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Flashcards in AOS 2A Deck (58):

what are business objectives

The stated, measurable targets of what a business wants to achieve
All business objectives must consider stakeholders in the business and how the objective will effect/influence them


The importance of employees

Are a key stakeholder in achieving business objectives
They play a key role in success
They are essential in the production process, manufacturing a product or providing a service


Human resource management

The effective management of the formal relationship between employers and employees
Is the person/people that are responsible for maintaining the relationship between employees and the people
They are also responsible for making sure the business gets the best out of its employers and employees have the right skills to carry out their roles


4 key roles of HR manager

Recruitment and selection
Occupational health and safety guidelines (OH&S)
Performance management (managing people/ are they doing their jobs)
Evaluation policies (staff reviews/performance appraisals)


What a HRM can't do

They can't tell other departments about what work needs to be done
They have the authority to advise NOT to direct other line managers


Employee engagement

The commitment employees feel towards a business based on identifying the values, visions, objectives and the way the business operates
When an employee knows these they can feel connected, know that their opinion is important and they feel trusted and respected


3 Theories

Maslow's hierarchy of Needs
Locke and Latham - goal setting theory
Four drives theory - Lawrence and Nohria


What is motivation?

It’s what drives a person to do things a certain way, or to achieve a certain goal


Maslow's Hierarchy of Needs

The hierarchy of needs is a sequence of human needs in order of importance and you can’t move up between needs unless the basic need has been satisfied
Maslow's theory is important in a business because it suggests businesses have to create workplaces that attempt to satisfy all the needs of the employee - if they don’t the employe will become disillusioned and chose to leave or be unmotivated


Maslows - Physiological needs

food, water, rest, shelter
providing a job, fair wages


Maslows - Saftey needs

security, safety
job security, business is following oh&s policies


Maslows - Belongingness

intimate relationships, friends
being part of a team, friendly work associates


Maslows - Esteem needs

prestige and feeling of accomplishment
job title, job promotion and job recognition


Maslows - Self actualisation

achieving ones potential including creative activities
challenging work allowing for creativity, opportunity for personal growth


Locke and Latham's - Goal setting theory

Is based on the notion that employees are more likely to be motivated if they are able to strive for specific goals and can be rewarded for achieving these goals
Feedback of employees is vital to this model


Locke and Latham's 5 goal setting principles

Task complexity


Locke and Lathams - Task complexity

understanding the task at hand and how difficult or easy is the task for employees to achieve


Locke and Lathams - Clarity

how clear is the goal, do the employees know what to do to achieve the task


Locke and Lathams - Challenge

what level of challenge is there, which is the challenge in the goal and is it achievable


Locke and Lathams - Commitment

how committed are the employees in achieving the goal


Locke and Lathams - Feedback

Continuous, are we moving towards achieving the goal (reviews/performance)


Benefits of goal setting theory

Companies ensure that all employees have closely aligned goals, have a high level of financial success
Employees become energised and empowered
Improvement in team cohesion and collaboration


Lawrence and Nohria - Four drives Theory

This theory is based on an understanding of human psychology and the strength of this differs between individuals over time
If one dominates it can affect personal and business outcomes


The four drives

Drive to acquire
Drive to bond
Drive to comprehend/learn
Drive to defend


Lawrence and Nohira - Drive to aquire

The drive to “have things”
Status, promotion power
clothing, shelter, water, food


Lawrence and Nohira - Drive to bond

Connection with peers
Build relationships
To be apart of something
developing a team environment


Lawrence and Nohira - Drive to learn/comprehend

Peoples need to understand whats going on around them
Create jobs and learning opportunity for employees


Lawrence and Nohira - Drive to defend

Motivate by defending instinct to protect Creates transparent, fair strategies so employees know where they stand


Hierarchy of Needs (Maslow) and Goal Setting Theory (Locke and Latham) similarities

- Both have 5 key components
- GST could lead to MH’s level of self esteem being achieved
- Both set challenging goals - particularly in reference to higher order needs (esteem and self actualisation)


Hierarchy of Needs (Maslow) and Goal Setting Theory (Locke and Latham) differences

- GST is about achieving specific goals, but MH is about satisfying needs of individuals
- GST has a time frame
- MH is on going


Hierarchy of Needs (Maslow) and Four Drives Theory (Lawrence and Nohira) similarities

- Both relate to satisfaction
- Both originally written to describe human behavior - adapted to organisations
- MH’s belonging relates to 4D’s drive to bond


Hierarchy of Needs (Maslow) and Four Drives Theory (Lawrence and Nohira) differences

- MH must progress each level individually, however in 4D it is possible to work towards more than one drive at a time
- MH is sequential, 4D is not


Goal Setting Theory (Locke and Latham) and Four Drives Theory (Lawrence and Nohira) similarities

- Goal setting is linked to the drive to acquire
- The drive to learn and comprehend is similar to obtaining feedback


Goal Setting Theory (Locke and Latham) and Four Drives Theory (Lawrence and Nohira)

- GST is to set goals
- 4D is to satisfy the drives


Motivational strategies

We require different motivation strategies for different times for different people
Not a one size fits all
Business can use both financial and non financial strategies to motivate employees


Motivational strategies (4)

Performance related pay (financial)
Career advancement
Investment in training


Performance related pay

Is a financial reward to employees whose work is considered to have reached a required standard or is even above standard.


Performance related pay - increase

When an employee starts a job their rate of pay is either negotiable in an employment contract or set by an award
After a period of time an employer may offer pay rise to people who work hard or add value to the business


Performance related pay - Bonuses

One off payment to an employee or group of employees for achieving a particular target or special effort


Performance related pay - Commission

In an amount paid for accomplishing a sale. It’s generally a fixed percentage of the price.


Performance related pay - Share plans

A registered company (both public and private) can offer shares of its business to its staff


Performance related pay - Profit sharing

Instead of giving employees shares a company can offer a percentage of profits to its employees, will increase the overall goal of increasing profit so everyone can share it.


Performance related pay - Gainsharing

Is the method of rewarding employees for making suggestions that improve productivity in the business. The savings that are achieved are given back to the employees


Advantages of financial motivational strategies

Provides a direct financial reward to an employee
Tangible way of recognising achievement
Encourages goal setting to not be too hard
Can improve productivity levels
Rewards best performance


Disadvantages of financial motivation strategies

Reduces equality in employees
Generates a ‘performer’ culture
Acts to demotivate if goals sets are too challenging
Danger of sacrificing safety and quality in order to increase quantity
Short term focus - quantifiable goals
Motivate people if achievable
May be difficult to measure productivity in some jobs eg teachers


Career advancement

Promoting people to more senior positions that gives them more motivation/responsibility and authority - this level of promotion can motivate some employees


The ways career advancement can motivate people is by:

The desire to increase remuneration (pay increase)
More challenging job experience
Esteem ambition and status
Development of a wider range of skills via job enlargement, job enrichment, job rotation


Career advancement - Job enlargement

This involves making a job bigger or more challenging by combining various operations at a similar level (horizontal)
Accountant = “tax” making them incharge of more things such as payroll, money, giving them a new job title


Career advancement - Job enrichment

This involves vertically expanding the job by increasing its depth of content as well as the degree of control the job holder has over their work.


Career advancement - Job retention

Workers move between jobs to increase the variety of work and also to create a more flexible workforce


Advantages of career advancement

Acts as a reward for past performance
Helps retain good employee
Retains intellectual property and knowledge


Disadvantages of career advancement

If overlooked for a promotion demonstrated
Employees may be promoted over their capable level
Feeling of unrest if promotion was not warranted or not carried out in a fair and equitable manner


Investment in training

Employees gaining skills and job knowledge through training and job experience. It’s important to train employees in the skills they need to perform their job tasks properly.
Training provides ideal opportunities for employees to feel that they are contributing to the businesses outcome.
Creating an environment that encourages sharing knowledge and learning, training positively assists in team building and the overall health of the business


Advantages of investment in training

Shows you value your employees
Demonstrates that you want to advance your employees career
Creates a sense of loyalty
Creates a positive corporate culture


Disadvantages of investment in training

Expensive investment
Highlight where you have problems


Support and sanction (reward and punishment)

An important motivating factor is the feeling that they are supported, encouraged, and acknowledged for their work performance and have job security

Sanctions can be specified as a condition in contracts of employment relating to work performance.
Often won't take their job role seriously until they are threatened with some form of sanction for their unacceptable or poor performance
Sanctions can take the form of a Repremant, counselling, dismissal (no job)


Advantages of support and sanction

Employees who feel supported by their manager and the business are likely to work more diligently
Providing support can act as a long term motivatore
Sanctions can act as a motivator
Support does not cost the business money


Disadvantages of support and sanction

Support needs a positive corporate culture
Support relies on manger exercising good communication skills
Imposing sanctions acts only as a potential short term motivator