them to carry out the extra tasks effectively.
Teamworking:
group of workers is given responsibility for a particular process, product or development
can decide as a team how to organize and carry out the tasks
gives them more control over their work and thus a sense of commitment, increasing job satisfaction
training -
providing training will make workers feel that their work is being valued. Training also provides them opportunities for personal growth and development, thereby attaining job satisfaction
opportunities for promotion
providing opportunities for promotion will get workers to work more efficiently and fill them with a sense of self-actualisation and job satisfaction
Delegation:
passing responsibility to perform a task to workers lower down in the organisation.
Benefits of decrease in labour turnover:
There is no need to hire new employees, decreasing recruitment costs, training costs, and retaining skilled employees. This improves productivity.
Organisational Structure:
refers to the levels of management and division of responsibilities within a company.
advantages of organisational structures
All employees are aware of which communication channel is used to reach them with messages
Everyone knows their position in the business. They know who they are accountable to and who they are accountable for
It shows the links and relationship between the different departments
Gives everyone a sense of belonging as they appear on the organizational chart
span of control is
the number of subordinates working directly under a manager in the organizational structure
Chain of command -
the structure of an organization that allows instructions to be passed on from senior managers to lower levels of management
The wider the span of control
the shorter the chain of command
There are two types of organisational structures of a business:
tall structure
short structure
tall organisational structure
the longer the chain of command is, the ‘taller‘ the organisational structure and the ‘narrower‘ the span of control.
disadvantages of tall organisational structure (long chain of command)
communication slower and less accurate
decision making will take longer
More expensive because of additional management layers.
longer lines of communication can make the firm less responsive to change
advantages of tall organisation structures (long chain of command)
more opportunities for promotion which can lead to greater staff motivation
higher degree of supervision as each line manager has a limited number of people they are responsible for
staff gain more support from their line manager
staff are closer
advantages of short/flat organisation structures (short chain of command)
Communication and decision-making are quicker.
Fewer management levels to build connections with by the top management.
The span of control will be wider, encouraging managers to delegate more and allowing workers to feel trusted.
Flat/short Structure:
when a chain of command is short, the organisation will have a ‘wider’ span of control,
disadvantages of short/flat organisation structures (short chain of command)
wide span of control means that tasks must be delegated, which can lead to employees feeling stressed and managers feeling overstretched
less promotion opportunities within a flat structure, which may lead to the company losing staff to other organisations
Line Managers
have authority over people directly below them in the organizational structure.
Staff Managers are
specialists who provide support, information and assistance to line managers. The IT department manager in most organisations act as staff managers.
Factors acting the size of the span of control:
Difficulty of the task
The experience and skill of workers
The size of the business the level of hierarchy Management style
delegation advantages
Application of job enrichment, leading to job satisfaction
A form of training for junior managers
Achieving the Esteem needs
delegation disadvantages
Some managers are reluctant to delegate, as they will be held accountable for any errors
Managers lose some control over subordinates
primary roles of managers
planning - setting aims and targets for the organisations/department to achieve
organising - decide the best way of completing important tasks at the lowest possible cost to the business
coordinating - - Making sure that all the different parts of the business are working together to achieve the business’s goals and corporate objectives.
commanding - need to guide, lead and supervise their employees in the tasks they do and make sure they are keeping to their deadlines and achieving targets.
controlling - must try to assess and evaluate the performance of each of their employees.
Extra functions managers do:
Understand the people who work for them
Set a good example
Delegate tasks
Treat subordinates fairly
communicate effectively
Directors:
senior managers who lead a particular department or division of a business
responsibilities of a director
Setting strategy (long-term plans)
Reviewing the performance of managers.
Provide leadership
Making sure resources are available
Supervisors:
junior managers who supervise and are responsible for the employees below them in the organisational structure.
delegation advantages to managers
managers cannot do all work by themselves
managers can measure the efficiency and effectiveness of their subordinates’ work
delegation advantages to subordinates
the work becomes more interesting and rewarding- increased job satisfaction
employees feel more important and feel trusted– increasing loyalty to firm
can act as a method of training and opportunities for promotions, if they do a good job.
leadership styles
the different approaches to dealing with people and making decisions when in a position of authority.
3 different types of leadership styles
autocratic
democratic
Laissez-Faire
autocratic leadership
managers expects to be in charge of the business and have their orders followed.
They do all the decision-making, not involving employees at all.
Communication is one way- from top to bottom.
democratic leadership
where managers involve employees in the decision-making
communication is two-way from top to bottom as well as bottom to top.
final decision is made by the manager.
Laissez-faire leadership
makes the broad objectives of the business known to employees and leaves them to do their own decision-making and organize tasks.
Communication is rather difficult since a clear direction is not given.
The manager has a very limited role to play.
autocratic leadership advantages
Quick decision-making process
autocratic leadership disadvantages
no opportunity for employee input into key decisions, which can be demotivating
democratic leadership advantages
Better Decisions could result from consulting with employees using their ideas and experiences.
democratic leadership disadvantages
Unpopular decisions could not effectively be made using this style
Laissez-Faire Leadership advantages
Encourage employees to show creativity and responsibility
Laissez-Faire Leadership disadvantages
unlikely to be appropriate in organisations with a consistent and clear decision making structure.
trade union
group of workers who have joined together to ensure their interest are protected
role of trade unions
Negotiating with employers to improve pay and working conditions.
Resolving conflict by negotiating a solution on behalf of its members
Providing legal support and advice.
Benefits to workers of joining a trade union
strength in number- a sense of belonging and unity
improved conditions of employment
improved working conditions,
improved benefits for workers who are not working, because they’re sick, retired or made redundant
financial support
benefits that have been negotiated for union member such as discounts, services
Disadvantages to workers of joining a trade unions:
costs money to become a member
Workers may be required to take industrial actions even if they disagree.
Role of H.R
Recruitment and selection
Wages and salaries
Industrial relations
Training programmes
Health and safety
dismissal
Recruitment is the
process from identifying that the business needs to employ someone up to the point where applications have arrived at the business.
Employee Selection:
the process of evaluating candidates for a specific job and selecting an individual based on the organisation's needs.
recruitment process
job analysis - identifies and records the responsibilities and tasks relating to a job
job description - outlines the responsibilities and duties to be carried out by someone employed to do the job.
job specification - document that outlines the requirements, qualifications, expertise, skills, physical/personal characteristics etc. required by an employee to be able to take up the job.
advertise the vacancy
Send out application forms to the applicants or read curriculum resumes and letters of application.
Produce a shortlist from the applications for interviews and take up references.
. Hold interviews and selection of task
Select suitable applicants and oer them the job. Reply to unsuccessful applicants.
functions of. a job description
Given to applicants so they know exactly what the job entails.
Allows a job specification to be drawn up to see if they are skilled.
It shows if an employee is working effectively once they are employed.
The contents of a Job description:
Condition of employment salary, hours, permission, etc.
Training that will be offered
Opportunities for promotion
Purpose of the job
Main duties/addition or occasional duties
usual requirements for a job specification
The level of educational qualification
Special skills, knowledge, or a particular attitude
Personal Characteristics
Internal recruitment is when
a vacancy is filled by an existing employee of the business.
advantages to internal recruitment
Quicker and cheaper than external recruitment.
reliability, ability, and potential of the person are known
person is already familiar with the organisation's structure and expectations
can be a motivator for other employees
disadvantages to internal recruitment
No new ideas or experiences come into the business.
rivalry or jealousy
External recruitment is when
a vacancy is filled by someone who is not an existing employee and will be new to the business.
advantages of external recruitment
fresh perspectives and idea into the business
Reduce tension between employees
Enhancing diversity in the organisation
disadvantages of external recruitment
increased costs due to advertising
additional training
transitional period
effects on employee morale
Advertising job vacancies can be done in several ways:
Local or national newspapers
Specialist magazines
Online recruitment sites
Recruitment agencies
Centers run by the government
Note 
Flashcard (212)