business management unit 3 aos 2

About human resource management

Human resource management establishes and manages the relationship the business has with its employees, including their hiring, training, pay and termination

Business objectives list

to make a profit

to increase market share

to meet shareholder expectation

to fulfil market need

to fulfil social need

to improve efficiency

to improve effectiveness

Successful human management, effect on business, business objective

When employees have high job satisfaction, the number of employees leaving the business will likely decrease.

The costs associated with recruiting and training replacement employees for leaving staff are reduced.

To make a profit

When employees have high job satisfaction, the quality of the goods and services manufactured and delivered is likely also to increase.

A higher quality of goods and services can lead to increased customer satisfaction and sales.

To increase market share

When employees have high job satisfaction, they are motivated to work harder and to a higher standard.

Highly motivated employees can enable a business to increase its sales and profit, allowing higher dividends to be paid to shareholders.

To meet shareholder expectations

When employees have high job satisfaction, they are more likely to contribute innovative ideas.

A business that produces unique goods and services may be able to meet customer needs better.

To fulfil a market need

When employees have high job satisfaction, their support of business initiatives is also likely to increase.

Business initiatives that aid the community and reduce waste are more likely to be successful.

To fulfil a social need

When employees have high job satisfaction, they are more motivated and determined to complete work tasks in a focused, error-free, and productive manner.

A business can produce goods and services at a faster pace and to a higher quality, with fewer errors and discarded materials.

To improve efficiency

When employees have high job satisfaction, they are more motivated to achieve business objectives and have greater resilience.

A business can more readily achieve its objectives and continue improving its performance.

To improve effectiveness

Theories of motivation types

•Maslow's hierarchy of needs

•Goal Setting Theory (Locke and Latham)

•Four Drive Theory (Lawrence and Nohria)

Maslow's Hierarchy of Needs Order/Steps

Self-actualisation needs

Esteem needs

Social needs

Safety and security needs

Physiological needs

Maslow's Hierarchy of Needs definition

Maslow's Hierarchy of Needs is a motivation theory that suggests that employees have five fundamental needs which they strive to fulfil is a set order.

About Maslow's Hierarchy of Needs

•Maslow's theory suggests that the unfulfilled needs on the hierarchy act as motivation and individuals are willing to put in effort and time to achieve each need.

•Once a need has been fulfilled, it no longer acts to motivate the individual.

•Humans are motivated to satisfy five needs in sequential order.

•The lowest-order need, physiological needs, must be met before a person is motivated to satisfy the subsequent needs in the hierarchy.

Physiological needs definition ***

Physiological needs are the basic requirements for human survival, such as food, water, and shelter.

About Physiological needs

The (Basic) needs such as air, food, water

Workplace practices: satisfactory pay for survival

•Applied to a business setting, employees fulfil these physiological needs by using their work wages to purchase essential items for survival, such as housing and food.

•Managers satisfy the physiological needs of their employees by paying them a wage.

Safety & Security Needs ***

Safety and security needs are the desires for protection from dangerous or threatening environments.

About Safety & Security Needs

The need for safety, stability, shelter

Workplace practices: Job security, Safe working conditions

People desire environments that do not threaten their well-being.

In a business setting, safety needs include avoiding harm in the workplace, while security needs include having a stable income and job security.

Managers must abide by OH&S laws and provide a safe workplace for their employees—for example, protective equipment.

Managers can provide job security by offering long-term contracts and other measures.

Social Needs definition ***

Social needs are the desires for a sense of belonging and friendship among groups inside and outside the workplace.

About Social Needs

The need for love, belonging, and inclusion

Workplace practices: Teamwork, Supportive management, Involving in decision making

Individuals seek to satisfy their social needs by developing interpersonal relationships and connections with others.

Interpersonal relationships can exist in many forms, including friendships and professional relationships.

Different kinds of relationships at work may arise between people and their peers or managers.

A manager can satisfy social needs by encouraging team-based work, celebrating employee birthdays, and organising collaborative events to commemorate important milestones.

Esteem Needs ***

Esteem needs are an individual's desire to feel important, valuable, and respected.

About Esteem Needs

The need for self esteem, power, recognition, control

Workplace recognition: responsibility, promotion, recognition

Individuals desire increased prestige, attention, and independence.

In a business setting, employees may satisfy their esteem needs by achieving promotions, prestigious job titles, or financial bonuses in recognition of their performance.

Managers can fulfil employees' esteem needs by acknowledging their strong performance with monetary rewards, increasing their job responsibilities, or promoting them to a higher position.

Employees who seek to satisfy their esteem needs may increase their productivity and performance.

Self-actualisation Needs ***

Self-actualisation needs are the desires of an individual to reach their full potential through creativity and personal growth.

About Self-actualisation

the need for development, creativity, growth

workplace practices: creative, interesting jobs, opportunities for advancements

It refers to an individual's intrinsic motivation to accomplish their goals and objectives.

Unlike the other needs, external factors no longer motivate, and individuals are driven by personal interest and self-satisfaction.

Attainment relies on highly-personalised, intangible rewards specific to each individual.

Employees who reach self-actualisation strive to achieve personal growth and advancement through their work.

A manager can facilitate self-actualisation by providing employees with challenging work, opportunities for skill and knowledge development, and offering employees work that enables them to express their creativity.

After achieving self-actualisation, employees can perform at their highest possible level, improving overall business performance.

Maslow advantages vs disadvantages

Advantages

- target strategies to motivate employees after determining the stage they are at

-no cost for social or safety security needs

Disadvantages

- employees may not be motivated by needs in the same order

- time consuming to determing level of motivation they are at

Laurence and Nohria / Four Drive Theory steps

acquire, bond, learn, and defend

Drive to acquire definition ***

The drive to acquire is the desire to achieve rewards and high status.

About the drive to acquire

•The drive to acquire motivates employees who want financial and non-financial rewards for their effort and performance.

•A manager can increase employee motivation and fulfil the drive to acquire by rewarding employees who make meaningful contributions towards business objectives.

Examples of financial and non financial rewards (drive to acquire)

Financial

•Performance-based bonuses

•Increased wages

•Increased salary due to promotion

Non-Financial

•Pathway for promotion

•Prestigious job title

•Increased responsibilities

drive to bond definition ***

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

About drive to bond

•A manager can fulfil the drive to bond by creating an environment that promotes work-related and personal interactions.

•Activities that help to develop an inclusive workplace environment may include:

•Introducing recreational team bonding activities, such as sports days.

•Encouraging group work instead of tasks to be done by a single person.

•Celebrating employee milestones and birthdays.

•Holding social events that employees can regularly attend and participate in.

drive to learn definition ***

The drive to learn is the desire to gain knowledge, skills, and experience.

About drive to learn

•Employees motivated by the drive to learn seek to improve their capabilities through training, mentoring, and taking responsibility for new tasks.

•Managers can cater to this drive by offering opportunities and taking measures to create continuous learning environments: such as educating and upskilling employees or rotating and upskilling employees or rotating responsibilities and tasks so that all employees can broaden their skills, experience, and knowledge.

•Employees who aim to improve their understanding of themselves, their environment, and society can become increasingly motivated by new opportunities and responsibilities within the business.

drive to defend definition

The drive to defend is the desire to protect personal security and the values of the business.

About drive to defend

•Employees are motivated by the drive to defend when required to protect their position within the business and its values.

•When employees perceive a threat to their own or the business's position, they become interested in defending themselves. In doing so, employees can preserve their safety, fair treatment, job security, and business values.

A business can help its employees appropriately fulfil their drive to defend by:

•Developing a vision that employees agree with.

•Implementing policies using employee input.

•Ensuring that managers represent business values.

•Building trust by supporting and collaborating with employees.

•Facilitating transparent communication between managers and employees.

•Implementing job contracts so that employees understand their work responsibilities and requirements.

Laurence and Nohria/ Four Drive Theory avdantages vs disadvantages

Advantages

•The model provides a simple approach to motivating employees and is easy for managers to implement.

•All four drives can be attained simultaneously or activated in any order, and are not restricted to sequential orders, increasing motivation efficiently for the business.

•The four drives act to motivate employees and can allow them to feel more engaged in their work.

•Satisfying drives can improve employee performance and business productivity and increase business profits.

Disadvantages

•Managers may find it difficult to manage four drives simultaneously.

•Some drives can be overlooked; therefore, an employee's full potential may not be achieved.

•Employees may not value all drives equally, so a balance between drives cannot be achieved.

•Rewarding individual employees may lead to unhealthy competition in the workplace.

•Individual employees may have different drives yet to be met, and a manager may spend a lot of time analysing these to cater to employees.

•Training programs and sponsoring the education of employees to fulfil the drive to learn can increase business expenses.

•Financial rewards provided to employees to fulfil the drive to acquire can increase business expenses.

Locke and Latham's Goal Setting Theory five key principles

Clarity

Challenging

Commitment

Task complexity

Feedback

About Lock and Latham's Goal setting theory

In order to adopt the Goal Setting Theory within the workplace, a manager must work collaboratively with each employee to set individual goals that meet these five principles.

Managers can motivate employees to complete tasks that contribute to broader business objectives by setting goals such as: • sales goals - an employee may have a sales target to meet. • knowledge and skills goals - an employee may have a goal to learn a new skill. • deadline goals - an employee may have a date they need to complete a task by. • productivity goals - an employee may have a production quota to meet.

Clarity - setting goals

•Goals should be specific and easy to measure.

•Employees should be able to clearly understand what is expected of them.

Commitment - setting goals

•Employees should be involved in setting their goals.

•Goals should incorporate the personal interests of employees.

Challenge - setting goals

•The goal should be difficult enough to encourage employees to improve in order to achieve it.

Task Complexity - implementing goals

•The goal should not overwhelm employees and should be achievable.

•Employees should receive adequate training and time to achieve their goals.

Feedback - implementing goals

•Managers should provide regular support to employees and adjust goals as needed.

•Managers should constantly monitor the progress of employees to keep them on track, clarify misunderstandings, and encourage them to achieve their goals.

Goal setting 5 step process example

A manager can ensure that goal setting is effective as a motivator for employees by following a five-step process.

1

employees discuss personal goals with manager

manager aligns employee goals with business objectives

2

managers and employees set a clear achievable goal together

goals should be challenging and complex

3

manager regularly checks employee progress and provides support

4

manager celebrates and rewards the employee for achieving the goal

5

manager and employee set a new, more difficult goal together

Lock and Latham's Goal setting theory advantages vs disadvantages

advantages

•Goals that align employee goals with achieving business objectives are likely to improve business performance.

•The process of managers setting goals with employees can improve levels of trust and the relationship between employees and management.

•Employees can clearly understand management's expectations through straightforward goals and regular feedback.

•Employees may be more motivated to complete tasks if work goals align with their personal interests.

•As goals are specific and measurable, it is not time-consuming for managers to assess whether an employee has achieved their goal.

•When employee goals align with business objectives, they can contribute to a business's financial aims, such as increasing sales and net profit.

disadvantages

•It may be difficult for a manager to always align an employee's personal goals with business objectives.

•Employees may become stressed and demotivated if they have too many goals at once.

•Failure to meet a goal may result in an employee losing confidence and being less motivated to contribute to business objectives.

•Setting goals and providing feedback to each employee can be time-consuming for management.

Maslow Hierarchy of Needs and Laurence and Nohria's four drive theory similarities and differences

Similarities

• Both theories focus on motivating employees holistically, through addressing their physical, social, and emotional desires. • Both theories suggest employees are motivated by the desire to feel a sense of belonging within the workplace through social needs and the drive to bond. • Both theories suggest that employees are motivated by a desire to improve their knowledge and skills through self-actualisation needs and the drive to learn.

Differences

• Maslow's Hierarchy of Needs must be met in sequential order, whereas the Four Drive Theory suggests any drive may be relevant to an employee in no particular order. • The Hierarchy of Needs states that employees are motivated to fulfil only one need at a time, whereas the Four Drive Theory states that all needs can drive employee behaviour simultaneously.

Maslow Hierarchy of Needs and Lock and Lathems goal setting theory similarities and differences

Similarities

• Both theories recognise that personal gain is a factor that can motivate employees. Esteem needs can be satisfied by providing jobs with higher status to employees, whilst goals fulfilling the commitment principle consider the personal objectives of employees. • Both recognise the importance of feedback from management. Self-esteem needs can be satisfied by recognising employees' efforts and goals that fulfil the feedback principle require management to acknowledge employee efforts in reaching their goal. • Both theories place emphasis on motivating through intrinsic factors. The goal setting theory involves setting intrinsic goals, whilst higher-order needs, such as esteem and self-actualisation are also considered to be intrinsic motivators.

Differences

• Maslow's Hierarchy of Needs focuses on fulfilling one need at a time in sequential order, whereas the Goal Setting Theory requires all principles to be incorporated simultaneously to motivate an employee. • Maslow's Hierarchy of Needs can be applied by a manager alone by observing the needs of an employee, whereas the Goal Setting Theory requires employee input to create goals collaboratively. • The Goal Setting Theory believes that an individual can be motivated through purely intrinsic factors, whereas Maslow's theory focuses on both intrinsic and extrinsic motivators, such as physiological needs.

- Maslow is hierarchy, once need is met it is no longer a motivation and on to next whilst lathems is step process

Laurence and Nohria's Four drive theory and Lock and Lathems goal setting theory similarities and differences

Similarities

• Both theories recognise that employees are motivated to achieve success. This can be through the drive to acquire a higher position or achieve the goal of being promoted to a position with more responsibility. • Both suggest that multiple factors motivate an employee at any given time. All four drives may be active simultaneously, and business goals should incorporate multiple principles simultaneously.

Differences

• The Goal Setting Theory involves employee input, whereas the Four Drive Theory is applied by a manager alone. • The Goal Setting Theory requires a manager to address each employee individually, which is not necessary when applying the Four Drive Theory. • The Goal Setting Theory believes that an individual can be motivated through purely intrinsic factors, whereas the Four Drive Theory also addresses extrinsic motivators through the drive to acquire.

Motivational Strategies 5 steps

Performance-related pay

Career Advancement

Investment in training

Support strategies

Sanction strategies

Performance-related pay definition

Performance-related pay is a financial reward for reaching or exceeding a set business goal.

About performance-related pay

•Remuneration is the money paid to an employee by an employer in exchange for completing work tasks.

•Employees are motivated by performance-related pay as it links their performance to increased remuneration.

•A manager can reward performance by providing several types of remuneration, such as:

•Pay rise

•Bonus

•Commission on sales.

performance-related pay advantages vs disadvntages

Advantages

•Employee goals can be directly and indirectly aligned with business objectives through remuneration.

•It can be used to motivate many employees at once, which can improve overall business performance.

•Employees can personally gain from achieving objectives through the tangible reward of increasing their wealth.

•Employees can be motivated quickly through the incentive of financial rewards.

•Will only apply when there is actual performance improvement.

Disadvantages

•Employees may take harmful shortcuts to reach their objective, potentially compromising quality.

•It may hurt the business's corporate culture if there are unhealthy levels of competition between employees.

•Over time, employees may require increases in the value of financial rewards to remain motivated.

•It may create conflict if incentives or rewards are unequal between employees.

•It can be time-consuming for the manager to review each employee's performance against criteria and determine who receives a financial reward.

•It can increase the expense of wages significantly, particularly if the value of rewards increases over time.

performance-related pay link to theories

Maslow​

Physiological need - Money to fulfil basic need​

Esteem need - reward and recognition ​

Locke & Latham​

Reward and recognition for successful goal completion

Lawrence and Nohria​​

Drive to acquire - PRP provides the ability to acquire pay

Career advancement definition

Career advancement is the upwards progression of an employee's job position.

About career advancements

•This can be achieved by promoting employees or giving them more challenging tasks.

•This can motivate ambitious employees who want more responsibility, authority, or status in the workplace.

•For example:

•Job enlargement, where additional tasks are added to the employee's current role.

•Job enrichment, whereby employees are motivated through increased authority over their work and a greater depth of content.

•A manager can use career advancement as a motivation strategy by:

•Ensuring employees are aware of any promotion criteria and senior positions that need to be filled.

•Promoting from within the business ensures employees are constantly working towards career progression.

career advancements advantages vs disadvantages

Advantages

•Promoting employees from within the business helps retain high-performing employees, protecting the business's intellectual property.

•Provides employees with the opportunity to increase their contribution to the business and achieve personal goals.

•When promoted, employees may feel more valued by the business, improving their overall morale.

•Employees promoted from within the company can be efficiently trained on-the-job, saving time.

•Promoting employees from within the business can be cheaper than recruiting new employees.

Disadvantages

•Limited senior positions can prevent career advancement from being used for many employees.

•Some employees may be promoted beyond their capabilities which may negatively impact business performance.

•Negative corporate culture may develop if employees focus solely on career advancement.

•Some employees may not desire increased responsibility, so motivation may not increase through a promotion.

•Employees may be demotivated if they are overlooked for a promotion.

•It may not motivate employees immediately as a promotion can take time to earn.

•Promoting employees to higher positions will usually involve an increase in the cost of wages.

Career advancements link to theories

Maslow​

Physiological need - Money to fulfil basic need​

Esteem need - reward and recognition ​

​

​Locke & Latham​

Reward and recognition for successful goal completion​

Lawrence and Nohria​

Drive to acquire PRP provide the ability to acquire things​

Investment in training definition***

Investment in training is allocating resources to improve employee skills and knowledge.

About investment in training

•It equips employees with the expertise required to perform at a higher level and can motivate them by providing opportunities to develop their abilities.

•Training can also cultivate a positive corporate culture that values personal growth and the sharing of knowledge, which may further motivate employees.

•A manager can implement investment in training through:

•on-the-job training:

•off-the-job training:

on-the-job training definition

is the employees improving their knowledge and skills within the workplace

off-the-job training definition

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

investment in training advantages vs disadvantages

advantages

•Employees can complete tasks more efficiently and effectively after improving their skill set.

•Employees can build strong interpersonal relationships with management as both parties benefit.

•Employees may feel more valued as the business wants to advance their skills.

•Employees may experience improved job satisfaction as they can perform their roles better.

•The skills and knowledge gained from training assist employees in completing tasks quicker.

disadvantages

•Training may not be directly relevant to tasks undertaken by employees.

•Some employees may not value improving their skills and knowledge.

•Training employees is time-consuming and can delay the completion of work tasks.

•Training programs can be costly for a business.

investment training links to theories

Maslow​

Esteem need - feel valued by the business​

Self actualisation- status improvement, develop skills and training for individual​

Locke & Latham​

Resources and skills provided in order to achieve goal​

Lawrence and Nohria​

Drive to comprehend / learn by developing new skills​

Support definition

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

About supporting strategies

•Support motivates employees by allowing them to feel valued, understood, and considered by their managers.

•This can also improve employee morale and corporate culture. A manager can support employees by:

•Regularly checking on their health and well-being.

•Praising and encouraging good performance.

•Recognising achievements through rewards or personal recognition.

•Accommodating for an employee's out-of-work obligations.

supporting strategies advantages vs disadvantages

Advantages

•Employees who feel supported are more likely to stay.

•Employees may feel more valued by managers as their wellbeing is being considered.

•Problems can be dealt with efficiently before they escalate, saving time.

•Implementation involves very few additional expenses.

disadvantages

•It may be ineffective if a manager does not have good interpersonal skills.

•It can be time-consuming for a manager to maintain relationships with staff.

•It may not motivate employees quickly if they do not see the benefits of support in the short term.

•Hiring wellbeing support for the business can be costly.

supporting strategies links to theories

Maslow​

Safety need - Support can strengthen this asemployees feel more secure in the work environment​

Social need - Support can increase the cohesivenessof a business and increase the feeling of belonging within the business​

Locke & Latham​

Support in the achievementof goals working collaboratively with managers to set goals and other colleagues to achieve goals​

Lawrence and Nohria​​

Drive to bond -Support can increase the bond between employees and the business​

Sanction definition

is penalising employees for poor performance or breaching policies

About sanction strategies

•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.

•A manager can implement sanctions by:

•Verbally warning employees.

•Providing written warnings.

•Dismissing underperforming staff.

•Reducing employment hours.

sanction strategies advantages vs disadvantages

advantages

•Can pressure employees to act in accordance with management instructions.

•Can motivate employees immediately as they will improve performance quickly to avoid punishment.

•It does not incur any immediate cost to implement.

disadvantages

•This can create a negative corporate culture as tasks are completed out of fear.

•Prolonged use can lead to employees leaving the business.

•Levels of trust between employees and management may decrease.

•Replacing employees who have left due to excessive penalties can be time consuming.

•Replacing employees who have left due to excessive penalties can be costly.

sanction strategies links to theories

Maslow​

​Safety and Security - Job security

Locke & Latham​

If employees continue to underperform in relation to goal attainment sanction may be used ​

Lawrence and Nohria​

Drive to defend - sanction can increase this drive and cause conflict ​

About short term motivation

•Usually easy to implement in a business, and therefore can be quickly used by managers to rapidly increase employee motivation.

•Situations where a manager aims to quickly motivate employees, such as during a crisis, motivation strategies that provide immediate gain, will be most effective.

About long term 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.

•To sustain job satisfaction, motivation strategies that improve corporate culture and provide employees with personal development opportunities should be implemented by managers.

Positives and negatives of long term motivation - Performance related pay

• When there is a history of reward and recognition for high-performing employees within the business, employees are more likely to be motivated by the expectation that they will receive rewards in the future.

• Employees may become demotivated if they continually have to compete with their peers to achieve financial rewards.

• Employees may become demotivated if the rewards they receive do not continuously increase in value.

Career advancement

• Employees may be motivated by ongoing opportunities to be promoted or take on additional responsibilities.

• There may be a limited number of responsibilities an employee can absorb into their role within a business; therefore, there are fewer career advancement opportunities for that employee to experience. This can limit the potential for long-term employee motivation.

Investment in training

• Employees may be constantly motivated as they feel valued by the business when they are provided with opportunities to develop their skills.

• Employees may feel consistently motivated by a working environment that promotes learning.

• Employees may become demotivated by the consistent workflow interruptions caused by training programs.

Support strategies

• Employees may be motivated for a long period of time when they feel valued by management and are able to resolve issues efficiently.

-

Sanction strategies

-

• Over time, employees can become desensitised to the threat of punishment and no longer be motivated by sanctions.

• The use of sanctions can contribute to a negative workplace environment, decreasing employee satisfaction and motivation

About on the job training

•It enables employees to interact and become familiar with the equipment, machinery, or processes in the workplace that are related to their role.

•This form of training can occur while employees perform their workplace roles and duties.

•Some examples of on-the-job training include:

•Being coached by an existing employee on how to perform a specific role.

•Having a senior staff member act as a mentor who continually supports employees and provides advice on performing tasks.

•Job shadowing an experienced employee working in the same position.

•Hiring an external trainer to give on-site demonstrations of specific tasks. This is considered 'on-the-job' as the trainer gives employees on-site demonstrations.

•Having employees rotate between different jobs to gain experience in various roles.

on the job training strengths vs weaknesses

strengths

•Employees can perform their roles while training, minimising losses to productivity.

•Individuals who train staff can develop strong interpersonal relationships.

•Employees training at the workplace can avoid additional training outside of work hours.

•Employees can quickly become familiar with work equipment, reducing the time taken to complete their training.

•Employees can perform more efficiently in their roles immediately after completing training, as they are familiar with the work equipment.

•Training employees internally is often less expensive than training externally, as there are no travel costs.

•Immediate feedback from more experienced colleagues is available.

weaknesses

•The business may need more experienced staff to train employees.

•If real tools and equipment are used, it may disrupt production.

•Employees completing the training may become distracted by the workplace.

•Employees may learn bad habits from being trained by existing staff.

•Senior staff responsible for training new employees are removed from their work duties, meaning they cannot focus on their other responsibilities.

•Experienced employees are taken away from completing other duties to train employees, negatively impacting the business, particularly during busy periods.

About off the job training

•In some situations, training staff in an external location rather than within the workplace is more beneficial.

•Off-the-job training often involves sending employees off-site to perform specialised courses where professional instructors teach them how to perform their job to a higher standard.

•Some examples of off-the-job training include:

•Attending conferences that provide theoretical knowledge to employees.

•Performing simulations or workshops external to the workplace, where employees apply new skills.

•Attaining specific qualifications from TAFE, university, or other higher education courses funded by the business.

•Online training courses that are performed outside of traditional working hours.

off the job training strengths vs weasknesses

strengths

•Professional training can enable employees to gain new perspectives on performing their roles to a higher standard.

•Employees are likely to perform training in a distraction-free environment, enhancing the quality of training received.

•An employee's employability may improve if they receive qualifications or accreditations.

•It does not take more experienced employees away from their jobs to train other employees, enabling them to remain productive.

•Errors made by employees during training do not occur on-site, decreasing expenses associated with waste.

weaknesses

•The business's workflow may be disrupted if employees are away for training, lowering productivity.

•Employees may try to find a job elsewhere with the external qualifications they gain, causing this investment in training to be redundant.

•Employees may struggle to apply new knowledge in the workplace if it is only information-based.

•Employees may be unable to translate learned skills to the business's equipment.

•Travel times associated with off-site training may be long.

•Paying external organisations to train employees may be expensive.

•Accommodation and travel costs can make training expensive, especially when a group of employees are being trained.

performance management strategies list

management by objectives

appraisal

self-evaluation

employee observation

management by objectives definition

is both managers and employees collaboratively setting individual employee goals that will contribute to the achievement of wider business objectives.

about management by objectives

•Managers will work with employees to create specific goals.

•By aligning employee goals with broader business objectives, employees help the business achieve its overall objectives by achieving their individual goals.

•Managers should also regularly provide feedback to employees regarding their progress towards achieving their individual objectives.

•If an employee struggles to achieve their goals, a manager can adjust the employee's current tasks, implement appropriate training, or extend deadlines.

management by objectives step by step process

define business objective

managers and employees collaboratively set individual goals that align with business objectives

evaluate employee performance in terms of achievement of each goal

provide feedback to employees to help them improve their performance and determine wether further training is required

management by objectives strengths vs weaknesses

strengths

•Aligning employee objectives with the business's overall objectives means that employees always work towards business goals, improving business performance.

•Collaboration between managers and employees when setting objectives can foster positive workplace relationships.

•Achieving employee and business objectives can create a positive working environment and strengthen corporate culture.

•Employees may gain a sense of achievement if they reach their individual goals, improving motivation.

•Employees are involved in developing objectives and are more likely to be committed to achieving their goals.

•Establishing clear steps towards achieving objectives can allow employees to understand better their role and contribution to the business's wider operations.

• Promotional opportunities may arise for employees who consistently achieve their objectives.

•Reviewing the performance of employees may be done quickly, as success is determined by the extent to which objectives have been met.

weaknesses

•Employees may take harmful shortcuts to achieve their objectives, negatively impacting progress towards overall business objectives.

•Failure to achieve personal objectives may be demoralising.

•Employees may become demotivated if they do not receive compensation or recognition after achieving objectives.

•If too many goals are set, employees may become stressed and overwhelmed, decreasing motivation and employee productivity.

•Developing objectives that benefit both the business and employees can take time.

•Employees that achieve objectives may desire monetary rewards or promotions, increasing the business's expenses.

•Training courses provided to address employee weaknesses can increase business expenses.

performance appraisal definition

is a manager assessing the performance of an employee against a range of criteria, providing feedback and establishing plans for improvement.

About performance appraisal

•It allows a manager to have a consistent approach when evaluating the performance of employees within a business.

•A manager uses established criteria to determine how well employees have performed over a given period of time.

•This data can provide a manager insight into whether an employee's performance meets a desired standard or is insufficient.

•Managers may use performance appraisals to identify any problems with employee performance and make decisions about employee training, promotions, and dismissals.

performance appraisal strengths vs weaknesses

strengths

•Communication between managers and employees during one-on-one reviews can improve workplace relationships.

•The results from the performance appraisal process can outline areas where employees are struggling, and training can be implemented to resolve issues.

•Information regarding extremely poor performance can be provided to managers to determine if any staff should be dismissed due to sub-standard work ethic.

•Increased communication between employees and managers can provide employees with clear direction for improving their performance.

•Employees who demonstrate strong performance may be recognised for promotional opportunities.

weaknesses

•Employees may lose motivation if they receive multiple poor performance appraisals.

•This process can be time consuming as managers individually review each employee's performance.

•Staff who perform well may desire a promotion or financial reward, increasing the business's expenses.

•Training courses provided to address employee weaknesses can increase business expenses.

self-evaluation definition

is an employee assessing their individual performance against a set criteria.

about self-evaluation

•It enables a manager to gain insight into an employee's perception of their ability.

•Creates opportunities for discussion between managers and employees regarding the different perspectives of the employee's performance.

•It helps identify what an employee believes their weaknesses are and put in place strategies to strengthen these areas.

•Managers can also use this strategy alongside other performance evaluation methods to gain insight into an employee's perspective of their own performance.

self-evaluation strengths vs weaknesses

strengths

•The employer can gain insight into an employee's understanding of their own strengths and weaknesses and assign work accordingly.

•Employees can increase their employability by highlighting their weaknesses to managers, which can lead to training opportunities and skill development.

•Employees may be empowered to improve performance, as they are directly involved in their own performance management.

Self-evaluation can save managers time, as employees evaluate their own performance.

weaknesses

•A manager will not gain reliable information if an employee is biased or dishonest in assessing their performance.

•Employees may underestimate or exaggerate their own skills, therefore the evaluation may not be reliable and accurate.

•Criteria for the self-evaluation process need to be developed, which can be time consuming for managers.

•If employees are dishonest, the self-evaluation process can be a waste of time.

•Training courses provided to address employee weaknesses can increase business expenses.

employee observation definition

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

about employee observation

•Provides a broad insight into an employee's performance.

•It can occur across different days and input is gathered from employees at different levels within the business who are in regular contact with the observed employee.

•It can provide a comprehensive picture of an employee's strengths, weaknesses, and manners within the workplace.

•It can occur with knowledge from employees or without them knowing.

For example, mystery shoppers.

employee observation

strengths

•The involvement of a group of employees can improve the interconnectedness of the business and its corporate culture.

•The manager can gain multiple different perspectives about an employee.

•When an employee is unaware they are being observed, this allows for accurate performance analysis.

•Employees observing others may identify the strengths of other employees and then mimic this behaviour.

•Employees may be responsive to feedback peers provide as they value their opinion.

•Staff who receive positive performance reviews may be considered for promotional opportunities.

weaknesses

•Results may be misleading if employees know they are being evaluated, as they may only work harder in the presence of an observer.

•Friends of employees may provide inaccurate feedback due to their relationship with the employee, and therefore, a manager may receive unreliable information.

•Employees may feel stressed if they are made aware that they are being observed, leading to poorer performance.

•Making other staff assess employees' performance can disrupt their normal workflow and business productivity.

•The development of criteria for observers to use can be time-consuming.

•It can be time-consuming for employees to observe their peers.

•Employees that receive positive observation assessments may desire rewards and promotions, increasing business expenses.

Training courses provided to address employee weaknesses can increase business expenses.

Termination definition

The ending of the employment of an employee.

termination management list

retirement

redundancy

resignation

dissmal

retirement definition

is an individual deciding to leave the workforce as they no longer wish to work

About retirement

•Voluntary form of termination.

•Employees may choose to retire for several reasons. For example, due to their age, physical ability, or the fact they have earned enough money over their career to financially support themselves and no longer need to work.

resignation definition

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

about resignation

•Voluntary form of termination.

•An employee may resign from a business for various reasons, such as opportunities to advance their career elsewhere, increased wages, better working conditions, or using a preferred management style at another business.

•Businesses need to understand the reasons for an employee's resignation and identify any problems between employees and management to ensure it avoids increased staff turnover.

•A business may choose to investigate the reasons behind an employee's resignation using an exit interview. This process can allow businesses to implement strategies to satisfy employees better and improve their corporate culture.

redundancy definition

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

about redundancy

•It can be voluntary or involuntary.

•Unless the existing employee can be redeployed (given another job or retrained for another job), they will be retrenched — meaning the employee will lose their job and not be offered another.

•If a business is retrenching an employee, the retrenchment must be carried out lawfully. The employer should notify the employee in writing of the reasons for termination, the period of notice, the actual date of termination (i.e., end date) and the redundancy payment the employee will receive. Legislation sets out the minimum notice periods an employer must provide an employee.

•Redundancy occurs typically for two reasons:

•There is no longer enough work for an employee or a group of employees, often due to a business change. For example, when a business introduces new technology.

•The business cannot afford to pay the current number of employees. This often results from a business needing to lower costs, making numerous employees redundant and merging staff roles to reduce their wage expenses.

two types of redundancy

voluntary redundancy

involuntary redundancy

about voluntary redundancy

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.

about involuntary 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.

dismissal definition

is the involuntary termination of an employee who fails to meet required standards or displays unacceptable or unlawful behaviours.

about dismissal

•Involuntary form of termination.

•A manager may terminate an individual's employment if they continually fail to meet business objectives, have poor performance, or breach the terms of their contract.

•A business must ensure that any employee dismissal occurs fairly and lawfully, as failing to do so can result in an employer being liable for unfair dismissal. Improper dismissal can be brought to Fair Work Commission.

•For a dismissal to occur fairly, a business must have provided numerous warnings that have been adequately documented and offered opportunities for the employee to improve their performance.

•Employees who seriously breach business policies and values can be immediately dismissed without warning. Examples of serious breaches include discrimination, theft, fraud, bullying, and negligence.

•A business must ensure that all unpaid entitlements, such as leave pay, are still provided to an employee who receives an immediate dismissal, as this is a legal requirement of the business.

fair work commission rules for unfair dismissal

should not dismiss an employee if it is harsh, unjust or unreasonable

should not make an employee redundant if it is not a genuine redundancy

should follow the Small Business Fair Dismissal Code (if they are a small business).

Entitlement definition

what an employee legally must receive from an employer when the employee leaves the business.