Business Management Unit 3 Outcome 2:
2A: Human Resource Management
Human resource management definition:
Human resource management is the organisation of employees’ roles, pay, and working
conditions. HR is crucial to the success of the business as it is the area that is responsible
for recruiting, training, motivating, and encouraging staff, and making them feel valued.
How HR managers can support business objectives:
Increase profits - Ongoing training
Increase sales - Thorough selection process of staff with specific skills
Reduce staff absenteeism - Offer flexible work practices
Decrease customer complaints - Regular performance appraisal
2B: Maslow’s Hierarchy of Needs
The 5 needs Maslow theorised about + definition:
Maslow’sHierarchy of needs is a motivational theory that suggests people have fundamental
needs, and their sequential attainment of each need acts as a source of motivation.
1. Physiological - Food, Water Shelter
2. Safety and Security - No danger in the workplace, Stable income, and job security
3. Social - Belonging, friendship, teamwork
4. Esteem - An individual's desire to feel important, valuable, and respected
5. Self Actualisation - Reach full potential through creativity and growth.
Difference between esteem needs and self actualization:
Self actualisation is th realisation of fulfillment of one’s talents and potentialities whereas
esteem is a reflection of a person's own evaluation of his/her worth.
Advantages:
Structured and fairly easy to implement
Can give managers a clear path to motivate employees
Motivation can occur quickly when employees progress through the lower levels of
the hierarchy
Disadvantages:
Not all employees will be motivated by the same needs
Assumes all employees are motivated in the same order
Time-consuming for a manager to determine the level of each individual employee
and implement appropriate strategies for each.
2C: Lawrence and Nohria's four drive theory
The Four Drives + Definition: The Four Drive Theory is a motivational theory that outlines
four fundamental human drives that influence behavior: the drive to acquire, the drive to
bond, the drive to comprehend, and the drive to defend. This theory suggests that these
drives are hard-wired into human nature and shape our thoughts, feelings, and behaviors in
different ways. By understanding these drives, we can better understand what motivates
people and how to effectively engage and motivate them.
Acquire - The drive to acquire is the desire to achieve rewards and high status. (Pay staff
well, Recognise good performance, provide opportunities)
Bond - The drive to bond is the desire to participate in social interactions and feel a sense of
belonging. (Managers care about personal well-being, Teamwork/collaboration is
encouraged and recognised, Collective achievements are highly valued)
Comprehend - The drive to learn is the desire to gain knowledge, skills, and experience.
( Provide opportunities to learn new skills, duties should be fair but challenging)
, Defend - The drive to defend is the desire to protect personal security as well as the values
of the business. ( Ensure the work is fair/just/safe and non-threatening, create high levels of
trust + communication, create a workplace people are proud of)
Advantages:
All four drives can be attained separately
Caters for both individual and business goals
Develops relationships between managers and employees
Disadvantages:
So many factors in play so it could be difficult to set up
Managers may spend a lot of time analysing these to cater to employees
Training and rewards to fulfill drives may be expensive
2D: Locke and Lathams Goal setting theory
What it is:
L+L’s goal setting theory is based on the notion that employees are more likely to be
motivated if they are able to strive for clear, challenging, and specific goals, and can receive
feedback and be rewarded for achieving goals.
Advantages:
Increased productivity if goals are in line with business objectives
Better relations and communication between management and employees
Increased motivation
Lower rate of staff turnover
Disadvantages:
The process of setting goals can be time consuming
Requires high level of management skill to create good, clear, motivating goals
2E: Human Resource Management Strategies
Performance-related pay:
Define: Performance-related pay is a financial reward that employees receive for reaching or
exceeding a set business goal. Employees are motivated by performance - related pay as it
links their performance to increased remuneration.
Advantages:
Managers can clearly communicate business objectives and reward employees for
achieving them
Can motivate many employees at once
Employees can gain from business success
Can be a quick motivator
Disadvantages:
Costs business’s money
Employees may compromise the quality of work
This may create conflict and competition between employees
Time consuming or manager to calculate the reward
Career Advancement:
Define: career advancement is the opportunity to move into a more challenging or
stimulating position, with some supervisory or managerial responsibilities.
Advantages:
Promoting employees from within the business heps retain high performing
employees
Employees may feel more valued by the business when promoted, improving their
overall morale
Disadvantages:
There is a limited number of senior positions within a business
Negative corporate culture may develop if employees are competing with each other
for promotion
2A: Human Resource Management
Human resource management definition:
Human resource management is the organisation of employees’ roles, pay, and working
conditions. HR is crucial to the success of the business as it is the area that is responsible
for recruiting, training, motivating, and encouraging staff, and making them feel valued.
How HR managers can support business objectives:
Increase profits - Ongoing training
Increase sales - Thorough selection process of staff with specific skills
Reduce staff absenteeism - Offer flexible work practices
Decrease customer complaints - Regular performance appraisal
2B: Maslow’s Hierarchy of Needs
The 5 needs Maslow theorised about + definition:
Maslow’sHierarchy of needs is a motivational theory that suggests people have fundamental
needs, and their sequential attainment of each need acts as a source of motivation.
1. Physiological - Food, Water Shelter
2. Safety and Security - No danger in the workplace, Stable income, and job security
3. Social - Belonging, friendship, teamwork
4. Esteem - An individual's desire to feel important, valuable, and respected
5. Self Actualisation - Reach full potential through creativity and growth.
Difference between esteem needs and self actualization:
Self actualisation is th realisation of fulfillment of one’s talents and potentialities whereas
esteem is a reflection of a person's own evaluation of his/her worth.
Advantages:
Structured and fairly easy to implement
Can give managers a clear path to motivate employees
Motivation can occur quickly when employees progress through the lower levels of
the hierarchy
Disadvantages:
Not all employees will be motivated by the same needs
Assumes all employees are motivated in the same order
Time-consuming for a manager to determine the level of each individual employee
and implement appropriate strategies for each.
2C: Lawrence and Nohria's four drive theory
The Four Drives + Definition: The Four Drive Theory is a motivational theory that outlines
four fundamental human drives that influence behavior: the drive to acquire, the drive to
bond, the drive to comprehend, and the drive to defend. This theory suggests that these
drives are hard-wired into human nature and shape our thoughts, feelings, and behaviors in
different ways. By understanding these drives, we can better understand what motivates
people and how to effectively engage and motivate them.
Acquire - The drive to acquire is the desire to achieve rewards and high status. (Pay staff
well, Recognise good performance, provide opportunities)
Bond - The drive to bond is the desire to participate in social interactions and feel a sense of
belonging. (Managers care about personal well-being, Teamwork/collaboration is
encouraged and recognised, Collective achievements are highly valued)
Comprehend - The drive to learn is the desire to gain knowledge, skills, and experience.
( Provide opportunities to learn new skills, duties should be fair but challenging)
, Defend - The drive to defend is the desire to protect personal security as well as the values
of the business. ( Ensure the work is fair/just/safe and non-threatening, create high levels of
trust + communication, create a workplace people are proud of)
Advantages:
All four drives can be attained separately
Caters for both individual and business goals
Develops relationships between managers and employees
Disadvantages:
So many factors in play so it could be difficult to set up
Managers may spend a lot of time analysing these to cater to employees
Training and rewards to fulfill drives may be expensive
2D: Locke and Lathams Goal setting theory
What it is:
L+L’s goal setting theory is based on the notion that employees are more likely to be
motivated if they are able to strive for clear, challenging, and specific goals, and can receive
feedback and be rewarded for achieving goals.
Advantages:
Increased productivity if goals are in line with business objectives
Better relations and communication between management and employees
Increased motivation
Lower rate of staff turnover
Disadvantages:
The process of setting goals can be time consuming
Requires high level of management skill to create good, clear, motivating goals
2E: Human Resource Management Strategies
Performance-related pay:
Define: Performance-related pay is a financial reward that employees receive for reaching or
exceeding a set business goal. Employees are motivated by performance - related pay as it
links their performance to increased remuneration.
Advantages:
Managers can clearly communicate business objectives and reward employees for
achieving them
Can motivate many employees at once
Employees can gain from business success
Can be a quick motivator
Disadvantages:
Costs business’s money
Employees may compromise the quality of work
This may create conflict and competition between employees
Time consuming or manager to calculate the reward
Career Advancement:
Define: career advancement is the opportunity to move into a more challenging or
stimulating position, with some supervisory or managerial responsibilities.
Advantages:
Promoting employees from within the business heps retain high performing
employees
Employees may feel more valued by the business when promoted, improving their
overall morale
Disadvantages:
There is a limited number of senior positions within a business
Negative corporate culture may develop if employees are competing with each other
for promotion
