AOS 2: Human Resource Management

Question 1

Human Resource Management & FEATURE

Answer 1

Human resource management is the organisation of employees’ roles, pay, and working conditions.

FEATURE: Effective human resource management can increase employee satisfaction within a business, as they feel valued for completing their work, and are therefore more likely to positively contribute to the achievement of business objectives.

increase employee satisfaction
valued for their work
positvely contribute to objectives

Question 2

Results of effective and poor HRM

Answer 2

Effective HRM allows businesses to retain its employees as it promotes high levels of motivation and job satisfaction among staff.

retain employees
promotes high levels of motivation
job satisfaction among staff

Poor HRM may lead to employees being unsatisfied and demotivated by their work tasks, affecting a business’s ability to meet its objectives.

unsatisfied and demotivated
affects ability to meet objectives

Question 3

Relationship between managing employees and the business objective of: TO MAKE A PROFIT

Answer 3

Effect of successfully managing employees:
- When employees have increased job satisfaction, the number of employees leaving the business is likely to decrease.

Effect on business:
- The costs associated with recruiting and training replacement employees are reduced.

Question 4

Relationship between managing employees and the business objective of: TO INCREASE MARKET SHARE

Answer 4

Effect of successfully managing employees:
- When employees have increased job satisfaction, the
quality of the goods and services manufactured and delivered is likely to also increase.

Effect on business:
- The increased quality of goods and services can lead to growth in customer satisfaction and sales, therefore increasing market share

increased quality
leads to growth in customer satisfaction/sales
increasres market share

Question 5

Relationship between managing employees and the business objective of: TO MEET SHAREHOLDER EXPECTATIONS

Answer 5

Effect of successfully managing employees:
- When employees have increased job satisfaction, they are motivated to work harder and to a higher standard.

motivated
harder
higherstandard

Effect on business:
Highly motivated employees can enable a business to increase its sales and profit, allowing greater dividends to be paid to shareholders.

highly motivated employees
increases sales and profit
greater dividends
paid to shareholders

Question 6

Relationship between managing employees and the business objective of: TO FULFIL A MARKET NEED

Answer 6

Effect of successfully managing employees:
- When employees have increased job satisfaction, they are more likely to contribute innovative ideas.

morelikely to contribute
innovative ideas

Effect on business:
- A business that produces unique goods and services may be able to better meet customer needs.

produces unique goods and services
better meet customer needs

Question 7

Relationship between managing employees and the business objective of: TO FULFIL A SOCIAL NEED

Answer 7

Effect of successfully managing employees:
- When employees have increased job satisfaction, their support of business initiatives is also likely to increase.

Effect on business:
- Businesses with initiatives that aid the community and reduce waste are more likely to be successful.

Question 8

Relationship between managing employees and the business objective of: TO IMPROVE EFFICIENCY

Answer 8

Effect of successfully managing employees:
- When employees have increased job satisfaction, they are more motivated and determined to complete work tasks, doing so in a focused, error-free, and productive manner.

motivated and determined to complete work tasks
focused
error-free
productive manner

Effect on business:
- A business is able to produce goods and services at a faster pace and to a higher quality, with fewer errors and discarded materials.

produce goods and services
faster pace and higher quality
fewer errors and discarded materials

Question 9

Relationship between managing employees and the business objective of: TO IMPROVE EFFECTIVENESS

Answer 9

Effect of successfully managing employees:
- When employees have high job satisfaction, they are more motivated to achieve business objectives and have greater resilience when doing so.

motivated to achieve business objectives
greater resilience when doing so

Effect on business:
- the business can more readily achieve its objectives and continue improving its performance.

readily acheive its objectives
continue improving its performance

Question 10

Motivation theories

Answer 10

Maslow’s Hierarchy of Needs:
(BOTTOM) 1. Physiological needs
2. Safety and security
needs
3. Social needs
4. Esteem needs
(TOP) 5. Self-actualisation
needs

Lawrence and Nohria’s Four Drive Theory:
1. the drive to ACQUIRE
2. the drive to BOND
3. the drive to LEARN
4. the drive to DEFEND

Locke and Latham’s Goal Setting Theory:
1. Clarity
2.Commitment
3. Challenge
4. Task complexity
5. Feedback

Question 11

Motivation & FEATURE

Answer 11

Motivation is the willingness of an individual to expend energy and effort in completing a task.

willingness of an individual
expand energy and effort
completing a task

FEATURE: An employee’s motivation relates to their ability to be influenced and inspired to take on business activities while striving towards achieving their best performance.

relates to their ability
influenced and inspired
take on business activities
strive towards
achieving their best performance

Question 12

Maslow’s Hierarchy of Needs & FEATURE

Answer 12

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.
The five needs in the hierarchy, from lowest to highest, are physiological, safety and security, social, esteem, and self-actualisation.

FEATURE: Maslow’s theory suggests that, once one need is completely satisfied, the next need on the hierarchy acts as a motivator for employees.

Question 13

Physiological needs

Answer 13

Physiological needs are the basic requirements for human survival, such as food, water, and shelter.

basic requirements
human survival
food, water, shelter

Individuals are unlikely to be motivated by any other needs until they fulfil the requirements needed for their survival. In a business setting, employees fulfil physiological needs by using the wages they earn from work to purchase essential items, such as meals and housing.

unlikely to be motivated by any other needs
until they fulfil the requirements needed for their survival
business setting
fulfil physiological needs by using wages
purchase essential items
meals and housing

Question 14

Safety and security needs

Answer 14

Safety and security needs are the desires for protection from dangerous or threatening environments.

When applied to employees of a business, safety needs include avoiding physical harm in the workplace, while security needs include having a stable income and job security.

SAFETY: a manager must ensure the business abides by all relevant OH&S regulations and that employees are provided with safe working conditions

abides by all relevent OH&S regulations
employees are provided
safe working conditions

SECURITY: a manager can provide long-term employment contracts to enhance job security, and introduce anti-discrimination policies

provide long term employment contracts to enhance job security
introduce anti-discrimination policies

Question 15

Social needs

Answer 15

Social needs are the desires for a sense of belonging and friendship among groups, both inside and outside the workplace (interpersonal relationships).

desires for a
sense of belonging and friendship
inside and outside the workplace

A manager can satisfy social needs by encouraging team-based work, celebrating employee birthdays, and organising collaborative events to commemorate important milestones.

manager can satisfy social needs
encouraging team-based work
celebrating employee birthdays
organisting collaborative events
commemorate important milestones

Question 16

Esteem needs

Answer 16

Esteem needs is an individual’s desires to feel important, valuable, and respected.

A manager can fulfil an employee’s esteem needs by acknowledging their strong performance with monetary rewards, increasing their job responsibilities, or promoting them to a higher position, which may increase employee productivity and performance.

manager can fulfil
an employee’s esteem needs
acknowledging their
strong performance with monetry rewards
increasing their job responsibilities
or promtoing them to a higher position
may increase employee
performance and productivity

Question 17

Self-actualisation needs

Answer 17

Self-actualisation needs are the desires for an employee to reach their full potential through creativity and personal growth.

–> external factors no longer act as motivation so instead individuals driven by personal interest and self-satisfaction.

A manager can facilitate self-actualisation in the workplace by providing employees with challenging work, opportunities for skill and knowledge development, and offering employees work that enables them to express their creativity.

manager facilitate self actualisation in the workplace
providing employees with challenging work
opportunities for skill and knowledge development
offering employees work
enables them to express their creativity

Question 18

Lawrence and Nohria’s Four Drive Theory

Answer 18

The Four Drive Theory is a motivational theory that suggests that people strive to balance four fundamental drives; the drive to acquire, the drive to learn, the drive to bond, and the drive to defend

The four drives rely on an employee’s desire to attain rewards, form relationships, develop knowledge and skills, and protect themselves and the business.

rewards
relationships
develop
protect

Question 19

PROS/CONS of Maslow’s Hierarchy of Needs

Answer 19

Pros:
1. Employees can work in an engaging environment that allows them to reach their full potential.

engaging environment
full potential

2. Satisfying social needs may not increase business expenses as businesses could instead organise weekly meetings for staff to facilitate collaboration, allowing for friendships to flourish in the workplace

social needs = no expense

Cons:
1. Not all employees will be motivated by the same needs at once

not all motivated by same needs

2. It may be time-consuming for a manager to determine the level of each individual employee, and implement appropriate strategies for each.

time consuming
level of each employee
implement strategies

Question 20

The drive to ACQUIRE

Answer 20

The drive to ACQUIRE is the desire to achieve rewards and high status.

In a business setting, the drive to acquire motivates employees who want to receive financial and non-financial rewards in recognition of their effort and performance.

motivates employees
want to recieve
financial and non financial rewards
in recognition
effort and performance

Question 21

Strategies to achieve the drive to ACQUIRE

Answer 21

(STRATEGIES) = Reward employees who make meaningful contributions towards business objectives.

Question 22

The drive to BOND

Answer 22

The drive to BOND is the desire to participate in social interactions and feel a sense of belonging.

participate in social interactions
feel a sense of belonging

A manager can fulfil the drive to bond by creating an environment that promotes both work-related and personal interactions.

creating an environment
promotes both work-related and personal interactions

Question 23

Strategies to achieve the drive to BOND

Answer 23

STRATEGIES to develop an inclusive workplace environment may include:
* introducing recreational team bonding activities, such as sports days/ holding social events

recreational team bonding activities
sports days or holding social events

• encouraging group work instead of tasks to be done by a single person.

group work
instead of
single person

Question 24

The drive to LEARN

Answer 24

The drive to LEARN is the desire to gain knowledge, skills, and experience.

Managers can cater to this drive by offering opportunities to educate and upskill employees. Furthermore, managers may rotate responsibilities and tasks within the business so that all employees have an opportunity to broaden their range of skills, experience, and knowledge.

managers can cater to this drive
offering opportunities
educate and upskill employees
may rotate responsibilities and tasks
all employees have the opportunity
boraden their range
skills, experience and knowledge

Question 25

Strategies to achieve the drive to LEARN

Answer 25

STRATEGIES to fulfil the drive to learn by:
* adopting a mentoring system between junior and senior employees.

mentoring

• regularly rotating the types of tasks assigned to employees to broaden their range of skills.

rotating tasks

Question 26

The drive to DEFEND

Answer 26

The drive to DEFEND is the desire to protect personal security as well as the values of the business.

A manager must ensure that employees are able to defend themselves and the business when required to. This may involve establishing grievance procedures and support systems to facilitate action that results in optimal levels of employee motivation.

managermust ensure
employees are able to defend
themselves and the business
involve estab,ishing grievance procudeures
support sustems to facilitate action
results in optimal levels of employee motviation

Question 27

Strategies to achieve the drive to DEFEND

Answer 27

STRATEGIES to fulfil employee’s drive to defend by:
* implementing policies using employee input.
* implementing job contracts so that employees understand their work responsibilities and requirements.

Question 28

PROS/CONS of Lawrence and Nohria’s Four Drive Theory

Answer 28

Pros:
1. The model provides a simple approach for motivating employees and is easy for managers to implement

simple approach for motivating employees

2. All four drives can be attained simultaneously, and are not restricted to sequential orders, therefore increasing motivation efficiently for the business.

attained simultaneously

Cons:
1. Managers may find it difficult to manage four drives simultaneously

difficult to manage

2. Rewarding individual employees may lead to unhealthy competition in the workplace.

rewards can lead to unhealthy competition

Question 29

Locke and Latham’s Goal Setting Theory

Answer 29

Locke and Latham’s Goal Setting Theory is a motivation theory that states that employees are motivated by clearly defined goals that fulfil five key principles

FEATURE: The Goal Setting Theory proposes that employees should be motivated by goals that are clear, challenging, complex, and that they have a commitment to achieving. A manager should also provide regular feedback to employees regarding their achievements

Question 30

Clarity

Answer 30

Employees should be able to clearly understand what is expected of them, as goals should be clear, specific and concise.

Question 31

Commitment

Answer 31

Employees should be involved in setting their goals to ensure everyone is devoted to the goal being achieved

Question 32

Challenge

Answer 32

The goal should be difficult enough to encourage employees to improve in order to achieve it.

Question 33

Task Complexity

Answer 33

The goal should not overwhelm employees and should be achievable

Question 34

Feedback

Answer 34

Managers should constantly monitor the progress of employees to keep them on track, clarify misunderstandings, and encourage them to achieve their goals.

Question 35

5-step process of implementing the goal setting theory

Answer 35

discuss personalgoals with manager who makes sure it alligns with business objectives
set goal using locke and latham
manager moniters progress and provides feedback
manager celebrates and rewards employee
manager and employee set new goal

1. Employee discusses their personal goals with manager who then ensures it aligns with business objectives
2. Manager and employee set a clear, achievable goal together, ensuring they are challenging and complex.
3. Manager regularly checks employee progress and provides support
4. Manager celebrates and rewards the employee for reaching a goal
5. Manager and employee set a new, more difficult goal together

Question 36

Managers can motivate employees to complete tasks that contribute to broader business objectives by setting goals such as…

NAME THE GOALS

Answer 36

• sales goals – an employee may have a sales target to meet.
• knowledge and skills goals – an employee may have a goal to learn a new skill
• deadline goals – an employee may have a date they need to complete a task by
• productivity goals – an employee may have a production quota to meet.

Question 37

PROS/CONS of Locke and Latham’s Goal Setting theory

Answer 37

Pros:
1. The process of managers setting goals with employees can improve levels of trust and stakeholder relations

improve levels of trust and stakeholder relations

2. As goals are specific and measurable, it is not time consuming for managers to assess whether an employee has achieved their goal or not.

not itme consuming

Cons:
1. Employees may become stressed and demotivated if they have too many goals at once

stressed/demotivated

2. Failure to meet a goal may result in an employee losing confidence and feeling less motivated to contribute to business objectives.

failure leads to loss of confidence

Question 38

Sims/diffs: Maslow’s VS Lawrence/Nohria

hierarchy of needs VS four drive theory

Answer 38

Similarities:
1. Recognises employees are motivated by success
Eg. the drive to aquire a higher position (acquire) or the goal to be promoted and have more responsibility (esteem)

motivated by success

2. Suggests employees are motivated by the desire to feel a sense of belonging within the workplace
   Eg. through social needs and the drive to bond

sense of belonging

Differences:
1. Maslows must be sequential, four drive theory suggests any drive may be relevant in no particular order

sequential

2. Maslows- only motivated to fulfil one need at a time, four drive- all needs can drive employee behaviour simultaneously

one need at a time

Question 39

Sims/diffs: Maslow’s VS Locke/Latham

Hierarchy of needs VS Goal setting

Answer 39

Similarities:
1. Recognises personal gain can motivated employees
Eg. providing jobs with higher status (esteem) whilst fulfilling the commitment principle

personal gain

2. Both place emphasis on motivation through intrinsic factors
   Eg. goal setting involves setting intrinsic goals, maslow’s higher order needs (esteem/self-actualisation) is considered to be intrinsic motivators

emphasis on motivation through intrinsic factors

Differences:
1. Maslows must be sequential, locke/latham’s theory suggests any goal may be relevant in no particular order

sequential attainment

2. goal setting = purely motivated through intrinsic factors, maslow’s = focuses on intrinsic and extrinsic motivators such as physiological needs

intrinsic (comes from within- eg. personal growth)/extrinsic factors (external- eg. promotion)

Question 40

Sims/diffs: Lawrence/Nohria VS Locke/Latham

Four drive theory VS Goal setting theory

Answer 40

Similarities:
1. Recognises employees are motivated by success –> drive to ACQUIRE a higher position, or the goal to be promoted to a position with more responsibility

motivated by success
acquire a higher position
goal to be promoted

2. Both suggest multiple factors motivate an employee at any given time. 4drive= all drives active simultaneously, goals = incorporate multiple principles at once

multiple factors can influence employees simultaneously

Differences:
1. goal setting involves employee input, 4 drive = applied by manager alone

employee input VS manager alone

2. goal setting = motivated purely through intrinsic factors, 4 drive = addresses extrinsic through the drive to acquire

intrinsic/extrinsic factors

Question 41

Motivation strategies

Answer 41

1. Performance related pay
2. Career advancement
3. Investment in training
4. Support strategies
5. Sanction strategies
6. Positive/negative SHORT term motivation
7. Positive/negative LONG term motivation

Question 42

Performance related pay
PROS/CONS

Answer 42

Performance-related pay is a financial reward that employees receive for reaching or exceeding a set business goal.

Pros:
1. Can be used to motivate many employees at once which
can improve overall business performance

motivate many at once

2. can boost employee motivation quickly through the incentive of financial rewards

quick and efficient

Cons:
1. Can have a negative impact on the business’s corporate culture if there are unhealthy levels of competition between employees

negative impact on corporate culture and unhealthy competition

2. Can increase the expense of wages significantly, particularly if the value of rewards increases over time.

increase expenses/wages

Question 43

Career advancement
PROS/CONS

Answer 43

Career advancement is the upwards progression of an employee’s job position. This can be achieved through promoting employees or giving them more challenging tasks, which can motivate ambitious employees who want more responsibility, authority, or status in the workplace.

Pros:
1. Promoting employees from within the business can be cheaper than recruiting new employees

cheaper

2. provides employees with the opportunity to increase their contribution to the business

increase contribution

Cons:
1. May not motivate employees immediately as a promotion can take time to earn

not immediate

2. employees may be demotivated if they are overlooked for a promotion.

demotivated if overlooked

Question 44

Investment in training
PROS/CONS

Answer 44

investement in training is allocating resources to improve employee skills and knowledge.
A manager can implement investment in training through:
* On-the-job training: providing employees with mentoring & training programs within the business
* Off-the-job training: paying for employees to be trained by other professionals outside of the business

Pros:
1. Employees can complete tasks more efficiently and effectively after improving their skill set

complete tasks efficiently

2. employees may feel more valued as the business wants to advance their skills.

feel valued

Cons:
1. Training employees is time- consuming and can delay the completion of work tasks

time consuming

2. Training programs can be costly for a business.

costly

Question 45

Support strategies
PROS/CONS

Answer 45

support strategies involve providing employees with any assistance that improves their satisfaction at work. Support motivates employees as it allows them to feel valued, understood, and considered by their managers.

Managers can support staff by:
* regularly checking on their health and wellbeing.
* encouraging good performance through personal recognition.

Pros:
1. Employees who feel supported are less likely to leave the business

less likely to leave

2. employees may feel more valued by managers, as their wellbeing is being considered.

valued

Cons:
1. May take a long time to see the benefits develop

not immediate

2.time consuming

time consuming

Question 46

Sanction strategies
PROS/CONS

Answer 46

sanction strategies involves penalising employees for poor performance or breaching business policies. Employees are motivated by sanctions as they fear punishment for failing to fulfil a business’ expectations, and therefore employees are more likely to abide by the business’s policies, minimise errors, and put effort into their work.

A manager can implement sanctions by:
* verbally warning employees
* providing written warnings
* firing employees

Pros:
1. Can pressure employees to act in accordance with management instructions

obedience

2. does not incur any immediate cost to implement.

cheap

Cons:
1. Can create a negative and fearful corporate culture

negative corporate culture

2. prolonged use can lead to employees leaving the business

resignation

Question 47

LONG/SHORT term motivation on performance related pay

Answer 47

short term:
1. Employees may be motivated to improve performance quickly in order to gain financial rewards. (POS.)

motivated to improve performance quickly to gain financial rewards.

2. Employees may be demotivated if they are competing against their colleagues. (NEG.)

demotivated if they are competing against their colleagues.

long term:
1. 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. (POS.)

when there is a history of rewarding high performing emploees they may motivated by the expectation that they will receive rewards in the future

2. Employees may become demotivated if the rewards they receive do not continuously increase in value. (NEG.)

demotivated if the rewards do not continuously increase in value.

Question 48

LONG/SHORT term motivation on career advancement

Answer 48

short term:
1. Employees may be rapidly motivated if they are taking on more responsibility in the workplace. (POS.)

rapidly motivated if they are taking on more responsibility in the workplace

2. Employees may become resentful and demotivated if they believe they were not considered for a promotion. (NEG.)

may become resentful and demotivated if they believe they were not considered for a promotion

long term:
1. Employees may be motivated by ongoing opportunities to be promoted or take on additional responsibilities. (POS.)

motivated by ongoing opportunities to be promoted or take on additional responsibilities

2.There may be a limited number of responsibilities an employee can absorb into their role within a business; therefore, there are fewer career advancement opportunities for that employee to experience. This can limit the potential for long-term employee motivation. (NEG.)

there may be limited number of responsibilities an employee can absorb into their role and therefore, there are fewer career advancement opportunities for that employee to experience.

Question 49

LONG/SHORT term motivation on investment in training

Answer 49

short term:
1. Employees may be motivated in the short term by the opportunity to learn new skills. (POS.)

motivated to learn new skills

2. Taking time off work to participate in training programs may cause employees to lose momentum and consequently lack motivation. (NEG.)

taking time off to participate in training programs can cause employees to lost momentum and therefore motivation

long term:
1. employees may feel continually motivated by working in an environment that promotes learning and development. (POS.)

continually feel motivated

2. Employees may become demotivated by the consistent workflow interruptions caused by training programs. (NEG.)

demotivated if work is interrupted by training programs

Question 50

LONG/SHORT term motivation on support strategies

Answer 50

short term:
1. Employees may be motivated by working in a business where their wellbeing is considered and valued. (POS.)

motivated by working in a business where their wellbeing is considered

2. – (NEG.)

long term:
1. Employees may be motivated for a long period of time when they feel valued by management and are able to resolve issues efficiently. (POS.)

motivated for a long time as they feel valued

2. – (NEG.)

Question 51

LONG/SHORT term motivation on sanction strategies

Answer 51

short term:
1. Employees may ensure their performance is of an adequate standard, as they may fear losing their job (POS.)

may ensure their performance is of an adequate standard

2. Employees may become resentful of their managers if they utilise threats and punishments, potentially leading to resignations and decreases in productivity. (NEG.)

resentful of their managers if they utilise threats and punishments, potentially leading to resignations and decreases in productivity

long term:
1. No (POS.)
The use of sanctions can contribute to a negative workplace environment, decreasing employee satisfaction and motivation. (NEG.)

can contribute to a negative workplace environment, decreasing employee satisfaction

2. Over time, employees can become desensitised to the threat of punishment and no longer be motivated by sanctions. (NEG.)

become desensitised to the threat of punishment and no longer be motivated by sanctions

Question 52

Training options

Answer 52

1. On the job training
2. Off the job training

Question 53

On the job training & examples

Answer 53

Involves employees improving their knowledge and skills within the workplace. It enables employees to interact and become familiar with the equipment, machinery, or processes in the workplace that are related to their role.

Examples include:
* mentoring –>
being coached by an existing/senior employee on how to perform a specific role

• job shadowing an experienced employee working in the same position.

Question 54

on the job training PROS/CONS

Answer 54

Pros:
1. Employees can perform their role while training, minimising losses to productivity

no loss to productivity

2. training employees internally is often less expensive than performing trainings externally, as there are no travel costs.

less expensive

Cons:
1. The business may lack the number of experienced staff required to train employees

lack experience staff

2. Employees who are not being trained may be disrupted by training processes, lowering overall productivity.

disruption

Question 55

Off the job training & examples

Answer 55

Involves employees improving their knowledge and skills in a location external to the business. Off-the-job training will often involve sending employees off-site to perform specialised courses where professional instructors teach them how to perform their job to a higher standard.

Examples include:
* attending conferences that provide theoretical knowledge to employees.

• attaining specific qualifications from TAFE, university, or other higher education courses that are funded by the business.

Question 56

Off the job training PROS/CONS

Answer 56

Pros:
1. An employee’s employability may improve if they receive qualifications or accreditations

improved employability due to qualifications

2. Employees are likely to perform training in a distraction-free environment, enhancing the quality of training received.

quality enhanced by a distraction-free environment

Cons:
1. Travel times associated with off- site training may be long

timely and inconvenient travel

2 Paying external organisations to train employees may be expensive.

expensive

Question 57

Performance management

Answer 57

Performance management refers to a system of measuring staff performance at work, through the achievement of business and employee objectives.

INCLUDES:
1. Management by objectives
2. Performance appraisals
3. Self evaluation
4. Employee observation

Question 58

Management by objectives PROS/CONS

Answer 58

Involves both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives.

Pros:
1. Employees may gain a sense of achievement

sense of achievement

2. Reviewing the performance of employees may be done quickly, as success is determined by the extent to which objectives have been met.

can quickly review employee performance

Cons:
1. Employees may become demotivated if they do not receive compensation or recognition after achieving objectives

demotivated by lack of compensation or recognition

2. Developing objectives that benefit both the business and employees can take time.

timely

Question 59

Performance appraisals
PROS/CONS

Answer 59

Involve a manager assessing the performance of an employee against a set criteria, providing feedback, and establishing plans for future improvements.

It can:
- provide feedback on performance
- set new goals for employee- determine promotion/demotions or termination

Pros:
1. Communication between managers and employees during one-on-one reviews can improve workplace relationships

improve the relationship between employee and manager

2. Employees who demonstrate strong performance may be recognised for promotional opportunities.

promotional opportunities

Cons:
1. Employees may lose motivation if they receive multiple poor performance appraisals

lose motivation for multiple poor performance appraisals

2. is time consuming as managers individually review each employee’s performance.

time consuming

Question 60

Self evaluation
PROS/CONS

Answer 60

Involves an employee assessing their individual performance against a set of criteria. As a performance management strategy, self-evaluation enables a manager to gain insight into an employee’s perception of their own ability

Will create open dialogue with manager where their performance is discussed –>
- can highlight needs for training the employee feels would be helpful

Pros:
1. The employer can gain insight into an employee’s understanding of their own strengths and weaknesses and assign work accordingly

manager understands employee’s perception of the strengths/weaknesses

2. Self-evaluation can save managers time, as employees evaluate their own performance.

quick/saves time

Cons:
1. Employees may underestimate or exaggerate their own skills, therefore the evaluation may not be reliable and accurate

unreliable

2. Training courses provided to address employee weaknesses can increase business expenses.

increase expenses

Question 61

Employee observation
PROS/CONS

Answer 61

Involves a range of employees from different levels of authority assessing another employee’s performance against a set of criteria

Pros:
1. The manager can gain multiple different perspectives about an employee
2. Staff who receive positive performance reviews may be considered for promotional opportunities.

Cons:
1. Friends of employees may provide inaccurate or bias feedback due to their relationship with the employee
2. Employees may feel stressed if they are made aware that they are being observed, leading to poorer performance.