Unit 6 Flashcards

AQA A-Level Business (7132)

Employee motivation

The inner desire or willingness that propels a person to take action and achieve a specific goal or outcome.

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Terms in this set (189)

1

Employee motivation

The inner desire or willingness that propels a person to take action and achieve a specific goal or outcome.

2

Intrinsic motivation

Motivation that comes from within a person, such as values, beliefs, or personal satisfaction.

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Extrinsic motivation

Motivation that comes from external factors, such as rewards or punishments.

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Impact of motivation on productivity

Motivated employees are more productive, efficient, and engaged, leading to higher output, quality, and profits.

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Impact of motivation on reliability

Motivated employees are more reliable, take pride in their work, meet deadlines, and take fewer sick days.

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Impact of motivation on turnover rates

Motivated employees are more likely to stay long-term, reducing recruitment and training costs.

7

Taylor's scientific management theory

A theory focusing on breaking down tasks, standardising processes, and training workers to achieve maximum efficiency.

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Steps in Taylor's scientific management

Analyse work processes, standardise tasks, select and train workers, and provide performance incentives.

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Advantages of Taylor's approach

Increased efficiency, reduced errors, specialisation of labour, and improved training and development.

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Disadvantages of Taylor's approach

Overemphasis on efficiency reduces satisfaction, limited applicability, and potential for worker exploitation.

11

Maslow's hierarchy of needs

A theory outlining five tiers of human needs: physiological, safety, love/belonging, esteem, and self-actualisation.

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Physiological needs in business

Providing necessities like a comfortable work environment, clean water, food, and adequate rest breaks.

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Safety needs in business

Providing job security, fair pay, benefits, and safe working conditions.

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Love and belonging needs in business

Encouraging teamwork and fostering a sense of community within the workplace.

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Esteem needs in business

Providing recognition for accomplishments and creating a positive work culture.

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Self-actualisation needs in business

Offering opportunities for employees to pursue passions and interests, e.g. flexible schedules for elite athletes.

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Advantages of Maslow's hierarchy

Higher employee satisfaction, increased motivation, and improved performance.

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Disadvantages of Maslow's hierarchy

One size does not fit all, expensive to implement, and time-consuming for management.

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Herzberg's motivation-hygiene theory

A theory suggesting that hygiene factors prevent dissatisfaction, while motivators increase satisfaction and motivation.

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Hygiene factors

Elements that prevent dissatisfaction, e.g. fair wages, excellent working conditions, and job security.

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Motivators

Elements that increase satisfaction, e.g. recognition, growth opportunities, and challenging work.

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Benefits of good employer–employee relations

Higher motivation and productivity, lower staff turnover, fewer disputes, improved reputation, and better change management.

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Impact of good relations on productivity

Engaged employees work harder, improving labour productivity and reducing labour cost per unit.

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Impact of good relations on turnover

Respected employees are less likely to leave, reducing recruitment and training costs.

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Impact of good relations on disputes

Open communication addresses concerns early, avoiding escalation and maintaining productivity.

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Influences on employee involvement

Leadership style, business size, trade unions, workforce nature, and legal requirements.

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Leadership style and employee involvement

Democratic leaders involve staff more; autocratic leaders involve staff less.

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Business size and employee involvement

Smaller firms use informal communication; larger firms require structured consultation like works councils.

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Trade unions and employee involvement

Unionised workplaces formalise involvement through negotiations and collective agreements.

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Legal requirements for employee involvement

UK law requires consultation in situations like redundancies or health and safety.

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Methods to improve communication

Team briefings, staff surveys, suggestion schemes, internal newsletters, appraisals, union meetings, and works councils.

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Team briefings

Regular meetings to update employees on goals, performance, and changes.

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Staff surveys

Collect feedback and measure morale to identify concerns early.

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Suggestion schemes

Channels for staff to contribute ideas and improvements.

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Works councils

Employee-elected representatives meet with management to discuss workplace issues, useful in non-unionised firms.

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Ravenbridge Logistics conflict

A new rota disrupted work–life balance, leading to low morale, increased absenteeism, and threat of strike action.

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Ravenbridge Logistics resolution

Emergency consultations led to revised rotas, shift bonuses, and a feedback app, improving engagement and productivity.

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Outcome of Ravenbridge Logistics case

Strike was avoided, absenteeism fell by 18%, and engagement scores rose by 23%.

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Trade union

An organisation representing workers' interests in negotiations with management or owners.

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Types of trade unions

General unions, industrial unions, craft unions, and white-collar unions.

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General union

Represents workers across many industries and skill levels, e.g. Unite the Union.

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Industrial union

Represents all workers in a specific industry, e.g. Fire Brigades Union (FBU).

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Craft union

Represents workers with a particular trade or skill, e.g. National Union of Rail, Maritime and Transport Workers (RMT).

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White-collar union

Represents office-based, professional or administrative staff, e.g. NASUWT.

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Benefits of union membership

Collective bargaining, job-specific training, legal representation, and discounts on goods/services.

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Industrial action methods

Strikes, overtime bans, work to rule, and go-slows.

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Focus of trade union efforts

Collective bargaining, protecting employment, and influencing government policy.

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Factors influencing union strength

Unemployment, wage levels, labour–capital swap, profits, economy state, union size, and productivity.

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Unemployment and union strength

Higher unemployment weakens union power as firms can replace workers more easily.

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Labour productivity and union strength

Higher productivity strengthens union power as workers are more valuable to the firm.

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Works council

A formal group of employer and employee representatives discussing workplace issues.

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Role of works councils

Discuss health and safety, working conditions, training needs, and technological changes.

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Advantages of works councils

Encourages communication, resolves issues early, builds trust, and involves staff in changes.

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Disadvantages of works councils

Limited influence, no legal requirement in the UK, and can slow decision-making.

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Human resource planning

The process of identifying how many and what kind of employees are needed, focusing on recruitment, training, redeployment, and redundancy.

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Importance of HR planning

Helps manage staff costs, monitor performance, and ensure effective financial and operational control.

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HR flow

HR plan → recruitment → training → redeployment → redundancy.

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Key HR metrics

Labour turnover, labour productivity, employee costs as percentage of turnover, and labour cost per unit.

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Internal factors influencing HR planning

Business objectives, financial situation, organisational structure, labour relations, and organisational culture.

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External factors influencing HR planning

Economic conditions, labour market, technological advancements, legal environment, social factors, political factors, industry-specific factors, and competition.

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Economic conditions and HR planning

Growth requires recruitment; downturns may lead to redundancies or hiring freezes.

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Labour market and HR planning

Factors like skills shortages, labour mobility, and immigration impact workforce availability.

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Technological advancements and HR planning

Automation and AI change job requirements, requiring reskilling or upskilling.

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Legal environment and HR planning

Employment laws, e.g. Flexible Working Act (2023), influence policies like hybrid working.

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Social factors and HR planning

Workforce diversity, inclusion, work-life balance, and employee well-being affect planning.

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Political factors and HR planning

Labour laws, tax regulations, and immigration policies impact workforce strategies.

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Industry-specific factors and HR planning

Unique challenges like NHS nurse shortages or STEM teacher recruitment affect planning.

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Competitive landscape and HR planning

Pay and benefits must align with market conditions to attract and retain staff.

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Recruitment

The process of attracting and identifying potential job candidates who are suitable for a particular role.

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Goal of recruitment

To create a pool of qualified candidates who can be considered for the role.

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Recruitment activities

Job advertising, job fairs, social media outreach, and referrals from current employees.

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Position of recruitment in HR flow

Part of the human resource flow: HR plan → recruitment → training → redeployment → redundancy.

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Selection

The process of choosing the best candidate for a job role.

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Selection activities

Reviewing CVs, conducting interviews, and assessment tasks to identify the best candidate.

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Job description

Outlines the duties, responsibilities, and requirements of a particular job.

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Job specification

Outlines the qualifications, skills, experience, and personal qualities required for a specific job.

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Internal recruitment

The process of hiring employees from within the organisation, e.g. promotion or redeployment.

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Advantages of internal recruitment

Encourages employee development, builds morale, saves time and money, and candidates are familiar with the business.

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Disadvantages of internal recruitment

Can lead to conflict, limited pool of candidates, and missed opportunity to bring in new ideas.

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External recruitment

The process of hiring employees from outside the organisation, bringing fresh ideas and perspectives.

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Advantages of external recruitment

Introduces new skills, experiences, and ideas to the business.

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Disadvantages of external recruitment

More expensive, greater uncertainty, and harder to target the desired audience.

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Application form

A standardised form designed by the recruiter to collect consistent details from each candidate.

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CV

A professional document compiled by the applicant detailing career experience, skills, qualifications, and referees.

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Cover letter

A letter accompanying a CV or application form, highlighting the applicant's suitability for the role.

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Selection methods

Interview, testing, portfolio, and references.

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Interview

A structured meeting to assess a candidate's qualifications, skills, experience, and suitability for a role.

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Testing

Pre-employment assessments to evaluate integrity, aptitude, or specific skills.

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Portfolio

A selection of a candidate's best work, commonly used for creative or artistic roles.

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References

Referees vouch for a candidate's skills, work ethic, and suitability for the position.

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Value of training

Training ensures staff are appropriately skilled and developed, improving productivity, motivation, and flexibility.

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Training

The teaching of new skills to employees.

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Development

The improvement of existing skills in employees.

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Place of training in HR planning

Training follows recruitment and precedes redeployment in the HR flow.

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Reasons for training

Valuing employees, updating skills, identifying inefficiency, boosting confidence, and meeting legal needs.

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Impact of training on motivation

Well-trained employees feel valued, work enthusiastically, and are motivated to improve quality and stay with the business.

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Types of training

Induction training, on-the-job training, and off-the-job training.

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Induction training

Training for new employees to introduce them to the company, its culture, policies, and their job roles.

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Advantages of induction training

Improves confidence, motivation, and productivity; introduces company culture and policies.

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Disadvantages of induction training

Time-consuming, expensive, may not cover all aspects of the job, and can lead to dissatisfaction if ineffective.

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On-the-job training

Training that takes place while employees perform their job duties, learning from colleagues.

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Advantages of on-the-job training

Practical, tailored to the role, cost-effective, and occurs during working hours.

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Disadvantages of on-the-job training

Mistakes can impact productivity, disrupt the workplace, and may lead to dissatisfaction if ineffective.

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Off-the-job training

Training outside the workplace, e.g. workshops, seminars, conferences, or online courses.

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Advantages of off-the-job training

Brings fresh ideas, tailored to needs, can be a reward, and cost-effective if online.

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Disadvantages of off-the-job training

Expensive, impacts productivity due to absence, and may not directly apply to the job role.

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Redeployment

When an employee is moved from one role or department to another within the same organisation rather than being made redundant.

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Place of redeployment in HR flow

Redeployment follows training and precedes redundancy in the human resource flow.

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Uses of redeployment

Used when a job or department is closing, during restructuring, or to balance staff levels across regions or functions.

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Benefits of redeployment

Retains experienced staff, reduces recruitment costs, maintains morale, increases flexibility, and reduces legal risks and redundancy costs.

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Example of redeployment: HSBC

HSBC UK redeployed staff from head office roles into customer-facing jobs in branches and digital support teams in 2023.

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Example of redeployment: British Airways

British Airways redeployed staff into ground-based or training roles during times of reduced flight demand.

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Example of redeployment: Sainsbury's

Sainsbury's redeployed staff from closed Argos stores into supermarket roles or online fulfilment centres.

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Dismissal

Termination of employment by an employer due to misconduct or poor performance, often immediate or with notice.

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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.

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Example of redundancy: Nationwide

In December 2023, Nationwide Building Society informed 470 employees of redundancy risks in retail operations and mortgages divisions.

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Example of redundancy: Reach plc

In November 2023, Reach plc announced 450 job cuts due to declining financial health and faltering digital strategy.

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Organisational design

Outlines the reporting relationships, roles, and responsibilities of employees in an organisation.

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Purpose of organisational design

Helps businesses implement ideas, achieve objectives, and improve operations and communications.

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Benefits of a well-designed structure

Promotes clarity, efficiency, and accountability within the organisation.

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Hierarchy

Refers to the levels of authority within an organisation, ranking positions from top to bottom.

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Bureaucracy

An organisation with many levels of authority, making decision-making and communication time-consuming.

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Chain of command

The formal line of authority flowing from top management to lower-level employees, defining who reports to whom.

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Span of control

The number of employees a manager can effectively manage. Narrow spans have more layers; wide spans have fewer layers.

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Centralised structure

Decision-making authority is concentrated at the top, promoting consistency and control.

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Decentralised structure

Decision-making authority is distributed, promoting flexibility and innovation.

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Tall organisational structure

Multiple levels of management, narrow spans of control, long chain of command, and centralised decision-making.

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Flat organisational structure

Fewer levels of management, wide spans of control, short chain of command, and decentralised decision-making.

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Advantages of tall structures

Clear hierarchy, defined roles, specialisation, career advancement, and increased efficiency and motivation.

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Disadvantages of tall structures

Communication barriers, slow decision-making, bureaucracy, and reduced efficiency and motivation.

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Advantages of flat structures

Collaboration, faster decision-making, creativity, autonomy, and increased efficiency and motivation.

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Disadvantages of flat structures

Role ambiguity, limited career advancement, burnout, and reduced efficiency and motivation.

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Functional organisational design

Employees are arranged into functions like finance, HR, or marketing, based on expertise, skills, and qualifications.

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Advantages of functional design

Brings appropriate expertise to specific areas, promotes specialisation, and ensures efficient operations within functions.

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Disadvantages of functional design

Functional areas may focus only on their own responsibilities, losing sight of overall business objectives.

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Example of functional design: Tesco

Tesco operates a functional structure at head office level, with separate teams for HR, finance, logistics, and buying.

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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.

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Advantages of product-based design

Promotes cross-functional collaboration, specialisation, efficient resource allocation, and coordination of multiple projects.

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Disadvantages of product-based design

Can lead to conflicts over priorities, confusion over roles, and challenges in communication and coordination.

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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.

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Example of product-based design: Nestlé

KitKat has its own team within Nestlé, combining functional areas with a specialist team for the product.

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Regional organisational design

Structure separates a business hierarchy into geographical locations, allowing tailored responses to diverse customer needs.

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Advantages of regional design

Allows businesses to respond effectively to local customer needs and market conditions.

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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.

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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.

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Advantages of matrix design

Encourages innovation, faster problem-solving, and coordination between functions and projects.

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Disadvantages of matrix design

Can create confusion over roles, require high communication, and lead to conflicts between managers.

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Example of matrix design: GSK

GSK uses a matrix structure for global drug development projects, coordinating R&D, regulatory teams, and regional market teams.

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Why change organisational design?

Businesses may need to reassess their structure due to changes in external factors like market conditions, technology advances, or legislation.

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Adaptive organisation

An organisation that can change its structure in response to external factors or build a structure that handles external changes effectively.

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Improve efficiency through organisational design

Delayering or streamlining removes unnecessary management levels, improving communication and cutting costs.

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Respond to growth or change

Structures must adapt to support increased complexity as businesses grow into new markets, regions, or product lines.

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Increase innovation through organisational design

Cross-functional collaboration, e.g. matrix teams, encourages fresh ideas and agile problem-solving.

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Adapt to external pressures

Structural changes help businesses respond to evolving technology, customer expectations, economic shifts, or competition.

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Align structure with strategy

A business’s structure must reflect its strategic goals to ensure staff roles and responsibilities support direction.

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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.

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Why HR data matters

HR data helps managers identify problems, control costs, plan ahead, and improve performance.

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Identify problems using HR data

High labour turnover or rising costs may indicate poor working conditions, low morale, or training gaps.

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Plan ahead using HR data

Workforce data informs recruitment, training, succession planning, and budgeting.

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Improve performance using HR data

Tracking productivity or absenteeism helps managers take action to boost efficiency.

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Control costs using HR data

Monitoring labour cost per unit and employee costs as a percentage of turnover helps businesses stay competitive.

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Labour turnover formula

Labour turnover = (Number of staff leaving ÷ Average number of staff) × 100.

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Labour productivity formula

Labour productivity = Output ÷ Number of workers.

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Employee costs as % of turnover formula

Employee costs as % of turnover = (Employee costs ÷ Turnover) × 100.

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Labour cost per unit formula

Labour cost per unit = Total weekly wages ÷ Number of units produced.

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Strategic workforce planning

Data-driven planning ensures the business has the right number of people, with the right skills, in the right roles.

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Example: NHS England and labour turnover

NHS England improved retention schemes with flexible working, leadership development, and mentorship programmes to address high nurse turnover.

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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.

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Example: Greggs and labour cost per unit

Greggs introduced self-serve tills and centralised baking operations to reduce labour costs per unit across stores.

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Example: Marks & Spencer and employee costs

M&S closed underperforming stores and streamlined staff roles to address rising wage costs and declining revenues.

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Influences on employee costs as % of turnover

Factors include wage levels, productivity, technology, industry type, and revenue performance.

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Consequences of high labour turnover

Problems: increased recruitment/training costs, lower productivity. Opportunities: recruit skilled workers, introduce new ideas, improve problem-solving.

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Value of setting HR objectives

HR objectives improve business performance, support strategic planning, enable measurement and control, and attract investment and leadership support.

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Improves business performance through HR objectives

Aligning employee effort with business goals increases productivity and efficiency.

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Supports strategic planning through HR objectives

Clear HR objectives guide recruitment, training, and organisational development.

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Enables measurement and control through HR objectives

Progress can be tracked using HR metrics such as staff turnover or engagement levels.

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Helps attract investment through HR objectives

Data-backed goals reassure senior managers and investors that the business is managing its people effectively.

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Employee engagement objective

Boosts employees’ enthusiasm and involvement in their work, e.g. John Lewis uses staff ownership to increase engagement.

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Talent development objective

Grows employees’ skills to prepare them for senior roles, e.g. Rolls-Royce runs a graduate programme for future leaders.

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Training objective

Equips staff with the skills needed to perform effectively, e.g. BT offers digital skills courses through 'Skills for Tomorrow'.

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Diversity objective

Builds a workforce with varied backgrounds, perspectives, and experiences, e.g. PwC UK publishes diversity targets for leadership.

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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.

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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.

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Soft HRM approach

Focuses on employees as valuable long-term assets, emphasising motivation, engagement, and development, e.g. John Lewis Partnership.

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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.

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Advantages of soft HRM

Higher staff retention, job satisfaction, and long-term employee engagement.

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Disadvantages of soft HRM

Can be more expensive and time-consuming to implement.

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Advantages of hard HRM

Lower labour costs and greater control over workforce efficiency.

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Disadvantages of hard HRM

Higher labour turnover and lower employee satisfaction.

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