HL IB Business Management Motivation & Demotivation PDF

Head to www.savemyexams.com for more awesome resources HL IB Business Management Your notes 2.4 Motivation & Demotivation Contents Motivational Theories: Taylor, Maslow, Herzberg Motivational Theories: Other Theorie...

Head to www.savemyexams.com for more awesome resources HL IB Business Management 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 43 © 2015-2024 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 Page 2 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Taylor's Scientific Management Developed by Frederick Winslow Taylor in the early 20th century Your notes 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 Production lines involving human labour are often set up based on these principles 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 Page 3 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources 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) Your notes 4. Provide incentives for performance Scientific management emphasises the use of incentives to motivate workers This may include bonuses or piece-rate pay Ways in which Businesses use Taylor's Scientific Management How Businesses use Taylor's Advantages Disadvantages Approach Workers are trained to Increased efficiency which Overemphasis on efficiency perform only one task which lowers costs reduces worker satisfaction they become very skilled at Standardised procedures for and creativity Workers are usually only paid work processes that everyone Workers may disengage from for the completed work follows can help reduce errors work if they are reduced to (piece rate pay) e.g. $0.16 per and inconsistencies working in a machine-like T-shirt completed by garment Specialisation of labour leads system workers in Bangladesh to greater efficiency and Limited applicability as this productivity approach may not work for Clear hierarchy and lines of roles that require high levels of authority can lead to more creativity, problem-solving, or efficient decision-making and interpersonal skills communication Potential for exploitation as Improved training and this approach may be used to development can lead to extract more work from better performance and job workers without satisfaction compensating them fairly e.g many 'sweat shop' labourers get paid using this method Page 4 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Maslow's Hierarchy of Needs Maslow's Hierarchy of Needs is a theory of human motivation that outlines five tiers of human needs Your notes that must be met for individuals to reach their full potential 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 Page 5 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Businesses can provide recognition for employees' accomplishments, and provide a positive work culture that values individual contributions Your notes Self-Actualisation Needs 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 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 to needs of employees, businesses can create a tailor their approach to meet the individual more satisfying work environment which can needs of their employees lead to increased productivity and lower turnover rates Expensive: Meeting many individual needs can be costly, especially when offering perks such Increased motivation: Businesses can motivate as the use of a company car their employees by offering incentives that align with their specific needs and desires Time-consuming: Requires significant effort from management to connect individually to Improved employee performance: Employees understand which opportunities for personal who feel valued and supported by their growth are desired employers are more likely to perform at a higher level Page 6 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Herzberg's Motivation-Hygiene Theory Herzberg's theory suggests that there are two types of factors that affect employee motivation and Your notes 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 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 Page 7 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources If employees feel that their job is not secure, they may become anxious and demotivated and contribute less to the business goals Your notes How businesses can use motivating factors to increase satisfaction Build a recognition and rewards culture When employees are recognised and rewarded for their hard work, they are motivated to continue performing well e.g. Sales person of the month award Offer opportunities for growth and development When employees are given opportunities to learn new skills and advance in their careers, they are motivated to continue working for the company e.g. set in place a 3 year growth plan which helps the worker move towards a reach 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 Exam Tip 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 43 © 2015-2024 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 Need Achievement Need (nAch) Affiliation Need (nAff) Power Need (nPow) Motivations Desire to excel & Forming positive Desire to influence & achieve challenging relationships control others/situations tasks Being happy within Bring out the best in Setting & achieving the workplace others/teams personal goals Behaviours Seek success and take Seek approval, Seek leadership positions calculated risks acceptance and social interaction Enjoy being in control of Appreciate feedback their environment on their performance Avoid conflict McClelland identified two types of power needs Enjoy tasks that Prioritise harmony in Personal power is the require problem- their interactions desire to control solving others Desire for Institutional power is Driven by a sense of cooperation and the desire to influence accomplishment collaboration and shape 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 Strengths of McLelland's Acquired Needs Theory The model is easy to understand & apply Page 9 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Helps managers to motivate employees in various situations Recognises that people have varying needs & motivations Your notes 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 Page 10 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Deci and Ryan’s Self-determination Theory Deci and Ryan's theory describes why people do what they do Your notes 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 and The need to feel capable and The need to connect with make choices in our work and effective in what we do, inside others and feel a sense of personal lives and outside of work belonging in each aspect of our lives These three needs are crucial for intrinsic motivation because they allow people to feel valued and fulfilled 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 Page 11 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources 2. Overemphasis on intrinsic motivation Downplays the significance of extrinsic motivators such as financial incentives Your notes 3. Lack of clear measurement tools Difficult to assess what motivates individual employees as the three psychological needs are internal Page 12 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Equity Theory John Adams's equity theory explains how people perceive and react to fairness in their personal and Your notes working relationships Diagram Which Explains Adams' Equity Theory in the Workplace 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 Individuals perceive a balance Individuals believe that they giving more than they are between their inputs and are receiving more than they receiving in comparison to outcomes are giving colleagues They feel that the relationship They may feel guilty or They may feel under- is fair and just indebted rewarded and unfairly treated They are satisfied and content This can lead to discomfort This can lead to feelings of and a desire to restore fairness frustration or dissatisfaction Page 13 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Restoring Equity in the Workplace Your notes To restore equity in the workplace individuals may take various actions 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 14 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Exam Tip Your notes Don't confuse equity with equality 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 Page 15 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Expectancy Theory Vroom's Expectancy theory seeks to explain why people make choices and behave in specific ways Your notes 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 which illustrates 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 Expectancy Instrumentality Valence 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 hard work will result in that hard work will lead to The more valuable or achieving a specific goal, a desirable outcome or appealing the outcome, they are likely to be reward, they are more the more motivated motivated to put in that likely to be motivated to workers are to achieve it effort perform well Page 16 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Where low motivation is identified, managers may take steps to improve one or more of the components for individuals These steps may include Your notes 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 Exam Tip It is important to note that motivation - especially intrinsic motivation - is very personal and can differ significantly between individuals 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 programmes Page 17 of 43 © 2015-2024 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 costs Workers with existing skills can be recruited to Increased induction and training costs reduce the need for training Lower productivity levels as workers settle into New ideas and creativity introduced to the new roles business New perspective and approaches to problem- solving can improve business performance Page 18 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Worked example Your notes 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 54 Labour Turnover = = 0. 125 × 100 = 12. 5 % (2 marks ) 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 Page 19 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Worked example Your notes 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 4,240 - 265 = 3,975 (1 mark) Step 2: Calculate the retention rate using the formula 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 20 of 43 © 2015-2024 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 give constructive feedback on employee Can be influenced by personal biases or performance prejudices of the appraiser Open & honest communication helps to Managers may evaluate employees address concerns & set expectations differently based on personal relationships Page 21 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources or perceptions Performance Improvement Anxiety & Stress Your notes Identifies where employees may need Employees may fear feedback or potential training, development or support to negative consequences improve performance High-stakes appraisals can lead to Encourages self-awareness and self- demotivation or performance anxiety improvement Recognition & Motivation Time-Consuming Recognises & rewards employees for their Takes both managers and employees away achievements & contributions from other productive work Opportunity to acknowledge employees' Filling out forms and conducting meetings hard work & dedication can be cumbersome Decision-Making Inaccuracies Supports decisions related to promotions, salary increases & bonuses based on merit May not accurately reflect an employee's Identifies high-potential employees for performance due to a lack of objectivity leadership development The process may fail to capture the full range of an employee's contributions and skills Page 22 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Formative Appraisal A formative appraisal involves gathering ongoing information and feedback on employee Your notes 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 feedback from peers Formative appraisal is commonly used during training or probation periods Characteristics of Formative Appraisal 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-Oriented The primary goal is to help workers make improvements 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 Involvement Employees are encouraged to be actively involved in the process They may self-assess, set goals and reflect on their own progress towards goals Page 23 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Summative Appraisal Summative appraisal is typically conducted yearly or at the end of a work assignment Your notes 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 Endpoint Assessment Summative appraisal occurs at the end of the year, cycle or project Teacher performance is appraised following the publication of examination results Performance of sales staff is often measured monthly or quarterly Evaluation of Achievement It focuses on the overall outcomes and results achieved by the employee 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 Page 24 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources 360 Degree Feedback 360 Degree feedback provides employees with feedback from within and outside their organisation Your notes 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 Feedback is typically gathered through surveys or questionnaires Responses are usually anonymised to encourage honest feedback 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 managerial advancement within the organisation skills 360 Degree feedback can be a valuable tool when used effectively Page 25 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources 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 Your notes the information obtained for employee development Page 26 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Self-appraisal Self-appraisal involves employees evaluating their own performance, skills, strengths, weaknesses Your notes 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 Achievements Employee describes accomplishments and contributions made during a specific period 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 27 of 43 © 2015-2024 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. A job description outlines the duties, responsibilities, and requirements of a particular job 2. Determine the best source of candidates The business can advertise the role internally, externally, or a combination of both Page 28 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources 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 Your notes 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 Page 29 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Internal & External Recruitment Businesses often use a combination of internal and external recruitment methods, depending on the Your notes nature of the job and the availability of suitable candidates 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 with Can lead to conflict or resentment business culture and processes May affect motivation and working Can adapt to the role quickly relationships between successful/rejected Little need for induction training internal candidates 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 motivating A limited number of suitable applicants may be for existing employees available internally Improves loyalty & commitment Cheaper and quicker to promote or redeploy Missed opportunity to inject new ideas, existing staff rather than recruit externally experience or skills into the business External Recruitment Methods If a vacancy cannot be filled internally it will be necessary to look outside of the business to find suitable candidates 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 Page 30 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Method Explanation Referrals/Personal Current employees may recommend a suitable candidate for a Your notes 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 Publications Roles are advertised in magazines or newsletters commonly read by 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, experience or knowledge A significant fee is payable once a candidate is appointed 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 Page 31 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources There is also a greater degree of uncertainty as external candidates are unknown to the business Applying for a Job Your notes 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 the designed by the recruiter to compiled by the applicant candidate's application form collect the same details from or CV each candidate Details career experience, Gives reasons for submitting key skills and strengths an application Responses are collected in a Draws attention to the consistent format and Includes qualifications and character/professional applicant's particular comparison is straightforward suitability for the role referees A large volume of candidates Allows recruiters to sift can be narrowed down for Provides contact details for applications without having to interview the recruiter to get in touch compare detailed application with the applicant forms/CVs Selecting the Right Candidate A range of methods may be used to make a choice between job applicants 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 Page 32 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Your notes Interview Testing A structured meeting between a candidate and Pre-employment assessments that can assess a potential employer candidate integrity, suitability for the job, It can be conducted in-person, by telephone or aptitude or specific skills online Can help a business gauge whether a candidate Its purpose is to assess the candidate's would be a good fit within the existing team qualifications, skills, experience and suitability They can assess problem-solving and critical for a particular job or role within the business thinking skills, giving employers an idea of a candidate's potential Portfolio References Candidates are required to submit a selection Referees vouch for a candidate's skills, work of their best work for recruiters to review ethic and overall suitability for the position This is commonly used to select candidates for Referees should know candidates in a creative or artistic roles professional capacity and be able to speak Businesses can identify whether a candidate's positively about their abilities experience and style would be a good fit with Referees are usually listed on the application its own approach form or CV Page 33 of 43 © 2015-2024 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 to the Taylor's Scientific management 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 paid to Hygiene factor in Hertzberg's workers who sell products or services Theory Commonly used in sales roles and motivates Connects to Esteem Needs in staff to increase their sales revenue Maslow's Hierarchy (salesperson of the month) Page 34 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Bonus An additional payment is given to staff as a Connects to Esteem Needs in reward for achieving specific goals, Maslow's Hierarchy completing projects on time, or exceeding (achievement) Your notes performance expectations Herzberg believed that bonuses Motivates staff to work harder and achieve as the main form of payment better results would negatively influence individual behaviour in the workplace (this was part of the problem in the banking industry leading up to the 2008 financial crash) Profit share A portion of the company's profits are Motivator in Herzberg's Theory as distributed among staff it creates buy in to increased responsibility (help the This encourages them to think like owners, organisation succeed; be an work collaboratively and focus on the owner) company's overall goals Performance- Staff are paid based on their performance Hygiene Factor in Herzberg's related pay which (theoretically) motivates staff to work theory - and has been proven to harder and achieve better results cause significant dissatisfaction when utilised This form of payment has been severely criticised as discriminatory and open to abuse by managers Fringe Benefits Financial rewards received by employees Fringe benefits may link to ego other than wages or salary such as medical needs in Maslow's hierarchy of insurance, a company vehicle or private needs especially if they are linked pension plan to employees' position in the organisational hierarchy Wages & Wages are usually paid to workers on the Connects to safety Salaries basis of hours worked (time rate) or items needs in Maslow's hierarchy of produced (piece rate) needs and acts as a hygiene factor in Hertzberg's two-factor Salaries are expressed on an annual basis theory and workers are paid a proportion on a periodic basis (usually each month) Equitable and sufficient pay is required to avoid staff dissatisfaction and retain workers Page 35 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Types of Non-financial Rewards Your notes Non-financial Rewards to Improve Performance Non-financial rewards are motivators not directly related to money Examples of non-financial rewards These incentives are usually intangible and include methods that lead to recognition, praise, job satisfaction, and better work-life balance Types of Non-financial Incentives & Their Links to Motivational Theory Incentive Type Explanation Link to Motivational Theories Empowerment Involves giving staff the authority and resources to make decisions and take action Maslow's 'Esteem' Needs as without first receiving management approval staff contribution is valued Increases staff sense of ownership and A 'motivator' in Herzberg's Two responsibility, leading to improved Factor Theory (increase in productivity responsibility) Team working Involves creating opportunities for staff to work collaboratively Maslow's Love & Belonging, as well as Esteem Needs Staff can share ideas and expertise, leading to improved productivity and innovation Page 36 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Job enrichment Involves adding more challenging or A 'motivator' in Herzberg's Two meaningful tasks to a job Factor Theory Your notes Staff feel more motivated and engaged, leading to improved productivity Job rotation Involves moving staff between different roles A 'motivator' in Herzberg's Two in the business Factor Theory (the work itself) Exposes staff to new challenges and experiences which can increase motivation, understanding and skill Job enlargement Involves expanding staff's job duties to Mayo's Human Relations Theory include additional tasks or responsibilities as it encourages the Engaging with a variety of tasks can increase development of staff motivation and job satisfaction, leading to A 'motivator' in Herzberg's Two improved productivity factor Theory (the work itself) Exam Tip When asked to asses a compensation package on offer, consider the following before answering: 1. The context of the business: Is it a manufacturing facility or a team of creative designers? 2. The Industry norms: Does the data provide any insight into what competitors are doing? 3. The balance of the compensation package: ideally it should include appropriate financial and non-financial incentives to maximise employee productivity and retention. The case study usually provides good data which helps you to answer the above questions so refer to it as supporting evidence. Page 37 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Types of Training Your notes Reasons why Firms Train & Develop Their Employees Businesses need to make sure that new and existing staff are trained and developed appropriately Training is the teaching of new skills Development is the improvement of existing skills A well-trained workforce is important for several reasons Well-trained staff are likely to be more productive Staff may feel valued if a business invests in training and development Staff are more likely to be flexible and resilient in the face of change Reasons for training and development Page 38 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Well-trained employees are likely to be motivated because they recognise that their employer is spending money on their development Your notes Motivation theory suggests that employees work more enthusiastically at the things they’re good at if employees are trained in managing quality they are more likely to think about how to improve the standard of the goods they produce If motivation is improved through better training labour retention is also likely to increase If an employee feels they’re becoming better at their job they are far more likely to stay with the business even if another employee is offering higher rates of pay because they want to keep developing in the job they have Page 39 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Types of Training Provided by Businesses Different types of training have their advantages and disadvantages for the business Your notes Three common types of training that businesses put their new employees through Induction training Induction training is a type of training that new employees receive when they start working for a company Page 40 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Your notes Common elements of induction training It introduces them to the company, its culture, policies, procedures, and their job roles and responsibilities E.g. when new employee joins Marks & Spencer they receive induction training that covers customer service, product knowledge, store policies, and safety procedures The Advantages & Disadvantages of Induction Training Advantages Disadvantages Helps new employees to understand their job roles and responsibilities Can be time-consuming and expensive to organise Introduces employees to the company culture, policies, and procedures May not cover all aspects of the job role Improves employee confidence and motivation May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates Page 41 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Reduces the time taken for new employees to become productive Your notes On the job training A type of training that takes place while employees are working in their job roles It allows employees to learn new skills and knowledge from colleagues while performing their job duties E.g. A sous chef at The Ivy Restaurant in York may receive on-the-job training from the Chef to learn how to prepare new dishes, use new equipment, or improve their cooking techniques The Advantages & Disadvantages of On the Job Training Advantages Disadvantages Employees learn new skills and knowledge while performing their job duties Employees may make mistakes while learning, which can impact productivity and quality Training is tailored to the employee's specific job role and responsibilities Can be disruptive to the workplace as it requires the trainer to devote time to training the Training is often more practical and relevant to employee the employee's job duties May not be effective in all cases, leading to Can be cost-effective as it takes place during employee dissatisfaction and higher turnover working hours rates Off the job training A type of training that takes place outside of the workplace It can be in the form of workshops, seminars, conferences, or online courses E.g. Teachers can attend exam board training days at which they learn how to better teach the syllabus and help their students to prepare for their exams The Advantages & Disadvantages of Off-the-Job Training Advantages Disadvantages Page 42 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers  Head to www.savemyexams.com for more awesome resources Employees learn new skills and knowledge Can be expensive to organise, especially if travel and outside of the workplace, which can bring fresh accommodation are required Your notes ideas and perspectives to the workplace Employees may miss work while attending Training can be tailored to the employee's training, which can impact productivity specific needs and interests The training may not be directly applicable to Training can be used as a reward or incentive for the employee's job role or the needs of the firm high-performing employees Can be cost-effective if training is provided online or through webinars Page 43 of 43 © 2015-2024 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers