LEARNING OBJECTIVES
What you will be able to do
- compare financial and non-financial motivation
- interpret organisation charts and leadership styles
- explain recruitment, selection, training and workforce reduction
- choose communication methods and overcome barriers
AT A GLANCE
INTRODUCTION · THE BIG IDEA
Connect motivation, organisation, leadership, recruitment, training and communication to performance.
People turn plans and resources into business results. Motivation affects productivity, absence and labour turnover, while structure and communication determine whether effort is coordinated.
There is rarely one universally best method. The task is to match reward, leadership, recruitment or communication to the workers, job and business situation.
SECTION 01
Motivation and reward
Taylor emphasised pay linked to output. Maslow described a hierarchy from basic needs to self-actualisation. Herzberg distinguished hygiene factors, which prevent dissatisfaction, from motivators such as achievement and responsibility.
Financial methods include wages, salary, commission, bonus and profit sharing. Non-financial methods include job rotation, job enrichment, teamwork, training and promotion. Suitability depends on measurability, job type, cost and employee needs.
Measuring a productivity change
- A factory's 40 workers make 2400 units each week.
- Productivity = 2400 ÷ 40 = 60 units per worker.
- After training, output is 2800 with the same workforce: 70 units per worker.
Answer: Productivity rises by 10 units per worker, or 16.7%.
SECTION 02
Organisation, management and leadership
Organisation charts show hierarchy, chain of command, span of control and reporting relationships. Tall structures have more layers; flat structures have wider spans and shorter communication paths.
Managers plan, organise, coordinate, command and control. Delegation gives a subordinate authority for a task while the manager remains accountable. Autocratic, democratic and laissez-faire styles differ in employee participation and speed of decision-making.
| Style | Strength | Suitable situation |
|---|---|---|
| Autocratic | fast, clear control | crisis or inexperienced workforce |
| Democratic | ideas and commitment | skilled team and change decisions |
| Laissez-faire | autonomy and creativity | expert, self-directed employees |
SECTION 03
Recruitment, training and employment law
Recruitment begins with workforce needs, job analysis, job description and person specification, followed by advertising, application, shortlisting, selection and appointment. Internal recruitment is faster and motivates staff; external recruitment offers a wider pool and new ideas.
Induction introduces the organisation and safety. On-the-job training is practical and cheaper but may pass on errors; off-the-job training brings specialists and fewer workplace distractions but costs more. Dismissal results from conduct or performance, while redundancy occurs because the job is no longer required.
Employment laws commonly regulate contracts, discrimination, minimum pay, unfair dismissal and health and safety. They protect workers but can increase compliance cost and restrict flexibility.
SECTION 04
Communication and trade unions
Communication may be verbal, written, visual, electronic, formal or informal, and internal or external. Choice depends on urgency, cost, detail, confidentiality, audience size, need for feedback and need for a permanent record.
Barriers include unclear language, excessive detail, technical failure, poor listening, cultural differences and too many organisational layers. Feedback, simpler language, suitable channels and fewer stages can reduce them. Trade unions represent employees in negotiation and disputes.
| Need | Likely method | Reason |
|---|---|---|
| urgent two-way discussion | meeting or call | immediate feedback |
| formal evidence | letter or email | permanent record |
| large visual audience | presentation or video | consistent message |
QUICK CHAPTER SUMMARY
The ideas to carry forward
- Motivation methods should match jobs and employee needs.
- Structure changes communication, control and delegation.
- Recruitment and training are investments with benefits and costs.
- Effective communication requires understanding and suitable feedback.
QUICK REVISION CHECKLIST
Can you do each of these without your notes?
- compare financial and non-financial motivation
- interpret organisation charts and leadership styles
- explain recruitment, selection, training and workforce reduction
- choose communication methods and overcome barriers