1.4 business a level edexcel

staff as an asset

can increase productivity, drive innovation and enhance customer service- all of which contribute to the success and profitability of the business

can help build a positive reputation for the business through their interaction with customers, suppliers and stakeholders

examples: value employees, concern over welfare, reasonable holidays and sick leave, safe environment, training recognition and promotions

staff as a cost

-training and hiring workers, managing, pay, benefits, redundancies

examples: minimum wage, zero-hour contracts, neglected training, minimum employee rights, penalties, cheap recruitment

multiskilling: advantages, disadvantages

• training employees to fulfil multiple job roles

• advantages: workforce utilised more efficiently (reduced labour costs and increased productivity)

  improved customer service outcome as employees have a larger range of skills

• disadvantages: may require significant investment in training and development

  may not be appropriate for all job roles (jobs that require high expertise)

part time

• may only work a couple days a week

• advantage; attracts and retains talent like staff who value work life balance

  improved productivity as staff can work during most productive hours

• disadvantages: creates challenges in terms of collaboration communication

  monitoring and managing flexible workers can be more difficult

temporary work

• shows up fro work whenever businesses need them (amazon and seasonal workers)

• adavantges; lower costs for tempoarary employees

flexibel working

• employees have options in terms of workin time, location and pattern of working

• advantages: more motivation, lower cot, less training, more attractive job fro applicants, greater productivity

• disadvantages: more complex to manage, loss of capaity if employees reduec hours

homeworking

• working from home, remotely

• advantages: less employment costs, more attractive, greater productivity

• disadvnatges: investment in technology requires

• potential impact on motivation from isolation and larger struggke between work/ life balance

• more complex to manage

outsourcing

• obtaining a good or service by contrcat from an outside supplier, allows teh company to produce products at a lower cost and maintain competitiev pricing (apple outsocures manafacturing to foxconn in china)

• advantages: may allow business to acces specialised kskilles that may not be availible in hosue

• may reduce labour costs

• disadvanatges: loss of control over quality and delivery

• can create ethical concerns if country tehy oursource from has human right lower stnadards

distinication between dismissak and redundancy

dismissal is the termination of employement by and employer against teh will of teh empliyee: due to misconduct or poor perfomance

redundancies is when employees are made redundant when tehir job is no longer available and the bsuiness reduces the size of its workforce : not due to fault of employee, employer must follow cerain legal procedures including compensation

employee/ employer relationships: indiivual approach

focuses on their relationship

assumes eac employee is unique with their own goals motivation and interests

emphasises need for tailored compensation packages to cater to empoyees unique skills adn needs

voluntary agreement between teo parties in whcih both negotiate tehir respective roles

employer had the power to hire, fire and set teh terms and conditions of employment

employee/ employer relationship: collective bargaining

group of employees (represnetd by a trade union) negotiate fro better wages, working conditions and benefits

employees ahve more bargaining power when they negotiate collectively rather than as indivuals

employment relationship is senn as a power struggle between two parties wwith conflicting interests : employer wanst to maximise profuts, employees want to maximise wages and benefits

union acts as a collective voice on behalf of all workers

recruitment definition

proccess of attrcatin and identifying potential job candidates who are suitable for a partivular role: advertising, fairs, social media nad refferals

goal is to create a pool of qualified candidates

selection definition

often involve reviewing cvs and conducting interviews or assemnt atsk

gaoal is to hire the most suitable candidate for the job

recruitment and selection proccess

1. define the role: job soeciifation and job descriptionn

2. determine the best source if candidates: internal/ external

3. advertise: specalist recruitment portals, use of platforms

4. receive applications: collect information, CVs, create shortlist

5. selection proccess: intervieas and assesmnet tasks

internal recruitment

hiring employees from within the organisation, can be beneficial as it encourages employee development, builds morale and can save time on money and traiing

external recruitment

proccess of hiring employees from outsdue the organsiation, can bring fresh ideas, exoeriences and perspectives to the organsiation

recruitment costs

• expenses incurred in teh proccess fo hiring new employees

• advertising, recruiting, interviewing, and screening candidates

• high labour turnover rates can significantly increase thses costs: when employees leave teh bsuiness they ahve to spend mooney and time recruiting and training new employees

training costs

• expenses incurred in teh procees of proviidnhg training to new or existing employees

• include cists of trainers, training materials and facilities

• effectiveness of training can impact tese costs: if its no effective employees may require additional training or take longer to learn new skills which can increase teh cost of training

selection cost

refers to the expenses incurred in the process of selecting candidates for employemnet

include background checks and visa costs

high labour turnover rates can increase selction costs as the business has to spend more regularly

induction training

training that new employees receive when they start working for a company: introduces them to the company (culture, policies and procedures, job and responsibilities)

advanatages: helps new employees understand their job roles and responsibilities, introduces employees to the businesses cultures, improves confidence and motivation, reduced time fro employee to become productive

disadvantages: time consuming and expensive to organise, may not cover all aspects of the job roles, may not be effective in all cases leading to employee dissatisfaction and higher turnover rates

on the job training

employees are working in their job roles: allows employees to learn new skills and knowledge while doing their job duties

advantages: learn new skills and knowledge, tailored to the employees job role and responsibilities, training is more often mroe practical and relevant to duties, can be cost effective

disadvantages: may make mistakes whcih can impact productivity and quality, requires trainer to devote time to trainee, may nto be effective in all cases, leading to employee dissatisfaction and higher turnover rates.

off the job training

training that takes place outside of work; seminars, workshops, conferences, online courses

advantages: learn new ideas outside the workplace, which can bring in new ideas, can be tailored to specific employee needs, training can be used as a reward or incentive, can be cost effective

disadvantages: expensive to organise, may lead to missing work which can impact productivity, may not be directly applicable

hierarchy

refers to the levels of authority within an organisation

It describes the ranking of positions from top to bottom

The higher the position in the hierarchy,the more authority and power it holds

The hierarchy usually includes top-level management,middle-level management, and lower-level employees

chain of command

The chain of command is the formal line of authority that flows down from the top management to lower-level employees

It defines who reports to whom and who is responsible for making decisions

The chain of command helps to establish a clear communication channel and helps to maintain accountability within the organisation

span of control: narrow and wide

Span of control refers to the number of employees that a manager can effectively manage

It is based on the principle that a manager can only effectively manage a limited number of employees

A narrower span of control means that there are more layers of management

A wider span of control means that there are fewer layers of management

centralised

decision-making authority is concentrated at the top of the organisation with senior management making most of the decisions

decentralised

decision-making authority is distributed throughout the organisation,with lower-level employees having more decision-making power

Decentralisation can promote flexibility and innovation,while centralisation can promote consistency and control

tall structure

Characterised by multiple levels of management and a more centralised decision making process. A long chain of command. Common in large organisations with complex operations e.g. government agencies and universities

flat structure

Characterised by fewer levels of management and a more decentralised decision-making process. A short chain of command. Common in small organisations or start-ups e.g.tech start-ups and small businesses

matrix structure

The structure is usually built around specific products or projects e.g. KitKat has its team within Nestlé. It combines the functional areas of a business (HR, finance,marketing, sales) with a specialist team that operates inside the business

advantages and disadvantages of a tall structure

advantages: Provides a clear hierarchy of authority and defined roles and responsibilities, Promotes specialisation, Offers opportunities for promotion , All increases efficiency and motivation

disadvantages: Can create communication barriers between hierarchy, Decision-making can be slow, This can lead to bureaucracy and excessive levels of management, All reduce efficiency and motivation

advantages and disadvantages of a flat structure

advantages: Promotes open communication and collaboration, Decision-making can be faster, employees have more autonomy and flexibility, increases efficiency and motivation

disadvantages: lead to role ambiguity and a lack of a clear hierarchy, May not provide clear opportunities for promotion, may require employees to have multiple roles and responsibilities leading to burnout, reduce efficiency and motivation

advantages and disadvantages of a matrix structure

advantages: cross-functional collaboration and communication, Allows for specialisation and within each area, Enables efficient allocation of resources and coordination of multiple projects, increases efficiency and motivation

disadvantages: lead to conflicts over priorities and resources, confusion over roles and responsibilities particularly when multiple managers are involved, Requires a high degree of communication and coordination,which can be challenging, reduce efficiency and motivation

motivation definition

Motivation refers to the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome

Motivation can be intrinsic,coming from within a person (values,beliefs etc)

Motivation can be extrinsic,coming from external factors (rewards or punishments)

The importance of employee motivation to a business

productivity:

Motivated employees are more productive and efficient as theyare more likelyto be engaged in their work and take initiative to meet or exceed theirgoal, higherlevels of output and quality, higher profits forthe business

reliability of workers:

Motivated employees are more likelyto be reliable and dependable, They take pride in theirjob, show upon time,meet deadlines, and take fewer sick days, increased trust between the business and its employees and higher productivity

turnover rates:

Motivated employees are more likely to stay with the company long-term which reduces the turn over rate, Lower turn over rates reduce the need for costly recruitment and training

Taylor’s scientific management motivation theories

Developed in early 20th century

focuses on breaking down complex tasks into simpler ones, standardising work processes, providing workers with clear instructions and training to achieve maximum efficiency

Many manufacturing businesses use Taylor's principles to structure their staff benefits e.g.piece rate pay

Production lines involving human labour are often set up based on these principles

1.Study and analyse the work process

Break down complex tasks into simpler ones

2.Standardise the work process

detailed procedures and instructions for each task

3.Select and train workers

Workers should be carefully selected based on their skills and abilities. training includes technical skills and the behaviours required

4.Provide incentives for performance

Scientific management emphasises the use of incentives to motivate workers: bonuses or piece-rate pay

how businesses use taylor’s approach

Workers are trained to perform only one task which they become very skilled at. Workers are usually only paid for the completed work (piece rate pay)e.g.$0.16 per T-shirt completed by garment workers in Bangladesh

advantages and disadvantages of taylor’s approach

advantages: Increased efficiency which lowers costs, Standardised procedures help reduce errors and inconsistencies, Specialisation of labour leads to greater efficiency and productivity, Clear hierarchy and lines of authority leads to more efficient decision-making and communication, Improved training and development can lead to better performance and job satisfaction

disadvantages: emphasis on efficiency reduces worker satisfaction, may disengage from work if they work in a machine-like system, Limited applicability as this approach may not work for roles that require high levels of creativity, problem- solving, or interpersonal skills, Potential for exploitation e.g 'sweat shop' labourers get paid using this method

Mayo’s human relations theory

developed by Mayo in the 1930’s and focuses on the importance of social factors in the workplace, such as communication,motivation,and job satisfaction, suggests that the key to improving productivity and job satisfaction lies in understanding and improving the relationships between workers, supervisors, and management

advantages and disadvantages of mayo’s approach

advantages: Improved job satisfaction, Increased productivity as workers feel valued and supported, Better communication as workers value open communication which reduces conflicts, Employee empowerment increases worker's sense of responsibility, Stronger teams as there is a sense of community and team spirit

disadvantages: Time-consuming as building relationships requires time, Lack of control as workers make more decisions, Resistance to change as some workers may be resistant to the changes by Mayo's theory, Potential for conflict as attempts to build stronger relationships can lead to conflicts, Limited applicability as it may not work for businesses which require a high degree of individual autonomy

how businesses use mayo’s approach

Empowering employees in decision-making e.g, creating teams which decide their priorities

Team-building activities are used to build relationships Providing feedback and recognition to employees e.g Worker of the Week

Creating a positive work environment by promoting open communication and providing support to employees e.g.offering

wellness programs

Encouraging employee development by offering training programs, mentorship opportunities,and career advancement paths

maslows hierarchy of needs

Maslow's Hierarchy of Needs is a theory of human motivation that outlines five tiers of human needs that must be met for individuals to reach their full potential: self-actualisation, esteem, belonging, safety, physiological

Maslow's Hierarchy of Needs applied to business

1.Physiological Needs

Businesses can provide necessities for their employees e.g comfortable work environment, water, food, breaks

2.Safety Needs

Businesses can provide job security, fair pay, benefits, and safe working conditions for their employees

3.Love and Belonging Needs

Businesses can encourage teamwork and community in the workplace, recognition for employees' accomplishments, a positive work culture that values individual contributions

5.Self-Actualisation Needs

Businesses can help employees achieve this need by opportunities for employees to pursue their passions and interests e.g Barclay's was known for supporting elite sportspeople (the focus was on getting the job done, not having to be in at a certain time)

maslows hierarchy of needs advantages and disadvantages

advantages:

Higher employee satisfaction: meeting the needs of employees businesses can lead to increased productivity and lower turnover rates, increased motivation

Businesses can motivate their employees by offering incentives that align with their specific needs and desires

Employees who feel valued and supported by their employers are more likely to perform at a higher level

disadvantages:

One size does not fit all:Businesses need to tailor their approach to individuals, Expensive, Requires significant effort from management to connect

herzberg two factor theory

Herzberg's theory suggests that there are two types of factors that affect employee motivation and job satisfaction - hygiene factors and motivators

Hygiene factors are elements that do not necessarily lead to job satisfaction,but their absence can cause dissatisfaction which decreases motivation e.g poor teamwork in the workplace

Motivators are elements that lead to job satisfaction and motivation e.g.increased responsibility

How businesses can use hygiene factors to decrease dissatisfaction

Pay fair wages/salaries

If not paid a fair wage for their work, they may become dissatisfied and demotivated

Offer excellent working conditions

If the workplace is dirty, unsafe,or uncomfortable,employees may become dissatisfied and demotivated e.g Google has a reputation for providing good workplaces which include gourmet restaurants, laundry services and dog care

Offer employment contracts which provide job security

If employees feel that their job is not secure,they may become anxious and demotivated and contribute less to the business goals

How businesses can use motivating factors to increase satisfaction

Build a recognition and rewards culture

employee recognition for their hard, they are motivated to continue performing well e.g.Sales person of the month award

Offer opportunities for growth and development

When employees are given opportunities to learn skills and advance, they are motivated to continue working for the company e.g. set in place a 3 year growth plan which helps the worker move towards role

Provide challenging work which requires problem solving

When employees are given challenging work that allows them to use their skills and abilities,they are motivated to continue performing well

piecework

Employees are paid according to the number of units or pieces they produce. Commonly used in manufacturing or assembly-line settings and encourages workers to produce more and increase their output. linked to Taylor’s scientific management through its focus on maximising worker output and efficiency

commission

A percentage of sales revenue paid to workers who sell products or services. Commonly used in sales roles and motivates staff to sell more and increase their sales revenue. hygene factor in hertzbergs, esteem needs in maslows hierarchy

bonus

An additional payment is given to staff as a reward for achieving specific goals,completing projects on time,or exceeding performance expectations Motivates staff to work harder an achieve better results

hygeiene factor in hertzbergs

esteem needs in maslows hierarchy

profit share

A portion of the company's profits are distributed among staff which encourages them to think like owners,work collaboratively and focus on the company's overall goals

Motivator in Herzberg's as it creates buy in to increased responsibility

performance related pay

Staff are paid based on their performance which (theoretically) motivate staff to work harder and achieve better results

This form of payment has been severely criticised as discriminatory and open to abuse by managers

Hygiene Factor in Herzberg's theory- and has been proven to cause significant dissatisfaction when utilised

delegation

Involves transferring responsibility from a manager to their staff. Gives employees a sense of ownership and control over their work, which can lead to improved productivity. Maslow's 'Esteem' Needs as staff contribution is valued

A 'motivator' in Herzberg's Two Factor Theory(increase in responsibility)

consultation

Involves seeking the input of staff on decisions that affect their work. This inclusion can increase staff engagement and commitment, leading to improved productivity. Maslow's 'Esteem' Needs as staff contribution is valued

empowerment

Involves giving staff the authority and resources to make decisions and take action without first receiving management approval

Increases staff sense of ownership and responsibility, leading to improved productivity

Maslow's 'Esteem' Needs as staff contribution is valued

A 'motivator' in Herzberg's Two Factor Theory (increase in responsibility)

teamworking

Involves creating opportunities for staff to work collaboratively. Staff can share ideas and expertise, leading to improved productivity and innovation.

Mayo's Human Relations Theory encourages teamwork

flexible working

Involves providing staff with the option to work remotely, or to adjust their hours to suit their lifestyle

Can increase staff satisfaction and work-life balance leading to improved productivity and reduced turnover

Maslow's 'Self Actualisation' as schedules can be adjusted to allow staff to attack their aspirations

A 'motivator' in Herzberg's Two Factor Theory(personal growth)

job enrichment

Involves adding more challenging or meaningful tasks to a job. Staff feel more motivated and engaged, leading to improved productivity

Mayo's Human Relations Theory as it encourages the development of staff

A 'motivator' in Herzberg's Two Factor Theory

job rotation

Involves moving staff between different roles in the business. Exposes staff to new challenges and experiences which can increase motivation, understanding and skill

A 'motivator' in Herzberg's two Factor Theory(the work itself)

job enlargement

Involves expanding staff's job duties to include additional tasks or responsibilities

Engaging with a variety of tasks can increase motivation and job satisfaction, leading to improve productivity

Mayo's Human Relations Theory as it encourages the development of staff

A 'motivator' in Herzberg's Two factor Theory(the work itself)

the distinction between management and leadership

Leadership is about having a vision, sharing that vision with others and providing direction

Management is the day-to-day organisation of the business, its resources and its staffing

Leadership:

creating a vision, setting direction, and inspiring others to follow

influencing others to achieve a common goal by inspiring and motivating

focuses on people,their needs, and their motivation

long-term vision and strategy

encourages creativity and innovation

management:

executing plans,organising resources and ensuring tasks are completed on time

controlling resources and processes to ensure that objectives are met

processes, structures and systems

short-term goals and targets

efficiency and productivity

autocratic leadership style

leader has complete control over decision making, little or no input form others

This style is more appropriate where there is a need for quick decision-making, such as during a crisis

suitable in a small business where the owner is the primary decision-maker, complete control over the business

paternalistic leadership style

The leader takes the parental role, making decision in the best interest off the staff

This style is more appropriate where the staff are uneducated or inexperienced, more guidance and support from their leader, leader needs to build a strong sense of loyalty from their employees

democratic leadership style

leader involves their team in the decision making

This style is appropriate when the business needs to encourage creativity, innovation, and employee engagement

effective in larger firms where decisions require input from multiple stakeholders,or where there is a need to build consensus

the laissez-faire leadership style

hands off approach where leader allows tea, to manage their own work

This style is more appropriate where the staff are very experienced and require minimal supervision

It is also effective where the leader wants to build a culture of independence and self- motivation