Unit 6 Flashcards
AQA A-Level Business (7132)
Ready to master these flashcards?
Sign in to study with spaced repetition and track your progress.
Sign In to Track ProgressTerms in this set (189)
Employee motivation
The inner desire or willingness that propels a person to take action and achieve a specific goal or outcome.
Intrinsic motivation
Motivation that comes from within a person, such as values, beliefs, or personal satisfaction.
Extrinsic motivation
Motivation that comes from external factors, such as rewards or punishments.
Impact of motivation on productivity
Motivated employees are more productive, efficient, and engaged, leading to higher output, quality, and profits.
Impact of motivation on reliability
Motivated employees are more reliable, take pride in their work, meet deadlines, and take fewer sick days.
Impact of motivation on turnover rates
Motivated employees are more likely to stay long-term, reducing recruitment and training costs.
Taylor's scientific management theory
A theory focusing on breaking down tasks, standardising processes, and training workers to achieve maximum efficiency.
Steps in Taylor's scientific management
Analyse work processes, standardise tasks, select and train workers, and provide performance incentives.
Advantages of Taylor's approach
Increased efficiency, reduced errors, specialisation of labour, and improved training and development.
Disadvantages of Taylor's approach
Overemphasis on efficiency reduces satisfaction, limited applicability, and potential for worker exploitation.
Maslow's hierarchy of needs
A theory outlining five tiers of human needs: physiological, safety, love/belonging, esteem, and self-actualisation.
Physiological needs in business
Providing necessities like a comfortable work environment, clean water, food, and adequate rest breaks.
Safety needs in business
Providing job security, fair pay, benefits, and safe working conditions.
Love and belonging needs in business
Encouraging teamwork and fostering a sense of community within the workplace.
Esteem needs in business
Providing recognition for accomplishments and creating a positive work culture.
Self-actualisation needs in business
Offering opportunities for employees to pursue passions and interests, e.g. flexible schedules for elite athletes.
Advantages of Maslow's hierarchy
Higher employee satisfaction, increased motivation, and improved performance.
Disadvantages of Maslow's hierarchy
One size does not fit all, expensive to implement, and time-consuming for management.
Herzberg's motivation-hygiene theory
A theory suggesting that hygiene factors prevent dissatisfaction, while motivators increase satisfaction and motivation.
Hygiene factors
Elements that prevent dissatisfaction, e.g. fair wages, excellent working conditions, and job security.
Motivators
Elements that increase satisfaction, e.g. recognition, growth opportunities, and challenging work.
Benefits of good employer–employee relations
Higher motivation and productivity, lower staff turnover, fewer disputes, improved reputation, and better change management.
Impact of good relations on productivity
Engaged employees work harder, improving labour productivity and reducing labour cost per unit.
Impact of good relations on turnover
Respected employees are less likely to leave, reducing recruitment and training costs.
Impact of good relations on disputes
Open communication addresses concerns early, avoiding escalation and maintaining productivity.
Influences on employee involvement
Leadership style, business size, trade unions, workforce nature, and legal requirements.
Leadership style and employee involvement
Democratic leaders involve staff more; autocratic leaders involve staff less.
Business size and employee involvement
Smaller firms use informal communication; larger firms require structured consultation like works councils.
Trade unions and employee involvement
Unionised workplaces formalise involvement through negotiations and collective agreements.
Legal requirements for employee involvement
UK law requires consultation in situations like redundancies or health and safety.
Methods to improve communication
Team briefings, staff surveys, suggestion schemes, internal newsletters, appraisals, union meetings, and works councils.
Team briefings
Regular meetings to update employees on goals, performance, and changes.
Staff surveys
Collect feedback and measure morale to identify concerns early.
Suggestion schemes
Channels for staff to contribute ideas and improvements.
Works councils
Employee-elected representatives meet with management to discuss workplace issues, useful in non-unionised firms.
Ravenbridge Logistics conflict
A new rota disrupted work–life balance, leading to low morale, increased absenteeism, and threat of strike action.
Ravenbridge Logistics resolution
Emergency consultations led to revised rotas, shift bonuses, and a feedback app, improving engagement and productivity.
Outcome of Ravenbridge Logistics case
Strike was avoided, absenteeism fell by 18%, and engagement scores rose by 23%.
Trade union
An organisation representing workers' interests in negotiations with management or owners.
Types of trade unions
General unions, industrial unions, craft unions, and white-collar unions.
General union
Represents workers across many industries and skill levels, e.g. Unite the Union.
Industrial union
Represents all workers in a specific industry, e.g. Fire Brigades Union (FBU).
Craft union
Represents workers with a particular trade or skill, e.g. National Union of Rail, Maritime and Transport Workers (RMT).
White-collar union
Represents office-based, professional or administrative staff, e.g. NASUWT.
Benefits of union membership
Collective bargaining, job-specific training, legal representation, and discounts on goods/services.
Industrial action methods
Strikes, overtime bans, work to rule, and go-slows.
Focus of trade union efforts
Collective bargaining, protecting employment, and influencing government policy.
Factors influencing union strength
Unemployment, wage levels, labour–capital swap, profits, economy state, union size, and productivity.
Unemployment and union strength
Higher unemployment weakens union power as firms can replace workers more easily.
Labour productivity and union strength
Higher productivity strengthens union power as workers are more valuable to the firm.
Works council
A formal group of employer and employee representatives discussing workplace issues.
Role of works councils
Discuss health and safety, working conditions, training needs, and technological changes.
Advantages of works councils
Encourages communication, resolves issues early, builds trust, and involves staff in changes.
Disadvantages of works councils
Limited influence, no legal requirement in the UK, and can slow decision-making.
Human resource planning
The process of identifying how many and what kind of employees are needed, focusing on recruitment, training, redeployment, and redundancy.
Importance of HR planning
Helps manage staff costs, monitor performance, and ensure effective financial and operational control.
HR flow
HR plan → recruitment → training → redeployment → redundancy.
Key HR metrics
Labour turnover, labour productivity, employee costs as percentage of turnover, and labour cost per unit.
Internal factors influencing HR planning
Business objectives, financial situation, organisational structure, labour relations, and organisational culture.
External factors influencing HR planning
Economic conditions, labour market, technological advancements, legal environment, social factors, political factors, industry-specific factors, and competition.
Economic conditions and HR planning
Growth requires recruitment; downturns may lead to redundancies or hiring freezes.
Labour market and HR planning
Factors like skills shortages, labour mobility, and immigration impact workforce availability.
Technological advancements and HR planning
Automation and AI change job requirements, requiring reskilling or upskilling.
Legal environment and HR planning
Employment laws, e.g. Flexible Working Act (2023), influence policies like hybrid working.
Social factors and HR planning
Workforce diversity, inclusion, work-life balance, and employee well-being affect planning.
Political factors and HR planning
Labour laws, tax regulations, and immigration policies impact workforce strategies.
Industry-specific factors and HR planning
Unique challenges like NHS nurse shortages or STEM teacher recruitment affect planning.
Competitive landscape and HR planning
Pay and benefits must align with market conditions to attract and retain staff.
Recruitment
The process of attracting and identifying potential job candidates who are suitable for a particular role.
Goal of recruitment
To create a pool of qualified candidates who can be considered for the role.
Recruitment activities
Job advertising, job fairs, social media outreach, and referrals from current employees.
Position of recruitment in HR flow
Part of the human resource flow: HR plan → recruitment → training → redeployment → redundancy.
Selection
The process of choosing the best candidate for a job role.
Selection activities
Reviewing CVs, conducting interviews, and assessment tasks to identify the best candidate.
Job description
Outlines the duties, responsibilities, and requirements of a particular job.
Job specification
Outlines the qualifications, skills, experience, and personal qualities required for a specific job.
Internal recruitment
The process of hiring employees from within the organisation, e.g. promotion or redeployment.
Advantages of internal recruitment
Encourages employee development, builds morale, saves time and money, and candidates are familiar with the business.
Disadvantages of internal recruitment
Can lead to conflict, limited pool of candidates, and missed opportunity to bring in new ideas.
External recruitment
The process of hiring employees from outside the organisation, bringing fresh ideas and perspectives.
Advantages of external recruitment
Introduces new skills, experiences, and ideas to the business.
Disadvantages of external recruitment
More expensive, greater uncertainty, and harder to target the desired audience.
Application form
A standardised form designed by the recruiter to collect consistent details from each candidate.
CV
A professional document compiled by the applicant detailing career experience, skills, qualifications, and referees.
Cover letter
A letter accompanying a CV or application form, highlighting the applicant's suitability for the role.
Selection methods
Interview, testing, portfolio, and references.
Interview
A structured meeting to assess a candidate's qualifications, skills, experience, and suitability for a role.
Testing
Pre-employment assessments to evaluate integrity, aptitude, or specific skills.
Portfolio
A selection of a candidate's best work, commonly used for creative or artistic roles.
References
Referees vouch for a candidate's skills, work ethic, and suitability for the position.
Value of training
Training ensures staff are appropriately skilled and developed, improving productivity, motivation, and flexibility.
Training
The teaching of new skills to employees.
Development
The improvement of existing skills in employees.
Place of training in HR planning
Training follows recruitment and precedes redeployment in the HR flow.
Reasons for training
Valuing employees, updating skills, identifying inefficiency, boosting confidence, and meeting legal needs.
Impact of training on motivation
Well-trained employees feel valued, work enthusiastically, and are motivated to improve quality and stay with the business.
Types of training
Induction training, on-the-job training, and off-the-job training.
Induction training
Training for new employees to introduce them to the company, its culture, policies, and their job roles.
Advantages of induction training
Improves confidence, motivation, and productivity; introduces company culture and policies.
Disadvantages of induction training
Time-consuming, expensive, may not cover all aspects of the job, and can lead to dissatisfaction if ineffective.
On-the-job training
Training that takes place while employees perform their job duties, learning from colleagues.
Advantages of on-the-job training
Practical, tailored to the role, cost-effective, and occurs during working hours.
Disadvantages of on-the-job training
Mistakes can impact productivity, disrupt the workplace, and may lead to dissatisfaction if ineffective.
Off-the-job training
Training outside the workplace, e.g. workshops, seminars, conferences, or online courses.
Advantages of off-the-job training
Brings fresh ideas, tailored to needs, can be a reward, and cost-effective if online.
Disadvantages of off-the-job training
Expensive, impacts productivity due to absence, and may not directly apply to the job role.
Redeployment
When an employee is moved from one role or department to another within the same organisation rather than being made redundant.
Place of redeployment in HR flow
Redeployment follows training and precedes redundancy in the human resource flow.
Uses of redeployment
Used when a job or department is closing, during restructuring, or to balance staff levels across regions or functions.
Benefits of redeployment
Retains experienced staff, reduces recruitment costs, maintains morale, increases flexibility, and reduces legal risks and redundancy costs.
Example of redeployment: HSBC
HSBC UK redeployed staff from head office roles into customer-facing jobs in branches and digital support teams in 2023.
Example of redeployment: British Airways
British Airways redeployed staff into ground-based or training roles during times of reduced flight demand.
Example of redeployment: Sainsbury's
Sainsbury's redeployed staff from closed Argos stores into supermarket roles or online fulfilment centres.
Dismissal
Termination of employment by an employer due to misconduct or poor performance, often immediate or with notice.
Redundancy
Occurs when a job is no longer available due to workforce reduction, not the employee's fault, with legal procedures like notice and compensation.
Example of redundancy: Nationwide
In December 2023, Nationwide Building Society informed 470 employees of redundancy risks in retail operations and mortgages divisions.
Example of redundancy: Reach plc
In November 2023, Reach plc announced 450 job cuts due to declining financial health and faltering digital strategy.
Organisational design
Outlines the reporting relationships, roles, and responsibilities of employees in an organisation.
Purpose of organisational design
Helps businesses implement ideas, achieve objectives, and improve operations and communications.
Benefits of a well-designed structure
Promotes clarity, efficiency, and accountability within the organisation.
Hierarchy
Refers to the levels of authority within an organisation, ranking positions from top to bottom.
Bureaucracy
An organisation with many levels of authority, making decision-making and communication time-consuming.
Chain of command
The formal line of authority flowing from top management to lower-level employees, defining who reports to whom.
Span of control
The number of employees a manager can effectively manage. Narrow spans have more layers; wide spans have fewer layers.
Centralised structure
Decision-making authority is concentrated at the top, promoting consistency and control.
Decentralised structure
Decision-making authority is distributed, promoting flexibility and innovation.
Tall organisational structure
Multiple levels of management, narrow spans of control, long chain of command, and centralised decision-making.
Flat organisational structure
Fewer levels of management, wide spans of control, short chain of command, and decentralised decision-making.
Advantages of tall structures
Clear hierarchy, defined roles, specialisation, career advancement, and increased efficiency and motivation.
Disadvantages of tall structures
Communication barriers, slow decision-making, bureaucracy, and reduced efficiency and motivation.
Advantages of flat structures
Collaboration, faster decision-making, creativity, autonomy, and increased efficiency and motivation.
Disadvantages of flat structures
Role ambiguity, limited career advancement, burnout, and reduced efficiency and motivation.
Functional organisational design
Employees are arranged into functions like finance, HR, or marketing, based on expertise, skills, and qualifications.
Advantages of functional design
Brings appropriate expertise to specific areas, promotes specialisation, and ensures efficient operations within functions.
Disadvantages of functional design
Functional areas may focus only on their own responsibilities, losing sight of overall business objectives.
Example of functional design: Tesco
Tesco operates a functional structure at head office level, with separate teams for HR, finance, logistics, and buying.
Product-based organisational design
The business is split into divisions based on individual products or product lines, each handling its own marketing, operations, and finances.
Advantages of product-based design
Promotes cross-functional collaboration, specialisation, efficient resource allocation, and coordination of multiple projects.
Disadvantages of product-based design
Can lead to conflicts over priorities, confusion over roles, and challenges in communication and coordination.
Example of product-based design: Unilever
Unilever UK uses a product-based structure, with teams dedicated to categories like personal care, home care, and food and drink brands.
Example of product-based design: Nestlé
KitKat has its own team within Nestlé, combining functional areas with a specialist team for the product.
Regional organisational design
Structure separates a business hierarchy into geographical locations, allowing tailored responses to diverse customer needs.
Advantages of regional design
Allows businesses to respond effectively to local customer needs and market conditions.
Example of regional design: BT Group
BT Group has a regional structure with operations split across different parts of the UK to provide tailored telecoms services.
Matrix organisational design
A flexible model where employees report to both a functional manager and a project or product manager, encouraging innovation and faster problem-solving.
Advantages of matrix design
Encourages innovation, faster problem-solving, and coordination between functions and projects.
Disadvantages of matrix design
Can create confusion over roles, require high communication, and lead to conflicts between managers.
Example of matrix design: GSK
GSK uses a matrix structure for global drug development projects, coordinating R&D, regulatory teams, and regional market teams.
Why change organisational design?
Businesses may need to reassess their structure due to changes in external factors like market conditions, technology advances, or legislation.
Adaptive organisation
An organisation that can change its structure in response to external factors or build a structure that handles external changes effectively.
Improve efficiency through organisational design
Delayering or streamlining removes unnecessary management levels, improving communication and cutting costs.
Respond to growth or change
Structures must adapt to support increased complexity as businesses grow into new markets, regions, or product lines.
Increase innovation through organisational design
Cross-functional collaboration, e.g. matrix teams, encourages fresh ideas and agile problem-solving.
Adapt to external pressures
Structural changes help businesses respond to evolving technology, customer expectations, economic shifts, or competition.
Align structure with strategy
A business’s structure must reflect its strategic goals to ensure staff roles and responsibilities support direction.
Example of structural change: Marks & Spencer
M&S restructured by removing management layers and shifting decision-making power to store-level staff, improving responsiveness and reducing costs.
Why HR data matters
HR data helps managers identify problems, control costs, plan ahead, and improve performance.
Identify problems using HR data
High labour turnover or rising costs may indicate poor working conditions, low morale, or training gaps.
Plan ahead using HR data
Workforce data informs recruitment, training, succession planning, and budgeting.
Improve performance using HR data
Tracking productivity or absenteeism helps managers take action to boost efficiency.
Control costs using HR data
Monitoring labour cost per unit and employee costs as a percentage of turnover helps businesses stay competitive.
Labour turnover formula
Labour turnover = (Number of staff leaving ÷ Average number of staff) × 100.
Labour productivity formula
Labour productivity = Output ÷ Number of workers.
Employee costs as % of turnover formula
Employee costs as % of turnover = (Employee costs ÷ Turnover) × 100.
Labour cost per unit formula
Labour cost per unit = Total weekly wages ÷ Number of units produced.
Strategic workforce planning
Data-driven planning ensures the business has the right number of people, with the right skills, in the right roles.
Example: NHS England and labour turnover
NHS England improved retention schemes with flexible working, leadership development, and mentorship programmes to address high nurse turnover.
Example: Royal Mail and labour productivity
Royal Mail invested in automated parcel sorting and upskilled employees to address falling productivity during peak online shopping seasons.
Example: Greggs and labour cost per unit
Greggs introduced self-serve tills and centralised baking operations to reduce labour costs per unit across stores.
Example: Marks & Spencer and employee costs
M&S closed underperforming stores and streamlined staff roles to address rising wage costs and declining revenues.
Influences on employee costs as % of turnover
Factors include wage levels, productivity, technology, industry type, and revenue performance.
Consequences of high labour turnover
Problems: increased recruitment/training costs, lower productivity. Opportunities: recruit skilled workers, introduce new ideas, improve problem-solving.
Value of setting HR objectives
HR objectives improve business performance, support strategic planning, enable measurement and control, and attract investment and leadership support.
Improves business performance through HR objectives
Aligning employee effort with business goals increases productivity and efficiency.
Supports strategic planning through HR objectives
Clear HR objectives guide recruitment, training, and organisational development.
Enables measurement and control through HR objectives
Progress can be tracked using HR metrics such as staff turnover or engagement levels.
Helps attract investment through HR objectives
Data-backed goals reassure senior managers and investors that the business is managing its people effectively.
Employee engagement objective
Boosts employees’ enthusiasm and involvement in their work, e.g. John Lewis uses staff ownership to increase engagement.
Talent development objective
Grows employees’ skills to prepare them for senior roles, e.g. Rolls-Royce runs a graduate programme for future leaders.
Training objective
Equips staff with the skills needed to perform effectively, e.g. BT offers digital skills courses through 'Skills for Tomorrow'.
Diversity objective
Builds a workforce with varied backgrounds, perspectives, and experiences, e.g. PwC UK publishes diversity targets for leadership.
Alignment of employee and employer values
Ensures staff values match the business’s culture and mission, e.g. The Co-operative Group promotes ethical values.
Number, skills, and location of employees objective
Ensures the business has the right people, with the right skills, in the right places, e.g. Amazon UK locates fulfilment centres strategically.
Soft HRM approach
Focuses on employees as valuable long-term assets, emphasising motivation, engagement, and development, e.g. John Lewis Partnership.
Hard HRM approach
Treats employees as a resource to control costs, focusing on efficiency and short-term contracts, e.g. Sports Direct and zero-hour contracts.
Advantages of soft HRM
Higher staff retention, job satisfaction, and long-term employee engagement.
Disadvantages of soft HRM
Can be more expensive and time-consuming to implement.
Advantages of hard HRM
Lower labour costs and greater control over workforce efficiency.
Disadvantages of hard HRM
Higher labour turnover and lower employee satisfaction.
Want to Learn More?
Get personalised lessons, quizzes, and instant feedback from your AI tutor.
Start Learning