Business Yr12

• Motivation


  the way in which a person can be encouraged to make an effort to do something
• Importantance of motivation (QALA)


  - Lower labour turnover

  - Higher quality work

  - Fewer accidents

  - Less absenteeism
• Methods of Motivation


  1. Financial rewards (monetary)

  2. Non-Financial rewards (non-monetary)

  3. Job Satisfaction
• 1. Financial Motivators


  (Brenda Can Fairly Perform)

  
  

  -Bonus

  -Commission

  -Fringe Benefits

  -Profit Sharing
• Bonus Evaluation


  Where an extra payment is given depending on the actual performance of the employee

  
  

  Adv:

  -employee can increase their income

  -employer has greater production resulting in higher sales and profits

  -encourages employees to work harder

  
  

  Disadv:

  -often paid to all staff, including those who didn't work harder

  
  

  Note: Usually only paid to workers in the private sector
• Commission Evaluation


  Whereby a percentage of sales is made on goods or services sold

  
  

  Adv:

  -sales staff can increase their income

  -business sells more goods and thus makes more profits

  -can stress out employee

  
  

  Disadv:

  -sales staff may become too focused on earning commission and become pushy/aggressive when securing deals

  
  

  Note: Really only suitable for sales staff
• Fringe Benefits Evaluation


  Extra benefits or perks that come with working for the company

  
  

  Adv:

  -employees value the perks

  
  

  Disadv:

  -firm has to absorb costs, can be expensive

  
  

  Note: Related to seniority (the more senior you are, the better the perks you get)
• Profit Sharing Evaluation


  Employees receive share of the company's overall profit in addition to their basic salary

  
  

  Adv:

  -employees feel a greater sense of belonging to the business and take a greater interest in its success

  -encourages staff to increase output

  
  

  Disadv:

  -unfairness is that all employees benefit from the profits made, even undeserving workers

  
  

  Note: Usually found in service sector, where it would be hard to estimate single employees contribution to profit
• 2. Non-Financial motivators


  (Jacqueline Talks Quite Fast)

  
  

  -Job Rotation

  -Team Working

  -Quality Circles

  -Flexible Working
• Job Rotation Evaluation


  Whereby employees are moves around the organisation to different jobs

  
  

  Adv:

  -avoids boredom

  -gives employees the opportunity to learn more jobs

  
  

  Disadv:

  -workers may still be bored as just more of similar work

  
  

  Note: Suitable for unskilled work, esp factory production line
• Team Working Evaluation


  teams of workers with different skills and abilities responsible for organising and carrying out the job

  
  

  Adv:

  -makes employee feel more responsible for own team's actions

  -employees will be committed & eager to make their team succeed

  
  

  Disadv:

  -not everyone contributes equally

  
  

  Note: only suitable for certain tasks (ie designing or creating products or advertising)
• Quality Circles Evaluation


  Like team working but with a focus on improving quality

  
  

  Adv:

  -workers feel more motivated

  -improving quality could reduce costs elsewhere for employer

  
  

  Disadv:

  -initially, any improvements may increase costs for firm

  
  

  Note: mainly found in manufacturing
• Flexible Working Evaluation


  employee can choose start and end time of work day, as long as the total hours are worked in a week

  
  

  Adv:

  -gives the employee the flexibility of hours, helps family life

  -workers can be on the premises for longer duration of the day

  
  

  
  

  Disadv:

  -business increases in running costs

  -may be times when workplace is understaffed

  
  

  Note: only works in offices
• 3. Job Satisfaction


  (George Eats Potatoes For Winning Rugby)

  
  

  -Good Working Conditions

  -Enjoyment

  -Praise

  -Fulfilment

  -Wages/Salaries

  -Responsibility
• Responsibility meaning


  employees want to achieve some status so they need to have opportunities to apply for and be given promotion
• good working conditions meaning


  a pleasant environment that is warm and well-lit helps a person to feel a sense of job satisfaction. As does having friendly colleagues as it makes work more enjoyable
• praise meaning


  everyone responds to praise and wants to feel valued as an employee. job satisfaction improves if employer had a good relationship with the employees and recognises the efforts they make.
• Selection


  the process of choosing the best candidate
• 6 main methods of selection (CAT PAI)


  - Curriculum Vitae (CV)

  - Application Form

  - Testing

  
  

  - Presentation

  - Application Letter

  - Interview
• Advantage + Disadvantage Online Application


  Adv:

  - Quicker and more flexible for both employer & candidate

  
  

  Disadv:

  - Speed requires a user friendly design of the form, takes time

  - Candidate needs a reliable broadband connection
• Application form

  A form which a business issues to applicants to complete when applying for a job.
• Adv & Disadv of Application forms


  Adv:

  - Gives the exact type of information needed by the employer

  - Easier to compare applicants

  
  

  Disadv:

  - May contain false information

  - Will not prove how good they would be at the job

  - Could be written by someone else
• Application Letter


  A letter written by the candidate asking for the job and explaining why they feel they are suitable for it.
• Adv & Disadv of Application letter


  Adv:

  - Shows employer the level of applicant's communication skills

  
  

  Disadv:

  - Will not prove how good they would be at the job

  - Could be written by someone else

  - Info not laid out in a standard way, time consuming for employer
• CV


  (Curriculum vitae) A formal description of an applicant's life and achievements
• Adv & Disadv of CV


  Adv:

  - Shows all of applicants details

  - How well applicant can organise & Display information

  
  

  Disadv:

  - Not prove how good they would be at the job

  - Could contain false information

  - Time consuming to shift through - not all same format
• 4 Types of Testing & What they are (APAI)

  - Aptitude Test: how candidate copes with job based situations

  - Personality Test: see if they fit in organisation

  - Attainment Test: To test a particular skill

  - Intelligent Test: To ascertain level of intelligence in English/Math etc.
• Adv & Disadv of Testing


  Adv:

  - Shows employer whether employee's skills are at required level

  
  

  Disadv:

  - employee may be nervous & influence performance
• Adv & Disadv of Interview


  Adv:

  - gives employer opportunity to meet with applicant & judge how suited they are for the job

  - allows firm to check info on form submitted

  - gives applicants a chance to ask questions
• Presentation


  Applicant is given a title in advance and is expected to talk on the prepared topic for a certain length of time
• Adv & Disadv of Presentations


  Adv:

  - Shows applicants personality, communication skills, level of preparation

  
  

  Disadv:

  - can be intimidating & candidates can get nervous
• Responsibilities of employers and employees in the selection process (HOFC)


  Honesty

  Objectivity

  Fairness

  Confidentiality
• Honesty in relation to Employer


  Documents such as the job description and job ad must be accurate and clear, details of pay and holidays should also be true
• Honesty in relation to Employee


  Details of qualifications and experience must be true, ie any criminal record must be disclosed
• Objectivity in relation to Employer


  Must be completely without prejudice, ie cannot reject applicant simply based on religious or social background
• Objectivity in relation to Employee


  Must also behave without prejudice towards employer
• Fairness in relation to Employer


  Must allocate equal time and consideration to each candidate in an interview and must ask the same questions of all candidates
• Fairness in relation to employee


  Must be totally fair by disclosing full and accurate information
• Confidentiality in relation to employer


  Must treat all information learned about an applicant as strictly confidential and cannot give details to a third party
• Confidentiality in relation to employee


  Must also treat all information learned about the firm as strictly confidential and must not talk to others about details of the firm