Motivating

workers
Chapter 6
 Why do people work?
Money Security
To pay for necessities and some To know your job and pay are
luxuries safe and you are not likely to
lose it

Social needs (affiliation) Esteem needs (self importance)

Feeling part of a group, meeting Feeling that you and your job are
people, making friends at work. important

Job satisfaction
Enjoyment is derived from
feeling that you have done a
good job
 Benefits of a well-motivated workforce
High output per worker
Low labor turnover
Helps to keep costs low and
increase profits. A loyal workforce reduces the cost
of recruiting workers who leave.

Two-way communication
with management
Example: suggestions for Low rates of strike action
improving quality.
Avoiding damage to customer
relations.
Low rates of absenteeism
Reducing the disruption caused by
absence from work
 Motivation theories

People work for themselves People work for someone else

Work hard and effectively as they see May not work as effectively.
the direct benefits of their efforts.
 Motivation theories
Maslow’s hierarchy of needs

Succeeding to your full

Self-actualization potential, feeling that you have
done a good job

Having status and

Esteem recognition, achievement,
independence

Social Friendship, a sense of

belonging to a team.

Safety Protection to danger, poverty,

fair treatment.

Physiological Food, rest, recreation,

shelter.
 F.W. Taylor
His motivation theory

Personal gain Intrinsic

All individuals are He saw employees like
motivated by personal Target output machines, when they
gain. They will work more He calculated how much were working hard, their
effectively if they are paid output the people who productivity would be
more. worked at factories should high.
be able to do in a day. If they
produced this target output,
they would be paid more
money.
 F.W Taylor
Criticisms of his ideas:

Too simplistic Target output

measuring
Employees are motivated Do high payments work?
by many things and not A practical problem
You can pay an employee arises if you can’t easily
just money.
more money, but if they are measure an employee's
unfulfilled by their work, output.
there won’t be an increase in
their effectiveness.
 Herzberg motivation theory
Humans have two sets of needs
“Hygiene” needs
“Motivational” needs
(basic needs)
(A human being able to
Status grow psychologically)

Security
Achievement
Work conditions
Recognition
Company policies
Personal growth
Relationship with
supervisor and Promotion
subordinates
Work itself
Salary
 Financial Rewards

Method Description Advantages Disadvantages

- The worker gets paid on a - They have to be

Paid weekly, in cash or
Wage directly into a bank account
regular basis calculated every week,
- Extra hours can be paid takes time and money.

- Easy to calculate salary

costs for the business.
Paid monthly, straight into a - Extra work is not usually
Calculated as an amount
Salary bank account. Not paid in
of money per year and is
paid for, it is counted as
cash. part of the salary.
divided into 12 monthly
amounts.
 Wages can be worked out in:
Time rate Piece rate
An amount paid for each unit of output a worker produces..
The amount paid to an employee for one hour of work. Often
Can only be used where it is possible to measure the
used where it is difficult to measure the output of the worker.
performance of an individual.

It encourages workers to work faster and produce more

Easy to calculate.
goods.

Workers may concentrate on making a large number of

The worker knows exactly how much they’ll be paid for
products and ignore their quality. This could damage the
working a certain period of time
reputation of the business.

Good and bad workers get paid the same amount of money. Requires an expensive quality control system.

Supervisors are needed to make sure the workers keep Workers who are careful in their work will not earn as much
producing a good quality product. This is expensive. as those who rush, may not be fair.
 Salaries (standard rate) can be added the following rewards.

Commission Profit sharing

Often paid to sales staff. The If the business is successful,
more sales they make the all employees receive an
more money they are paid. additional payment based on
the level of profits of the
business.

Bonus Performance related

pay
A reward for reaching certain
performance targets. It can be A pay which is related to the
paid at the end of the year or effectiveness of the employee
at regular intervals during the where their output can easily
year. be measured.
Share ownership
Shares are given to employees
so that they become part owners
in the company.
 Non-financial motivators
Firms may give non-financial rewards which are called perks or fringe benefits of a job.

Car

Fringe benefits Discounts

Health care

Pension paid
 Job satisfaction
People can be motivated to be more committed to their job if they get enjoyment from doing their job.

Pay

Opportunities for
What makes jobs promotion
satisfying
Working conditions

Recognition

Chance of training
 Job satisfaction
Ways in which a business can increase the job satisfaction of its employees.

Job rotation Job enlargement Job enrichment Autonomous work groups

- Adding tasks that require - A group of workers is
- Workers swap round and - Extra tasks of a similar
more skill and responsibility. given responsibility for a
do each specific task for only level of work are added to a
- Additional training may be particular process or
a limited time. worker's job description.
necessary. product.
- Increases variety of work - Should not add extra work
- Workers will be more - They decide how to
- Makes it easier to move or increased responsibility
committed because they get complete the tasks.
workers around if jobs need to the employee, but a
more satisfaction from their - They become involved
covering. greater variety to the work,
jobs, raising productivity. in the decision making.
- Doesn't make the tasks increasing job satisfaction.
- Gives a feeling of
themselves more interesting.
control and belonging to
the company.
Organisation
and
Management
Chapter 7
 Organisational structure

Levels of management and division This is often presented in a organizational

within an organization charts with levels of hierarchy

Advantages

- Shows how everybody is linked → employees know which communication channel is used to get instructions

- Everyone sees their position → who they respond to and who they have authority over.

- Links and relationship between departments.

- Everyone has a department → sense of belonging

 Differences between organisational charts

Span of Control Chain of command

● Is the number of subordinates working ● Is how power and authority are passed
directly under a manager. from the top to the lower levels in the
organisation.

Business B has a wide structure and a

short chain of command. Business A has a tall structure and a long chain of
command.
 Advantages
Each message has fewer levels to pass through
Quick and accurate communication.
before reaching the intended person.
→

Short chain of command Managers are more in touch with lower This means that each manager is responsible for
employees. → more subordinates.

Wider spans of control. → This means that each manager is responsible for
more subordinates.

This is because, as their department is larger, they

cannot possibly do all the important work by
More delagtion, as managers have more
themselves.
subordinates. →

Wide span of control Less direct control of each worker and They will be able to make more decisions by
they will feel more trusted. → themselves.

They may obtain more job satisfaction.

 Roles, responsibilities and inter-relationships between people in organizations

Functional departments

Directors
Senior managers who lead a
particular department.

Line Managers Supervisors Staff Managers

Have direct responsibility Junior managers who have Specialists who provide
for people below them. direct control over the support, information and
employees below them. assistance to line managers.
 The roles of a manager (P.O.C.C.C)
Planning Organising Coordinating
- Setting aims or targets They can't do everything→delegation “Bringing together”
to look for and to have a -Organize employees so they have the -Check that all departments
purpose. proper resources to work effectively. are working in unison to
-Resources needed in the achieve business goals
near future

Commanding Controlling
Guiding, leading, supervising -Measure and evaluate the work
done.
- All workers are keeping targets
and deadlines. - If it's done incorrectly, some
corrective action may be taken
-Instructions and guidance is by them.
provided.
-Find the problem and correct it.
-Tasks are being carried out.
Delegation giving a subordinate the authority to perform particular tasks.

If the job is done badly by the subordinate then it is the manager's responsibility.

Advantages of delegation for the manager: Why might a manager not delegate?
- Practicality → able to concentrate their time on management functions.
- Fear of failure of subordinates →
-Avoid mistakes → as managers have more work load than staff they could look manager might want full control.
over a mistake.
-Check performance off staff. - Subordinate performs better than
manager → manager feel very
insecure.
Advantages of delegation for the subordinate:
-Work becomes more interesting and rewarding → as they feel more important
and trusted
-Train workers for possible future jobs
 Leadership styles

Autocratic Laissez-Faire
Democratic
The manager is in charge of the
French → “leave to do”
business and their orders are followed. Other employees are involved in Objectives are told to employees, but
● Separation from employees. the decision-making process. are left to make their decisions and
● Keep information private and ● Information is openly orginization.
only inform workers. discussed before the final Advantage
● No opportunity for feedback. decision. Employees show creativity and
Advantage responsibility.
Advantage Better decisions→ consulting Disadvantage
Quick decision making. with employees and using Non consistent clear decision-making
different experiences and ideas. structure.
Disadvantage Sense of belongin → motivating
No opportunity for employee input into Difficult communication → no clear
key decisions → demotivating Disadvantage decision
Unpopular decisions (firing Limited role for leader
workers) → cant be effectivly
made.
 Trade Unions
Group of employees who joined together achieve and protect worker interests→ considerable pay, good working conditions, etc

To be in a trade union you need to pay a certain subscription

Benefits Disadvantages
Advantages Disadvantages
(for an employee) (for an employee)

Possibility of strikes to Strength in numbers when It costs money to be a

Improves communication member.
demand what they don't negotiating with employers.
workers & managers.
receive.

Workers may be required to

Easier to arange wage Improved conditions →
Higher wages if many take action even if they don’t
agreements with trade union. environment and job
employees are members agree.
satisfaction by encouraging
training.
Recruitment,
selection and
training of workers
Chapter 8
 Human Resources department
Wages and salaries Industrial relations Training programmes Health & safety

Sufficiently high to Communication Assessing training Make sure to comply

attract and motivate between managers and needs of employees with laws on safety for
employees workforce workers

Recruitment and Redundancy and

selection dismissal

Attract and select Shedding employees

appropriate candidates within the established
laws
 Recruitment & Selection
Recruitment process

Application forms Interviews and

Vacancy arises Job analysis Job description Job specification Job advertising
and short-list selection

A certain job is Identify the Outlines Outlining Seek for Applicants to Direct contact
now to be taken responsibilities responsibilities requirements & applicants. sends CV’s. with applicants
by someone relating to the to be carried qualifications Internal or Some will to analyze their
job out by workers for the job External? match correctly features
 First steps of recruitment process

Job analysis Job description Job specification

● Identify tasks to be ● Candidates to know ● Level of educational

carried out exactly what to do qualification needed
● Already existing post, or ● Show conditions, ● Any type of experiences
is it a new one? training offered, and ● Special skills and
promotion opportunities knowledge
● Once employing, it can ● Personal characteristics
be used to compare
 Who will fill the vacancy?

Internal Recruitment External Recruitment

An existing employee of the business fills the vacancy Filled by someone who is not an existing employee

● Saves money and time ● Local newspapers (not high skill)

● Known proceedings and expectations
● Motivate others for promotion ● National newspapers (senior positions)
● Magazines (particular technical)
● No new ideas into the business ● Agencies (skilled workers)
● Rivalry among employees ● Job centres (unskilled)
 Job Advertisements
Think about it when advertising a job!

What should be included? Where to place it? Costs of it?

 Application forms and CV’s

Personal information Experience and

and data qualifications

INCLUDE

Why he wants the job? Why is he suitable?

 Interviews
- Applicant’s ability to do the job
- Personal qualities
- Personality of the applicant

Skill tests Aptitude tests

Personality tests Group situation tests

 Contract of Employment
Terms of the relationship between employee and employer

Job conditions Retire percentage

Hours to be worked Health care

Fringe benefits
 Part-time or full-time workers?

Part-time workers Full-time workers

Between 1 and 30-35 hours a week 35 hours or more a week

● More flexible ● More trained workers

● Easier to extend hours ● Easier to recruit
● Less expensive to employ ● More committed
 Training
Important to business to:

Improve efficiency Decrease supervision More competition

INDUCTION ON-THE-JOB OFF-THE-JOB

Introducing the employee for Watching a more experienced Training away from
some days. worker doing his job. workplace, done by specialist.

● Settle quickly ● Produce while training ● Many skills learnt

● Avoid mistakes ● Less costly ● Not output lost
● Very specific ● Allow job variation
● Time consuming
● Delays start ● Depend on trainer ● High costs
● No work done ● No recognition outside ● Workers may leave
 Downsizing workforce
WORKFORCE PLANNING: establishing workforce needed in foreseeable future

Businesses may need a downsize due to: Downsizes proceed in the following ways:

Automation introduced
Redundancy Dismissal
Jobs become a surplus
In recession for example Caution, is it an unfair one?

Falling demand
Employees may be no longer needed Worker is told told to leave because of:
● Compensation paid ● Unsatisfactory behaviour
Factory/office closure (usually a salary per year ● Non-efficient work
worked) ● Late arrivals
Relocation abroad
 Legal controls over employment issues

Advertisement wording Applicants’ treated Recruiting & promoting

● Not talking about gender, ● Candidates need equal ● Focus only on merit in
but say “person” treatment this decisions
● Otherwise prosecution ● Increases competitivity
and fines follow
 Protecting employees
May need protection in the following areas

Unfair discrimination Health and safety Unfair dismissal Wage protection

- Workers discriminated ● Protect from Examples could be: Contract of employment
because of their: dangerous machines ● Joining Trade Unions needs to be respected
● Race of colour ● Safety equipment and ● Being pregnant
● Religion clothing ● No warnings provided Minimum Wage is set in
● Gender ● Adequate some countries
● Age temperatures Industrial Tribunals: Legal
● Disabilities ● Hygienic place meeting to consider the
● Provide breaks worker’s complaints
Businesses may fail to select
good workers. Ethical decisions!
 Legal Minimum Wage

Advantages Disadvantages
● Increases costs, and therefore prices
● Prevent exploiting unskilled workers
● Encourage to decide to make workers redundant
● Encourage employers to train unskilled workers
(Due to the higher costs). Rises unemployment
● Encourage people to seek for work
● Claims for higher wages from those wanting to keep
● Low-paid workers increase their quality life
difference between the minimum wage
Internal and
external
communication
Chapter 9
External and Internal communication

External Between the organisation and other

organisations or individuals

Important to the image and efficiency of the business

Internal Between members of the same

organisation
 The process of effective communication

Transmitter Receiver
Person who wishes to Person to whom the
pass information to Medium of message should be sent
others communication Feedback

Method for sending the Receiver confirms the

message message has been
(letter or notice-board) received and responds
to it
 One-way and two-way communication
One-way communication: Involves a message which does not call for or require a response

Is when the receiver gives a response to the message and there is a

Two-way communication discussion about it

Advantages of two-way communication:

● Realise if the message was understood → if not effective communication has not taken place

● Both people are involved in the communication process → motivate the receiver
 Communication methods
Information can be sent or transmitted in a number of ways

Verbal methods Written methods Visual methods

Involve the sender of the message Include letters and notices/posters, Include methods such as diagrams,
speaking to the receiver but mainly involve the use of charts and videos
( include meetings, telephone information technology (IT) (Powerpoint displays, photographs,
conversations, face-to-face (Memos, reports, text messages, posters)
conversations) email)
 Best way to communicate a message
Choosing the appropriate communication method

Speed Cost Message details Leadership style

Is the leadership style a
Important that the receiver Important to keep costs down How detailed is the message? democratic one?
gets the information really or communicate effectively,
quickly. regardless of cost.
Example:
Example: Example: Example: If it is the case, then two-way
A manager from a foreign Customers need to be If it contains technical plans, verbal methods of
division of a company must be informed about a serious figures and illustrations then, communication with
told about a cancelled meeting safety problem with a clearly, written and visual employees are much more
product. forms of communication are likely to be used than they
before he catches his flight.
likely to be essential. would be by an autocratic
leader.
 Verbal communication method

Advantages Disadvantages

Big meeting → no way of telling who is listening or has

Information can be given quickly
understood the message

Opportunity for immediate feedback and two-way

Verbal methods can take longer
communication

Message is reinforced by seeing the speaker (does not Verbal method is inappropriate when an accurate and
include telephone conversations) permanent record is needed
 Written communication method

Advantages Disadvantages

‘Hard’ evidence of the message → reduce

Two-way communication is difficult
disagreements

Not easy to check if the message has been received

Essential for messages involving complicated details
and acted upon

Written message can be copied and sent to other Language can be difficult for some receivers to
people → more efficient understand

Cheap and quick way to reach a large number of No opportunity for body language to be used to
people reinforce the message
 Visual communication method

Advantages Disadvantages

No feedback → sender may need to use another form

Can present information in an appealing and attractive
of communication to check that the message has
way
been understood

Can be used to make a written message clearer → use Charts and graphs can be difficult for some people to
of charts or diagrams interpret → overall message misunderstood
 Formal and informal communication
Formal Informal

Messages are sent through established channels Information is sent and received casually using
using professional language everyday language

The direction of communications

Downward Upward Horizontal

Managers to subordinates → Message or feedback is passed Between same level in an
instructions or statements from subordinates to managers organisation → exchange of
ideas and information
 Communication barriers

Factors that stop effective communication of

messages from taking place

Problems with the sender Problems with the medium

The most common

barriers

Problems with the receiver Problems with feedback