U3 AOS2

Question 1

state the 5 motivation strategies (PCISS)

Answer 1

performance related pay
career advancement
investment in training
support strategies
sanction strategies

Question 2

define performance related pay

Answer 2

the monetary compensation provided to employees relative to how their performance is assessed according to set standards

a means of motivating employees

employees who achieve the set standards/reach above the standards = motivated to work hard at their job and perform well in order to receive the financial incentive

Question 3

state the ways in which a business may provide performance related pay

Answer 3

pay increase
bonus
commission
share plan
profit sharing
gainsharing

Question 4

define
1) pay increase
2) bonus
3) commission

Answer 4

pay increase
any employee who works hard, or makes a significant contribution to the achievement of business objectives may be offered a pay rise
- expressed as an increase in the hourly wage or yearly salary

bonus
a one-off payment given to a particular employee or group of employees as a reward for meeting particular targets, or some other special effort
- amount given depends on the contribution to the business as perceived by the employer

commission
an amount paid for accomplishing a sale
usually a fixed percentage of the sale price, and paid to the salesperson who accomplished the sale of the product

Question 5

define
4) share plan
5) profit sharing
6) gainsharing

Answer 5

share plan
a registered company can offer shares in the ownership of the business to its employees
if the business is successful, the profit is paid as a dividend to its shareholders - employees will gain additional income from contributing to increased profits

profit sharing
a business may offer a percentage of its profits to employees as an incentive to work hard and raise the level of those profits
usually the employees will be offered a fixed percentage of the profits, so the amount will vary from year to year

gainsharing
a method of rewarding employees for making suggestions to improve productivity in a business, or reduce production costs
- the savings achieved from these improvements are distributed to the employees

Question 6

explain short term employee motivation in relation to performance related pay

(pay increase, bonus and commission)

Answer 6

financial benefits such as pay increase, bonus and commission can influence short term employee motivation
- an immediate, tangible reward for employees’ effort and commitment to the business

Question 7

explain long term employee motivation in relation to performance related pay

(financial benefits continued, share plan, profit sharing and gainsharing)

Answer 7

when the financial benefits become an ongoing strategy
- provides longer term employee motivation
- employees recognises that they will be regularly rewarded for their efforts

share plan, profit sharing and gainsharing tend to provide longer term motivation
these rewards may take a number of years to be achieved (not an immediate, tangible reward)
- shares rise and fall in value in short term, generally trend upwards in value in long term
- profits are not guaranteed, so requires employees to take a longer term view of the success of the business
- productivity improvements from employee suggestions may take time, gainsharing more likely to have an effect on long term employee motivation

Question 8

state advantages and disadvantages of performance related pay

Answer 8

advantages
- provides financial reward for improved performance
- improve productivity levels, levels of engagement and commitment to the business
- rewards are generally predictable and easily calculated

disadvantages
- other employees doing similar work may expect similar rewards, even if performance is not as good (leads to jealousies, conflicts and lower morale)
- a business may not be able to afford performance related pay
- rewards that are not maintained or increased may lead to employee dissatisfaction
- high staff turnover as base pay is too low and not earning enough
- not all employees will be motivated by pay

Question 9

define career advancement

Answer 9

the assignment of more responsibilities/authorities to employees or the promotion of employees to positions that bring rewards such as increased salary, increased responsibilities and fringe benefits
- occur within a workplace or moving to a new workplace
- important for employers who wish to retain valued employees

Question 10

explain short term employee motivation in relation to career advancement

Answer 10

a pay rise and greater job security satisfies low order needs on maslow’s hierarchy

Question 11

explain long term employee motivation in relation to career advancement

Answer 11

maslow’s hierarchy
some of the high order needs on maslow’s hierarchy are satisfied
- social needs (opportunity to be involved in decision-making in a leadership position)
- esteem needs (gaining responsibility through promotion)
- self actualisation needs (providing creative and interesting work)

four drives
some of the four drives are met
(drive to acquire, drive to bond and drive to learn)
short term
- satisfying these drives provides employees with a level of motivation to do their job well each day
long term
- encouraging the employee to remain with the organisation, and not seek opportunities elsewhere

Question 12

state the advantages and disadvantages of career advancement

Answer 12

advantages
- retains valued employees
- rewards past performance and provides the opportunity to increase contribution of employees to the business in the future
- promoted employee feels more committed, productive and engaged as they are able to contribute to the business more
- satisfies employees who desire a sense of achievement or extra responsibility

disadvantages
- promotion positions cannot just be created - must serve a purpose for the business
- employees competing for a limited number of promotion positions can lead to conflict
- promotion of an employee could cause resentment among other employees, who may feel they deserve the position more
- employees may be promoted beyond their capacity

Question 13

define investment in training

Answer 13

the direction of finances, or resources such as time, into the teaching of skills to employees
- a skilled workforce can improve productivity and achieve business objectives

Question 14

explain short term employee motivation in relation to investment in training

Answer 14

additional training in the short term to give them access to more highly skilled jobs that pay more

Question 15

explain long term employee motivation in relation to investment in training

Answer 15

maslow’s hierarchy
- esteem needs (successful completion of additional training supports provides the employee with a sense of accomplishment)
- self actualisation needs (the personal growth that comes from gaining new skills)

goal setting
skill development goals can be established so employees can improve on their own abilities and contribute to the business in some way
completing a particular training course is a clear and unambiguous goal
- provides a suitable challenge
- requires employee commitment
- provides opportunities for positive feedback
- can be set at an appropriate level of task complexity

four drives
- drive to acquire (a sense of achievement through the acquisition of new skills)
- drive to bond (opportunity to bond and belong, demonstrating a higher level of skills to contribute to business objectives)
- drive to learn (the learning and improved comprehension that comes from training)

Question 16

state the advantages and disadvantages of investment in training

Answer 16

advantages
- indicates to employees that the business values their contribution, and that the business will support them in advancing their careers
- benefits the business by improving the skills of employees so that they feel more confident and perform more productively
- improving skills can satisfy higher level needs in Maslow’s hierarchy, as well as providing goals for goal-setting theory, and satisfying some of the four drives
- may improve employee retention as staff loyalty and motivation are improved

disadvantages
- unless there are sufficient jobs within the business requiring higher level skills, training may be wasted
- a business may be unable to afford the costs of training
- the business may pay the cost of training only to have the employee leave for a position in another business
- if a business has poor systems, facilities or equipment, or employees are performing the wrong tasks or in the wrong job, training will not motivate them

Question 17

define support strategies

Answer 17

the assistance and services provided by the business that helps employees cope with difficulties that may impede their work performance
- counselling and mentoring

employees want to:
- feel that the employer values their contribution to the workplace
- be treated fairly and with sympathy towards their personal needs

Question 18

explain short term employee motivation in relation to support strategies

Answer 18

providing support and encouragement for employees can motivate them to do better
- should apply when an employee has done a particularly good job, or achieved a pre-arranged goal or target
- support is relevant when the employee has made a mistake, inexperienced or relatively new

Question 19

explain long term employee motivation in relation to support strategies

Answer 19

a supportive workplace can have a positive effect on the employee’s long term motivation
- encourages a sense of loyalty
- willingness to remain at that work environment

Question 20

state the advantages and disadvantages of support strategies

Answer 20

advantages
- many forms of support, such as encouragement, can be provided with little to no cost
- services such as counselling and mentoring should help employees to develop meaningful professional relationships
- positively influence employee attitudes and help them to improve in confidence, improving motivation

disadvantages
- may be difficult to find reasons to support or encourage some employees
- employees may become too dependent on the support service provided or on the person offering the counselling or mentoring
- requires a business to have a positive corporate culture

Question 21

define sanction strategies

Answer 21

a form of penalty or discipline imposed on an employee for poor performance

necessary when the employee does the wrong thing
- deliberate, reckless, harmful to other staff or customers

ranges from:
- a verbal warning
- re-assignment of duties
- demotion
- a reduction in salary
- termination

Question 22

explain employee motivation in relation to sanction strategies

Answer 22

short term
- generally only influence lower order needs such as physiological, or safety and security needs
- influences the defence drive as identified by four drives
- a desire to avoid unpleasant consequences has very limited value
impact on short term motivation
does not encourage the employee to make a long-term commitment to the business

Question 23

state the advantages and disadvantages of sanction strategies

Answer 23

advantages
- sanctions for poor behaviour in the workplace can motivate some workers to improve their work performance
- may quickly stop inappropriate behaviour of some employees
- creates a sense of accountability around expectations

disadvantages
- reduce employee sense of belonging (has a negative impact on motivation, culture around fear and mistrust)
- may cause resentment in employees (result in conflict between management and staff)
- tends to act as only a short-term motivator (negative environment over the long term)

Question 24

define training

Answer 24

the process of teaching staff how to do their job more efficiently and effectively by boosting their knowledge and skills

new employees need training
- depending on their level of experience, education and expertise
existing employees need training
- continually upgrade their skills

employees receiving such training can be developed to take on leadership roles within the business
many employees expect their business to provide them with opportunities to grow and learn and ultimately improve their employability

Question 25

state the benefits of training for employees and the business

Answer 25

employees - opportunity for promotion and self-improvement - improved job satisfaction through better job performance - a challenge (the chance to learn new things) - adaptability (greater ability to adapt to and cope with changes) the business - higher productivity through better job performance and more efficient use of human resources - goals and objectives more effectively met - reduced costs due to less labour turnover and absenteeism, and fewer errors and accidents - a more capable, ‘mobile’ workforce

Question 26

state the two types of training

Answer 26

on the job training off the job training

Question 27

define on the job training

Answer 27

when employees learn a specific set of skills to perform particular tasks within the workplace

Question 28

description of on the job training

Answer 28

occurs within the workplace - using the workplace's machinery, equipment and documents training may be provided by an experienced co worker, leader or manager with particular or specific expertise - ensure that the culture and strategies of the business are passed on to employees sometimes external providers are brought in to the business to provide training: - new equipment is being introduced (the supplier of the equipment runs training sessions for employees who will be using the equipment) - when the business makes use of a new software

Question 29

state the advantages and disadvantages of on the job training

Answer 29

advantages - most cost-effective alternative, as no travel expenses or other costs are incurred - employees are often actually working while training, so are more productive - trainees use the actual equipment that is required to do the job - employees are in a familiar environment, with colleagues they are used to working with - immediate feedback from more experienced colleagues is available disadvantages - the quality of the trainer may vary (not everyone has the ability to teach others) - bad habits of older staff may be passed on to younger employees - the learning environment may be noisy, with distractions from other work activities - if real tools and equipment are used, it may disrupt production - the trainer may have to leave their own duties to carry out the training

Question 30

define off the job training

Answer 30

when employees learn skills in a location away from the workplace

Question 31

description of off the job training

Answer 31

sending individuals or groups of employees to a particular specialised training institution (university or tafe) - may be a specialist provider, with particular knowledge relevant to an industry, type of equipment or product employees can gain a recognised qualification - assists them in performing more efficiently and effectively at work

Question 32

state the advantages and disadvantages of off the job training

Answer 32

advantages - availability of a wider range of skills and qualifications than those in the workplace - outside experts and specialists can provide broader experiences - more structured and organised, with clear assessment processes - can provide a formally recognised qualification for employees - can be more intense without workplace distractions for both trainer and trainee disadvantages - may be too theoretical without access to workplace tools or equipment - more expensive, with fees charged, travel costs, etc - lost working time while the employee is absent from the workplace - employees with an externally recognised qualification may be tempted to leave to find a better job - may not relate directly to the exact skills required in the workplace

Question 33

define development

Answer 33

the process of preparing employees to take on more responsibilities in the future, acquiring better knowledge and skills and gaining more experience

Question 34

state and describe the programs aimed at training effective managers

Answer 34

job rotation the employee experiences many different aspects of a business - a manager may move from one section of the business to another - applying their management skills to different situations mentoring acts a bit like a coach, supporting the employee as they learn - the employee is able to gain from the experience and skills of another person in the business formal business training may be done through programs such as the Masters of Business Administration (MBA)

Question 35

define performance management

Answer 35

a focus on improving both business and individual objectives by relating business performance objectives to individual performance objectives employees performing to expectations should: - enable the business to achieve objectives - personally be promoted or gain experience

Question 36

state the performance management strategies (MAEE)

Answer 36

management by objectives appraisal employee self evaluation employee observation

Question 37

define management by objectives

Answer 37

a process by which management and employees agree on a set of goals for each employee, with these goals contributing to the objectives of the business - measuring progress towards the achievement of these goals - performance appraisal when goals have been achieved

Question 38

list the management by objectives process (BIRPP)

Answer 38

business objectives are clearly defined individual employee goals are negotiated regular monitoring of process performance feedback performance appraisal on achievement of goals

Question 39

state the advantages and disadvantages of management by objectives

Answer 39

advantages - employees who are involved in setting goals and choosing a course of action to be followed to achieve those goals, are more likely to work productively and fulfil their responsibilities - both manager and employee are likely to know what is expected of them, reducing ambiguity and confusion in relation to roles - can highlight the area/s where an employee has training needs, which can lead to career development - can improve communication and result in employees being more aware of a business’s objectives disadvantages - can be time consuming - not always useful for all types of employees - staff who meet objectives may expect pay increase or promotion, which can be expensive for the business - failure to meet objectives can be demoralising for some employees, resulting in a lack of motivation

Question 40

define appraisal

Answer 40

the formal assessment of how efficiently and effectively an employee is performing their role in the business - occurs at frequent intervals, such as every 12 months, every six months or every quarter - can be formal or informal

Question 41

state and describe the common methods of appraisal and outcomes

Answer 41

essay method a manager keeps a journal on each employee being appraisal - notes may be restricted to specific aspects of job performance (customer service, sales, cash register use etc) critical incident method similar to essay method, except that the manager records only exceptionally good or bad aspects of work performance comparison method each employee is ranked according to a list of predetermined performance criteria - e.g. a scale from 1-5 may be used to assess knowledge, speed, accuracy, communication, interpersonal skills, oral and written skills, personal presentation and administration techniques the results should be discussed with the employee as soon as possible the manager should: - explain both the positive and the negative aspects of an employee’s performance - encourage the employee to continue with his or her positive behaviour - let the employee know what to do to be recognised as a more productive employee in the future - identify training needs for the employee so that he or she can improve in areas that may be lacking

Question 42

state the advantages and disadvantages of appraisal

Answer 42

advantages - facilitates communication and allows positive relationships to develop between management and employees - feedback can help employees improve their performance - information from an appraisal can assist managers when making decisions about pay increases, promotions and/or dismissals disadvantages - can be time consuming, particularly if the cycle becomes shorter (such as monthly or weekly) - can be stressful for both managers and employees - staff who meet performance standards may expect a pay rise or promotion (this can be expensive for a business)

Question 43

define employee self evaluation

Answer 43

a process whereby employees carry out self assessment, based on a set of agreed criteria assesses: - contribution to the business - their own strengths and weaknesses - how they can improve their performance

Question 44

state the advantages and disadvantages of employee self evaluation

Answer 44

advantages - allows employees to be actively involved in the process of performance management and assists them in understanding their role in the business - allows employees to assess their own contribution to the business, their strengths and weaknesses, and how they can improve their performance - provides an opportunity for the business to gain an insight into how employees perceive their performance, as well as understand their strengths and weaknesses - highlights the need for training and allows employees to request training opportunities (improve work performance and productivity) disadvantages - employees can overstate their own performance when completing a self-evaluation, or may complete parts of the process dishonestly - management may need to take some responsibility for monitoring performance, documenting any weaknesses or strengths, and making efforts to correct poor performance - some employees may feel ill-equipped to undertake a self-assessment - training will increase expenses for the business

Question 45

define employee observation

Answer 45

a strategy where a variety of options on the performance of employees is sought with the aim of arriving at a more comprehensive picture of past and current performance

Question 46

explain 360 feedback

Answer 46

used to evaluate the performance of managers and supervisors, but, depending on the corporate culture of a business, could be used with all employees feedback can be sought from themself, superiors, subordinates, colleagues, customers and suppliers

Question 47

state the advantages and disadvantages of employee observation

Answer 47

advantages - allows a manager to gain a broad range of observations on an employee from a variety of different sources (provide a comprehensive picture of employee performance) - useful in identifying strengths and weaknesses, and evaluating skills such as leadership, teamwork and interpersonal abilities - employees observing strengths of colleagues may imitate their behaviour - employees receiving feedback from other staff may be more likely to respond to the suggestions, if they value opinions of their peers disadvantages - staff may feel stressed when they know that they are being observed - not always valuable in assessing technical skills, or the achievement of objectives, as these may not always be fully understood by every participant in the process - employee observation will need to be applied in businesses with a high degree of trust (damaging if any one of the participants has a personal vendetta against the employee) - staff who receive positive feedback may expect a pay rise or promotion (this can be expensive for a business)