Business AOS 2 UNIT 3

• Human resource management

  is the organisation of employees' roles, pay, and working conditions.
• Motivation


  is the willingness of an individual to expend energy and effort in completing a task.
• Maslow's Hierarchy of Needs

  is a motivational theory that suggests people have five fundamental needs, and their sequential attainment of each need acts as a source of motivation.
• Needs in order

  Self-actualisation

  Esteem

  Social

  Safety and security

  Physiological
• Maslow's Hierarchy of Needs advantages

  -Can give managers a clear path to motivate employees.

  
  

  -Employees can work in an engaging environment that allows them to reach their full potential.
• Maslow's Hierarchy of Needs Disadvantages

  -Assumes all employees are motivated in the same order.

  
  

  -Not all employees will be motivated by the same needs at once.
• Lawrence and Nohria's Four Drive Theory


  is a motivational theory that suggests that people strive to balance four fundamental desires
• Four Drives

  Drive to acquire

  Drive to Bond

  Drive to Learn

  Drive to defend
• Lawrence and Nohria's Four drive theory Advantage

  -The four drives act as a means to motivate employees and can allow them to feel more engaged in their work.

  
  

  -All four drives can be attained at once and are not restricted to sequential orders, therefore increasing motivation efficiently for the business.
• Lawrence and Nohria's Four Drive Theory disadvantage

  -Managers may find it difficult to manage four drives simultaneously.

  
  

  -Some drives can be overlooked and therefore, an employee's full potential may not be achieved.
• Locke and Lathams Goal Setting theory

  is a motivation theory that states that employees are motivated by clearly defined goals that fulfil five key principles.
• Principles of the Goal setting theory

  clarity, challenge, commitment, feedback, task complexity
• Locke and Lathams Goal Setting theory advantages

  - Goals can align employee efforts with achieving business objectives

  
  

  - Employees may be more motivated to complete tasks if goals align with their personal interests
• Locke and Lathams Goal Setting theory disadvantages

  -The process of setting goals and providing feedback to each employee can be time-consuming for management.

  
  

  -Employees may become stressed and demotivated if they have too many goals at once.
• Maslow's Hierarchy of needs and four drive theory similarities

  -Both theories focus on motivating employees holistically, through addressing their physical, social, and emotional desires.

  
  

  -Both theories suggest that employees are motivated by a desire to improve their knowledge and skills through self-actualisation needs and the drive to learn.
• Hierarchy of needs and four drive theory difference

  -Maslow's Hierarchy of Needs must be met in sequential order, whereas the Four Drive Theory suggests any drive may be relevant to an employee in no particular order.

  
  

  -The Hierarchy of Needs states that employees are motivated to fulfil only one need at a time, whereas the Four Drive Theory states that all needs can drive employee behaviour simultaneously.
• Similarities between Maslow's Hierarchy of Needs and Locke and Latham's Goal Setting Theory

  -Both theories recognise that personal gain is a factor that can motivate employees. Esteem needs can be satisfied by providing jobs with higher status to employees, whilst goals fulfilling the commitment principle consider the personal objectives of employees.

  
  

  -Both theories emphasize motivating through intrinsic factors. As esteem and self-actualisation are also considered to be intrinsic motivators.
• differences between Maslow's Hierarchy of Needs and Locke and Latham's Goal Setting Theory

  -Maslow's Hierarchy of Needs focuses on fulfilling one need at a time in sequential order, Goal Setting Theory requires all principles to be incorporated simultaneously to motivate an employee

  
  

  - The Goal Setting Theory involves employee input, whereas Maslow's hierarchy of needs is applied by a manager alone
• Similarities between Lawrence and Nohria's Four Drive Theory and Locke and Latham's Goal Setting Theory

  -Both theories focus on how employers can improve the motivation of employees.

  
  

  -Both theories propose that feedback and regular progress reviews are beneficial and help build strong relationships.
• differences between Lawrence and Nohria's Four Drive Theory and Locke and Latham's Goal Setting Theory

  -The Goal Setting Theory involves employee input, whereas the Four Drive Theory is applied by a manager alone

  
  

  -The Goal Setting Theory requires a manager to address each employee individually, which is not necessary when applying the Four Drive Theory
• On-the-job training

  involves employees improving their knowledge and skills within the workplace.

  
  

  characteristics: having a senior staff member act as a mentor who provides the employees with advice on how to perform a task
• Advantages of on-the-job training


  -Employees can perform their role while training, minimising losses to productivity

  
  

  -Training employees internally is often less expensive than performing training externally, as there are no travel costs
• disadvantages of on-the-job training

  -The business may lack the amount of experienced staff required to train employees

  
  

  -Employees may learn bad habits from being trained by existing staff.
• Off-the-job training


  involves employees improving their knowledge and skills in a location external to the business.

  
  

  characteristic: attending conferences that provide theoretical knowledge to employees.
• Advantages of off-the-job training

  -An employee's employability may improve if they receive qualifications or accreditations.

  
  

  -Receiving training from professionals can enable employees to gain new perspectives on how to perform their roles to a higher standard.
• disadvantages of off-the-job training

  -Travel times associated with offsite training may be long.

  
  

  -Paying external organisations to train employees may be expensive
• Performance-related pay as a motivation strategy

  is a financial reward that employees receive for reaching a set business goal.

  
  

  characteristics: a pay rise, bonus
• Advantages of performance-related pay as a motivation strategy


  -Employee goals can be directly and indirectly aligned with business objectives through remuneration.

  
  

  -Employees can be motivated quickly through the incentive of financial rewards
• Disadvantages of performance-related pay as a motivation strategy

  - Employees can be become very competitive and which can cause conflict

  
  

  - Employees may lose focus on broader business objectives.
• Performance- related pay as a motivation strategy short term

  Employees may be motivated to improve performance quickly in order to gain financial rewards.
• Performance- related pay as a motivation strategy long term

  When there is a history of reward and recognition for high-performing employees within the business, employees are more likely to be motivated by the expectation that they will receive rewards in the future.
• Career advancement as a motivation strategy

  the upwards progression of an employee's job position.

  
  

  characteristic: ensuring employees are aware of any promotion criteria.
• Advantages of career advancement as a motivation strategy

  -Employees may feel more valued by the business when promoted, improving their overall morale.

  
  

  -Promoting employees from within the business can be cheaper than recruiting new employees.
• Career advancement as a motivation strategy short term

  Employees may be rapidly motivated if they are taking on more responsibility in the workplace. .
• disadvantages of career advancement as a motivation strategy

  -Negative corporate culture may develop if employees begin to focus solely on career advancement.

  
  

  -Employees may be demotivated if they are overlooked for a promotion
• Career advancement as a motivation strategy long term

  Employees may be motivated by ongoing opportunities to be promoted or take on additional responsibilities.
• Investment in training as a motivation strategy

  is allocating resources to improve employee skills and knowledge.

  
  

  Characteristic: On-the-job and off-the-job training
• Advantages of investment in training as a motivation strategy

  -The skills and knowledge gained from training may assist employees to complete tasks quicker.

  
  

  -Employees may experience improved job satisfaction as they can perform their roles better.
• disadvantages of investment in training as a motivation strategy

  -Training programs can be costly for a business

  -Training employees is timeconsuming and can delay the completion of work tasks.
• Investment in training as a motivation strategy short term

  Employees may be motivated in the short term by the opportunity to learn new skills