Topic 2 People in business

Methods of communication

Verbal	Quickly transfers information Immediate feedback and 2 way communication Messge is enforced by seeing the speaker making sure they are understood	Difficult to asses if the messge had been fully understood by everyone if it was given in a large group Verbal communication is inappropriate for storing accurate and permanent information
Non- Verbal	Presenting information in an appealing way encourages people to look at it They can be used to make a written messge clear	Feedback is limited Complexes charts and graphs might be difficult for some people to understand
Written	There is hard evidence of the messge It is detailed information The messge can be copied and sent to many people quickly	Direct feedback is not alwyas possible The language used might be difficult to understand or the messge may be to long causing disinterest There is no opportunity for body language

The use of IT in communication

Video conferencing
Email
Instant messge and chat applications

The importance of good communication

Benefits of effective communication

Increases worker motivation	More likley to be engages and committed	It enables feedback among employees creating a collaborative environment
Improves efficiency	Clear and complete communication supports better decision making as decisions are based on more accurate information	Employees who understand their roles and tases thoroughly can work more efficiently and productively
Encourage innovation	Open communication helps individuals understand their roles and responsibilities	Also encourages teamwork and cooperation contributing to a supportive workplace atmosphere
Reduces costs	Effective communication minimizes errors which in turn reduces costs	Communication tools such as email or messaging platforms are often low - cost and easy to implement
Promotes customer satisfaction	Maintaining regular and meaningful communication with customers helps build strong relationships which can lead to increases sales and bran loyalty

Problems of ineffective communication

Less motivated employees	If workers feel less informed about their role or tasks they may feel less motivated
Increasing costs	Delayed projects, increasing defects and lack of co-operation amongst staff are all examples of factors that can cause rising costs for a business
Inefficiency	If messge are delayed or not sent to the right person decision making and process will be slowed down this could also lead to missed opportunities and a rise in costs to fix mistakes.
Inaccuracy	Inaccurate information can lead to mistakes being made such as products or a poor quality or a compromise to customer saftey.

Barriers to communication & How to fix them

Hierarchical and structural barriers	Encourage to way feedback so employees feel comfortable talking to multiple people in the work place
Language and Jargon	Agreed upon language and avoid using terms that could be hard to understand
Noise and distractions	Chose locations for communication and hours and limit distractions
Lack of feedback	Where appropriate select methods that allow feedback
Cultural differences	Build culture of teamwork and respect amoungest eachother
Lack of time	Schedule meetings and amend workloads
Technological barriers	Invest in good quality ICT systems

Types of employment

Full time	Working a 35 - 40 hours a week. Costs more money but they are reliable for the business
Part time	Someone who works less than 35-40 hours a week and is more flexible. Costs less money but might not be motivated to work
Job sharing	Breaking the role between two part time contractors Costs more but is more efficient for the project
Temporary/ Casual worker	Someone who works temporarily shows up for work whenever the business needs them this may be seasonal and is useful for busy days Costs less and can be used on busy days Might not be as motivated to complete tasks

Recruitment documents

Person Specifications: A document that captures the essentials and desired characteristics of an ideal candidate
Job description: A document which lists the key duties and responsibilities that the employee will preform
Application form: A customized document that all applicants have to anser. The customization makes it easier to compare candidates to chose who is best for the job
Curriculum vitae (CV): A document that contains the applicants educational and work experience history

Internal & External recruitment

Internal Recruitment: Is the appointment of suitable candidate who alredy wors for the business
External recruitment: Is where a new employee is appointed from outside the business

Advertising Internally	If the business is seeking an internal candidate business newsletters, staff noticeboards or internal email can be sed to display job advertisement Recruiting internally may mean workers do not need induction training and are highly.
Advertising externally	External candidates can be targeted with advertisement in newspapers ect Existing employees may be asked to nominate people they know for roles Business wih strong social media presence can use platforms to advertise New skill set and ideas Mass media can be hard to find target
Shortlisting	A shortlist is a collection or list of he most well suited candidates for the role It is a list of people who meat the applications role criteria Shortlists are essential for sorting through large volumes of applications Candidates on short list are the ones being interviewed
Interviews	Interviews usually include a face to face to discuss between a manger and the candidate about their suitability fro the role A set of relevant questions are asked It goes through skills and experience and successes and failures

Legal controls over employment

Legal controls are the laws and regulations passed by governments that require businesses to conduct their behaviors in a particular manner

These laws effect

Pay
Hours and conditions of work
Safety
Discrimination
Rights to paid and unpaid absence
Dismissals

Equal opportunities

Age
Gender
Race
Religion
Disability

Sometimes business must not allow equal opportunities depending on the job such as bus drivers cannot be blind

Benefits of complying with employment laws

Improve its reputation
Keep employees happy and motivated
Prevents serious or legal issues arising, such as bullying harassment and discrimination
Better serve a diverse range of customers
Improve ideas and problem - solving
Attract and keep good staff

Minimum wages laws

A minimum wage is the lowest legally allowed wage, with variations across countries based on industry, region, and skill level.
Some countries have no minimum wage laws, relying instead on collective agreements.

Impacts of Implementing a Minimum Wage

For Employers:

Increases variable costs, potentially leading to higher prices.
May encourage training investments for unskilled workers.
Some may struggle to meet wage requirements, leading to negotiations for higher pay among skilled workers.

For Employees:

Reduces exploitation and improves pay.
Attracts more workers due to better wages.
Raises living standards and boosts motivation and productivity.
May result in job losses as businesses adapt to higher labor costs.

The importance of training

Productive staff: Employees work enthusiastically at the things they’re good at
Valued Staff: Well- trained employees are likely to be satisfied. They recognise that their employers is spending money and investing time in their development
Loyal and flexiable staff: Labour retention should increase as employees feel they are becoming better at their job and want to keep developing

Advantages of Induction Training

Clarifies job roles and responsibilities for new employees.
Boosts employee confidence and motivation.
Reduces the time needed for new employees to become productive.

Disadvantages of Induction Training

Can be time-consuming and costly to organize.
May not address all aspects of the job.
Effectiveness can vary, potentially leading to employee dissatisfaction and higher turnover rates.

Training

On the job training

Advantages	Disadvantages
Employees learn new skills and knowledge whilst they do there work Training is tailored to employee needs Training is practical and job relevant Can be cot effective	Employee may make mistakes whilst training that could be costly Can be disruptive to work place May not be effective at all in some cases leading to employee dissatisfaction and higher turnover rates

Off the job training

Advantages	Disadvantages
Employee lean new skills and knowledge outside of the workplace which can bring fresh ideas and perspectives to the workplace Training can be tailored to the employees needs Training can be used as a reward Can be cost effective in some cases like online training	Can be expensive to organize especially if travel and accommodation are required Employees may miss work while attending training, which can impact productivity The training may not be directly applicable

The importance of motivation

Definition: Motivation drives individuals to achieve goals.
Productivity: Motivated employees are more productive and proactive.
Profitability: Higher productivity leads to increased profits.
Retention: Well-motivated employees have lower turnover rates, cutting recruitment costs.
Reliability: Motivated workers are more reliable and foster a positive organizational culture.

Motivation Theories

Motivation theories explore how money and non-financial factors influence employee effort and performance. Key theories include:

Taylor's Scientific Management: Emphasizes that workers are primarily motivated by pay and require clearly defined tasks and close supervision.
Maslow's Hierarchy of Needs: Suggests that individuals progress through levels of needs, with each level motivating them until it is fulfilled.
Herzberg's Two-Factor Theory: Argues that money is not a true motivator; instead, a lack of it causes dissatisfaction. Motivation comes from factors like opportunities for skill development.

Taylor’s theory of motivation

Maslow’s theory of motivation

Herxberg’s theory of motivation

How businesses motivate employees

Financial Motives

Basic Wages/Salary:
- Paid for labor; hourly workers receive wages with benefits like annual leave.
- Salaries are fixed for full-time employees, often accompanied by benefits.
Commission:
- A percentage of sales revenue paid to employees, primarily in sales roles.
- Designed to motivate staff to increase sales and upsell.
Bonus:
- Additional payments for achieving specific goals or exceeding expectations.
- Incentivizes employees to work harder for better results.
Promotion:
- Involves increased responsibilities and typically higher pay.
- Clear promotion pathways can motivate employees to enhance productivity.
Fringe Benefits:
- Extra perks for salaried employees, such as company cars or healthcare.
- Motivates employees to work hard to retain their job and benefits.

Non Financial Motives

Autonomy:
- Grants staff the authority and resources to make decisions independently.
- Enhances ownership and responsibility, leading to increased productivity.
Job Enrichment:
- Adds more challenging or meaningful tasks to a job.
- Increases motivation and engagement, resulting in improved productivity.
Job Rotation:
- Involves moving staff between similar but varied roles.
- Provides new challenges and experiences, boosting motivation, understanding, and skills.