Functions and evolution of human resource management esonéwotesthowsandples. chinese proverb ment objective x fatiouee Tainan source panning woo poring) ——_ 208 [abou tumover [#02 internal and extemal clos tht lnfuence human resource planning 203 (buch demographic change, change in labour mobil, new ‘communication technologies) ‘Common stepsin the process of rerultment TheFolowing 9pes of waning «+ onthejob (nduding induction and menting 1 afithelob 2 cogntive behaloual Thefolloning types oF appraisal: + fomative 1 summative 1 360-degre feedback 1 selFapprasl “Gammon steps inthe processes of lamisil and redundancy How work pattems, practices and preferences change and how they affect the employer and employees (such a5 teleworsing, fit Inigation for wort) ‘Ousourcng ofshoring andre shoring ashuman resource srotegies How innowatan, ethical considerations and cultural diferences may Influence human rexoure practices and strategies nan organization 201 Human resource planning 180,204 aman resource management (HRM) is the + Tatiningand developmen of atl management function of using and developing people within a busines to meet its organizational + Performance management and staff appraisals jective. The etal interrlated rales, such as: 4+ Reviewing pay snd remuneration packages + Workforce planning (also Known as human resource planning) 4+ Disciplinary and grievance procadures + The recruitment, selection and induction of new amen enue lrg oc planing. At employees ‘+ Looking te the welfare (wellbeing employes. 109CORE Ere aE Wes ice Ul CS People are important an organization as they ad yale its ‘output Thscan be achleved by increasing pdtv (output per worker) improving qvality, coming up with new ideas land providing better customer service to enhance the overall purchasing experience of customers. Consider, for example, the difrences in your eaperonce as ax 1B student with and without a classroom eachet, Many enreprenurs argue that people ae firms mos valuable eure Employingtherighpooplakepsburinesestoacheve theiraims and objective. T do this afr needsto use human resource planning (or workforce planning) ~ the management proces of anticipating and meeting an organization current an fare staffing needs Workforce planning can be short term of long er, although ts an ongoing proces for most business: «+ Short-term worloreplanalog eas with the essing nd ‘upcoming demands of an organization, eg, employing ‘workersto cove forsafwho ae about resign feline or 50 an maternity leave 4+ Longerm workfores planing fooks at the human resource needs ofthe business in the foreszablefoture, ‘2g, the Walt Disney Company recruited and trained employes up to two years before Hong Kong Disneyland was opened. | Wookfonce planning cas be achieved by looking at Historical date and trends such asthe change inthe se ‘ofthe workforce over the past few years othe popularity fof parttime and flrible working hous. However, past data is ot nicasve of what actually happens inthe future 1+ Sales and income levels ~ higher levels of come and spending in the economy will ead to more jobs being exsted. + Labour turnover rtes- measure the nub of employees ‘who ete m as a percentage ofits workforce, per yea. “Thebigher the staff wenover rate, the more workers rm will sed to erat +The fleibilty and workdoad of stall ~ a highly fexble and sled workforce may be able to cope if there Isa scien shortage of staf. Ina Giza where peopl are over secialiusd and where workload is mounting, t might be ecesary © emplay more afl. 10 1+ Demographic changes — government data regarding changes in the demographics ofthe workforce. such 2 the anges in the number of feral workers in the economy forthe numberof gradu, can help manages to forecast ‘hei human esouree nee Worle planing consumes a lot of time and money. Zor example, «recent report inthe South Ghina Morning Pose feveded tha: poor receultment practices in Hong Kong cost Tnnineses HKS39 Bilin (USS5 bilion) per year The same report showed that manager in Hong Koag spent 2 th of thei ine correcting the mistakes made by their sal Despite aitempls 10 achieve effete workforce planing. extetnal inences fect the accuracy of the forccass. This is Because ‘business are constantly exposed to the forces of change, sich ssaneconomic recession whch reduces the demand forhumaa. fxamtip! Se eee iieertiteee ete sean Ce ee ee ete Co ee Mae ais pee eine tr on oa Labour turnover og.201 Labour turnover measures the percentage oF the workdree that eaves the organization a given time period, usually one yeu. For example, twelve teachers in an TB World School eft daring the aeademic year when 96 teachers were employes, te labour turnover rat woud be 12.5%. Thus, itis caleulied using the formula foreach time prio): terra 302 umber of staf oaviog 99 \sbourteover = “Foil numberof eatneers SSRE GR age tT 2.1 Functions and evolution of human resource management ene eenae: is CLAMPS as the six acceptable reasons: Challenge, See rete mae ea) security “low lous turpover rte sugges thet managers howe Aerated the right people for the job and thatthe existing Marloes ae content and motivated at work. By eval fh Ibour turnover rate suggests that staff are Incompetant track job sntisiction, Te might also be caused by betor jb Gpyoranies and remuneration packages cffeed by other ‘The opposite of labour turnover i sta retention. ‘The benefit of high staff retention are the opposite ofthe drawbacks of high sal turnover. For example, consider if your IB Business “Management teicher left the school atthe end of our fist year In the 18 Diploma Programme. Por students there i lack of ontiuly and speiod of me to adjust othe new teacher in ‘your second (final) year ofthe IBDP. For the school, there are the costs of recruitment to replace the teacher. The sees recruit may nee time o adjust othe school culture and have ‘period of traning o learn about the polices and processsat the school sme wt high staf rtemtion tend to be those that regulasy ‘fer training for bth personal and profesional development. This helps to boost morale as taf se thir employer valuing their contibtions and development Employers also benef from the resting employe loyalty plop. A high laboar turnore at wl clesly add tote costs of recruiting and traning new sta in addition to be los pretvity when experienced staff lave. For example & epurtby Pw: (formally PricewaterhoussCoopert) in late 2010 sma tat the anna coat of af tarovero UK busneses isaround £42 billion (867 bllon). CBS News reported in 213, thatthe cost ofeplacng someone earning ss than 5000 per ar amounts to around 20% ofthe perso annual slay. feo) 13 [Question 2.1.1 Trump Organization's Golf Links “Wien Arnencan tycoon Donald Trump announced a £1 biion |GtBbilion) golf development at Balmedie, near Ardcon, "Scotland, the local community was understandably excited about “the prospects ofthe 6000 jobs that would be created, Trump’ [Plans included two championship golf courses, @ five-star = | tel and hundreds of holiday homes. Trump, who popularised «| the phrase “Youre fret” on realty television programme The “Aprentice, sid that labour tumover is not a problem atthe Trump Organization. | 2) Define the meaning of labour turnover. marks} (0) Explain tivo reasons why a business suchastheTtunp Organization mightneed tohirenew workers. (4 marks) (Comment on the importance of understanding labcur turovern the Trump Organization or another business you have studied, Umar} m(ao) 13 Pee niece aus Internal and external factors that influence human resource planning nea end enter co tha influence aman emu PlmngGuchasernogranccnge, hangeinebourmeSiy, ew conuneden enol. AC 3180,2018 tetera! factors (sch a labour mobility) and external factors (Gach as new commusictions techaologies) both iflvence Fnoman resource planing. Demographic change “The supply of human cesurees in a country js afeted by demographic changes in the workforce. Demography & the atstical study of population characterises and tends. ‘usineses need to understand these changes so that they ca respond appropriately Demographic changes canbe caused by hangesin varus factors 4+ The net birth rate ~ the diference betnee the stumber of births and deaths per period of time. Countries with ‘high nt birth ete wil nthe Hong term, have 2 larger ‘supply of human resources «+ ‘Thenet migration rate-measuresthe difference between the mamber of people entering a country (immigrants) land the number of people leaving (emigrants). I the net gation igre postive the supply of human resources veil increase. ‘the retirement age ~ the legal age when people can stop work and chim money from thee pensions 1 the festement age i raised, it automaticly increases the ‘number of people inthe Ibu force. te. those of lege teorking age. Many Western economles, faced with an Increasing number of eldecly people, have considered Increasing the seiement age. For example, in 2011 France controversially raised its retirement age from 60 to 62 France, end andthe UK have plans to gradsly increase thei etirement get 68 + Wosten entering of returning tothe workforce ~ this Doosts the supply of human resources In modern societiss, there has been an increase in the number of ‘women working part-time. Ths gives businesses and staff estes fexily in determining working hous. 1A distinct demographic change In economically developed societies isncreased longevity. people, on average areliving M2 Jonge: Coupled witha declining birth ate in these countries, amagelng population (whes the average age ofthe porsation increases) hase fllowing ets: + Drereased dependent population The dependent ‘population consists of people who are blow the legal ‘working ge those ot of work and the retired population, They ate ‘supported’ by the working population of axpayers With an ageing population less people wll be ‘working in proportion to those who ave retired which lads further presute on taxpayers to contribute towards fpveroment expense Reduced labour mabitiy Young people tend to be more ‘geographically and occupationally mobile, They have fewer reservations about moving to difeent places and jobs Induding those overseas. Labour immobility reduces the flexibility and fteaational competienes ‘of acountrys workforce. Changes in consumption pater Diflerent age groups have diferent spending patterns Children, for example may spend much of thee money (or that oftheir patents!) fo toys au schooling, Retied people ae likly to spend fs larger proportion of thir money on holidays and Dealthcae related goods and services. Hence, an ageing population can create opportniis fr firms tote ft more mature age prouns. + Change in employment patterns With more pecte ping to univers, the average age of people entering the workforce has als risen. Coupled with an aging population this means ha firms are more icy to ean all beyond thei retirement age du to labour supp Shortages, Some fms might even consider relocating overseas if domestic our supply is insuicent o a suitable Changes in labour mobility “The mobility of labour i the extent to which abou can me torent actions (sown as geographical mobility) and the fexblty in changing to diferent obs (znown as occupation ‘mobiliy). The more mobile workers are (both geographic fd occupationally) the higher the supply of laboar end be. Labour can be geographically mobile, especially wits # country, bt there ae imation: + Friends and family tes tend tobe the key constraint most peoples geographical mobili.ty andinga new scoe! forthe cldren can be daunting Soc many peo tof housing and other expenses incites can deter le from zlocatng in these areas, thas reducing the eee ‘ Warqunge and cultural diferences tend to limit Anjeznaional mobili _joeimtations on occupational mobility include + Occupational mobility tends to be greater with acquired astbutes ofa worker (such as education, qualifications, sll experience and traning). 1+ Younger people tend to be more occupationally mabe as they often change career. Mature workers may thnk they ae too ‘ld to retrain or may have more financial ‘commitments so are less willing take risks by changing + Some workers are immobile Because they ere highly specialise in their area of expert, These people fnd It dificult (0 seek employment opportunities in other industries + employers discriminate aguest peopled age, gender religion o ace then this wll alo hinder the occupational mobility of workers New communication technologies Advanct in communications technologies, such at emai, ‘ecommerce and video conferencing, can bring both ‘opportunities and thre to man resource planing. For ‘ample, there are more opportniies for people to work rom home, due to agrances in mobile and internet technologies By contest, businesses that are capita intensive might not fouie a many workers. lafrmation and Communications Technologies (ICT) in human resource planning can be used to support current practices (activities) in workforce planning dort change improve) workloce planing procese, 2.1 Functions and evolution of human resource management jon costs (moving expenses) suchas remorigaging, Examples include + Recruitment — Almost all firms use ICT in their reruimest practices, eg the use of company webstes ‘or commercial providers such as Linkedin to advertise jobs the use of online application forms to speed up sommnicaton snd to redace cons and the increased se of video-conferencing fr ob interviews. 1+ Meetings ~ Businescs with branches or facies in Aiereat locations including overseas. can seducothe costs of mectings by using video-conferencng technologies. For smaller businesses, providers such as Skype aso help to-ct their cons communications 1+ Appraisls ~ Collaborative tools such as Google Does ‘an be used by the line manager and appraiees to set targets and review progress. Sch technologies are more ficient than emailing appaisal documents to and rom the diferent parties. + Fletime and teleworking ~ Mobile technologies have ‘enabled many mote people to work away from the ‘ofceoratnome. This can help to cut costs for both the business andthe employees. fective use of eitime and ‘eleworking also helps boos labour produtvi- + Online training courses ~ These courses tend 10 be chesper than of tho jo training courses with aspectalist trainer, TB teachers cn enol for online courses with ‘Triple A Lesring for about £200 (4320); faction of the cost of an IB workshop held overseas in a 5-ar htel ‘venue. Participants can ls woreonin rom the comfort oftheir ofce or st hort Bes. Figure2.1. Tipe A Learning provides online traning ‘courses for 8 teachers COREQuestion 2.1.2 300 million Americans tn October 2006, the population of the USA reached a new inilesteneigureot300milion,makingitthethic-most populated ‘ation on Earth The last milestone of 200 milion people wes ecored in November 1967. The USA isthe ony Indusalised county with significant population growth ~ a net increase of ‘one person every 11 seconds, However, many people question “America ability to sustain is population growth, given thats the largest consumer ofthe planet’ scarce resources, despite ts ‘ageing population. Concerns mounts forecasts show that the ‘population vil each 400 milion by 2050. (a) Define the meaning of ageing population. Section 2 Human resource management mars} (6) Ostine wo constraints and twa opportunities rom a business perspective, provided by the demographic changes Intheusa. Recruitment and selection ‘The recruitment and selection of employees is vital to the running of business. Labour isan esentil factor of production needed forthe provision of any good or service Hiring the right people helps to ensure that business can Junction {sce tobe time consuming and eather expensive, managers sively, At the recruitment and selection process rust ensure the steps the proces of ecruimentareefetve “The recruitment and slecton process (ce Box 2.1.4) sats when ajo becomes avalale within the organization, perhaps due o expansion ofthe business orto replace staff who have decd! to leave the onganiaton, People might eve ab for alleort of reatons, such ato start 2 nest job to go nt ghee education, 1 sped moce tive with thei cidzen or being fir for miscondsct Before 4 business recruits new workers, managers usually carryout job analyl. Tis involves sceutiising the diferent componer3sofajobsuchartherotinetasksand responsiiies ‘ofthe post olde, to determine wht the jb ents. The job analyse haps to create two important documents needed for the recruitment and selection of ta te job deseripton and the person specification ate page 119). na mars} “Managers might also want over + th sil and raining required to do the job + the qualifications and personal qualities needed o ary ‘axe job + the reward needed to recruit and retain the post holder (Once the inl jobanalysshasbeen done, thehuman resources manager will produce a jo advertisement to get as masy suitable people as possible to apply forthe vacant job, Terear tan two document that are prodced before writing ao} sertiemnt: the job deseription snd the person speciation. Both these documents are important in objetvlyasssig ‘he suitability of applicants, "Tey ean also be used to gage traning news and for conducting job appeals Ajo description ss dacamet ta tins the datas 2 pert Job fr aptly 0 whit he ob ele fuer than the yp of pron regu forthe joints the job tile and the rls, dais and responses of Dost holder Good job description ao hee a cet feb in order to expt the sl of employee a job desiion em ii he potential of workers pect {s busines constant experience orgniational change. Spel sateen in job scription tt allows ach ena ian ny ther easnae jb asigoed bythe employePee nde eee Pree Ti a the qualifications, sels, and experiences Fe io thik crcl. Bor some fobs sch a fashion = oe Fe coresonseg ws of wrk the rar feed + Trathfl - The advertisement should not lemggrated or miseding claims about the job, the pay fr he organization, Exaggeraton and dishonesty might strat more applicants, bt s unethical and can cexe _maty2rblems forthe business inthe longterm, + Relevant lonler'o attract people atetion an Job advertisements need to be miceinct in + Accunie - To minimise the number of unsuitable Applicants fora job, the person specication and job description mute preci Positve - An encraying and upbeat jb advertisement helps to attract ppl to apply forthe job Short ~ Given that advertising space ie expensive, only ppropeste and necersry information sboul go in a job sdvertiement, Cor REM ccc pred 1 mens a|ob description and person specication eet ee ee ee ey eee Pe ee cee ‘Question 2.1.3 Fonthill Primary School job advertisement Foot Primary School, Belgium i seeking to hire an Educational Asssant (€22 per hour) to work upto 17 hoursa week Inthe Leaming Support Department. The successful cndidete willbe requted to faciltate specially designed educational ‘esoures and actives working in collaboration with a cassoom teacher and the Head of Department. Applicants ‘should demonstrate patience, Intiatve and preferably have previous experience wotking with young children with =peaiclearing dificles. This postion involves working witha single child ona one-to-one basi Send your completed =pplication form and CV tothe principal, Ms Daniele Franzén Caoudy Closing date: Friday, 18 May {a} Explain why itis important for a business such a Fonthill >imary School o produce welllfined job descriptions. {Examine whether the above would make an effective ob advertisement. Eemavks) (6marks) ns I i IPeer eaten es The application process applicant for job usually apply ving a combination of hee methods + Application form — a standardised form produced by the busines for selecting appropriate applicants fora job Employers can aor questions onthe fem to meet their specific needs Such forms make candidates answer the same questions ina consistent format, allowing employers to compar like -vih-ike + Carrcalum vitae ~a document eutining sn eppliant’s cation, employment history, ills and profesional qualifications. The currcuum vitae (CV), aso known as a résumé, allows employers to see what the candidat as schieved and to jadge whether the experiences mest the reulrements ofthe od, + Cover leter ~ an introductory letter written by the spplicant, sang which postion is being applied for tnd why the applicant should be considered forthe Jo "The cover leter (or letter of application) allows the HR manager to browse through potential applications, without having to fist read all the CVs oF application forms (many of which wl be unsuitable) ‘radtionaly, businesses would) mail application forms 0 prospective applicant. However its more eomman today for candidates to email hei CV or to apply using an online pplication form, which speeds up the recritment processand hast cat coats (printing and malin) fr the busines. ‘The selection process (Once the competed application forms and CV's have been received by the business, the HI manager checks these 9 ‘deny salable candidates for the jb (a process known as shoristing). The shorting proces invalves comparing the appliation form and the CV of a candidate against the job description and person specification. This hlps to identify the ost suitable applicants o init fra jb intrvowe The three ‘main methods used ta slect the best candidate for fob are: Interviews testing and references Interviews Totervews are the most common method of selection. An Interview is a two-way dialogue between the interviewer (representing the employer) andthe interviewee (the candidate applying fora job) t0 lp managers make more informed decision when selecting the bes candidate fora job. wove, to get the most out ofthe interview process all ether 16 CORE prerequisites (sucha job anaes) must have been ceri ot ‘elective. Interviews provide the chance for an employer ty eet wth the applicant face to face, whether in person or vi video-conferencing. The interview will alow the employe ta get 2 eter idea about what the applicants at like, wheter ‘they ae tale forthe ob) being fered and whether they wll into the organization, Iterviews also allow pplicansy {st more formation about the job and the busines to ase ‘whether they would be happy to work a the organization Iitervewsneed tobe wellplannedand conducted professionally For example interviewers mut ongaize an appropriate vesue where there will be no disruptions: sppropeste questions eed to be prepared to avail negative discrimination; the iptlon and person specistion must be ready 3 the interviewing panel and the interviewers Should have studied th candidates CV and references to get to know something about the aplicant before the interview commences, Successful inleriews also require managers to ave good interview sills, Interviews an ake various forme 4+ Video-confrencing interviews wse ICT technology 1 save oe the coss of pecple having to physically mest Video-conferencing interviews are increasingly being ‘sed to recrlt people fom overseas to Hill mide and senloe management poss 4+ Teephone interviews ake place over the telephone. Theo snterviews canbe useful those involved i telesales. + Tacetoface Interviews are usuelly caved out at the Dusiness, allowing the manager to moet and tall wih the applets. These interviews can range from having Just one Interviewer to several people interviewing the candiete atte sme tne (known asa panel interview + Group interviews involv a numberof candidtes beng interviewed simultaneouly, The panc of interviewers can judge how indvidal candidates behave in such & siustion, €g, which candidates are timid, asertve of extroverted, and perhaps identify those that ace natural leaders Research has shown that the mos effective interviews tend to follow a structured approach, with the same core question being asked of each candidate These interviews have sme Alesbility, such as asking Further questions Based on wha! the respondent says in the irterview. However, if the sae Fundameatal question ae asked to all candidates, interview bias can be rece.2.1 Functions and evolution of human resource management rose ofthe Interview process Is 0 find and appoint De pares forthe vacant job, Applicants ean improve Se pes of ces at interview by relectng on common col (ee Box 21). Interviews are conducted by Maes of questions (sce Box 2c) that link tothe Mecripton and the person specication ‘There ae two ones fitersiew oestons | itwiouabted quetins are wed to aes & Cosisach bchriurlpatern and ave, Sach Jon ily art a “aan an exemple of Sieayu. vor"Tlme about.” Simatonsbased querons ac wed 10 ae an ppt jodgmentel sity The intense as hye bypotetal sensi an aks the Interviewee fer rope“ one of you eam members wa cote to wk wha woul you Te prpoe toe tal hing yo rept inca gven sear. Dear erence Den ee a eet eae] ree ee teeny Geer eee Dress appropriately -estimpxesions count and.can ec a Ee eee ere ee Serena fect Be chica «condemning others (such as previous oe ee Coes ee ere ieee etme peer (One drawback of Interviews is that they are very time consuming. Many interviews last between 20 minutes and a hou, with some jobs requiring candidates to ave further Interviews with ther key personnel Another limitation that etc atl abit is ot tested interviews canbe unreliable In selecting the best poicant because candidates can ior hide thetrath Fvenifacandiate performs well durnganintervies, the lack of desired qualities experience or sil needed forthe job may not have boen picked up i the interview Hence, oer forms of selection are also used, such as testing and references Ce RR cua questions Deena What do you know about this organization? oe ae ceed eee eres ‘hat ae your main weaknesses and what have you Poet Dee ee oa ee ee eg Ce ae eee tc CO ee ner ee ee ees er eetCORE ‘management eee eas Testing Although esting time consuming, It meres the chances of hiring the best candidate for aj. This educes costs incurced ‘nthe long run if the wrong applicant is hired. he main types of testing used in cruitment are + Prychometric teste assess + candidatde pesonaity to (gauge the attade of potential recraits ana their level ‘of motion, 1 is important to zecrut people who wil ft into the cultare ofthe organization, so many large fms use psychometie tts especially for more senior postions «Aptitude tests examine the ability and kl of potential templayes. For example, applicants fora secretarial job might be tested on the speed and accuracy of hee ping ln-eay exercises ote her aly to cope unde presure nd thee problem solving kl + Intallgence tests calculate the mental ability of an applicant, such as their skis of mameracy, leraey reasoning and general knowledge + Trade tests ae used to examine a candida sills spect profesion. These are useful when sandands ‘or skills cannot be judged ftom an interview or from a candies application form. For example, voice tests are used when recruiting television newsreaders and radio rosters References References are writen statements about an applicant fom an Independent source, ch ax 2 previous employer. Referees, the people who write references, may be asked 9 conti the steengths and stability of an applicant They serve as «fal safety check to ensure the fnformation given by candidates {in thelr application form, CV and Intrvow are accurate and truth, Employers can then determine the suitability of the spplicat forthe advertised J). The contract of employment (Once a sabe candidate has bee appointed fered the job), the new rca ene bylaw (in most counties to receive either signed contract of employment ora writen statement of the erms and conditions ofthe employment (se Box 2.1.4) ne Induction The final stage of the rserutment pence is to prove Indaction for new seus to help them sete int their new roles This lo applies to internally erate staf, perhaps due to.apromotion or de to restructring ein the organization, The duration and breadth of induction wil be ess for itera recruits as they re already familar withthe policies, practices and culture ofthe organization, Recruitment can be categorized as nternal or external Internal recruitment volves hiring people who aleady work fr the business to fill vacant pos This might happen when « rests organization of human resources (et dates are successfal in aphyng foc proton poss within the em. Internal poss are sual sdvertised on staf notice Doar, in newaleters oF via sta mals brasines res Unie 2.2) a when internal Cre AR MeL UCu Tus Pomciad eer pee eae eee ey Deere ree parties and dstedorPifecive. 1 wsualy cheaper and quicer to recut etn on orgnization as sultabe candidates may be vale Pane tues [Fewer applicants This limits the number of potential apices but external candidates could be af beter qualty butare overooked wm-ime rte people ae already faniar with # dew ofthe busines ad how it operates They ae able Gat and see into the new post quickly. Hence intra can take up ther new role with minimal dowetime ato get fair with the operations of businest than tine actualy spenton geting work one). "Bead wood’ Without external recut, might be aifcat to get new eas ino the busines Fs se out fom havieg| outdated woking practises known as dead wood) asstatthave been therefor too ong. Quite often, managers discover thet tht tat ack she necesary sil and quates to take up an tema promotion, so have fous external recruitment Fak Employing a new worker fom outside te| tation could be risky In that thelr actual abies an Fama eothave bee truly tested inthe rerultmentprocess | feos ecruting interaly might ensue that the ob is Ae witha thy suitable candidate. Time-consuming Redeploying relocating promoting an internal candidate usualy leas to another unfiled vacancy | in the organization Therefore the process could potential be| ore time consuming than external ecultmnt hed Bees sed fom heute Intemalrecutment espe forpromotonal Tan actasa form of motivation, Proving internal peopl [th opportunites for promotion suggests that manages [ie tei employes. Hence, intemal promotion can creat Internal poles Thee could be resentment and confit amongstelow workers who wereunsuccestl fo the neal post Tiscencreatean Uncomfortable working enioneen the people involved. Asa, no internal candidates ae sutabl then the business wl stil have fo ure extemal recat. [employes loyalty and commitmentto the em. oa % “Eseral cecrultment isthe proces of hiring people from se the busines. The various methods of doing this incude: 1+ Newspaper advertising — a common method a thas @ ide audience, However targeting the ight peoplecan be Aificl and the advertising cost re igh + Specilt tade publeations —wsed to beter tng the ‘ght audience, eg, management js nthe supermarket Andstry are advertised in "The Groce and teaching jobe ar published in the Times Edeatonal Supplement + Internet advertising — moze bustnenes are sing the Internet to adverse thelr bs. They may use specialist recruitment websites (auch as Linkedln, SimplyHired, SepStone and Monster or thet own company website 10 advertise vacancies, Internet advertising can have loa reach yo only incre aati lw costs, + Commercial employment agencies these gents advertise and interview soitable aplicans fora job and make recommendations for seletion 10 the hiring Sm. Using agencies costs money (as they change a fe for their servicer) but savesa huge amountaftime forthe employer wae might also prefer to rdlyon the ecrutment expertise ofthe employment agency. + Job cenres — non-profit organizations funded by the gmernment to hp people find employment. Business ‘an advert thelr vacancies at ob centres fre of charge However, job centees tend 10 be wsed for advertising ‘elatvely low pad jobs so might not be suitable for some rsineses, 4+ Headuting ~the poaching of @ person from his oF her current employer. "The person is sought for their ‘experience expertise and Knowledge To entice them to leave thee curcet job the hiring company wl ryt oer contract, including a pay deal thats simply too good to ret + Unter vss ~ budnesses go to specific universes to advertise their fobs. hese jobs tend tobe for junior ‘management posts, Vistng universities means that there ‘sa lange pool of potentially suitable and talented people to choos rom + Bnployeerefra ~ personal recommendations made by current employee who kaows people withthe necessary sand qualtisto fil awacancy.Asisso often the ese {nthe busines world sometimes aly who youknow | tather than what you know tat mater. no feels\ (eo) "new blood” People hired rom outside de organization ca bringin new ideas and ways of thinking. They ean corrbt tothe sharing of best practise an give the business insight how. ial fem might have done things Eset ac cS SOLAS ‘able2.1.b Advantages and disadvantages of external recrultment Greaterdegree ofuneetainty Whentiring extemal ec anager take asks they donot real ow he candidate er thet ably fo do the job effectively Even I they ae el, they might nat Reintothecorsrate culture Wider range of experiences Simialy, ermal recs right be mere qulifed o° more sutable than any ofthe internal candidates, perhaps bacause they have gained th| experiences and sis requred by the business frm thet previous employer. FTime-consuming Sterna recruitment takes longer than internal recruitment Advertsing shortstng interviewing ang checking flerences al tke up valable management tne| ‘Adhering to ant- cognitive in their obs. Examples of personal skis development assertiveness, counseling, time management, sess rns fis sid and foreign language courses Employes, i ching to stend soc courses nustbe able to justly how thelr Gerson development helps to improre their performance in Abewocklace. off te ob “there are fur broad types of taining: onthe job (including ‘aductionand mentoring), ofthejoh cogritiveandbehavioural gee igure 2.1). Figure 21.b Types of taining 2.1.4 Northern Ireland's hotel industry reporton the recruitment situation in Nother elands tel industry twas ound that workers suffered ftom 25 (eaming little much more than the national minimum wage), very limited carer and promotion prospects and traning and professional development. Professor Tom Baum and Frances Devine’ report also showed that most felt that staff raining was a burden rater than a benef, and so shouldbe kept at a minimum, Nevertheless, the report that 2074 saw around 8000 jobs created in the hotel industry, with Dublin enjoying its highest ever loccupancy rate CORE Explain why low wages and few opportunities for promotion might create problems for hoteliers. (4marts) ‘To what extent do you agree withthe view that that training and development is» burden and so should be ‘minimise (n Nocther lands hotel businesses)? Bars) On-tie-job training nthejeb timing refers to training atid out whit at the new employees who are not are ofthe procedures or code oriplace. For example. the treiningcan bedeliveredbyahead of behaviour required fo carry out their duties. t can also ‘department, supervisor or other specialist. Thetraneeslearm help new recruits to integrate into the corporate culture ofthe Som the skied colleague delivering the training atthe place organization (ee Unit 25) Induction training might require a of work. Essentially this type of taining invoies ‘earning new rec Dy doing’ As Confucius sid, “t hear and I forget. Ise and | remember do and {undertand” + Meet key personal, such asthe employed’ ine manager snd membersofthe deparsment. Induction training ia type of on-the-job telaing aed at introducing new employes to the organintion. The purpose + Tus the premises incuding the recruit min areas of f induction training is to help new recralts to setle In work lke, ¢ can help to avoid cotly stakes being made byPee eaten een (coli + Lean about the nev jb role and other selevant dies and specif procure + Look at company polices and practices, eg, rst breaks, heath and safety polly, and fre oremergency evacuation procedures. ‘Mentoring is another type of o2-thejob training involving a parinrhip betwosn two people — the mentor and the mens ‘The mentor is a mote experienced member of af who helps the mentee gain and develop specicakils and knowledge The (Oxford Schoo! of Couching and Mentoring defines mentoring lang a “to support and encourage people to manage thet wearing in order that they may maximise thet potential, leeop their skill improve their performance and become the Peron they wat tobe ‘As part of thet onthe jo training, junior manages igh shadow (observe and lar from} more senor mangers. Foe example, an spring senior teacher might shadow the soho principal who sett asthe mentor in tsining the mente ty prepare for princpalship. Bsenialy, the mentor seis ay guide om the side providing advice and pointing the mente Inthe right diction im terms of career opportunites and development. Mentors ask questions and challenge mente to rele om thal career progreston and to take proestiv responsiblity for their own career development. A use acroaym to remember the role of a mentor is MENTOR. ‘someone who motiates, enevsrages, artes, rains, observe and record the progres ofthe mente. Table 2:1. Advantages and disadvantages of n-thejob taining [Cane relatively cheap a5 the frm uses house speci | fagltaetnewaiing, Trainees may pickup bed working practices Short cuts anda abl from the waar. Reevantas the vaining is trgeted at sues Avec reated | thesis needs. Ineral waies may lock the wos uptodate waning experience and sil Fewer dsuptons to daly operations as te wae ssl at werk’ ather than being rained averseas,forexamole Trainers wil not be able Yo conduct ther owe work whi feeltsting the traning thus on the jab traning can prov to beexoensive Ca help to establish relationships t work as team working | evolved ‘nthe job waning is aten rather piecemeal ond income due toalackaf rescues. Te lcations convenient or workers and Wainer ater than them having to go offi Productivity is ntialy low as workers undergo he process leering new sls ‘Table 2.14 Advantages and disadvantages of induction taining Esblshes clear expectations ond good working habit om thes Planing, delivering ond overseeing an induction programme can bevery time consuming. Helps new reo to undewstand he corporate Gite ofthe orgnivation. Key sa ned tobe trad trom thal other dition stay are nolved in providing induction By setting in more que, new rectus can eontbute tothe oranzation more prompt. Information oveoad fs counter productive for pew sal who veto abeora new information Masle i boosted 2s new staf fel welcome and wre more confident and competent inthe jobs. Fhe length of induction programmes can be vety fons, especially inane and csparate fs ced“ve Advantages and dlsedvantege of mentoring ta sy cvs asthe mentor shares personal experiences, ay knowledge with others, thus expanding sa pent PAR eee ee Coes Planning, ‘and overseeing a mentoring programme canbe very time consuming for senior mangers Her be loa a berating te open Nemes wl ora ners goss eed an soso Vismaiched paling of mentor and mentee can cause major problems, such m tress, anoety and confit thus can be counterproducite, Tres 3 cuataive ference beeen 6 meniormentce [MSteaship and 2. managersubordinace relatonship, the (Biers more authentic od has longer sting benef Hfectve mentoing requires Iong-erm commitment For bots mentor ane mente. This can negatively nipact on thet workload; making ime to meet ently €o5y nu fms eave eioing creates a sole environment for mentees pce god deci isues openly ana anes, Wout feat romve consequences on theirjobs sing internal employees as mentors might require traning {ementors shoul rave opportunities tbe trained too), tn added the cos of te business. Off-the-job training cf the job trsining refers to traning cared out of ste, eg at teary college or hota conference room. Fist ad training, for example, might require specialist eines and equipment thtace not avalable inthe business. Although internal trainers “ine ed olathe training, external specials are usualy toe for thelr particular expertise For example, 1B Worksbop Leaders train and upskil teachers working in 8 World Schools Offthejob trsining may involve day-eease for eining oF seadance at evening clases. ts common that key personnel (eg idle manager) are chosen to attend these taining cues an are then expected to cascade (pass on) the sks tad knowledge that they have acquired to the rest of ther team members 1s common for those who attend of thejb training to give the employer and service provider some form of oficial feedback For enmple, «questionnaire can be used to assess the suitably of the course content andthe extent t0 which pricipants fel the training wil help to improve thle wore ‘his anahio help employers to determine whether he lning could be extended 1 others Inthe busines. “Table 2-14 Advantages and disadvantages of ofthe job training Experts who might not ext orbe avalabe intemal, are used foprvie the taining. Teresa potent lossof output whist workers tend te of ste raining course [A.vider range of woining con be provided, 00. Aa ait ICT eastamer relations "management, heath. and safety, sk managemnt, or even foreign languages (or cerain olessions. rin seit vanes and the venue con be ven oxoeave Thee may also be 3 need to reimburse staff fr vanspaaton and aecommodion oss fr esdentl courses). Thee are no divaclens or dwuplons fom callagues ond Jeitomersas the taining conducted off ste nis deboeable whether allthe dls and knowledge arnt ar relevant ond therfore tanderabe tothe busines Networking can take place, whereby employees get to rect, other people who form the basis of business cones Finding the time for sal wo cascade the Information and knowledge om he off te waning couse canbe dificult. CORE(ao) 1 Pere eee eas Cognitive training CCopoton ithe bility 0 he Santo en an think ‘Copitivetsining i bos ning and deeoping metal ‘Shioimponewerkpariormance hissed nota the byte fda cess in te worl. enc, cove training nds lei acts designed top impor memory stent ltening sis loge an Feuoring, vial end suiory procesing. sorta. Hine ‘panagencat and probe sig Ath cognite eils are portant inthe lening proces Sock ising dxgned to hp workers improve tee mental process sure new Towle, id ecidon-matng end solve worked problems Cognitive traning in wed in many professions, such as accounting, Snance and insurance that use cogitve courses, and tests to develop thir worker’ mathemati sks. For example, accountants use cognitive training t improve the speed and accuracy of bookkeeping tasks. Research by psychologists hs shown that highly skied Individuals benefit ‘the mos rom cognitive traning However thre ae several imitations. For example, many cognitive tesining courses donot cater forthe needs of trainees wo have diferent needs or gous. Developing relevant and pplcable cognitive tealning can also be expensive: whist ‘commercial programs are avaliable they might not meet the specific needs of the busines It alo somewhat dificult measure the impact ofthe trsning and how long the fects at Nevertheless, supporters of cognitive taining argoe that ‘provements from such taining are key determinans of ob performance nd carer advancement. After al itisagred that the development ofthe bran isthe key to oar learning capacity and therefore ouraiity to perform at work. us Behavioural training Behavioural traning deals with identifying farting) ‘sues that could improve performance inthe workplace by developing behavioural change in dhe workforce. Tenn ig ‘meaningles ules «desirable change in behavious takes lace Behavioural taining enables participants to move towers this desired change, For example ite rms gals improreg customer satisfiction, then behevioural taining focuses og ahancng customer satons and customer service. The sm ‘of behevioural raining, ke all types of taining, sto advance ‘oth personal and profesional effectiveness. Examples of behavioural waininginclode- + Team building - developing team coesiveness to impr productivity “+ Pthical busines practice - ring arenes of busines sthics and codes of practice + Emotional iteligence — identifi assessing, and -ontaling the emotions of individuals + Motivation training - motivating invidals, tame and the workforce “+ Conf resolution - managing conflict in the workplace “+ Stress management — identifying and handling ses inclading taf wellbeing Anger management ~ understanding and contrling anger 1+ Leadership ils - understanding and leading others & ‘he organization +Business etiguete organizations, regional, nations ane {nterntinaleultral norms Human behaviour is, however, a product of innate hus ature (eg. some people are naturally shy whilst otbes tre spontaneous, stubborn or sociable) and of individ ‘experionces and eavironments (suc as their family upbeinging for the type of school they attended). Critics of behaviour traning aguethat the Denes, if ny are short-lived as pop raturally defaltto their innate Behaviour. AS the Chineswl RFZRERE PAT UCSC UC Re CARL See kU SUSI les. supporters of Dehaviowral taining. believe pach irsning provides people with the ncrasiy sil, sand ila ndve weakest probe. Epil fave shown that socal and psychological factors play pore rles in abou productivity. Whilst lamin ofen ben jb traning courses en this snot aecesarly the “th behavioural taining. Ax Mahatma Gandhi (1969- Geni, “Leadership at onetime meant muscles, bx today it Jana geting along with people” Theory ofknowledge 1 employes: are 50. diverse in ther thinking, ‘personalities and behaviour, what exactly Is human ature? Figure 21.¢ Opportunities for socal tear-bulding ‘can improve morale and motivation Appraisal renin operas senna 8 dese fhe ope 02 Beans 1s poral isthe fra assent of an employees Peformance ailing hor ob based onthe ad Pepe cot co denrpton. ts common fraps to be ended on 2 nil gates bya more senior meer fsa hough interim meetings eles ate ur bree the ape en spree Thema rons for pasa + asses and record an employee’ performance i ine with her Jb description and ages sis staf in reflecting on thee performance a work + provide an opportunity to praise staff for their good work + dentify ary barriers hindering the performance of an employee + deni appropriate training and development needs of| the appraise + set new targets and goals for continuous improvement thelr careers «sid management in sessing the stilt of individuals fora pay nie or prosiotion, vs ‘managementfee) 13 Human resource ‘management Appraisls are port of performance management — the continuous process involving the planning, reviewing and ‘mentoring of employees inorder to enhance thee performance stork Managers illus aang ofa informatio, meetings and interviews to assess each employee (ee Bax 2.1.) Table: 9 Advantages: Section 2 Human resource management Cea ee cL peers reeset een nt ceca) See es Sees eter ee stop ear ‘Disadvantages Fey ae ued to set trges lading te changes for personal ane professional development. [appraisals allow managers to objecivey prae sa on the strengths andor theiecontibutions inthe workplace Appalaisare tne consuming ana canbe cosy exeros, Confidential feedback must be given and flow-up action reeves funding and monitoring: otherwise the proces meaningless. ‘Managers can uve appalalst provide constructive fda employees soalows staf to focus onareasforimprovernent By thelr very nature, appraale can be rather subjecive = perceptions and riatonshps at work an interfere withthe process. Appials can bea ueeulmethod of eng valuable feedback fom the stat Safi may ont olfended by commen fom Whe appase especialy about areas of weakness Managers often aggregate the findings of appraas to en [Common strengths and aeas in need of inproverent. Thus raining and development needs can be better panned Many approiser ack the sills experience and confidence to Carty out opprasals effective Ths miishes the credbity ofthe proces and thefindings. Appalsals can be used os pat of job evaluation to workout Teel of py. Ths canbe done by looking a the diferent tasks, responsibilities, kilt qualifetons and challenges that a job ental, Te appraise! process can then allow » business to bjectvly reward more demanding jos with higher aes of Bey Employees can experience unnecessary aralely and svess if eppratals ae linked to poy. can also be 3 courting expenence fo" both the employee and the appre, spec ith upwards appraisals where a worker apprass his or he Fine rnanage. J ‘Types of appraisal Formative Formative appraisal is & planned (formative) and ongoing process in which appraisal eidence is used by employees to Inform them about what to dot improve their wok practices ‘enable managers and appainecs to engage i pe! management conversations, encouraging, employees to think thout ssir own contributions to the workplace. Formative fssessment is commonly used in schools, eg teachers mark an tendo topic test grade i and ad writen comments nfore. students bost hwo improve 126 Formative apprasil i ofen used for appraising sta ied probation (ral) peri, eg formative assessment of junior doctor, beginning teacher or gradvte bank manage at the begining, mide and end ofthe traning placement The proces hlpe the apprasee to mos work practices 10 Improve verl aisinment. Like most types of appraisals, th goals of formative appeal include to + monitor the performance of employes learning nip employees to identify their strengths and weakness hejpsanagersto ecognise areas where staf arestruggig so that any problems can be addressed promptlyse realy mallee what methods are usod informative log asthe information is helpful for the employee fe adjustments 10 improve their productivity, eg. ofthe worker, spitide testing or fll diagnostic ive oppraal it a writen description ofan employee’ ee at work, summarising personal performance achievements during the year. The summative appraisal ly ba recommendation for improvement (targets for eat appraisal). I used to hold staff accountable for gr work, ofr testing the knowledge and competence of For example, summative apprasls of teachers Involve lesson observations carried out by tine “They are similar oa summative report hat students getin schools, often flowing major test orend-of year in, showing them what they have learaed during the orth academic year. Te oa of summative appraisal fenlute the perfomance ar contribution of workers by this with a predetermined standard or benchmark, male professions judgement ofa workers campetency to identi aress in ned of improvement. feedback degree appraisal involves collecting evidence about the {ypaisees job performance from peers, subordinates, ine Itinagers or other partis (such as suppliers or cusomers) ‘who have direct contact with the employee, Opinions and ‘comments are usually obtained by the use of questionnaires cinterviews, The questions aze mainly focused on the core ‘ampetences of the apprasee, 360 ho 01 In a projec-based organization, human seurces re ngnied around particle projets Many business te a projec-bsed ongaizational chart, such as those in construction, software engineering, entertainment crospace fad il exploration, Project-based structures allow such Dasineses increased flexibility to adjust quickly to macket anges and to adopt rapid innovations. Each projects ed by {project manger upped by 2 eam of workers (se gue 2.2). Forexample construction company might have severe teams working on dient projects sich the bug of ‘ridge, motonay and host In many businestes, project-based organization is used for a temporary period 10 execute specific projects, with teams focusing on ther assigned projet rather than on thelr postion in the frm ise. The workers are offen frm dierent functional departments but come together to focus as4 ‘on compiting a partcular projet, Project managersca bane Several project groups teporting to them on projec uch aE provuct development or expansion in an overseas market iiui® ‘iii e iiaa® Figure 22k Project-based organizational charta pet ernst PRM renee Discontinuity As workers always move project, vith diferent teams and project managers, there could be Fewer opportunities to develop personally ane proesionlly. Project refocused on solutions rather than iy. Project manages focus on. implementation, to mest eadlnes and operating within the assigned Teolation Each pojectteam'ssefsufcentyetonlyoperat temporary There ae very lmited opportunites to work wi other teams or people in theres ofthe organization. dency As the prceck manager has ect contol and fy over the roc asks get done quicker Ecency npoved the project manager ean assemble the maieup of peop most ute to the project Teffcendies Each project needs Rs own fnances and eo | ofexpets resulting in a duplication of resources and effort. people condnuousy move from one project to another, there can be added pessuressressforstaf Project based organization can be a source of jon becouie Individuals ae able to werk on diferent ets 20d eres ad varity thei work I | dns ther professenal experiences. (Confcting interests and priorities Project teams re formed ona temporary bass so there slss obligation to mae sure that tear members get along, especialy if the member come rom departments with ferent etal norms non form af proect-based organization isthe matrix "This isthe ible organization of employees fom departments within an organization temporarily king togethor one partcular project. Functional mens still exist, although the projet tar has the stent 0 work wits colleagues fom oer dpactmens. member in the matx organization shel accountable to “rpmamgers-thrir ofa department (ine) manager andthe manager Teams work beter ifthe team members a skilled end experienced so the project manager does not ‘ee to micro-manage indviduals. Hence, it isthe capablity “eatn veers ia mate strates thats iroportant, rather (ta hel formal rank inthe oficial organizational rte. Segposs, for example, that & project team wa set wp 10 Investigate the best way to launch the opening of a new sje The members of the project team eight consist of ‘ne sepeesenttive Irom each of the flowing departments: oud of Directors, Marketing, Finance, Human Resources, Production and Security. Figure 221 shows tht the project team members commusiat in ¢non-horrchea way instead bith radiiona, formal chains of command. Board ot + teeng securty Fam ea in Fs rosucion => pes rt SI] Figure 2.21 Matrixstructure Handy’s Shamrock organization hanger ergata sours, ah a Hangys Senco ‘eseiatin. 42 Chaves Handy (Gorn 1952), co-founder of the Landa [Business School in 1967, believes tha people are the mast Important resource i any organization. His ideas diferd mack From those of EW. Taylor (ee Ut 24) who belied intl hierarchical stractres with eos supervision of workers. By contrast, Handy recommends that businesses ought © pice greater emphasis on meeting the needs of workers {rough methods such as job enrichment (giving, workers ‘more intresting and challenging tasks) and ls working practices. For example, tudents in prt employment aed ‘mothers with young children would have more choice over the owe that they work Handy believes this helps tmprove the wellbeing ad morale of workers 155[ey andy aio emphasised the dynamic nature of change within organizations and the external business environment, thas requiring changes in organizational stuctures. He didnot believe in jobs for Me’ but that short term contracts were ‘more appropriate, He argued that non-essential work (Le. obs that can be dene by athe organizations) shouldbe contracted ‘out to specialist who ca do the work more productively and ont efficinty. ‘The rnd in the number of ainesses that ‘ubsontrat busines aetvitles supports Handys bel. For ‘example, schools might subcontract their non-core services sucha secur, catering and buildings maintenance Figure 221m A shamrock ‘Due to these strctunl changes, Handy coined the concept of the Shamrock organization. The model gts its name from the shamrock plant (thre leafed clove). Handy suggested that there ae three groups of workers within a Shamrock organivation: + Cove staff ‘This group consists of fll-ime professional ‘workers (sch a managers and technicians) who handle ‘the dally operations ofthe busines. They are crucial to the organization operations, survival and grow. With developments is tworking and econimerce (see Unit 148) the cone self are becoming a increasingly smaller ‘group. This has o downsizing and restructuring ofthe ‘workforce in many businesses. + Peripheral workers Also Known as the contingent workforce, this group consis of part-time, temporary and porto norkee who are employed as and when they are note. They tend to be paid by pice cate for short periods of employment, thus belping to reduce labour costs for the firm The peripheral group forms the lexbleworkore for an organization and consies «grt proportion ofthe workforce for lange busine, ‘9g: supermarkts suchas Walmart, Tesco and Carrefour Empl far more part-time af than fall-tme workees. 156 + Outsourced workers This group consis ofintvidag, ‘or businesses tat are not employed by the erat ‘but are pid to complete particular and specialized tal sochas advertising campaigns oss training Fret, workers, subcontractors agencies and these emplay, te examples of outsourced workers they ae hited by fn oxganization for thelr expertise, For instnee, may lange irs use marketing agencies to design epproei. promotional campalgns. “The three parts ofthe Sharrock organization have thelr og advantages and liaations for abusiness. The core werk {othe organization, most be well aid and remunerstd. Thy arelikely to enjoy some degree ofb security, be well tia and highly productive. The peripheral workers wl sue fos {lack ofjob security thereby negatively alfecting thsi mor, However, they present fleciity for an organization and ze euler to hie and Sie The outsourced workers are expers in ‘their eld but ate therefor ikely tobe relatively expensive. [Although Handy introduced the idea of the Shamosk ‘organization back in the early 19805, time has shown tht businesses are indeed restracturing to become more fee in thei structures, reducing the core staf and using mere peripheral and outsourced workers, The send in modete bosiness that use laceusngly more part-time workers ard teleworkers suppor Handy’ foresight. Impact of culture and ICT on communication in organizations How cuts! cferences ans invotaton in communion techno may impact en cenmuricaton aan oration, 003 wa ‘Communication isthe transfer of information foes one py to another, Managers spend a significant part oftheir ti ‘communicating with both intemal and external stcbolders “The purposes or ebjectives of communication include (© instruc cai nenpet, noi, wars, cove eedtack, review and, abowe all, to inform. Efective communication is wal the succes of any busines o tha staf are aware oftheir oe an the expectations of them, and so that manager can gabe aud act upon feedback fom employees, customers and other stakeholders In ater words, effective communication enables people to have a etter understanding and conto of wh theydo. > Qs (ET ET ERE IPre ree ee caltoral diferenceshavean impactoncommuniation ization. For example, language pofciency is Feed communication al fn today evermore 2 Je tabour markt For instance, English isthe oficial Be yeaeg In mnich of Southeast Asia but fency in Taoguedes wach as Mandarin, Hindi and Spanish are lo Ma many occupations in that part ofthe wodd. Sina, an hinder communication as difrentproguncations “Eon of ice can cate menges to be misitrrted or sipandestood Gund igsornce can case oles to others For example Gpespbba slogan We do chicken rights erly rans’ Tp atese a8" good for us tobe prostite— not exacly We enstogan fra funiy-oienttedrexaurant KFC dd not ike earl fctors ato consideration when communicating [fsarkting message They clearly did not understand that (eat cultures have diferent understandings towards the “reethng. By contrast, HSBC slogan “The worslocl bank” ‘Gases they ac aware of cata diferences inthe countries, ‘eherthey operate fake Figure 22.n In Paris tourist operators employ staff who ‘are fluent in both French and English BRR 2F2 Innovation in communication technologies also has an impact fon communication in organizations. Interet technologies have reduced the cost of domestic and_ international communications. However satel planners need Yo consider [org the communication problems that ean stl occur on an international lovl whare language and cle (see Unit 17) an present bares to efctve stratape implementation. xanples of CT-based communication ystems ae considered Figure 22.m The Kingdom of Bhutan did notintroduce below TV broadcasts untl 1999 Ore common way to deal with communication problems on 4 intermational sale sto recruit b-ngul or mult-lingusl employee. This trend has ben fueled by globalization and the ‘ng growth in word touisn, which have led to language skills Seng highly demanded in many tertiary sector industries. For ‘Sample, staff at Hong Kong Disneyland must be t-ingual | Engl, Cantonese and Mandarin, This helps to reduce the ‘input that language and culuralderences can have a& 2 certo fective communication, 157‘Question 2.2.6 The importance of body language “The key factor to good communication isto pay atertion to what others have to say. God communicators are ne ‘those whosimply speak t others. In busines efective communication isallaboutestabshing a rapport with custome, ‘colleagues and management. Notlistening ta customerscan be acostly mista; dsatsed customers meanalossfsaley_ and les loyalty tothe orgaizaton. Most experts fel that effective management involves Istening to what employees, have to say and having consideration for their needs. | Inaditon toning tls, good communicators ao sow postive body ngage ich a stam sila raking ‘je contact when seating tsorcane, Resear has shown communion 7% dependent on spoken words, 3) thetone ofthe vce whist he remaining sion non-verbal sgn suchas boy lngvage {a} Define the term communication mats} (8) Outine two benefits of good communication toa business of your choice. leaner Electronic mail (emati} Dats transision wn email snot aways scune 48 ca be Eletre mall the proces of using computer wide area _ hacked into Thx one reason why many people sil hy ay networks (WAN) as a maling system, Data is electroaklly from using e-commerce and credit cards for online shoppe transmit from one computer device to another It isa very (ste Unit 8). Aso computer systems and networks anal fast method of communication because all the data (ex, ‘ras, casing communication false graphs, chats and images) are already in electronic form. Data can lo be transmited to many diferent recipients a the same tine, The widespread use of mobile dvies sich ss. | Theory of knowledge smartphones and tablet competes bas cemented he wee of «snail or communication i businesses CORE However, the set-up cots can be high, sch asthe purchase of computer equipment and the maintenance ofthe system. There Is alo the ongoing cost of using an Internet service provider Question 2.2.7. Email usage at work eseerchhas shown that most electronkcmallisaccessedat work. However,many ofthe emails sen aenformal (personal nettagns euch 3 sranging cal gatherings, rather than offi wor-olsted ituse.cmall uragein the workplace vase fiom courty to country. For countries where eral communication is wide used, the resulthas been an increase inthe ‘number o people who are using the internet to-communicate with ther colleagues Some argue that using emalin the workplace can improve oveal ficiency whist others believe that tis open to abuse and isan excuse to avold talking ee ; (0) Outne whats meaty electronlc mal amot (2) Descibehowemal might ncourege informa communication nthe wrklae (ames) (€) Towhat extent doe emalinprove th ciency of communication nthe orcs? (secs 158i yobile devices sons pone stilimmensey popular sy nes Mericatin in organiatons but smartphones and table ‘Beach asthe iPad are becoming ever more poplar for Hotes we. Te top four mobile phone producers surpassed Mon nit na ear forthe iste in 20075 the average iis penon ows me than two mile phones wit Termes apse person has replacement mobilephone erpaoe mens. Mobile devices are used by managers and “ipepeswhoare ‘onthe gt such a el estat agents sales Fe insurance brokers, teleworkere (see Unit 2.1) To ore teeing abroad for busines, Technological ‘uch as WK and diglal camera technology. has Tip urther populired the use of mobile devices 38 form of [rmitoncorsmusication technology Figure 22.2 A Hewlett-Packard hybrid tablet PC peel uu esd Video-conferencing Video-conferencng ser combination of telephone, computer and vido technology It llows meetings to take place when staf ae in diferent locations, thereby esting ut travel ime and costs, Video-conferencing allows people to talk to each “other and se each other asthey are being led (rather silar {oan oaliae conversation using a webcam). More and more ‘multinational ompaniesare using thismethod for interviewing (Once the inti start-up costs have been paid for, vide conferencing has the advantage of being much quicker and cheaper than bringing people togsther in ane location. An added advantage over ordinary face-to-face meetings that ‘vido recordings can be made for future reference, Hower, a major disedvantage is that video conferencing systoms are ‘expensive Mectngs an also hemor dificutto conduit dueto time zone dferences and the overeliance on technology. Doe to posible ie lags between sending and receiving messages, large meetings involving many people from numero oestons ray ives slightly diferent Yee, ‘Theory of knowledge ‘Management guru Peter Drucker said that the most Lmportant thing in communication Isto hear what iit ‘ing aid To what extant do you agro with hi? “Question 2.28 Edexcel examination paper blunder _Blexcel is one ofthe main examination board inthe UK. In 2013, students were forced titan incomplete GCSE Maths ‘exam because Edexcel fled toinclude the first seven questions, despite ome questions being repeated. The blunder was tamed ona printing rox Inthe same week Edexcel sued the wrong ALevel Maths examinationto some schools aving an allegedly harder examination paper The mistakes enraged teachers and parents as Edexclssp-ups placed extra on students. Edexcel responded by stating that ithad launched an investigation ino how the errs occurred and ‘nvuld ensure students would not be penalised during the marking proces. (2) Inthe context ofthe case study, explain two causes of communication fare, 110) amine the importance of effective communication to Edexcel and an oganlationof your choke t4marks) (6marks}feo) 13 Organizational structure and the CUEGIS concepts ‘Human resources are undoubtedly essetial to any busines strategy ifctive control snd organization of people requires Carell strategic hasan resource planning (ce Unt 2.1). An rgantation chart ian important aspect af strategic planning st aloes peopl ose: +The overall structore of human eaoutees inthe ergantzaon + Each manger scope of sponsibility Those who must report to # cera ie manager Thermal chain of command. Am inelficient organizational structure can cause sta derotvation,a duplication of lor communication problems, ‘iets in coordination and poor decision-making, Asanorganizaton evalvesand grows it isnevtable that change creates new job ois The increased need for human resources ‘cans that managers may have to restructure the organization {spat of ther overall strategic implementation Fr example, itis tly that larger firms requite longer chain of command fn tller hierarchical structures. Tall tates, which were ‘popularised in the 1930, have given way to fate structures, in many lange onganzations today. Delayerng 2ot only cuts ests and unnecessary management roles (financial rewards for managers are typically based on thie hierarchical rank, but eho leeds to more elective communication. Delegation of y passing on contol and authority to complete acertain task role, 161 COREPre ene nurae eae ‘A flat organizational structure mans that there are only few layers inthe formal hierarchy and hence managers have relatively wide spanofeontol ‘The ilerarchy in a business refers to the organizational steactze based on 9 ranking stem. Bach hierarchical level ‘fers toa ciferent nk wit is assocaed degre of authority snd responsiblity A matrix structte refers 10 the exile organization of representatives fem diferent departments temporanily ‘working together ona particule project, ‘Organization charts a diagrammatic epresetation ofa ems formal srectur, ‘A projectbased rganlzation organizes human esarces round particular projects, each led by a project manage. Such structures alow busnesos increased fleibity to aust qielly 20 make changes and to adopt rapid innovations. Responsibility rf to who isin charge of whom and in what ‘le or eapacty auch asa finance director being response for the aaffand the operations ia the Bnance department. “The Shamrock organization ofrst Chars Handy’ mode! that oganivations reincreasinly made up ofcorestawho are supported by peripheral workers, consultants and outsourced stafand contacto, ‘Spam of contol refers tothe mamber of subordinates overcen by manage, ie. the mumber of people who are directly accountable to the manage A tall organizationstrucure means that thereare many layers Jn the hierarchy and hence managers have a narrow span of ‘control 192Fees Teen arin author and playright SL/ALcontent he ey functions of management ponogeent versus leadership Te following ecership sles + autocratic paternalistic femocratc 1b sserore sutra leederivp and management sys nan arganzaton 3 Leadership and management Tow ethical considerations and clal dtferences may Influence rebar great, some achieve greatness. and some have greatness thrust upon em. William Shakespeare [ Assescmant objective _—_|__. | 16180,2014 Key functions of management a = i fect of manage fn the [anne oan Je ol Cit 93) pl Be sae sine fb epte a te ee ee nee gees ve tren co carne snomi bess Figure23.2 Key functions of management _ + Planning Managers are responsible for seting the ‘course faction to achiev organizational objectives. They ‘ae Involved in seting both tactical plans (Short-term plan) and strategic plans (long-term plas. ‘Commanding Managers ive instructionsand ordessto ‘thr eam ad subordinates inorder to achieve business bjetinae: Thy thouldenforce dcp in the workplace to prevent dack and to prevent non-compliance, [oot Controlling Managers are responsible for the peeformance and health and safety of their teams. ‘Cortectve measures should be taken if targets are 20 being me. Coordinating Managers have the responsibilty for ‘osaring that all departments tive to achieve the goals ‘ofthe organization, ‘Organizing, Managers organize resources in order to achieve corporate objectives. This might Inchde ‘delegating o allocating tasks to workers to ensure shat deadlines are met. 163ao) st3 Pea cine uur uous _Amalternative perspective on the functions of management was Fpoposed by Charles Handy (arn 1932) who eutined three ey ols of managerent |e Managers as general pactiiones Handy compared personal probles ith the welbsinga frm sich Ub the level of staff tarneve, productivity and customer veestuction. I there are beath probs inthe business then managers must deal with these, For example, iow prc isa concer hen managers night He OTe People retin taf andr smi unproductive workers Tternatel low productivity could We a result of poor nore 30 financial incentives might be wed to rescire this. 4 Managers as coroners of dilemmas Handy suggested wt manages ave relatively wal pad because they have fo deal with a constant lw of dilemmas (problem). For example, manogsrs ae reglred to Tet go of some tuthority when delegating work to dei tens but they hast also retain responsibly For the ated tasks. Other dilemmas include the management of stakebolders {ee Unit 1 and oxgaciatlonal conf (se Unit 2.6) + sanagers as balances of cultural mixes andy argued that it isthe managers role to balane the elteral mix Ja an organization to get the bast out ofeach individual ‘Whilst Fay! would have suggested a hcrrehical and formal strvetue to shape and embrace the cltre ofan fnmnzation, Handy egued that organizations shoul? ‘econe Att to improve communications and enance decison: making Handy suggested that ffetive management af the above foie rqutes the heicopte factor, Le. managers and leaders aS tos shun stuatioe to ee thabig pen” Inefctve Tanagement, he argued, takes place when thee 1s micro Tranaging in an organization, (manages get eaught Up of too tnvaled in every small aspect ofthe business. Instead they ved to delegate by beng generals rnhe than specialists “Athi pergetive onthe functions of management i hat of Peter F Drucker (1909-2005) Drucker believed tht people ae the Rey othe succes of abusiness. He argued that managers Shon not gt too involves in the dally activites of employees a they have more knowlege in certain areas than ther ne tranager or other coleapucs, Hence, Drucker encouraged (Tocentsaation in the workplace (ee Unit 22), According ‘0 ‘Drucker, managers have ve asi funeions: «Siting organizational objectives Managers ae Tnvohed in setting and communicating, ongniztion bjectvs (ee Unit 1.) 4 Onganixing tasks and people Managers tabish | tyes (uch as an appropriate organizational tract) teense the diferent fenctional areas ofthe busines ae Integrated to achieve is objectives. «+ Commonicating with and motivating people For the svorkorce to be eit and producti, manages mut ‘ld teams that aremotiratedtoachevethe organizations bjectives |. Measuring performance Drocker suggested that jib Ferformanc shouldbe measured by ne extent 9 Wh ach employee meets performance objectives 1 Developing people Managers are responsible ue Fringing out the best in people. This might be doe hough ging workene opportunities (0 ake on ex respons Case study Charles Handy is renowned for being one of Ba Greatest. management gurus, having been < jn 2001 as the second most Influential management ‘hinker (after Peter Drucke). A graduate from ‘Unversity, Handy argued that trying to define a is less meaningful than examining what actually does. Handy Is widely recognised 25 bestknown and most influential social and) philosopher. Case study eter Ferdinand Drucker is widely ceded asthe ‘of modern management. During the course of his fs a management consitant and university Drucker rote 39 books in 65 years One of his contibutions to business management was the cones ‘Of sant objectives (see Unit 13) and management ‘hjectves—the idea that what gets measured gets "geese sezPerens 23.1 Vinayak Textiles extilesisacothing manufacture that employs 0 peopleinHyderabad, Woges at the fm exceed the minimum wage in the city and staf have expect annual pay rises. The curent management team, who adopt 2 re approach, has expressed their desire to export the frm’ products to gan higher sales and market share. However, mismanagement the years has ed to falling profs and poorer compettveness. Part ofthe that many ofthe workers have become complacent a thete very supervision. new Incoming Managing Director, Ritu Vinayak, as hinted at restructuring the orgarizaion. She intends to inroduce sm whereby staf are remunerated based on thei atainment of certain targets, Py increments would na longer be but aeward for improved performance Define the term laser faire, marks) (0) Apply the theores of authors suchas Fayol, Handy or Drucker to explain the functions of management at Vinayak - (smart + Tine wd deo Management i en described if 29am to 5 pn job wheres leaden shout ng The difference between ‘responsible 24-hours each day. Professor Warren Bennis management and leadership tegrs that manages hea aboeem view whereas Frmpene vesidenng. 202 lar havea moth prem ppc I cen $00 30 Imanagers del wth atl dcons whereas lenders ‘adr is wncone who infcences and ines others to handle sates Bt tings done. A ener fosters motion pc Wet te oy Som the workforce. Ledeship ithe owes of + Roles and repos Lede are accountable or « fencing and nsng others fo ache orpnational much broader range of ole and epee, They Fels ears tend to fc om aciving rode goals or deal wth what and why questions sch at he seep ‘lens wih no dfn tine amen nnd ‘iron thomson Hence lendersaeincratve haar Stee obs consul reminded alte Mary Parker Fale (188-1939) mony dined tutheywere'changng ewe By cone manages ranagementsstharolgetingthng done thrsgh pepe” deal with routine ow and wien guess They kw ‘isesental abot rblemsoingan decon-making.so how bshow to ade th do ay operation of iar «proce of planing. oping and croinaing, abusina, Hoeve arrow wht he et hing homao. and capital reouces to achive oranzatinal actualy dois cbjcives Managers edt fas onecheig sei pas hina define ine rae. + Inftence on others Tnstructons and odes fom : mangers are lied to Because they cme fom an The tems mangement and Ladeshp are afen vied fia poston ef sony, Leader, howe spc Ierhangesbiy Beso they sere similar purposes At and motte hfs though acon They fxs Ses this scepable Homeves there ae some significant on peopl ater than concentrating on sks. Hence, Aierecesend its porto conse these ven ering lenders reve oc egaged an mages Bers _peciialy wither managers or adr clin the fey to competitiveness ess wh he ay of leaders to generate intellectal capital thesis and competencies ofthe workforce) This means that people 165 [orsCORE Human resource ‘management ene ee acer cc CoS cannolongerbescenasesourcethataresimply managed this would be ‘ts dificl a herding cat & phrase that means itis impossible to manage the unmanageable, fnstad eeers inspite and entrust creative and talented people to help develop the organization, is-toing Managers follow predetermined rules and polices set by the onganaston, They tae a particular task by keeping onder and control, complying wit company polices. Hence, their foeas tds to be on sccomplishing task. Leaders ze more radical inthe thinking, They take esks by challenging the status quo (the organiational norms) to move the organization forward Vision Some theorists argue that isthe vision that leaders have which ultimately separates them from managers. French exmperor Napoleon Bonaparte (1769 TS21) said ‘A leider i dealer in hope Leaders create a citure of hops, geting people to where they have not been before, whereas manages abide by the procadures and culture ofan organiation. Managers can do well in stable business environments, but lenders are dhe ones who shine daring times of change Despite thei diflerences (ee Table 2:32), both management and leadership are eset for a basnes tobe sucesfl It s posable fora manager to also be a leader (and vice vest) bet thisis pot necesuniy desirable They provide diferent tras and stengths to enable am organisation to meet its objectives. In essence the difetences between leadership and managemeat can be exphined by the diferences in their characteriti, roles ad outcomes. Large businesses in particular rly on hy Complemenary roles of anagernent and leadership to ensue the efile running of ther organizations Examtip! re pt] ale ofthe Theory of knowledge Do te eight Ways of Knowing apy fferently fo the knowledge o eadersane managers? Table 23. Differences between the skis and roles ofleaders and managers Teadership Management Do te ight ng sets goa) Do things ah (ochieve goals owing wharsriht Doing whats right aks why? Aakshow? Mosvating and nepiing others Diwcting ad controling thers Empowering Yolowers Delegatiog ks to suborcinates People orientated askoventned reat and foster a culture af cage Conform roorgensatonel pore Innovators Implements feson = Postion Takes ravens risks Srategledackon mating Tactical paring andrnitoning Respected by others isened toby others Decisveness Analysis Natuelinsines Lesmed le 166 & ‘ le x a1 geege 22.3 Leadership and management Depertment and Heads of Yea. There might also bea Business Manager i charge administering thenon-teaching aspects of school such kings maintenance and the management ofnon-eaching staf. derin organizations suchas schools. Leadership styles Te flew losdnaip syle! auc patrac det nese a sol MO? ‘80 2016 Luadership tle refers to the ways in which decison makers betae or reveal thetrbehavlout There are ive common styles lederbip: Autocratic An autocratic leader is one wo makes all he decisions and prefers no: to delegate any responsibly. Instead, the autocratic leader (or the authoritarian) simply tells subordinates what to Thistle is suitable in situations that require quick decision- Imakng or when crcl decisions have tobe made «ding iss or when dealing with hostile takeover. The yes also ‘oproprite when the workers are unde so depend on the Ahetions and instructions oflesdere re drawback is that communication Is tp-dowa, so any Spinions or suggesions of the workers are ignored. This ‘9n cause resentment amongst employees as they have lite eporanity wo ake areal coatbution, Hence, uthorarans ‘an alienate and demotsae the workforce which cin cause Nh eve of absentcism and labour turnover. «examples, comment on how therolesofa manager and.aleader ‘the level of staf motivation in organizations suchas school. marks? Paternalistic cc lade t h epyth wesiy tum gg te aight pce sang he itt ft abate Ty ef ‘cepa engine! a ad ol wh he teams Thee fle ype hair ependingon Thepoeetom orbit thle . +A negative paternalistic style occurs when the leader perceives the workers as less than capable, 0 leds by ‘Budance and control, + A postive paternalistic style occurs when the leader peels the workers as highly capable, so nurtures and detips the workers ‘Whichever approach is taken, the paternalistic leader act Ina fatherly (pater is Latin for father) mannerto guide and poset. ‘he workers. The worker are expected to be loyal and abodint. “This se of leadership has worked well in counties such a, Japan and Toda whore the cultural stig has enabled people ‘to work hard out of ratte to thee eaders However inather FFBEE NORINNNG —-KiLIES NOEAING IE Rl osse HEA Figure 24. Rules, regulations and policies are hygiene factorsre ue) eran ee een rcanizatonl pales, roles and equation eerie tpemetesevene nena we ete aaa os a ere How can we possibly know the true meaning of a ery ‘motivation theory if the theorist (such as Taylor, : peer) ‘Maslow or Herzberg) iso longer alive? a ea panne “| ea eet ee tea hy wd pe > aN ws ete -— Question 2.4.2 Richer Sounds a it | [Ilan Richer (born 1959) Is the Managing Diector and founder of cher Sounds, aii and home cinema retailer te | [speci in audio equipment such a LCD televisions DVD players and amplifiers. n 178, aged just rieteen, Richer 1s | lipases his fest store in London Sedge. The company has 53 etal outlets throughout th: UK. In 1994 his flagship store i | lIntondon 8idge set anew Guinness World Record forthe highest sales per square metreof any real ute inthe world = astaggering £195 426 (5322450) per square metre ~ 2 record held for over two decades, Richer Sounds has also won Inany awards, including Which? magazine's Best Retaller Award and the Sunday Times anard fr Britain's best employe. Thecompany isals one ofthe UKsmost generous donors allocating 15%oits annual profs to charitable organizations. ‘difference to the company. Each week, he looks at employee suggestions and awards up t0 £20000 ($33.000) for an idea. I Each month, the top three sales people get to use his personal Bentley or Rolls-Royce for a weekend. He only promotes: i Se | enamels ot | 1) cxamne how te views ofeaders such sla chr can fet th sucess implementation ofmotvatonin | | thewortpace ‘smarts! v7Pee eta alos Adams's Equity theory (1963) Fagus ar not det with absetrs wi incense || etavloural pecbologit ohn Stacey Ades sagged tht (se Box 24d) and workers can become duvet the reat wl retry compare their eflrts or reads to organization n sever se of neque, workers might ev seers ihers fo she workplace (subordinates, peer and resign frm thelr jobs: Therefore an equitable balance inthe seem) Each worker sould eve reine (any rai ofinpesto oceans workers soul ave rer vio tunge bent) that reflects ther forte The degree sfiction nto hing to nse posting, produce ratio of inputs and profesional relationships at work. ff equity in an onganization is based on {contributions made bythe employee) to outcomes (nancial nd noncinancial reward), Typical inpstsincude expertise, ‘aperenc, enti and ort. Outcomes typically include AMS EeMTTIME ox 2.4.1 Costs of high absenteeism ‘Adams argued that workers wil aly be motiated i thelr Maca cS ea SR NOOOMRRONTETSEIRE «Overtime costs and stuptionsto staf who take ait to ohers in the workplace (se Table 24a). He sugested that (UU a aa the degree of equity inthe workplace hasa direct impact onthe ee level of motivation on thre eves: aa eee ene ec + Ejultynorm Workers expectanequtableremunerato eee ee eae fortheicontebotions in therjobs. Adams proposed that Taninesses strive to ensure stall perceive equ in the workplace. «Socal comparison Worker determine whats farbased te comparisons oftheir inputs and outcomes with hose ORR Slats coworkers) neque entire to lil futinrclaveymoreefrt(orbive ocontrbstenoce3s ACO aa aac PE potter psd comparatve is. peppeanonitennt re eT pia eneerrcteeeseeyeeervete Granny. FO. copnine derdon Werke, who fl unde GR ea oR bolaoaieemneeriotesan cn ener ter rt fompensted (input are geste than ontemes), become demotivatd so might withdraw any goodwill They can feck balance by akerng thelr inputs ssc as pstng In fess efor) and/or outcomes (negotiate py rit). “ble? 4.n Examples of perceived equlty and inequity Pevezived eauty Perceived neat -Aworker gets reste ecogniton and remuneretion for hse ontnstons although ther colleagues have done the same Emount and quai of work Serior Tanager geting higher compensation packages, Because the vlue of ther experience and skills (inputs) Tare producie es people ie pacar Thepay areal] A coleague geting nore tne than eter to complete he | etsonan incentive workhardet sane tas. Parvtime Worker, such a5 flimne univeay sadents or | Workers get a 5% pay ie due to record pris being earned aa young lular eomlowter monetary compensation. | bua frm grants ts works 2 8% pay re ementeetel ‘management ns CAT GF TR TOS plea proesTana apn eam] To sna rarted managers ave aferen sid ofices oe ex ttt mee tan other members he tam duet the] wil condfoninganda nice view whist thecther does not Skis nd leadership quite, 178 spee) etc fey teary pot ot ashe concep Fees hgh sje pope withthe ae Spates 2 al, performing hese for the SSmowaton might bre oy det pocepon of Bei Soe pole we meee ro py I es: ne tery ines demogrpi pero pes tte that can alt preps of ren Febpmore whi eres cn ap tht era ae Joo the aint ote wert ey oi igh denoting excite decor areescntly “feranage fective Ser oes et Business Schoo! (MBS) Is @ non-government organization that provides professional courses in Business| ment. Marc Mors the founding resident of MBS: seking to employ anew vice president and a marketing rer on a two-year renewable contract by mutual agreement and subject to performance. Asa prestigious business MGS requiresl successfulappiantstohavea minimum of four years fulltime relevant experience. The folowing was collated fr the adverused poss: ‘Vice president Marketing lecturer $7000 545000 lowanee 10000 318000 2 2 $1250 31250 uit sald as an end of contact bonus based onthe percentage ofa worker’ salary contribution towards employee's pension fund. Define the term non-government organization. marks} Using the equity theory of Adams, evaluate the exten to which the remuneration structure at MBS might mosvate Atsemployees. 8m} Ins bok Drive The Swprising Truth About What Motivates, Us, Plak argues extcinic factors no longer work becsise Pink (2009) American author Daniel H, Pink challenges twentieth century Ihinking about the efectveness of traditional rewards (0 ‘notte people in the twenty-first century Motivation theorists ofthe [at centr, sch at FW Tayo, suggested hat tnonetacy rewards such 36 bonuses and commission could be used to motiate workers. However, ink argues tht sich ‘rational rewards simply ‘uli and "blocks the ent sil cenit, equze from odes workforce. humane are not the same as horses so you cat get people to rove “by dangling erunchieeestrot or wielding a sharper stick” His theory ss asedon these innate factors tat deve (e otras) peopleat work, school and in thelr personal lives: + Autonomy ~ Sef sufficient direct our own Ives + Mastery ~ Sefimprovement to learn and create new things + Perpote Self stem and deveto do better by ourselves. 179 CORE[oot Pe nea eee ecu ulus Figure 24d Pinks ntinsle diving motivators ‘Autonomy Organizations can provide employees with ftonomy in various aspects of thelr work + Task refers to what workers do, eg Google allows employees the space, me and resources to work on projets and peoblems in a creative way, Nev nitives fod innovations are often generated when workers have time to be ceetve, yet most organizations are far too ‘asy tallow his to happen. “Tene refers to when workers do ther tasks, Businesses “ofthe 2ist Century are far more flee organizations Slowing employers wo have greater flexbilty over ‘when they complete tasks rather than working to fxed ‘eheluls, eg, fcelance personnel working from home. «Technique rele to haw workers do thelr tasks Pik args thet traditional command and contol techniques reap longer elective in modern society: instead only Jail gidance i needed. Workers dhould be empowered and entrusted to tackle the isk inthe way they se fit tater than being old bow to do things. Team refers to whom employees work with to compte tusk Organizations can promote some degree of utoaomy by allowing workers to assemble thelr own teans orto have some choice over wio they work wth on ceri projects. Mastery This inate driver of motivation allows people (0 bowome air at something that matters to them as individuals For exarple, not all eachers aspire to become senior leaders ‘ox pncpalsas thelr passion remains in teaching thie subject ‘her tb lending an edustional establishment. Mastery i trmportat to motivation simply because people generally want toumpeevetheir workasit makes them fd better. Thisis ential to motivation becrse the risk of providing tasks below an ‘mployees capabilities ate boredom and demativation, whist 180 svlety and demotvsion ae the result of proving tasks ta ste beyond thei capabilites (rom being unable o do the jo “Eectvly). Pink adveatesthe use of 'Goldlocks tasks (thse ‘hat ares too demanding or 0 simple) so that employers can texted and develop thelr his and experts, To «ae «wore Crvitoament where mas'y is possible, Pike Sugeest four Creel elements autonomy, crystal clear goals immediate FRodbock and Golllocks tks. Type I behavour, Pink args, “cauresffrtsae made by eopleto improve at something that fealy mates to then, wether they ae alee, acadenic, suthor or astronomer Porpose Thisisthethirdleginthe ipod of Type behav ‘Purpoe givescontest to azonomy and masery- Many toes fre demotivated in cass because they dost understand the purpose "Why do ned earn thls andWl ever wth any ature career? are the srt of questions tha suggest thee ipa aismatch between the teachers and students’ perception ‘of purpose. For Pink, puspose maximisation is a important ts prot maximisation to nspire and guide people. In modes Soviets where corporst socal responses (CSR) a the norm, the use of pots must have areal purpose. Pik nrgoes tat enabling employees to have autonomy over how thetrorganzatin gives tack to the commanity ean improe thelr maton far more than using the pots for inva rewards and bonuses, Aste English proverb goes, "Is Betis ove tha o receive” Toensure his psychological needs managers mus cel communicate the purpose to make ‘Cployees Know and understand the fs purpose goals. Pak ngs that employees who understand how thet individ les contribute to the purpose vision) oftheir organization far more likely to beets sn their work. Unite manager ‘workers are not motivated by profit maximisation ast has 8 rat impact on thei welleing, natead the presare to acer fof maximisation is Likely to have the opposite eet am? contrite to thee beng Pink distinguishes between Type X (extrinsic) and Type | (ineinsie) people. Type X people are motivate by extras snes such as money and other rewards. Pink prowl plenty of empl evidence to show tat Type I Gti {rotated people) wsualy outperform Type X people (ht rewar-cekng counterrar), Fr example he quotes ‘University study on worker autonomy at 20 smal usin conclding that fn tt offered autonomy grew at four ti the ate ofthe conto-oiented businesses ough Pik’ theory doesnot focus on facil rer fe sewwledges tht witbost adequate baseine rev (wach salaries and et), people anne sty shirces, lak argued that baslne rewards ned vo be [finely se (vores want 20 kw they ae being SB ty» compar w ti cleus) and tea Giese st ity in cmparion to tose working in the petty). However, Paks theory anges that france tion and rewards are not and shold nat be the ery yf suring people yi Pk args thatthe rewards and punishments approach ‘eat scovant for today’s workforce, critics are not covinced tie bor apis across professions atonal borders and Mires For example, do top professional footballers switch marily because ofnrinse ales even labs omployers [erasing able to play fra moe presi cb orto pay (bake fist tear cach wook (as Pink would argue) ce maialy cane ofthe nancial rewards ofered by the large: football an ER aRRERRER EEG Tes SRF T esas PE MTS Le Case study, In September 2013, Gareth Bale (aged 24) became the ‘woras most expensive football player having switched fom Londons Tottenham Hotspurs to Spains Real ‘Modi, who paid a world record 100 milion euros 151377) for his services over siyeas Gareth Bales weekly wages were reported tobe around 541300, 59000 ada ormorethan $40 every minute even when asleep! A wees work fr Bale equated to double the yeatsalry of David Cameron the Bish Prime Minists, cornine times the annual salary ofthe average teacher in the UK! Only Bae himself truly knows te diving forces behind hismove. Tible24 summary of mouvational theorists and helt main Mnaings a “Ineo Train anaings aly Scentficmanagement | Payaboveall. isthe main sourceaf motion al Hierarchy of needs {evel of human needs, rom physiological to self actualsation oa Fiwofecortheory ygine factors (which donot mative lone and Matwators Equity theory Workers are motvated Wr here Is finess i remuneration packages rive theory Autonony, mastry and purpose ae the divas of motivation | Inmader societies ofthe 2st contry 16Financial rewards The fling ype of fat rena: lay, wages (ne and sac ater, commusion, profi ps, permance rela py, pleas hare conerhip sebames ae fnge yen ei. AOD 0,206 Financial rewards are metbods tht businesses can ase to motivate workers by using some form of monetary payment “The main methods of financial reward systems are considered. ‘elo, Salary Salaries a Siancalreards et ta ied annual ate but paid ‘ona monthly basis. person caning $36 000 per yea it Pal $3000 pe most, Salaries can improve afi cash low as workers ae pa a xed amount jus once a month usually ‘isc ino the workers bank acount. This also safer and ‘more convenient since hee no need to pay worker In cash Salaried workers often have to workmore than ther contacted hosrs but are unlikely to be paid for ths extre work as any overtime ls usualy considered tobe part ofthe Job Gust ak Your teachers!) By contrast, those ering wages might be aid ‘meas oma daily basis Salaries sr wsed whore output or productivity is not exy to measure and where linking pay wih speed can lead to lower ality standarés, eg, ai the cae of teachers and doctors. However salaries sate from to key disadvantages «oi + Since isnot easy to dstngush the eforts or output of citferent workers, canbe dificult to reward those who sre more peoducive + There ts ltde any, incerve to work harder since people ae paid the sme ameunt for their time, Tis can «encourage slack or procrastination inthe workplace. ‘One way to del with thee problems i to introduce a sytem ‘of performance management and gerformanee appraisal (ss Uait2. 182 Eres eee Ma ra ase) ks aT (SUS Wages (time and piece rates} ‘Wages ae the reward for labour services, uruly expres as an hourly rate (ine) or asa measurable quantity ofonpay (piece rt) Wage based om time can be pad per hour, ed coc per week. Cased workers ten toe pid By hour rte “The wage at ialikely to dependon the workersexperere an responsbtis. In many countries national minimum wage is se by te _gvcenment, all employers must pay thelr Workers 30 ly than the sated ate, Wage earners ave often pad an oveting rate forthe hours they workin exeessofthelcontactedhour, Te common for overtime to be paid at time and a hak (50% ‘entra pay per hour) or double pay (100% extra pay pr hou) to compensate the employe for saceficing more liste, “The advantage of ug wages i that isa straightorwad metho that ls easly understood by the employees. he xy disadvantage, however, is that workers are not rewarded fe their efforts but their time, This might encourage slack and poor productivity. Piece ate ina payment system that aa get around the probes of wages by rewarding more productive workers, Pier scvocated by EW Tala, pays worker foreach itr st they produce or tel per time period, eg ifa machinist na cothing factory gts pad $1.20 per garment and manages to produce 200 em of dothing in a wee, then the gross ening, would tbe $240, This ensures that workers ae paid for the amount ‘worthey actually do eg, the more rides taxi devers comple, {he higher their incomes become, The key advantage is thi trmployees have an incentive to work hard to maximice thet Incomes. However, there might be & trade-off betwen the «want and gusty of output so there tends to be a ned fe supervision and quality contol. Staffmight also be demerit due to the sncerain level of income, often caused by fos beyond ther own conte (Such as mechanical faire), whi ‘wold reduce thee productivity and hence their pay: Common mistake Ce ee eee eee een) ee be better fr you to use the terms remuneration! anéPe Maced tis common for those an pect rate or commision recive aa basisulary.Tosome extent, hishelpstomeettheirphyiologial > needs so even ifthe person doesnot manage to sll anything ee ey ‘then they wil stilbe pu basic amount. However, fo each at item sold, alespeople will earn commission thereby boosting Se thei overall earnings TT) Ovtpurhascd reward systems uch as commision can re BEE Reet overcome the problems af time-based systems suchas wages eR RESIN | However they sue from their own limitations: a 1+ Speedy production or aggressive selling techniques do am | ot neceseiy corzlate with high quality output or good "Commission customer care ‘Commision pays workers based on proporson (percentage) + “Tere is aed pressure on workers to sell ore oF t0 us | fates output contrite by 2 work: This contrasts with _prformata faster pace. ig | pert which xed amount per nit made or sold For fe | Gample cl estteaente might pet pud LS (hecommisson) + Tass can be gute repetitive and monotonous, thereby ad | ibe lu ofeach propery peronlly sold. So, an agent that causing boredom. esa $5000 propery would er $500 commision. This epoct sper ie cmmonly fund n jos where nancial + Ax commbsion depends on frag ales o eupet an | teva ctesanncentve sell more, eg nsrace brokers level ts ical o meet scurry neds because workers te | maha percentage ofthe premiums pion palicertha they do aotknowhow much hey wb pad oy | sre araged a + “There coil bea need thie more quay conte, e pel in manufacturing jobs ut « a jon 2.4.4 Calculating financial rewards te Cutline the meaning ofa time-ate financial reward system mek) ‘ LUnda earns $5 per hour as parttime worker at a fastfood restaurant Her a contracted housare 125 hous per week Calculate her well gros pay. s make) ‘Steve earns $2400 per month. Income taxrates 15% and his personal taxallowance | 15 $15000 per year Use these figures to calculate Steve's, (annual grossincome amarts) {anne taxable income Pamarks) i) annyal take-home pay lamarts) Sarah wotks nan office and earns $2250 per calendar month. Calculate how much she earns per week. [2 mars} ‘Asa salesperson, Michael earns abasic salary of $1000 per month, Last month, he sold goods tothe value of 15000 ‘on which he earns 5.58 commission. Calculate his gross pay fr the month. Bmarks} 183 feelsfee ae eens Profit-related pay Asa for of financial motivation, roiled pay involves linking pay tothe level of profits in the firm, Le, the greater the profits, the higher the pay. Profi-elated psy i usully paid as an annul bans, Walmart, the work ang rete, fnnounced in 2007 that was to bring ack annual bonuses payingan average of 651 tos 13 milion hour paid workers Similarly, some sirine companies pay a thirteenth month bonus, paid along with the employees December salary. The amount pid wil ually be inked tothe employee salary and Tength of eve, so those on higher salaries and who havebeen with dhe frm the longest are rewarded the most This seen to bea fairer way to share any profits wih the workers Profitstlated pay i sed to strengthen employee loyalty and to foster team spit (since profits can only be achieved by combined team ofr rather than by an individuals inp) Hence, prof sharing should boost labour efciency and limit the possibility of abour cont. Another advantage i tha ‘an help to break dowa ‘them and we calture (dee Ualt 2) ‘nce managers and employees work together to achieve higher levee of pro However the proportion of profits paid to employesis often seen as to0 smal to provide an incentive to work any harder {the Walmart poyout equated to under $1.80 per day) Also, individual efforts are not explicily ecognised by ths payment system, so there i no reason for any individual 1 improve hiss performance, ln realty, prot sharing is often vse to reward senior manager rather than forthe whole woekfaee, especially sindvidals lower down in the blerarchy have no ect infuence in changing the fem overall eel of profits Performance-related pay (PRP) Pesformance-reated pay (PRP) is more desble than pofit- related pay asa reward system. PRP rewards employees (as ‘naval, teams oa a Whole workforce) who meet certain goals. There gals maybe rated o sales targets, competence Inajob or sucessful completion ofa contrac. PRP can be ald in aris way 4+ Pay sae ~ am inrease in a person py due to mecting oF ‘exceed hsther performance ares “+ Peaformance bonus ~ paid to workers who have reach ‘output oe quality targets, eg sales staff might resiveg ‘ish Bonus for reaching tel sles target 1 Gatity - paid to aff who compte their employment contract iternitionl schools ypealy ay teacher hired from oveseu 820% gat fan end-of conta ‘bom based on theemploye annual salary) ‘Avkey advantage of PRPs that it creates incentives for people to work and perform beter, specially targets are leary et PRP ie lao seen a fal system since hard work is rewaded (Gee Adams equity they above). Furthermore, PRP hal to develop performance culture where people strive fo achive thee targets in turn for the Benefits of PRE such as ‘pportamiies for promotion or nsec bonus. However PRP does ue from several disadvantages: + Taxets might be unrealitie or unachiewale so thi can ‘cause resentment and hinde job performance +The pressure imposs.on workers to meet thei targets can cause sires (espe if ther pay is Hine to achieving settarget). + PRPisnotappropite for some professions where qulty ismore important han gvankity.< public sector doctors anu teachers beste iis dificult to guantfy thei velo ‘performance, + Hight not encourage tarwork since individ targets te st in performance apprasal meetings (eventhough ‘team targets ca be se). Tis can lead to workers fing rather alinated aud demoraised, especialy i they fe their colleagues srebeing better rewarded, 1 Non financial mothator ate gonePeeWee 2.45 Camden Intemational Consultants Toyot, the new chit executive officer (CEO) who joined a year ago, has decided that there needs to be some [al changes to ensure that CC remains competitive. Anusl pay Increments would now be based on a performance jslsystem carried outby line manages. Maireed Taylor ao stated that consultants would get o 5% pay tt, to bring esinine with the industry norm. This would also alow the rm to cuts fees by up to 3% within the next yea in fo attract new clients. sing relevant motivation theory, examine the possible consequences of implementing Mairead Taylors plans atc. ommaks} aluate the CED proposal to remunerate management consultants by using performance elated pay. wmevks) Employee share ownership sehemes ‘spent system rewards workers, managers and directors by ging ther shares in the company or by sling the shares a dlcousted pric. Iti ofen used as an alterative 10 ‘ating 2 cash Bonus or prot shving. The mative for using Sate ownership schemes is that employees (who become Ahtcckers of the company will have a moce diet interest ‘abe wellbeing ofthe organization. Subsequent, employers Bent from ower rte of sentir and staf turnover, Ras J reality, share ownership schenes tend to be uted for evading thse in dae senior leadership eam, The maori of eplyees do ot qualify for share swmership and even they {Edihe amount debuted hardy suicient to sustain thls lel of motivation. Hence, thi ear sytem might prove to Belmpracticl fr many businesses. Fringe payments (perks) Fringe peyments (or perks) are the financial benefits to mployes in adltion to their wage oF sary, eg. health Figure 24. Gym membership is afinancal perk a A key advantage ofusingfinge payments that they encourage ‘employe loyalty. Perks can lp to meet an employed safety reeds (ser Maslow’ hirachy of neods theory) and make workers fee! more value as the employer provides thet extra benefits to enhance their welbeing The main disdvantage of using fringe payments fs the surance, housing allowance, oetitions to the worker’ Strement fund, staf ccounts, subsdiscd mets, gym membership, paid holidays and aid sick leave, Psks vary fom one Gem to another and mig depend on the employees tion or rank in the organization potentially highoats. For example, tislikely that all employees ‘qualify 1 receive base Fringe benefits, sch as fre unfors and private medical cover In aaiton, senior manages might qualify for further benefits, such s business-class ir travel and company cas. These expenses can bean enormous harden on 8 ‘rms ash low postion sce Unit 3. 185CORE eee arabes cca uous Case study. Google offers its fulltime US-based employees a $5000 subsidy on the purchase of a Toyota Pius, Honda Civic Hybrid or Honda Insight. Googles corporate image f innovation is coupled with Its 3m to preserve ‘the environment by subsiiing workers who buy cervronmentally fend cas. Other parks inch free food (breeKest, lunch and dinner, 2 fully equipped «ym, fee laundry, electrc scooters for onsite use, and £12000 per year for reimbursement of private tution {nes I Google employee dies, the spouse gets half ofthe salary fr the next 10 years andthe children get $1000 per month unl they tum 191 Case study ‘According t0 Forbes, Tim Cock (who took over from Steve Jobs as CEO of Apple Inc) Is the worlds highest remunerated person, having a reported total annval compensation of 377996537 (that’s more than $llon per day!t Non-financial rewards he ftowieg job seston, 0b etter 1902014 ‘Now financial evards ae no-snonctary factors that motive people by ofering pycholyical and intangible benefits, iy linked # money The theories of Maslow, factors not di Hersberg and Pink adveate non‘inancal methods of motivation. Examples re explained below. Job enrichment eraberg emphasised that making & job more interesting for challenging wis «key motivator Job enrichment (ot ‘vertical loading), gives workers more challenging jods wih more reponse, Hence, people have greater autonomy nd authority in their work and have better opportunities to accomplish their jobs, can also result i the psychological jrowth of worker, s0 they become moce commited other srork Furthermore the aby to doa range of tasks means that workers have a beter enscof achievement 186 ‘A imitation of job enrichment the added expenses of tine snd money needed to trina develop workers to full te fxtra responses of thelr job Another drawback is oy alargemertlnreases the workload of employees which cq ‘esa n ait, tes and lower productivity. Managers mus, tho ensue that obs are ot too challenging too complex fr fn employee who doesnot have the right sls et Deease ‘vill not ony lead to disastrous outcomes, but can also sioy the confidence and moral oft Job rotation Job rotation s typeof job enlargement that invelves worker, performing diferent tasks athe se evel of complet in This means that employes perform a nuber systematic way of deren tasks inorder For example supermarket employes right work a the checkoats 2 cashiers one day, then ota tro in other res sacha the delicatessen bakery of tacking shelves on oer days, ‘he intention ofjob rotation eo provide more variety to avid the problems of ovenpecilisaton (such as boredom caused by performing the sme tasks over and over-Job rotation lo mikes tt easier for people to cover for absent colleagues a they become more fair with 3 breadth of tasks. Hwee, utiskling resuies greater aiing costs and canbe regarded by some employees a imply adding to their workload without real career development opportunites. Figure 2. Jb rotation is commonly found in large supermarketsob enlargement alnrgenent (ls0 Known a6 horizontal loading) vefers Fein he muber of asta an employee pei the job af remains esseaialy unchanged. For je, an administrative worker might spend most of the Stocking afer the reception are dealing with cstomer Ipisiesbr also spend sometime on data input photocopying Fite ting and other clerics sks Tove purpose of fob enlargement Ist reduce the monotony ess) of tasks that can cause boredom end avotvation Jb enlargement can make job more interesting Atavaves workers having a wider range of fee wre Mae emioyeesmight view hisasawaytogetthem to domore Sort for the sae amount of pay, ts Teadng to demoraise Totes {nation any benetsofjob enlargement are kay (Deiminish ter a prio of time he rles become mundane enacting). Finally, the continual enlargement of job over tinecan ea to unmanageable workloads fr staf, thus causing motivation in the work Ee nlargement can take place without job envich Empowerment Enpowerment is about developing the potential of workers teams to achicre the Best they can. It aves granting sire the authority tobe in change of ther own jos aod fesse ter own es to solve sine probles. Henc, lars have some autonomy in decsion-mabing and can dese foc themes the best way tl with tsk base. Eqporerment can boost mtvaton as woe can take Intsive and havea sy in how things ate done. Thus, hey Pare a greater ese of ride in tei work eg inthe teaching Frfelon, the pingpal usally allows teaches to dlver Tesons ina wy that they See most ppropeate. Enpowecment requires giving workers he necessary atthory, Ah, resources and opportunites to achieve personal and npniatonal galt. As Chinese philosopher Confucius Pee (651 BOE-A79 NCH) said, [semember, I do and I understand” Empowerment can be chive through methods such: “I hear and 1 forget 1+ Delegation Tis curs when managerspasion authority to heir ubordinate, allowing them to take charge of & task and to get recognition fo their accomplishments. Delegation works best when subordinates have the competence (ability and desi (llingnss) take on cates responsibilty. Managers must also ensure that stat fae given suficlenttme and resources to accomplish the ‘elepated tasks, accel delegation can therefore boost ‘morale and help peopl gai invaluable experiences to progres in thei carer, "his occu when workers have in decision-making 50 they fel empowered, eg through employee suggestion schemes of the use of quality cicles (ee Unit 53) ‘when desing with 2 particular task or problem. Worker artiiption allows people wo become more invoied and interested in their work, + Worker partition ‘opportuniis to participate + Continuous profesional development (CPD) Who provide opportunities for ther staff to undertake ‘ongoing training tnd o fn that the eats of providing (CPD ate far es than the benefits reaped foe having 4 mote loyal, empowered and productive woskforc “Workers fel moe valued ithe frm provides them with tesining and development opportunites This can help workers to progres in thelr carer and belp ofl their poten smployers However empowerment mustbe used appropriately. Delegsting tess to ezopower stall can only be successful the workers have auate sill and have recived the necesary training to independent tackle given tasks responsible for the taks they delegts, so insppropriat we of mpowermieat can lsd t expensive mises being made ger ae tl ald Cea 197 fee) 14 Human resource ‘managemon!CORE Pea ruben uceulls Purpose (the opportunity to make a difference} ‘Whilst some employers are driven by selinterest others are motivated by using thet workoelp osers thereby making 2 Siflernce to the wo we livin. Such employees ae altruistic (Gelfiess) and see the purpose of work being to make a positive change in other peoples ives Doctors muses, social are ‘workers and teaches are examples. History as shown that uring times of crises, poople cooperate to peach other ery importany, purpose is sbout the role or job ish rather than acs of altruism such as donating money to an xin chaity (which only generates perceived impcts on ‘beneficiaries. The motivation tomakea dierence occurs when people have the opportunity to build angoing reationsips with the Beneficiaries Tiss apparent with charity and soci! Care workers who ar fully commited to heir workin making a diference to thes. Mekinsey & Conpany, the American global management ‘onsultancy firm, bs shown through numerous ste tht people with salsictory salaries aced more than financial fewards to sustain motivation. Their studies show some ror-fnancil rewards are more effective than extra pay the opportunity to help others or to make a dference to society can be motivational nd give workers area sense of Sarpose, Financial rewards uch a bomuses or share options, {generate short-term gas in motivation, but can ave negative ‘Sintended consecuences such asthe perception that these rewards become the noem Pilanthropy and alum donations are common examples of how all employees can make = ference to others. Case study ‘The wotldstopphilanthopstshavegivenbilionstohelp ther: Since 199, Bil Gates has topped the lit, having donated more than $28 bilion! The next fou largest ‘philanthropic donors are Warren Buffet ($1725 bition), ‘George Sores ($85 bilion, Gordon Moore ($Sillon) ‘end Cars Slim illon) | Suc eden 188 Teamwork “Teamwork occurs when employes work wth lw coleagus, Examples nclade + Departmental teams ~ organising people into functions teams (see Unit 22) such as finance, marketing sng ‘operations management. «+ Geldar manafecturing- teamwork to complete part of production proces (se Unit 52). + Quality circles eum members meet regularly to dca Solutions to problems regarding. qualty with be production proces (se Uni 52). “Teamwork can rede boredom (f working alone) nd helo meet the social needs of employes. Teamworkcan help worker ‘build sense of belonging, thereby eeducng sbsentextsm and Tabour turnover whilst Boosting productivity. I can also lead to greater leibilty and mulling as workers Team foe ‘tbe team members Hence, worker can cower forone another uring times of absences without delaying the production proces or reducing the quality ofthe service belng delivered Ce ete et eee a Peet Reriree rot in other scenariok. The important exam sil T° Pe ee eg ‘ensily and in 3 way that i allgned with the sped eensRae Pca eters ‘Common mistake ocd eee Ce ae er eee eee Pict aa en is ey a7 positive thinkers (the glass fs half full, rather Il con be qulte-expensvé 6 the provision of tihng. eee ‘opportunities forthe werlforce. Praise and recognition vaio es . er te rt asf Ce ee ee ener See ene pee ec Been Se enn, Case study Recent stucies fom global management consultancy fem McKinsey & Co. found tet respondents view tree ‘oninandal rewards (praise from line managers leadershipattentintotheworkbeingdone anda chance tolead projects) be mere effective in motivating and engaging workers than the thee highest ated fnancal rewords (cash bonuses, increased base pay, and share options). ‘of knowledge possible to quanty motivation inthe workplace order to acquire knowledge of what mothates ion 24.6 Pfizer Pfeat the multinational pharmaceutical lant, employs around 91500 people around the world. The frrn uses the motto {Aa (Continuous and Never Ending improvement) a a guiding principle to motivating the workforce. Pfizer uses both Snancil and non-financial methods to encourage employee loyalty. Having a relatively small workforce in Hong Kona, it Saute easy fr the company to devise Individual Development Plans foreach worker’ training and development needs. The i claims tet 89% of management postions ar internally filed. The culture is one of encouragement and rik - rather than nameand shame (blame), Human resource {2} Comment onthe lily benfis or Pern sing eternal erultment amos) 5) Explain why a culture ofrsktaking is important to pharmaceutical companies suchas Pz. 4maris} [el Towhat extent do managers overestimate the importance of using financial ewards to mativate thelr employees? marks) fee) tsMotivation and the CUEGIS concepts How indslendnon- cod enarcarny seo een oiaon ene reductvyin teen AD? (One af the cris recorded English proverbs i “You can take 4 hone to water bat you cannot foe It o drink the wate” ‘Tiss becase the hore wil only rinkifts thirty Likewise, peopl wll ony perfoem their jobe wel fthey are motiatd to do o, Motivation s undoubtedly 3 atrategic sue, especialy as people are sich an important aspect of any business strategy Productivity is dependent onan employee’ level of bility and ‘motivation. Fallure to motivate workers can lead to a range fof problems, such as higher absenteeism, increased labour turnover, poor caster service and lower quality output. BY contrast culture that fosters motivation leads to etter labour reention ad ts astociated benefits (08 Box 2.40 Box2.4f Benefits of higher staff peed ee 7 rag dase 6 ee ete eres + strong corporate culture othe fim profablity ot o ie Sten However, there it no general cule op Bow best to motivate all employees. Tiss largely because each and every worker |sdiferent in what motivates them. Pople ate likely to be motivated by combination of both intrinsic and extrinsic factors Intrinsic motivation occurs when people engage ‘nan activity out oftheir wn desire, eg, the enjoyment of pursuing & hobby or an interest because the person finds 1 to be challenging, simulating oF fun. Thus, strinsicaly rmotvateg students would want to master subject aher than ote lean the subject simply to got good examination grades, Intrinsic motivation can aso occur due to altruistic reasons, Human resource ie there is «sense of commitment to ther. In many Asian cures, atinsle motivation occurs eo family reasons students sec to work hard partly due to Family pressures and aril to avoid ting down their parents, By coneatetrinae ‘motivation occurs when people participate in an activity 190 Section 2 Human resource management ‘because ofthe benefits and rewards associated with delng yy, ‘Teae incentives might be tangible (eg, wages, salries and bonuses) of intengble (eg. recognition and pra). Extn motivation can also arise from organizaional clare the ug pressure and tress, workers engage nan activity to avo ponishment Change also has 2 major impact on motivation, producti and job satisfction. In ely, motivating the workforce ag extremely complex tsk becaose there are 0 many diferent factors each of which i subject to change that afc he lee of motivation ofeach individual. What motivates one pera doesnot automaticaly motivate another, eg, the threat « redundancy can be both ¢ motivator and a demotvator. For ‘some people and cultures, the eer of losing thei job might Arie them to ensure tat they kep their fobs. Fo other the insecurity doesnot motivate (refer to Maslow’ safety neds ‘Catarl norms also mean that some people are beter uted «system of sclentific management, such ab unsklled worker ina manuficaring pant or 2 fst food chain. Manages mus therefore weigh up the costs of using various methods of motivation (eg, pro-rated pay) with th expected benelis (eghigher productivity, Some managers do not ce ay vale motivators fr those who do not wat in sing now responsibilty or lac skis and ambition ecu ee ts ti ae Ismotivation driven by ethics orb the lackof ethics? Consider how the CUEGIS concepts (change, culture tics, globalization, innovation and strategy) apply scros the content discussed in this unt on the diferent theories of motivation and the various methods of financial and aon-Sinancial motivation.hats meant by motivation? “Wat are the benefits toa snes in having highly moti workforce? “What arth sigs fa demotvated workforeet Disingush between the theories of Taylor, Maslow, ersherx nd Pink sn five methods of irancal and non-financial ways to motivate ndviduals Distinguish between jb enlargement, job enrichment and job rotation, -aplain ow diferent methods of non-rancial evards woth indifferent cumstances. ‘Distinguish between intrinsic and eerie methods of refers to managers passing. on authority «0 to carey outa task or project. This cn motivate ho wish to be enrustd and recogised for thet {non-financial motivator that Sovaves ng the potential of workers ot teams to achieve the they can by granting them the authority to make vasous payments (or pes) art the nancial rewards pad on toa workers wages or salaries, eg fee uniforms, ted mesls, housing bent, pension fund contributions Kompany cars two factor theory looked atthe factors that motivate sacl gene factors (hat mat be met to prev ction) and motors factors ar parts ofa jo tha Herberg referred to that increas jobsatisfitionbutbelptoremovedisatsition, as easonable wages and working conditions PRM Job enlargement refers to increasing the numberof ass tat an employee performs, thereby reducing or eliminating the monotony of repetitive tasks. Job enrichment volves ging workers more reiponsitis tnd more chaleging jobs Job rotation ea orm ofjob enlargement whereby workers are given ferent asks but othe same level ofcomplexty.tohelp ‘dace the problems caused by performing repetitive asks Maslow’: hierarchy f needs outlines ive levels of need im ately physllogcal needsto sel actalsaion Lower cadet need ust be met before people progres up the hierarchy. Motivation refer tothe nner deseo pasionta do someth “Te driving forces could be latin (eg to havea sense of schievement) andor extrinsie (eg. due to financial rewars). ‘Motiators are the facioss that Hersberg considered to Increase jb station and motivation lvls, eg. praise and secogaition Performance-rlated pay (PRP) is = payment system tht reads people who meet et targets over a pelo of ime The targets can Be onan individual, 2am or organtzational basis Piece rte i «payment system that sewards people based on the amount that they produce or sll Thus, thei pay idly linked othr level of producti. Pinks drive theory suggests that people in modern societies are motivated by theee key factors: autonomy, mastery andé purpose. Productivity measures the level of output pet worker. tis an Indicator of motivation as emplayestendtobe more productive wth increased levels of motivation, Remuneration encans the overall package of pay and beaeits otered to an employee ‘Scientiic management, developed by FW Taylor, suggest that specialisation and division of labour hep to increase the level ‘of productivity. This is especialy the case if pay islnked toa piece ate reveard system. “Time rate is «payment system tht reward taf for the tne (rashes tha outs) tha they pt into wor Bis expeesel per period oftime, eg S10 per hour or $500 per month. 181 COREena gkalai 2.5 Organizational (corporate) culture ‘A peopl wthout the knowledge oftheir past history origin and cultures ikea tre without oot, ‘Marcus M Garvey (1887-1940), Jamaican entrepreneur and political leader “ewo.2014 Organizational culture reetinc A eoame cca be eid conse nora Oe hi he usin. Ceo cate gl baste el le and ate of the manages tnd employee incase of thins such atthe ‘Povo ome pueiy des code or wheter king Pipe the mre tn sence, cpr care ters the dare o penal oe oration, 12 _ [Assessment object __| Elements of organizational culture emenis of erential cutie ADD ‘the acronym NORMSE cap be usel to remember the Interrelted determinants of rganationa culture: + Nature of the business Culture is shaped by th purpose and divsction of the organization, derives {om its mason, aims and objectives (See Unit 1.3). Rr ‘example, tice key to be very diferent culture ina non-profit organization (such sachrky than one found inan organization that thrives on agressive selling (uch asa realestate frm). + Organizational structure rms with tall cts tend to have lots of small wams that work mel Andependenty By contrat, ftir structures may belt trom callaborativeamoork, Organizations made ap 4 highly skilled and innovative sal have dierent ult from those with demotivated staff who have no inp it Secision-making. 1+ Rewards If employees are appropriately remunecatel for tel efor the organization is mor likly to develo? trongand united culture. Hence, motivated workfort ‘results in a eulure of productive workers who strive achieve orpanaational objects,“sanogenent styles The cakure In decentralized ag Matons (ee Unit 22) tends to benefit rm workers al with most problems themscves, rather than bere iegalltheir problems to the management. Conversely, fet where managers maintain centralized decison fenkng power, difleent culture exists with the use of heats al sanctions In extreme versions ofthis elle, inachof management imei spent on checking employee us, wontoring their telephone calls or even using Sevens carers 1o observe the tll. Swnctions An organization with few sanctions can encoutge salto be slack, eg. to be Inte for work, of ven miss work, and to provide poor customer service Howeve if an rganivaton ito igi ts plies and isentrernyhars in reprimandng worker, staf ny fel resent ofthe management “osome extent each classroom has its own culture the culture bry inenced bythe members ofthe group (the students) ‘od the stud ofthe group leader (the teacher, Invi Savers might work beter In some clases than in others facie ofthe group dynamics and diferent expectations st ytacers Organizational (corporate) culture The importance of understanding organizational culture Cultural intelligence, or cultural quotient (CQ. is the sbity of an individual to blend into occupations, comport tnd national cultures. The ert was coined by Professor CChrisopher Earley and Profesor Haine Mosakows in the Harvard Busines Review (2008) Witin the contextof Business CQ is important as € measares the ely of Management, people wo understand and adjust to unfamiliar stations such ssa ostle takeover (see Unit 6) ora criss (6ee Ua 5.7). ‘Te strength of an organization’ clare depends onthe degree oF unity among the sa 1 taf are unlid in theirbeifs and values, the cuture wil be stronger ie trong cure exists shen the staff understand, believe and support the vision and mision ofthe orgsnitaton, By contrast, a clare gap exists if organizational values are not aligned. Sbsequery, managers may need to exzrie contol by formal and perhaps bburemeratc procedures. Advantages to busines that has strong corporate culture include: + Creatinga seseofbeonging and security for saffbecause they fee! part ofthe organization. This belp to improve teamwork and ose matiation in the orgaltion, + Promoting cohesiveness so people do things # they fel thats the right hing odo, Figure 25.9 Children learning outside the classroom in Sr Lanka 193 mone tta Human resource ‘managementHIGHER LEVEL Ree teaP Wa uuu ue uu 4+ Reducing mistakes and misundestandings as sta are arte wit the processes at work 4+ Mininising problems associated witha culture ap so that confit (ee Unit 26) and minunderstandings beween feat groups are curtiled, ‘Types of organizational culture ‘ypesotopaniabonatetie £02 9920 ‘Organon az vastly diferent the ways tat they operate “Thi meansthere eno single dorsinat theory ofthe diferent models of orgunzationl culture, Various theorists have pt forward modelo the types of organizational culture EdgarH, Schein Professor Edger Henry Schein i credited for coining the texm corporate culture. He argues that there are thee Teves of corporate ature: + Artefcts ar soprficll and behavioural aspects of an ‘organization that canbe easly seen but not neces ‘ory undesstand. Examples inclade the orgonization’ histor, faclities, buildings, dres code and ove people aso to interact with each ote + Bspouted values ace the dested or expected corporate culate. These are the values that the organizaton fds are tmpontnt and sta are eal) commited a. Metaphors tnd smbols ze used to expess the culture among sal, cg: the imi ison statement, brands and slogans. + Shared basic assamptions represen the deepest level ‘of cuture ~ the calle that is unseen and not easly ‘dented sit isso well integrated in the organization. “Thi ceva the actual values demonstated Uarough ‘behaviour, ether than espoused values and phlosophies. Te incdes subcultures inside the basnes and a culture Invi to those new othe organization. Schein egued ‘hat its at thisevel shat culture drives an organization. Charles Handy Ini ook The Gods of Management (1978) Professor Cares Handy argc tht diferent elles are seeded for dereat wns aves, He sated tha he clue sed ran an ficient cvclate plant sii! fom hat wd to ana primary scoa ors consractn ste 194 andy described four types ofeganizational culture + Power cultures exist when there is 2 dovinan, Individual or group baling decision-making pone, “The orgatiatonalstuctare i likely to be Mat wie relatively wide pan of contol See Unit 22). Formal jo ties we postions may net be highly regarded beciue

You might also like

• The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life

  

  From Everand

  The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life

  Mark Manson

  Rating: 4 out of 5 stars

  4/5 (5814)
• The Gifts of Imperfection: Let Go of Who You Think You're Supposed to Be and Embrace Who You Are

  

  From Everand

  The Gifts of Imperfection: Let Go of Who You Think You're Supposed to Be and Embrace Who You Are

  Brene Brown

  Rating: 4 out of 5 stars

  4/5 (1092)
• Never Split the Difference: Negotiating As If Your Life Depended On It

  

  From Everand

  Never Split the Difference: Negotiating As If Your Life Depended On It

  Chris Voss

  Rating: 4.5 out of 5 stars

  4.5/5 (844)
• • Magazines
  • Podcasts
  • Sheet music
• Principles: Life and Work

  

  From Everand

  Principles: Life and Work

  Ray Dalio

  Rating: 4 out of 5 stars

  4/5 (609)
• The Glass Castle: A Memoir

  

  From Everand

  The Glass Castle: A Memoir

  Jeannette Walls

  Rating: 4.5 out of 5 stars

  4.5/5 (1717)
• Grit: The Power of Passion and Perseverance

  

  From Everand

  Grit: The Power of Passion and Perseverance

  Angela Duckworth

  Rating: 4 out of 5 stars

  4/5 (590)
• Sing, Unburied, Sing: A Novel

  

  From Everand

  Sing, Unburied, Sing: A Novel

  Jesmyn Ward

  Rating: 4 out of 5 stars

  4/5 (1104)
• Hidden Figures: The American Dream and the Untold Story of the Black Women Mathematicians Who Helped Win the Space Race

  

  From Everand

  Hidden Figures: The American Dream and the Untold Story of the Black Women Mathematicians Who Helped Win the Space Race

  Margot Lee Shetterly

  Rating: 4 out of 5 stars

  4/5 (897)
• Shoe Dog: A Memoir by the Creator of Nike

  

  From Everand

  Shoe Dog: A Memoir by the Creator of Nike

  Phil Knight

  Rating: 4.5 out of 5 stars

  4.5/5 (540)
• The Perks of Being a Wallflower

  

  From Everand

  The Perks of Being a Wallflower

  Stephen Chbosky

  Rating: 4.5 out of 5 stars

  4.5/5 (2104)
• The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers

  

  From Everand

  The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers

  Ben Horowitz

  Rating: 4.5 out of 5 stars

  4.5/5 (348)
• Bad Feminist: Essays

  

  From Everand

  Bad Feminist: Essays

  Roxane Gay

  Rating: 4 out of 5 stars

  4/5 (1018)
• Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

  

  From Everand

  Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

  Ashlee Vance

  Rating: 4.5 out of 5 stars

  4.5/5 (474)
• Her Body and Other Parties: Stories

  

  From Everand

  Her Body and Other Parties: Stories

  Carmen Maria Machado

  Rating: 4 out of 5 stars

  4/5 (822)
• The Outsider: A Novel

  

  From Everand

  The Outsider: A Novel

  Stephen King

  Rating: 4 out of 5 stars

  4/5 (1866)
• The Emperor of All Maladies: A Biography of Cancer

  

  From Everand

  The Emperor of All Maladies: A Biography of Cancer

  Siddhartha Mukherjee

  Rating: 4.5 out of 5 stars

  4.5/5 (271)
• The Sympathizer: A Novel (Pulitzer Prize for Fiction)

  

  From Everand

  The Sympathizer: A Novel (Pulitzer Prize for Fiction)

  Viet Thanh Nguyen

  Rating: 4.5 out of 5 stars

  4.5/5 (122)
• Angela's Ashes: A Memoir

  

  From Everand

  Angela's Ashes: A Memoir

  Frank McCourt

  Rating: 4.5 out of 5 stars

  4.5/5 (441)
• Brooklyn: A Novel

  

  From Everand

  Brooklyn: A Novel

  Colm Toibin

  Rating: 3.5 out of 5 stars

  3.5/5 (1947)
• The Little Book of Hygge: Danish Secrets to Happy Living

  

  From Everand

  The Little Book of Hygge: Danish Secrets to Happy Living

  Meik Wiking

  Rating: 3.5 out of 5 stars

  3.5/5 (401)
• A Man Called Ove: A Novel

  

  From Everand

  A Man Called Ove: A Novel

  Fredrik Backman

  Rating: 4.5 out of 5 stars

  4.5/5 (4770)
• Steve Jobs

  

  From Everand

  Steve Jobs

  Walter Isaacson

  Rating: 4.5 out of 5 stars

  4.5/5 (807)
• The World Is Flat 3.0: A Brief History of the Twenty-first Century

  

  From Everand

  The World Is Flat 3.0: A Brief History of the Twenty-first Century

  Thomas L. Friedman

  Rating: 3.5 out of 5 stars

  3.5/5 (2259)
• The Art of Racing in the Rain: A Novel

  

  From Everand

  The Art of Racing in the Rain: A Novel

  Garth Stein

  Rating: 4 out of 5 stars

  4/5 (4203)
• Devil in the Grove: Thurgood Marshall, the Groveland Boys, and the Dawn of a New America

  

  From Everand

  Devil in the Grove: Thurgood Marshall, the Groveland Boys, and the Dawn of a New America

  Gilbert King

  Rating: 4.5 out of 5 stars

  4.5/5 (266)
• The Yellow House: A Memoir (2019 National Book Award Winner)

  

  From Everand

  The Yellow House: A Memoir (2019 National Book Award Winner)

  Sarah M. Broom

  Rating: 4 out of 5 stars

  4/5 (98)
• A Tree Grows in Brooklyn

  

  From Everand

  A Tree Grows in Brooklyn

  Betty Smith

  Rating: 4.5 out of 5 stars

  4.5/5 (1929)
• A Heartbreaking Work Of Staggering Genius: A Memoir Based on a True Story

  

  From Everand

  A Heartbreaking Work Of Staggering Genius: A Memoir Based on a True Story

  Dave Eggers

  Rating: 3.5 out of 5 stars

  3.5/5 (231)
• Yes Please

  

  From Everand

  Yes Please

  Amy Poehler

  Rating: 4 out of 5 stars

  4/5 (1898)
• Team of Rivals: The Political Genius of Abraham Lincoln

  

  From Everand

  Team of Rivals: The Political Genius of Abraham Lincoln

  Doris Kearns Goodwin

  Rating: 4.5 out of 5 stars

  4.5/5 (234)
• The Woman in Cabin 10

  

  From Everand

  The Woman in Cabin 10

  Ruth Ware

  Rating: 3.5 out of 5 stars

  3.5/5 (2522)
• Fear: Trump in the White House

  

  From Everand

  Fear: Trump in the White House

  Bob Woodward

  Rating: 3.5 out of 5 stars

  3.5/5 (738)
• Wolf Hall: A Novel

  

  From Everand

  Wolf Hall: A Novel

  Hilary Mantel

  Rating: 4 out of 5 stars

  4/5 (3811)
• John Adams

  

  From Everand

  John Adams

  David McCullough

  Rating: 4.5 out of 5 stars

  4.5/5 (2409)
• On Fire: The (Burning) Case for a Green New Deal

  

  From Everand

  On Fire: The (Burning) Case for a Green New Deal

  Naomi Klein

  Rating: 4 out of 5 stars

  4/5 (74)
• The Light Between Oceans: A Novel

  

  From Everand

  The Light Between Oceans: A Novel

  M.L. Stedman

  Rating: 4.5 out of 5 stars

  4.5/5 (789)
• Manhattan Beach: A Novel

  

  From Everand

  Manhattan Beach: A Novel

  Jennifer Egan

  Rating: 3.5 out of 5 stars

  3.5/5 (792)
• The Constant Gardener: A Novel

  

  From Everand

  The Constant Gardener: A Novel

  John le Carré

  Rating: 3.5 out of 5 stars

  3.5/5 (104)
• The Unwinding: An Inner History of the New America

  

  From Everand

  The Unwinding: An Inner History of the New America

  George Packer

  Rating: 4 out of 5 stars

  4/5 (45)
• Rise of ISIS: A Threat We Can't Ignore

  

  From Everand

  Rise of ISIS: A Threat We Can't Ignore

  Jay Sekulow

  Rating: 3.5 out of 5 stars

  3.5/5 (137)
• Little Women

  

  From Everand

  Little Women

  Louisa May Alcott

  Rating: 4 out of 5 stars

  4/5 (104)