Business - People for AQA AS (New spec for first teaching in 2008)

Covers the whole people topic for the new AS AQA Business Studies spec for first teaching in 2008.


  • Motivation (Theorists, Financial, Non-Financial)
  • Organisational Structures (Span of Control, Chain of Command, Tall, Flat, Matrix)
  • Workforce (Measuring the Effectiveness of the Workforce, Recruiting/Selecting an Effective Workforce, Employment Legislation)
  • Training (On and Off the job)
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  • Created by: Sheldon
  • Created on: 22-03-09 20:37
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Taylor (Theory of Scientific Management)
Workers are motivated by money. Introduced the
idea of piece-rate pay. The 'carrot and stick'
analogy was used where the money was
represented by the the reward (the carrot) and
the threat of being sack represented
punishment (or the stick). Greatly influenced
mass production lines.
Mayo ('Hawthorne' Experiments)
Mayo investigated how the working conditions of
a workforce can affect them. He found that
workers like attention and that the
communication between workers and
managers is important as well as finding
workers work harder when they have some
control over their working environment.…read more

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Motivation (2)
Herzberg (Two Factory Theory)
Hygiene Factors such as high pay
remove dissatisfaction but won't
motivate individuals to work hard. In
order to do this Motivating Factors
such as recognition, praise and job
enrichment need to be used in order to
motivate employees.
Maslow (Hierarchy of Needs)…read more

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Financial Methods of Motivation
· Bonuses
· Piece-rate
· Fringe benefits (staff discount, company car, share options, childcare, health
· Commission (A percentage cut of sales sold e.g. 10% more pay according to
the value of product sold; such as £300 TV sold by employee ­ he/she gets
£30 more (£300/10% = £30)
· The extra money many not be worth the work to get it
· Herzberg would argue money doesn't motivate workers to work
harder ­ getting a staff discount card won't make employees work
harder as they are simply being given the discount for working at
their place of employment.
· If any individual doesn't enjoy their job and find it boring, this is
hardly going to be changed by extra capital equal small
percentages of their income
· Workers may decide the level of output they need to satisfy their needs but
this may not satisfy the companies demand
· Quality of work, with Piece-rate and quality of customer service, with
Commission can suffer…read more

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Job Enrichment
Methods of Motivation
Herzberg believed jobs should be designed to allow staff a variety of different tasks and
levels of responsibility. This though can prevent a maximisation of efficiency due to the
time it takes to train staff in order to handle situations which could be more challenging.
Develops unused skills and challenges workers
Allows employees to contribute to decision making process
Increased feelings of achievement
Some workers may feel under pressure not simply challenged
Benefits only when thinking long term as workers have to be trained
Not all jobs can be enriched e.g. bin men
Job Rotation
Workers are rotated between different jobs to avoid the repetition and boredom.
Relieves boredom
Easy to find a worker to cover for an absent worker
More motivated due to wider range of skills
Training costs are high
Fall in output due to less specialisation (not as practised at job = slower/less efficient)
Could be simply a greater number of boring tasks with less social benefits due to constant
changing of groups…read more

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Non-Financial Methods of Motivation (2)
Job Enlargement
Workers are given more tasks, responsibilities and work
Gives employees chance for great recognition
Could improve chances of promotion
Increased feelings of achievement
Possible to demotivate individuals due to excessive workload
Workers are delegated power and control and are able to make their own decisions. The
motivation from this method needs to outweigh the risk the business is taking.
Reduce labour turnover and absenteeism
Increase productivity
Increased cost of training
Managers need to be good deligators for successful use of
Employees could take advantage of situation (e.g. commit Fraud
or leave tasks until last minute and rush them = more quality of work)
Groups work together to meet shared objectives
Increases flexibility of workforce
Releive boredom
Disagreements can occur
Possible reduced productivity due to social aspects…read more

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