Objective 10: Establish guidelines for the conduct of good management and staff relations

in the workplace

Guidelines include:

1. Good communication with workers- Ensure communication is effective by:

- two way communication guarantees feedback and understanding
- open door policy- it is the concept that your manager/supervisor is always available for
questions, concerns, suggestions, It implies that employees can bypass their immediate
supervisors and seek out senior managers to discuss job and personal issues
- using a variety of communication methods eg memos, e mails, meetings

2. Improve working conditions- Provide necessary tools and equipment, good working
conditions and fair pay
3. Motivating workers- Provide incentives – rewards, praise, bonuses etc

4. Practice good leadership

- Allow participation in decision making
- Provide advice, support and proper training and development of workers

5. Introduce teamwork

eg Retreat (annual, 2016)- A retreat is a type of group getaway in which the members
of that group take time to form bonds with one another away from the office and work on
one or more specific goals. Retreats often involve an overnight stay and are usually held
at a retreat center where your members can take some time to enjoy nature, talk with one
another, think about your organization or initiative, and have fun. . Some of the benefits
of retreats are that they can:

- Eliminate the outside distractions of your usual office setting

- Build enthusiasm and commitment among your staff or members
- Cultivate a casual, unpressured mood
- Facilitate teambuilding through a sense of shared experience and bonding to help people
better work together
- Set aside some uninterrupted time to solve key problems

1
Objective 11: Identify strategies for motivating employees in a business- Financial and Non
Financial Motivational Strategies

Financial motivation refers to monetary rewards offered as incentives to employees in order to

motivate them.
Direct compensation is the money directly paid to employees in exchange for their labor. Direct
compensation includes wages, salaries, bonuses and commissions.
Indirect financial compensation is a benefit given to an employee that has financial value, but
is not a direct monetary payment

Non-financial motivation does not involve money payments to employees but adds satisfaction
to their work environment. These are important in motivating employees as they bring
psychological and emotional satisfaction to them. It is the integration of a system of reward and
recognitions.

Methods of Financial Rewards

1) Time Rates Pay – Earnings are calculated by multiplying hourly rate by the number of hours
at work.

Advantages
1) Easy to calculate and simple to operate
2) Produce predictable earnings

Disadvantages
1) Pay is not related to effort/output but merely to times spent at work
2) There is little incentive to work as pay remains the same

2) Piece Rate – Under this system the earnings of an individual worker are related to the
quantity of items produced
Advantages
1) Provide workers with an incentive to an output.
2) It encourages improved methods of work.
Disadvantages
1) Quality may suffer for higher output.
3) Support workers do not reap the same benefit.
4) Rates are bargained by per item.

3) Commission – Is a payment made to employees based on the value of sales achieved, it can
form all/part of a pay package. Commission like piece rates is a reward for the quantity or value
of work achieved.. Thus the rate of commission depends on the selling price and the amount of
effort required in making the sale.

Advantages
1) Form of incentive pay.

2
Disadvantages
1) Same as piece rate.

4) Fees
– Are payments made for “one off” tasks e.g. professional charge fees.

5) Fringe Benefits – Are benefits received over and above wages or salaries. Fringe benefits are
payments in kind rather than cash e.g. company cars, retirement plans, health insurance, paid
vacation, subsidised loans, phone, meals and uniform allowance.

Advantages
1) Can assist in running of the business by motivating staff.
2) The awarding of fringe benefit can be linked to achievement and promotion.

Disadvantages
1) Some benefits are taxable e.g. Company car.
2) It may cause status problems and conflicts.

6) Profit Related Pay

– Profit related pay involves employees being paid a cash ‘bonus’ as a proportion of the annual
profits of the company. Eg Profit sharing and stock option

Advantages
1) Provide an incentive for increased effort.
2) Make employees profit and cost conscious.

Disadvantages
1) It is not linked to individual performance and rewards can fluctuate from year to year
depending on the performance of the business.

3
Non Financial Motivation

1. Job security- provision of job security for a temporary worker will motivate the worker to
put in greater effort and be more committed to the organization.

2. Provide challenging work- challenge can be brought through– job rotation, job enlargement
and job enrichment.

a) Job rotation-the movement of employees through a range of jobs in order to increase interest
and motivation and reduce boredom

b) Job enlargement- involves adding extra, similar, tasks to a job. In job enlargement, the job
itself remains essentially unchanged. However, by widening the range of tasks that need to be
performed, hopefully the employee will experience less repetition and monotony.

c) Job enrichment- The job is made more important, interesting and challenging for the workers
who may be given authority in deciding their work methods. The employees will also perform
the management functions of planning and control so far as the work is concerned.

3. Recognition- appreciation demonstrated by management for hard work will motivate a worker
to maintain same level. The recognition may be in the form of a word of praise, a pat on the
back, a word of praise, a letter of appreciation, award

-4) Opportunity for promotion

5. Worker participation in decision making- It satisfies ego and self-esteem of persons.

Workers feel important when given authority to make decisions and asked for suggestions in
their field of activity

6. Teamwork

Flexi time- is a flexible way of working which allows employees an adaptable work schedule
around their individual needs, This may involve working from home, or adjusting starting and
finishing times around the core hours provided that the total hours add up to the amount required
by their contract.

4
Objective 12: Evaluate the role of teamwork in the success of an organisation.

A team is a small number of people with complementary skills who are committed to a common
purpose or goal for which they hold themselves accountable.
Teamwork is the collective effort of a small number of people with complementary skills who
are committed to a common purpose or goal for which they hold themselves accountable.
Advantages and disadvantages of teamwork (add points from table on pg 59)

Advantages Disadvantages
Synergy – quantity of output and quality Slower decision making
increases as a result of the combined effort of
individuals working together effectively
Shared learning and improvement of Cost of training and forming teams
knowledge and skills
Improvement of communication Time consuming to form a team
Increased efficiency and productivity Free riders as some members do not pull
weight
Shared responsibility for the work Conflict from disagreement
Increase motivation as workers have support One or two members may dominate
and trust of the team discussions which demotivates other members
Promotes a sense of belonging, unity and
bonding
Better solutions to problems