IB Business Management HL: Industrial Relations & Motivation Notes PDF

Head to www.savemyexams.com for more awesome resources DP IB Business Management: HL Your notes 2.7 Industrial Relations Contents Sources of Conflict with Employees Approaches to Conflict Conflict Resolution Processes...

Head to www.savemyexams.com for more awesome resources DP IB Business Management: HL Your notes 2.7 Industrial Relations Contents Sources of Conflict with Employees Approaches to Conflict Conflict Resolution Processes Page 1 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Sources of Conflict with Employees Your notes Sources of Conflict with Employees Conflict at all levels in the workplace can arise as a result of differences in goals, values, personalities or communication styles It can occur at all levels within a business Reasons for Conflict in the Workplace Inadequate Leadership & Power Struggles Relationships Communication Poor management or leadership Struggles for Personality clashes styles influence/authority Incompatible work styles Lack of support from Competition for limited supervisors resources or promotions Personal biases or prejudices Differences in communication Budget constraints leading styles to tension Differences in cultural backgrounds Pressure to outperform colleagues Workplace Inequities Stress & Role Ambiguity Differences in Values and Goals Perceived favouritism High levels of pressure Varied opinions on what is important or priorities Unequal distribution of Overworked employees resources/opportunities with unrealistic Conflicting personal or expectations professional goals Discrimination or harassment Unclear job responsibilities Intolerance/inability to Employees feeling compromise undervalued/unrecognised Lack of role definition leading to confusion Unresolved workplace conflict can lead to a range of issues Lower productivity as workers are distracted from the task at hand Page 2 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Reduce employee morale as a result of anxiety/stress Limit opportunities for collaboration Your notes Create negative workplace 'politics' which can undermine business efficiency Examiner Tips and Tricks Conflict in a business does not always lead to negative outcomes It can help to solve problems and encourages workers to recognise differences in opinions and perceptions If it is managed effectively conflict can lead to better outcomes in the future Page 3 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Approaches to Conflict Your notes Employee Approaches to Conflict A trade union is an organisation whose members come together to achieve common goals They negotiate with employers to improve terms and conditions of employment for workers Improved pay Increases in paid holidays Reduced hours of work Sufficient rest breaks Improved training and development Better facilities Trade unions can also give individual advice when employees have a problem at work They also lobby governments to pass laws that favour employees such as improved health and safety regulations Union members pay a membership fee and elect representatives to represent them in the employment relationship Approximately one third of British workers are represented by trade unions In the UK the largest trade unions represent workers in the public sector and previously nationalised industries Members of Craft unions share a specific skill or craft such as printing Industrial unions recruit members from a particular industry such as education General unions accept members from a range of manual industries such as manufacturing White collar unions recruit non-manual workers such as those employed in banking Membership of trade unions is generally in decline Government legislation has weakened their powers Many economies have moved away from manufacturing Part-time and flexible workers tend not to be unionised Examples of European Trade Unions Page 4 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Communication Workers Union (CWU) For people working for telephone, cable, digital Your notes subscriber line and postal delivery companies in the UK IG Metal The dominant metalworkers' union in Germany, making it the country's largest union as well as Europe's largest industrial union Unión General de Trabajadores (UGT) Spain's major general trade union, representing production workers in a variety of industries Trade unions can use a range of approaches to resolve conflict in the workplace Collective bargaining Work-to-rule Strike action Collective bargaining A process where trade unions negotiate with employers to reach agreements on terms and conditions of employment It is a structured way for employers and employees to come to a mutually acceptable agreement Trade unions have greater negotiating power than individual employees Page 5 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Negotiations typically cover a range of issues, including wages, working hours, benefits and workplace conditions Diagram: the collective bargaining process Your notes This process leads to conflict resolution and collective agreement The goal of collective bargaining is to reach a collective bargaining agreement This is a legally binding document that determines the employment relationship for a specified period Both parties must adhere to the terms of the agreement If further disputes arise tools such as mediation and arbitration can be used Other Forms of Trade Union Action Industrial Explanation Example Action Work-to- Workers adhere strictly to their terms The UK's NASUWT union has instructed Rule of employment its members in schools and colleges to work to rule Page 6 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Complete only tasks explicitly This includes refusing to carry out stated in the contract of extracurricular activities, midday employment supervision and work during lunch Your notes breaks Goodwill is withdrawn The union is campaigning for improved Work begins and ends at times funding for schools and pay increases stated in the contract for staff Staff refuse to cover for absent colleagues Reduces productivity or delays production whilst making it difficult for the employer to take disciplinary action Strike Workers collectively refuse to work Two of the biggest unions representing Action French ski resort workers called for They are not paid when taking unlimited strike action during the height strike action of the 2023 ski season Action may take place The intention was to disrupt operations continuously or on specified days during the peak tourist season to of work achieve pension reforms, better pay Strike action is normally legal if a and improved working conditions successful ballot of trade union members finds a majority in favour of taking such action Changes in law in many countries have reduced the ability of workers to take strike action This is an extreme form of industrial action intended to force an agreement with management Examiner Tips and Tricks Instances of employees taking action against their employers - usually through collective trade union action - are frequently in the news Page 7 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Find examples in the media in your own country and investigate why the conflict has arisen and how it is being solved Your notes Employer Approaches to Conflict Resolving conflict in the workplace is of great important to business owners Organisations may resolve conflicts in-house using highly-skilled senior leaders Senior leaders with HR skills form a negotiation team This team is empowered to act on behalf of the business in reaching a mutually acceptable agreement with employees or their representatives Alternatively it may use external specialists such as management consultancies or align with employer organisations Businesses have a range of tools they (or their representatives) can use to resolve workplace conflict Threat of redundancies The threat of job losses can be used as a powerful tool to persuade trade unions or employees to end industrial action Trade unions may be more willing to compromise if the alternative is members losing their jobs In August 2023 large-scale redundancy threats helped to bring about a swift settlement to a dispute between British Airways and the Unite union over employee pay and conditions Changes to contracts of employment Employers can, in some circumstances, make changes to terms and conditions of employment The use of fixed term contracts can support this - workers may not be re-employed if they dispute changes Trade unions may become involved in larger-scale negotiations Threat of closure In extreme cases businesses may choose to threaten to close the business rather than concede to employees' demands This can be a powerful persuasive tool Employees are not generally paid during periods of closure Permanent closure means workers are made redundant Page 8 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Lockouts Lockouts are another extreme measure taken during a period of dispute Your notes Employees are prevented from entering the workplace Security guards are often employed or premises access codes changed During the period of lockout employees do not receive any pay Lockouts are used to pressure workers to defy trade union instructions and return to work without concessions being made In 2012 contract negotiations between American Crystal Sugar and its workers' trade unions broke down The business wanted workers to agree to higher payments for health coverage and increased outsourcing Its unionised workers refused to accept their demands Following a period of strike action the company locked them out and hired replacement workers on lower wages Workers gradually returned to work and, largely, accepted the employer's contractual changes Examiner Tips and Tricks Ongoing conflict between a business and its employees not only presents financial risks - but also reputational risks Customers may avoid businesses that they perceive to treat workers poorly and attracting new employees may be challenging where there is existing conflict Investors are often turned off by workplace conflict as the business is unlikely to be as productive or profitable as a more harmonious organisation Page 9 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Conflict Resolution Processes Your notes Resolving Conflicts Conflict resolution is the steps taken by leaders and employees (or their representatives) to solve disagreements in the workplace Successful conflict resolution usually requires the needs of both the business and its employees to be met There is a range of ways to resolve workplace conflict Conciliation & arbitration Employee participation Industrial democracy No-strike agreements Single-union agreements Approaches to Conflict Resolution Approach Explanation Example Conciliation & Conciliation involves an In 2019 Prospect union and airports Arbitration independent mediator supporting company Hial invited the Advisory, negotiation and compromise Conciliation and Arbitration Service between conflicting groups (Acas) to conciliate in a pay dispute Arbitration involves an Air traffic controllers increased pay independent mediator making a demands were at odds with Hial's refusal decision to resolve a dispute on to increase wage budgets behalf of conflicting groups Non-binding arbitration decisions can be accepted or ignored by conflicting parties Binding arbitration decisions involve a compromise that must be accepted by both parties Pendulum decisions are a binding decision that makes Page 10 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources no compromise - they declare entirely for one party Your notes Employee Employee participation involves Animation studio Pixar has a successful Participation giving authority to workers to culture of collaboration, which enables take on responsibilities and have teams to work together on complex some level of authority in the creative projects organisation Employees are encouraged to share Examples include teamwork, ideas, actively participate in the creative suggestion schemes, quality process and make decisions circles and worker panels Industrial Industrial democracy involves Workers at the UK's John Lewis Democracy workers having significant Partnership influence how the business involvement in the decision- is run through their elected making process representatives in local forums Worker-owned businesses and Staff, known as partners, also receive a worker co-operatives have generous share of business profits strong commitments to industrial democracy No-strike An agreement with trade union An "Olympic truce" was declared Agreements members not to take strike action following meetings between unions when workplace conflict arises including the National Syndicate of Air Traffic Controllers (SNCTA) and the These agreements can improve French Directorate General of Civil the reputation of a trade union Aviation Builds trust and increases the Despite ongoing conflict, French air likelihood of businesses being traffic controllers' unions agreed that no willing to negotiate strike action would take place until after the 2024 Olympics in Paris Single-union A business agrees to negotiate After refusing for many years, Starbucks Agreements with one, rather than multiple, started, in 2023, to negotiate with the trade union organisations to Starbucks Workers United union resolve conflict Early agreements include a $20 per hour starting wage, a 32-hour minimum working week for full-time employees and credit card staff tipping at all stores Page 11 of 11 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources DP IB Business Management: HL Your notes 2.3 Leadership & Management Contents Types of Leadership Styles Page 1 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Types of Leadership Styles Your notes The Distinction Between Management & 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 Diagram: characteristics of leaders and managers The different characteristics of leaders and managers Key differences between leadership and management Vision vs. Execution Leadership focuses on creating a vision, setting direction, and inspiring others to follow Management focuses on executing plans, organising resources and ensuring tasks are completed on time Influence vs. Control Leadership focuses on influencing others to achieve a common goal by inspiring and motivating Page 2 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Management focuses on controlling resources and processes to ensure that objectives are met People vs. Processes Your notes Leadership focuses on people, their needs, and their motivation Management focuses on processes, structures and systems Long-term vs. Short-term Leadership focuses on the long-term vision and strategy Management focuses on short-term goals and targets Creativity vs. Efficiency Leadership encourages creativity and innovation Management focuses more on efficiency and productivity An Introduction to Leadership Styles Leadership styles are different approaches to leading and managing a team or business They reflect the behaviours and attitudes of a leader towards their team members and influence the organisational culture, productivity and performance A successful leader will be able to use a variety of leadership styles depending on the situation, to achieve the best results for their business Diagram: four common leadership styles Page 3 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Your notes Four commonly used types of leadership styles The choice of leadership style can be influenced by the business circumstances, as well as the nature and size of the business Autocratic Leadership An autocratic leader is a type of leader who holds absolute power and authority over a business The leader makes decisions without seeking input or agreement from others They typically expect strict obedience and compliance from their subordinates Autocratic leaders often have complete control over the decision-making process They set the direction and goals of the business They do not usually consider the opinions, ideas, or expertise of their team members Their decisions are generally not open to discussion or debate Situations when Autocratic Leadership is Especially Effective Situation Explanation Page 4 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Crisis situations In times of immediate crisis such as natural disasters or military conflicts quick and decisive action is often required Your notes Autocratic leaders can make swift decisions without the need for lengthy discussions which can be crucial in emergency situations Hierarchical Organisations with highly structured hierarchies may benefit from organisations autocratic leadership for the sake of coordination and efficiency In military units, for example, commanders often need to give clear and direct orders that subordinates must follow without question Time-sensitive Autocratic leadership can help speed up decision-making projects In businesses with strict deadlines such as construction or event planning an autocratic leader can ensure that tasks are completed promptly by providing specific instructions and minimising time spent on discussion Inexperienced or Autocratic leadership can be effective when working with teams lacking the unmotivated teams necessary skills, experience or motivation By providing clear direction and close supervision an autocratic leader can guide the team towards achieving their goals more efficiently Maintaining order In businesses where strict discipline and adherence to rules are important and discipline such as energy generation autocratic leadership may be necessary to ensure compliance and maintain order While autocratic leadership may be suitable in certain situations, it can also have drawbacks, including: Reduced employee morale as workers have no input into decision-making Limited creativity as employees are required to follow strict instructions and are closely monitored Lack of input from team members restricts an important source of problem-solving ideas and innovation Paternalistic Leadership Paternalistic leadership is where a leader assumes a 'fatherly' role towards their subordinates, acting in a protective and authoritarian manner The leader makes decisions for employees while also showing concern for the well-being and development of subordinates even if it means limiting employees' autonomy and freedom of Page 5 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources choice The leader takes on responsibility for the welfare of their employees Your notes They may provide guidance, support, and resources to ensure the success of their employees Huawei’s Ren Zhengfei is viewed as a paternalistic leader who has shaped the businesses culture with well-defined goals, employee devotion and absolute obedience in return for highly competitive pay and opportunities for staff to buy shares in the company Paternalistic leadership can create a sense of security and support among employees, increasing their loyalty and reducing staff turnover It can also be perceived as controlling and limits creativity and innovation within a business It may create a dependency on the leader, which restricts personal growth and professional development among employees Democratic Leadership Democratic leaders actively involve employees in the decision-making process and encourage discussion, though they have the final say Consultation, collaboration, delegation and teamwork are common features of democratic leadership This leadership style is most effective in organisations with skilled, experienced and creative employees Evaluation of Democratic Leadership Advantages Disadvantages Democratic leadership encourages Decisions are made through consensus or participation and involvement from majority agreement which can be a time- employees in decision-making processes consuming process This involvement can lead to higher levels Engaging all team members in discussions, of employee engagement and job collecting input and reaching agreement satisfaction as individuals feel valued and can slow down decision-making empowered when their opinions and ideas are considered Conflicts and disagreements may arise when different views are sought Democratic leadership can encourage creativity and innovation within a business Resolving these conflicts can be challenging and time-consuming and Employees are more likely to share ideas leaders need to possess strong conflict and think outside the box when they have resolution skills to ensure that a say in decision-making disagreements do not escalate Page 6 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Democratic leadership can lead to more Democratic leadership may result in comprehensive problem-solving and compromise on the quality of decisions decision-making Your notes Popular opinions may overshadow expert By considering a range of viewpoints, knowledge and decisions may be watered leaders can make more informed choices down or influenced by the desire for and avoid potential pitfalls agreement rather than the best outcome Laissez-faire Leadership Laissez-faire leaders play a minimal role in managing their business team Leaders provide little guidance, direction, or supervision to employees, allowing them significant autonomy and freedom in making decisions and completing tasks Laissez-faire leadership is most appropriate where leaders are working with a highly skilled and self- motivated team that requires minimal supervision Evaluation of Laissez-faire Leadership Advantages Disadvantages Laissez-faire leadership can encourage The absence of direct guidance and supervision creativity and innovation within the could lead to some employees struggling with business decision-making or needing more structure and direction to perform their job effectively By giving employees the freedom to explore ideas and make decisions This can lead to inefficiency and a lack of independently it allows for diverse coordination within the team, ultimately perspectives and fresh approaches to resulting in a decrease in productivity and problem-solving effectiveness, as individuals may struggle to prioritise tasks or make informed decisions Employees are empowered because they have autonomy and ownership over their Without clear guidelines or standards there is a work risk of inconsistency in the quality and outcomes of work This can enhance job satisfaction, motivation, and a sense of Different employees may have varying responsibility among team members approaches, leading to a lack of cohesion as they feel trusted and valued and potential conflicts in the team Laissez-faire leadership allows for greater Without regular oversight it is likely to be flexibility in adapting to changing challenging for leaders to monitor progress, circumstances identify issues, and ensure that goals are being met Employees can quickly respond to challenges and make decisions based Page 7 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources on their expertise and knowledge This can lead to decreased productivity and difficulties in holding individuals accountable Your notes Situational Leadership Hersey and Blanchard's Situational Leadership Model suggests there is no one-size-fits-all approach to leading a business organisation and effective leadership depends on adapting leadership style to the specific situation and the needs of the employees being led Leaders must assess the readiness of employees to perform a particular task or achieve a specific goal Readiness is determined by two factors competence (knowledge, skills, and experience) commitment (motivation and confidence) Based on this assessment, leaders can adopt different leadership styles to match the situation Diagram: Hersey and Blanchard's situational leadership model Hersey & Blanchard's situational leadership model Page 8 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources The situational leadership model emphasises that effective leaders should be flexible and able to adapt their leadership style based on the needs of their team members Your notes It encourages leaders to consider the situation carefully and assess the readiness of their followers before adopting the most appropriate leadership approach to maximise performance and development Page 9 of 9 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources DP IB Business Management: HL Your notes 2.4 Motivation & Demotivation Contents Motivational Theories: Taylor, Maslow, Herzberg Motivational Theories: Other Theories Labour Turnover Types of Employee Appraisal Methods of Recruitment Types of Financial Rewards Types of Non-Financial Rewards Types of Training Page 1 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Motivational Theories: Taylor, Maslow, Herzberg Your notes The Importance of Employee Motivation 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) Motivation plays a critical role in a business's success and can have a significant impact on productivity, reliability and loyalty of the workers, and labour turnover rates 1. The impact of motivation on productivity Motivated employees are more productive and efficient as they are more likely to be engaged in their work and take initiative to meet or exceed their goals They will generate higher levels of output and quality Increased productivity results in higher profits for the business 2. The impact of motivation on the reliability of workers Motivated employees are more likely to be reliable and dependable They take pride in their job, show up on time, meet deadlines, and take fewer sick days This leads to increased trust between the business and its employees and higher productivity 3. The impact of motivation on turnover rates Motivated employees are more likely to stay with the company long-term which reduces the turnover rate Lower turnover rates reduce the need for costly recruitment and training Taylor's Scientific Management Developed by Frederick Winslow Taylor in the early 20th century It focuses on breaking down complex tasks into simpler ones, standardising work processes, and 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 Page 2 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Production lines involving human labour are often set up based on these principles Your notes Taylor's method starts with a scientific analysis of what is involved in a job and then breaks it down into parts for which employees can be trained 1. Study and analyse the work process Carefully analyse each step of the work process Break down complex tasks into simpler ones and identify the most efficient and effective way to perform each task 2. Standardise the work process This involves creating detailed procedures and instructions for each task so that workers can follow these procedures consistently 3. Select and train the workers Workers should be carefully selected based on their skills and abilities Train workers to perform their tasks efficiently and effectively This training includes both technical skills and the proper attitudes/behaviours required to be successful (e.g. patience in a repetitive task) 4. Provide incentives for performance Scientific management emphasises the use of incentives to motivate workers Page 3 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources This may include bonuses or piece-rate pay Ways in which Businesses use Taylor's Scientific Management Your notes How Businesses use Taylor's Advantages Disadvantages Approach Workers are trained to Increased efficiency Overemphasis on efficiency perform only one task which lowers costs reduces worker satisfaction and which they become very creativity skilled at Standardised procedures for work processes that Workers may disengage from Workers are usually only everyone follows can help work if they are reduced to paid for the completed reduce errors and working in a machine-like system work (piece rate pay) inconsistencies e.g. $0.16 per T-shirt Limited applicability as this completed by garment Specialisation of labour approach may not work for roles workers in Bangladesh leads to greater efficiency that require high levels of and productivity creativity, problem-solving, or interpersonal skills Clear hierarchy and lines of authority can lead to Potential for exploitation as this more efficient decision- approach may be used to extract making and more work from workers without communication compensating them fairly e.g many 'sweat shop' labourers get Improved training and paid using this method development can lead to better performance and job satisfaction Maslow's 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 Page 4 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Your notes Maslow's hierarchy of needs Maslow's hierarchy of needs applied to business Physiological needs Businesses can provide necessities for their employees e.g. comfortable work environment, access to clean water and food, and adequate rest breaks Safety needs Businesses can provide job security, fair pay, benefits, and safe working conditions for their employees Love and belonging needs Businesses can encourage teamwork and generate a sense of community and belonging within the workplace Esteem needs Businesses can provide recognition for employees' accomplishments, and provide a positive work culture that values individual contributions Self-actualisation needs Page 5 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Businesses can help employees achieve this need by offering opportunities for employees to pursue their passions and interests e.g. Barclay's was known for supporting elite sportspeople by allowing them time off work in the day to continue their training (the focus was on getting the job done, not Your notes having to be in at a certain time) The Advantages & Disadvantages to Business of Applying Maslow's Hierarchy Advantages Disadvantages Higher employee satisfaction: By meeting the One size does not fit all: Businesses need needs of employees, businesses can create a to tailor their approach to meet the more satisfying work environment which can lead individual needs of their employees to increased productivity and lower turnover rates Expensive: Meeting many individual needs can be costly, especially when Increased motivation: Businesses can motivate offering perks such as the use of a their employees by offering incentives that align company car with their specific needs and desires Time-consuming: Requires significant Improved employee performance: Employees effort from management to connect who feel valued and supported by their employers individually to understand which are more likely to perform at a higher level opportunities for personal growth are desired Herzberg's Motivation-Hygiene 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 Page 6 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Your notes An explanation of how the lack of hygiene factors causes dissatisfaction while addressing the motivators increases satisfaction. Increased satisfaction leads to increased productivity and profitability How businesses can use hygiene factors to decrease dissatisfaction Pay fair wages/salaries If an employee is 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 amazing 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 Page 7 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources When employees are recognised and rewarded for their hard work, they are motivated to continue performing well, e.g. salesperson of the month award Your notes Offer opportunities for growth and development When employees are given opportunities to learn new skills and advance in their careers, they are motivated to continue working for the company, e.g. by setting in place a 3 year growth plan which helps the worker move towards a higher job 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 Examiner Tips and Tricks Case studies often contain clues to the motivational approach adopted by a business Consider how much or how little control over their working patterns employees have Weigh up which needs are - or are not - being met Look for indications of how challenging or engaging the work is likely to be Page 8 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Motivational Theories: Other Theories Your notes McClelland’s Acquired Needs Theory McClelland's Acquired Needs Theory focuses on the needs that individuals develop over time It explains how these needs influence their motivations and behaviour People have three acquired needs that drive their actions and choices in the workplace and in life A Summary of McLelland's Acquired Needs Type of Achievement Need Affiliation Need Power Need (nPow) Need (nAch) (nAff) Motivations Desire to excel & Forming positive Desire to influence & control achieve challenging relationships others/situations tasks Being happy Bring out the best in Setting & achieving within the others/teams personal goals workplace Behaviours Seek success and Seek approval, Seek leadership positions take calculated acceptance and risks social interaction Enjoy being in control of their environment Appreciate Avoid conflict feedback on their McClelland identified two types performance Prioritise of power needs harmony in their Enjoy tasks that interactions Personal power is the desire require problem- to control others solving Desire for cooperation and Institutional power is the Driven by a sense of collaboration desire to influence and shape accomplishment organisations/systems The relative strength of these needs varies among individuals They can be developed over time through life experiences, upbringing and cultural influences Understanding individuals' dominant need can help employers tailor their approach to employee motivation and management Page 9 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Strengths of McLelland's acquired needs theory The model is easy to understand & apply Your notes Helps managers to motivate employees in various situations Recognises that people have varying needs & motivations Managers can create more effective motivational strategies Based on extensive research McClelland's research was conducted in various cultural contexts so it can be applied in different settings Weaknesses of McLelland's acquired needs theory Does not account for the complexity of human behaviour Can be influenced by a wide range of personal and environmental factors The model may oversimplify workers' motivations People often have a combination of the three needs Limited evidence supports the specific needs identified in the theory Achievement, affiliation and power are not universally agreed upon as the primary drivers of behaviour Deci and Ryan’s Self-determination Theory Deci and Ryan's theory describes why people do what they do It is concerned with understanding human motivation and the factors that drive individuals to engage in activities Humans have three basic psychological needs that allow them to achieve personal growth Deci & Ryan's 3 Basic Psychological Needs Autonomy Competence Relatedness The need to have control The need to feel capable The need to connect with and make choices in our and effective in what we do, others and feel a sense of work and personal lives inside and outside of work belonging in each aspect of our lives Page 10 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources These three needs are crucial for intrinsic motivation because they allow people to feel valued and fulfilled Your notes This leads to greater well-being and sustained engagement both within and outside of the workplace If employers understand these needs they can develop staff effectively They may also be able to encourage staff to make positive changes for themselves Strengths of Deci & Ryan's self-determination theory 1. Adaptability Recognises that not all individuals are motivated in the same way Can be adapted to account for variations in motivation across different cultures 2. Can be applied to different situations It has been used widely in business, education management, sports coaching and healthcare 3. Backed by research Numerous studies have demonstrated its validity and relevance Weaknesses of Deci & Ryan's self-determination theory 1. Potential cultural bias Its origins are in Western psychology May not fully account for cultural variations in motivation between regions 2. Overemphasis on intrinsic motivation Downplays the significance of extrinsic motivators such as financial incentives 3. Lack of clear measurement tools Difficult to assess what motivates individual employees as the three psychological needs are internal Equity Theory John Adams's equity theory explains how people perceive and react to fairness in their personal and working relationships Diagram: Adams' equity theory in the workplace Page 11 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Your notes Equity is achieved when employees perceive that their inputs are equal to their outputs and are comparable with those of colleagues In the workplace Individuals strive to maintain a sense of fairness and balance They do this by comparing their inputs (contributions made by the employee) to their outputs (rewards they receive) Employees want this ratio to be fair Contributions and rewards should be roughly equal to those of colleagues Rewards should fully compensate the efforts the employee makes There are three possible scenarios in equity theory Under-Reward Equity Over-Reward Individuals feel that they are giving Individuals perceive a Individuals believe that more than they are receiving in balance between their they are receiving more comparison to colleagues inputs and outcomes than they are giving They may feel under-rewarded and They feel that the They may feel guilty or unfairly treated relationship is fair and just indebted This can lead to feelings of They are satisfied and This can lead to frustration or dissatisfaction content discomfort and a desire to restore fairness Page 12 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Restoring equity in the workplace To restore equity in the workplace individuals may take various actions Your notes Renegotiate terms and conditions of employment Adjust their contributions by making more/less effort Seek new opportunities that provide a fairer balance of inputs and outcomes Businesses may take steps to ensure workers perceive business systems as fair by Communicating better in recruitment and promotion policies Clarifying pay and reward systems Providing training and development opportunities Strengths of Adams's equity theory 1. Easy to understand Most people have an inherent sense of fairness and grasp the concept of equity 2. Recognises individual differences What one person perceives as equitable may not be the same for another 3. Highlights the importance of social comparisons People often compare their situation to others Weaknesses of Adams's equity theory 1. It is subjective What one person considers fair may differ from another's perspective 2. Ignores other influences on behaviour Factors such as personal values, intrinsic motivation and organisational culture also influence behaviour 3. Over-simplification Real-life working scenarios often involve variables and factors that Equity Theory does not consider Page 13 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Examiner Tips and Tricks Don't confuse equity with equality Your notes Equity is fairness. Employees may be paid different rates for very good reasons such as experience, skills or qualifications This is entirely fair Equality would mean the same rate of pay for all staff, regardless of competence This would not be fair at all Expectancy Theory Vroom's Expectancy theory seeks to explain why people make choices and behave in specific ways It suggests that motivation depends on these three factors working together Expectancy is the belief that effort leads to performance Instrumentality is the belief that performance leads to outcomes Valence is the value or desirability of those outcomes Diagram: Vrooms expectancy theory Vroom suggests that motivation depends on the three factors of expectancy, instrumentality and valence The Three Components of Vroom's Expectancy Theory Page 14 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Expectancy Instrumentality Valence Your notes Effort will lead to successful Successful performance will The potential outcome is performance be rewarded desirable If a worker believes that If a worker is confident that The more valuable or hard work will result in hard work will lead to a appealing the achieving a specific goal, desirable outcome or outcome, the more they are likely to be reward, they are more motivated workers motivated to put in that likely to be motivated to are to achieve it effort perform well Where low motivation is identified, managers may take steps to improve one or more of the components for individuals These steps may include Improve training and development to increase the expectancy score Increase trust between management and workers by ensuring that promises are kept - this may increase the instrumentality score Widen the package of rewards available for good performance to improve the valence score Strengths of expectancy theory The theory takes into account personal differences and considers them when explaining motivation A clear and logical framework for understanding motivation by breaking it down into three key components It emphasises the importance of involving employees in the goal-setting process Weaknesses of expectancy theory The theory is based on subjective perceptions and beliefs so it may not always accurately predict behaviour Individuals' perceptions and values can vary It provides a framework for understanding motivation rather than precise predictions Examiner Tips and Tricks Page 15 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources It is important to note that motivation - especially intrinsic motivation - is very personal and can differ significantly between individuals Your notes Assuming that all workers - even if they are in similar roles, with similar challenges and pay - are motivated by the same factors is likely to lead to the failure of reward programmes In some cases, employees may even need guidance to help them to understand what motivates or demotivates them - until they do so, it will be difficult to engage them successfully with regard to programs. Page 16 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Labour Turnover Your notes Labour Turnover Labour turnover measures the proportion of employees leaving a business during a specific time period It is expressed as a percentage and is calculated using the formula Number of Staff Leaving Labour Turnover = × 100 Total Number of Staff Internal and external factors that affect labour turnover A rising rate of labour turnover can signal internal human resource management problems such as Poor management leading to workers losing commitment A poor recruitment and selection approach leading to staff leaving soon after starting their job Low wage levels compared to those that could be earned elsewhere External factors can also increase labour turnover in a business A buoyant local economy where workers are attracted to employment opportunities elsewhere Improved transport links that provide an opportunity for workers to seek work across a wider geographical area The Consequences of high Labour Turnover Problems Opportunities Increased recruitment and selection Workers with existing skills can be recruited to reduce costs the need for training Increased induction and training New ideas and creativity introduced to the business costs New perspective and approaches to problem-solving Lower productivity levels as workers can improve business performance settle into new roles Page 17 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Your notes Worked Example In 2022 Domus Construction Ltd employed 7,200 workers, six per cent of whom worked at the head office. During 2022 fifty-four head office employees left the business. Calculate the labour turnover of Domus Construction's head office in 2022. (3 marks) Step 1: Calculate the number of head office workers 0.06 x 7,200 = 432 workers (1 mark) Step 2: Apply the labour turnover formula Number of Staff Leaving Labour Turnover = × 100 Total Number of Staff (2 marks) 54 Labour Turnover = = 0. 125 × 100 = 12. 5 % 432 Labour retention Labour retention measures the proportion of employees remaining with a business during a specific time period It is expressed as a percentage and is calculated using the formula Number of Staff Remaining Labour Retention = × 100 Total Number of Staff A high level of labour retention means that few staff are leaving the business during a given period Worked Example In 2022 Westington College employed 4,240 employees, 265 of whom left the college during the year Calculate Westington College's staff retention rate in 2022 (2 marks) Step 1: Calculate the number of employees not leaving Page 18 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources 4,240 - 265 = 3,975 (1 mark) Step 2: Calculate the retention rate using the formula Your notes Number of Staff Remaining Labour Retention = × 100 Total Number of Staff (1 mark) 3,975 Labour Retention = = 0. 9375 × 100 = 93. 75 % 4,240 Page 19 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Types of Employee Appraisal Your notes An Introduction to Employee Appraisals Staff appraisal is a process where a manager or supervisor assesses an employee's job performance Diagram: discussion points in employee appraisals Appraisal discussions reflect on employee performance and establish goals for the future Performance is measured against the tasks and responsibilities stated in the employee's job description Constructive feedback is given and there is a discussion of goals and development opportunities Advantages and Disadvantages of Employee Appraisals Advantages Disadvantages Feedback & Communication Subjectivity Structured platform for managers to Can be influenced by personal biases or give constructive feedback on prejudices of the appraiser employee performance Page 20 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Open & honest communication Managers may evaluate employees differently helps to address concerns & set based on personal relationships or expectations perceptions Your notes Performance Improvement Anxiety & Stress Identifies where employees may Employees may fear feedback or potential need training, development or negative consequences support to improve performance High-stakes appraisals can lead to Encourages self-awareness and demotivation or performance anxiety self-improvement Recognition & Motivation Time-Consuming Recognises & rewards employees Takes both managers and employees away for their achievements & from other productive work contributions Filling out forms and conducting meetings can Opportunity to acknowledge be cumbersome employees' hard work & dedication Decision-Making Inaccuracies Supports decisions related to May not accurately reflect an employee's promotions, salary increases & performance due to a lack of objectivity bonuses based on merit The process may fail to capture the full range Identifies high-potential employees of an employee's contributions and skills for leadership development Formative Appraisal A formative appraisal involves gathering ongoing information and feedback on employee performance Managers and workers have regular performance management conversations Prompt adjustments can be made to improve performance Methods used to gather information for formative appraisal may include employee observations aptitude tests skills tests Page 21 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources feedback from peers Formative appraisal is commonly used during training or probation periods Characteristics of Formative Appraisal Your notes Characteristic Explanation Ongoing Feedback It is conducted continuously throughout the period of employment or training Workers receive feedback on their progress, identify areas for improvement and make necessary changes to enhance performance Improvement- The primary goal is to help workers make improvements Oriented Provides insights into what is/is not working well No or Low Stakes Assessments in formative appraisal do not heavily impact a worker's employment Minimal pressure on employees encourages them to focus on improvement Timely Feedback Specific, constructive and actionable feedback is provided promptly Workers can use it to make immediate improvements Employee Employees are encouraged to be actively involved in the process Involvement They may self-assess, set goals and reflect on their own progress towards goals Summative Appraisal Summative appraisal is typically conducted yearly or at the end of a work assignment Its main purpose is to assess and measure the overall performance, achievement or outcomes of employees Summative appraisals are often used to make decisions related to pay or promotion Key Characteristics of Summative Appraisal Include Characteristic Explanation Page 22 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Endpoint Assessment Summative appraisal occurs at the end of the year, cycle or project Teacher performance is appraised following the publication of Your notes examination results Performance of sales staff is often measured monthly or quarterly Evaluation of It focuses on the overall outcomes and results achieved by the employee Achievement Teacher performance is measured against the results achieved by students in examinations Performance of sales staff is usually measured against the volume or value of sales achieved High-Stakes It can have significant consequences such as determining pay, promotion or continued employment 360 Degree Feedback 360 Degree feedback provides employees with feedback from within and outside their organisation Feedback comes from multiple stakeholders who have direct contact with the employee Stakeholders may include line managers, colleagues, suppliers and customers Diagram: the 360 degree appraisal process 360-degree feedback can be collected from a range of internal and external sources Feedback can be gathered from a range of internal and external sources Page 23 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Feedback is typically gathered through surveys or questionnaires Responses are usually anonymised to encourage honest feedback Your notes After feedback is collected, it is shared with the employee in the appraisal process It is considered to provide a comprehensive assessment of an individual's strengths, weaknesses and training/development needs The Main Uses of 360 Degree Feedback Performance Appraisal Personal Development Evaluate an employee's performance and Identify areas for improvement and help contributions employees improve their skills Career Development Leadership and Management Development Assist individuals in career planning and Assess and develop leadership and advancement within the organisation managerial skills 360 Degree feedback can be a valuable tool when used effectively It should be implemented carefully to ensure that it serves its intended purpose and does not lead to conflicts or resentment It is essential to have a clear process for collecting, analysing and providing feedback and to use the information obtained for employee development Self-appraisal Self-appraisal involves employees evaluating their own performance, skills, strengths, weaknesses and achievements It is commonly used in the workplace as part of the performance management process Self-appraisal is typically used alongside evaluations from managers or supervisors to provide a comprehensive view of an individual's performance Typical Elements of Self-Appraisal Element Explanation Page 24 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Achievements Employee describes accomplishments and contributions made during a specific period Your notes This may include projects completed, goals met or tasks successfully accomplished Strengths Employee identifies strengths, skills and capabilities that have been valuable to the organisation Areas for Improvement Weaknesses or areas where the worker believes they can make positive changes are identified This may include acquiring new skills, addressing specific shortcomings or improving behaviours Goals & Development Set goals for future improvement and outline plans to achieve them Plans This may include training or skills development Self-Reflection Employee reflects on their overall performance Evaluates how it aligns with organisational goals/values The Value of Employee Self Appraisals The process can lead to increased self-awareness The process provides an opportunity for employees to share their perspectives and goals with their supervisors, which can promote open dialogue The process identifies areas that need improvement and by setting clear goals for the future, it supports professional growth and development The process can balance out the evaluation process as it allows employees to express their viewpoints and provide context/balance Page 25 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Methods of Recruitment Your notes An Introduction to Recruitment Recruitment is the process of attracting and identifying potential job candidates who are suitable for a particular role Recruitment activities include job advertising, job fairs, social media outreach and referrals from current employees The goal of recruitment is to create a pool of qualified candidates who can be considered for the role Selection is the process of choosing the best candidate Selection activities often involve reviewing CVs and conducting interviews or assessment tasks The goal of selection is to hire the most suitable candidate for the job Diagram: the recruitment and selection process The recruitment and selection process is focused on sourcing the best person for a job role 1. Define the role Businesses should determine exactly what is required and part of that is developing a job description and a person/job specification A job specification outlines the qualifications, skills, experience, and personal qualities required from a candidate for a specific job e.g. problem solver, good communicator, able to code in Java etc. Page 26 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources A job description outlines the duties, responsibilities, and requirements of a particular job 2. Determine the best source of candidates Your notes The business can advertise the role internally, externally, or a combination of both Internal recruitment is the process of hiring employees from within the organisation Internal recruitment can be beneficial as it encourages employee development, builds morale and can save time and money on training External recruitment is the process of hiring employees from outside the organisation External recruitment can bring fresh ideas, experiences and perspectives to the organization These methods are considered in more detail below 3. Advertise Businesses with a strong social media presence can use these platforms to advertise cost effectively e.g. Facebook, LinkedIn, TikTok Depending on the nature of the business, there may be specialist recruitment portals through which they can advertise and these tend to cost more e.g. The Times Educational Supplement is one of the main publications used to recruit teaching staff 4. Receive applications The application stage involves collecting information from potential candidates These methods are discussed fully below Someone within the business must be nominated to manage the application process This person (possibly together with others) will draw up a shortlist of candidates from the many applications received The shortlist usually includes 3-5 candidates who are invited to interview 5. The selection process This process varies significantly between organisations Businesses must decide on the most appropriate method which will help them to identify the best candidate The most commonly used methods are discussed fully below Internal & External Recruitment Page 27 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Businesses often use a combination of internal and external recruitment methods, depending on the nature of the job and the availability of suitable candidates Your notes The method chosen will also depend on the organisation's goals, the level of the position being filled and the industry in which it operates Internal recruitment methods Internal recruitment involves the promotion or redeployment of staff to fill a vacant post Vacancies are advertised internally on staff notice boards, in newsletters or via in-house electronic communications Recruiting internally has a range of advantages and disadvantages Advantages and Disadvantages of Internal Recruitment Advantages Disadvantages Internal candidates are already familiar Can lead to conflict or resentment with business culture and processes May affect motivation and working Can adapt to the role quickly relationships between successful/rejected internal candidates Little need for induction training Business has a good understanding of the A further vacancy is created when an employee candidate's strengths, weaknesses, skills is promoted/redeployed & aptitudes External recruitment may be necessary to fill Less risky than employing an external vacated job roles candidate whose abilities are less well- known Opportunities to progress can be A limited number of suitable applicants may be motivating for existing employees available internally Improves loyalty & commitment Cheaper and quicker to promote or Missed opportunity to inject new ideas, redeploy existing staff rather than recruit experience or skills into the business externally External Recruitment Methods Page 28 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources If a vacancy cannot be filled internally it will be necessary to look outside of the business to find suitable candidates Your notes New skills, experiences and ideas can be introduced to the business Some methods are expensive and it can be difficult to target the desired audience A Comparison of External Recruitment Methods Method Explanation Referrals/Personal Current employees may recommend a suitable candidate for a Recommendations vacancy Employees may be rewarded if a candidate is successfully appointed Online Advertising Vacancies can be advertised on a businesses own website or on a specialist recruitment website such as Glassdoor or CharityJobs.com This method is relatively low-costs with a wide reach Newspaper Advertising Adverts to attract local candidates can be placed in district or regional newspapers High-profile vacancies such as public sector roles may be advertised in national newspapers Although relatively expensive these adverts can be highly targeted Specialist Trade Roles are advertised in magazines or newsletters commonly read by Publications professionals in a particular industry Example include fashion industry journal Drapers and education journal The Times Educational Supplement (TES) Employment Agencies Specialist recruitment agents advertise roles on behalf of the business Some also conduct interviews or other selection activities A recruitment fee is charged when the business appoints a candidate Headhunting A headhunting agency makes attractive approaches to highly- qualified specialists in a particular industry/with desired skills, Page 29 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources experience or knowledge A significant fee is payable once a candidate is appointed Your notes Job Centres Low level vacancies can be advertised free of charge in government- funded centres and increasingly online Careers Fairs Events often hosted by universities or industry bodies to promote available opportunities Attract significant numbers of highly-qualified, interested candidates External recruitment overcomes some of the disadvantages of internal recruitment However it is often more expensive than internal recruitment There is also a greater degree of uncertainty as external candidates are unknown to the business Applying for a Job Both internal and external candidates typically apply for advertised roles by submitting an application form Alternatively candidates are asked to submit a curriculum vitae (CV) with an accompanying cover letter Application Form Curriculum Vitae (CV) Covering Letter A standardised form A professional document A letter that accompanies designed by the recruiter compiled by the applicant the candidate's to collect the same details application form or CV from each candidate Details career experience, key skills and strengths Gives reasons for Responses are collected in submitting an application a consistent format and Includes qualifications and comparison is character/professional Draws attention to the straightforward referees applicant's particular suitability for the role A large volume of Provides contact details for candidates can be the recruiter to get in touch Allows recruiters to sift narrowed down for with the applicant applications without interview having to compare detailed application forms/CVs Page 30 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Selecting the right candidate A range of methods may be used to make a choice between job applicants Your notes Business commonly use a combination of these methods Diagram: common selection methods Businesses commonly use interviews to select their chosen candidate along with testing, portfolios and gathering references Interview Testing A structured meeting between a candidate and a Pre-employment assessments that can potential employer assess candidate integrity, suitability for the job, aptitude or specific skills It can be conducted in-person, by telephone or online Can help a business gauge whether a candidate would be a good fit within the Its purpose is to assess the candidate's existing team qualifications, skills, experience and suitability for a particular job or role within the business They can assess problem-solving and critical thinking skills, giving employers an idea of a candidate's potential Portfolio References Candidates are required to submit a selection of Referees vouch for a candidate's skills, their best work for recruiters to review work ethic and overall suitability for the position This is commonly used to select candidates for creative or artistic roles Page 31 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Businesses can identify whether a candidate's Referees should know candidates in a experience and style would be a good fit with its professional capacity and be able to own approach speak positively about their abilities Your notes Referees are usually listed on the application form or CV Page 32 of 42 © 2015-2025 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Types of Financial Rewards Your notes Financial Rewards to Improve Performance Financial rewards are payments given to employees in return for their labour - or improved performance Examples of financial rewards Types of Financial Incentives & Their Links to Motivational Theory Incentive Type Explanation Link to Motivational Theories Piecework Employees are paid according Taylor's Scientific management to the number of units or pieces they produce Commonly used in manufacturing or assembly- line settings and encourages workers to increase their output, e.g. garment factories in Bangladesh use this Commission A percentage of sales revenue Hygiene factor in Hertzberg's Theory paid to workers who sell products or services Connects to Esteem Needs in Maslow's