Cambridge IGCSE Geography
Coursebook with CD-ROM
Gary Cambers and Steve Sibley
The Coursebook contains:
full coverage of the Cambridge IGCSE Geography syllabus
clear, practical support for students
50 up-to-date case studies from a wide variety of
countries, including many with Cambridge International
Examinations centres
fieldwork ideas for theoretical and practical use
a diverse range of stimulus material, including over
400 illustrations.
The accompanying CD-ROM contains:
over 40 support sheets for use with topics in the
Coursebook
over 30 sample examination-style questions for Paper 1
with full marking schemes
outline maps of key areas, such as continents and major
regions
the Coursebook glossary in PDF format.
Paper 1: Geographical Themes Part A of the book covers
all syllabus topics with case studies. Student tasks are
modelled on examination questions and a sample case
study question provides practice.
Paper 2: Geographical Skills Part B includes six largescale map extracts of tropical areas with linked activities
to develop map work and other key skills such as drawing
graphs and sketches.
Paper 4: Alternative to Coursework Part C provides a
step-by-step analysis of Paper 4 examination questions on
four suggested topics, a range of candidate answers and
helpful examination tips. It also presents ideas for local
fieldwork investigations covering four potential topics which
could be used for the Paper 3 coursework option.
Fisher, Houghton and Jain
The Coursebook structure is designed to prepare
candidates for the IGCSE Geography examination papers
as follows:
Cambridge IGCSE Business Studies Coursebook
Cambridge IGCSE Geography is written specifically for the
Cambridge IGCSE by two highly respected authors with
extensive experience of training IGCSE teachers worldwide
for Cambridge International Examinations. This Coursebook
with CD-ROM supports teachers in the delivery of the
IGCSE curriculum, offering expertise, building confidence
and providing guidance in preparing for examinations.
This edition is endorsed by Cambridge International
Examinations.
Mark Fisher, Medi Houghton and Veenu Jain
Cambridge IGCSE®
Business
Studies
Coursebook
Third Edition
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Section 2:
People in business
Business of all sizes are organisations which need people. They may be owners,
managers or other workers; full-time or part-time; skilled or unskilled. People
are the most valuable asset of any business. The way that they work will
have a direct effect on the success or failure of the business. The recruitment,
selection and training of workers is an important function of human resource
management. You will learn the importance of having a well-trained workforce
and how managers might use theories of motivation to ensure that workers
produce maximum output of the highest quality.
As a business grows it will need to have a clear organisational structure
with effective managers and leaders. You will learn about the functions of
management and the importance of different leadership styles. In many
countries workers benefit from membership of a trade union who will
negotiate on their behalf with management to achieve better pay and working
conditions.
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In this chapter you will
learn about:
■
why people work
■
the meaning and importance
of motivation in the workplace
■
key motivational theories
■
financial and non-financial
methods of motivation.
Why do you come to school? Do you use both your time and resources well? How hard
do you work at your studies? What will make you work harder? Do you work harder
in some subjects than you do in others? Why do you work harder and more efficiently
in some subjects than in others? If you know the reasons why, then could this help
to improve the way you work in all of your subjects? These questions are similar to
questions that may be asked of people at work. Just as your teachers want you to
work hard and efficiently, so too do the managers of workers. Managers want to be
able to motivate workers so that they produce as many good quality products as they
can during their time at work.
E
Objectives
Introduction
In this chapter you will study why people work and what motivates them to work.
A well-motivated employee is likely to work harder and more efficiently and enjoy
what they do than an employee who has no interest in their job. So you will also
learn about people who have studied motivation at work and how this can help
managers and businesses achieve a well-motivated workforce.
PL
6
Motivating workers
The importance of a well-motivated workforce
Why people work and what motivation means
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People working in an off ice
KEY TERM
Motivation: the factors that
influence the behaviour of
workers towards achieving set
business goals.
Motivation at work results from a combination of factors such as money, job
security, how interesting the work is and promotion prospects. These factors
encourage workers to be interested and committed to their job so that they work
harder and more efficiently.
If you ask people why they work, most will answer ‘to earn money’ so they can
buy what they need to live. But there are many other reasons that motivate people
to work. Some of the most important factors to influence motivation at work are
shown in Figure 6.1.
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Section 2 People in business
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IGCSE Business Studies
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Figure 6.1 Factors that influence motivation at work
EXPLORE!
The questionnaire below lists some of the most important reasons why people work and factors that influence people’s motivation
at work.
1
Using the questionnaire, survey five people you know who work. You might need to explain what is meant by motivation.
2
When everyone in the class has collected their results these can be combined into one results table. If your class is very large, then
work in groups of 6–8 and combine results. (If you have access to computers, then use a spreadsheet as this will make it easier to
complete tasks 3 and 4).
3
For each question calculate the average score. For example if five people in the survey gave the following scores 3, 4, 5, 3, 5 in
response to a statement in the questionnaire, then the average score would be:
(3+4+5+3+5) 20
=
=4
5
5
4
Using the average score for each question, produce a bar chart to compare the importance of each factor in influencing motivation
at work.
5
Using the survey results and your analysis and presentation of these, write a short report explaining the importance of different
factors on influencing motivation at work.
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5: Business objectives and stakeholder
6: Motivating
objectives
workers
Questionnaire: Factors that motivate people at work
On a scale of 1 to 5, with 5 being very important
and 1 being not important, how would the following
factors increase your motivation at work?
Results of survey of five people
A
B
C
D
E
Increased pay
Chance of promotion
Recognition by managers for a job well done
E
Option to work from home
Training to help improve job prospects
Longer holidays, better pensions, staff discounts
Option to work flexible hours
Bonus based on targets
Increased variety of tasks
KEY TERMS
Benefits of a well-motivated workforce
A well-motivated workforce will help a business to achieve its objectives. Wellmotivated workers will want to work efficiently and produce quality goods and
services for customers. Motivated workers will increase labour productivity and this
will help a business to reduce average costs and increase competitiveness. Workers
who are motivated will enjoy going to work, are less likely to take days off – ensuring
a low rate of absenteeism – or to leave the business. A lower labour turnover will
reduce recruitment costs. A well-motivated workforce is easier to manage and will
want to work with management to help improve the business. The main benefits to a
business of having a well-motivated workforce are shown in Fig 6.2.
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Labour productivity: a measure
of the efficiency of workers by
calculating the output per worker.
PL
Improved work environment – cleaner and safer
Absenteeism: workers’ nonattendance at work without
good reason.
Labour turnover: the rate at
which workers leave a business.
73
Improved
productivity
Recruitment costs: see
Chapter 8, page 107.
More
competitive
Benefits of
having a
well‐motivated
workforce
Better
quality goods
and services
Low rate of
absenteeism
Low rate of
labour
turnover
Figure 6.2 The benefits to business of a well-motivated workforce.
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IGCSE Business Studies
Section 2 People in business
ACTIVITY 6.1
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Zhengdong HuPeng Automobile Fittings Ltd (ZHAF) is a Chinese manufacturer of electronic components used in the car
industry. It was founded by Hu Peng 15 years ago. Many of the company’s workers have worked for the company all of their
working lives. Two years ago Hu Peng retired and the company is now run by his son Bo, who has a degree in Business
Management and worked for several manufacturing companies before joining ZHAF.
Bo believed that ZHAF had not been working efficiently for several years and that is why it was less profitable than its
competitors. First, he introduced new machinery. ZHAF now produces more car parts with fewer workers. Six workers were
made redundant. Other workers were trained to use the new machinery, but they find the work boring. They liked their work
when it had more variety and they used their skills.
Next, Bo looked at the workers’ wages. The employees at ZHAF earned a higher wage than that offered by similar
businesses. Bo felt that some employees were paid too much because they did not produce as many items as other, more
hard-working employees. He introduced a new pay system. Many workers did not receive a pay rise. However, they can earn
a bonus if they meet production targets set by Bo. Workers say that the targets are too high to achieve. Their pay is now
lower than that of similar businesses.
In the past six months many workers have left the business, and absenteeism is at an all-time high. Production levels
have fallen while customer complaints about late deliveries and poor quality have risen.
PL
1 Identify factors that suggest workers at ZHAF have become less motivated since Bo took over control of the business.
2 Discuss the possible reasons that have caused the workers at ZHAF to become less motivated.
3 What does this case study tell you about the importance of having a well-motivated workforce?
4 Do you think the new pay system introduced by Bo will motivate workers? Justify your answer.
74
The concept of human needs – Maslow’s Hierarchy
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Abraham Maslow identified the main needs of humans. These are shown in
Maslow’s Hierarchy of Needs – see Figure 6.3.
SELF‐ACTUALISATION Reaching one’s potential ESTEEM NEEDS
Respect from others,
recognition for a job well
done, status
SOCIAL NEEDS
Friendship, accepted, belonging to a group SAFETY NEEDS
Health and safety at work, job security, free from threats PHYSICAL NEEDS
Water, food, shelter, clothing and rest Figure 6.3 Maslow’s Hierarchy of Needs
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5: Business objectives and stakeholder
6: Motivating
objectives
workers
Maslow believed that humans have five levels of need:
■
■
■
PL
■
Physical needs – these are the basic needs we must have to be able to survive. They
include water, food, shelter, clothing and rest.
Safety needs – we need to be safe from physical danger and individuals need to
know that they have job security.
Social needs – most people want to be accepted by others and to feel that they
are loved and trusted. It is important to have friends and belong to a group where
social activities can be shared and enjoyed together.
Esteem needs – individuals want to be respected and to have their achievements
recognised by others. For some people having a certain status is also an important
need.
Self-actualisation – not everyone will reach their full potential, but for some
individuals it is a very important need. Even the most successful people rarely
achieve self-actualisation because they will always set themselves another
challenge.
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■
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According to Maslow, all humans start at the lowest level of need – physical needs.
Once they have satisfied their physical needs, then they are motivated to try to
reach the next level – safety needs – and so on, until they reach the top level of
need – self-actualisation. Once a need has been satisfied it is no longer a motivator.
Maslow’s Hierarchy of Needs is important to managers because it is possible
for an individual to satisfy some, or all, of their needs at work. If managers want
to motivate workers then they have to organise work so that individuals are able to
satisfy their needs. If managers do this, and worker motivation is improved, then
this will increase business efficiency. Workers will produce more, better quality,
goods and services for customers. This will improve competitiveness and help to
reduce business costs and improve profitability.
However, there are some limitations of Maslow’s theory of motivation.
These include:
■
■
■
■
Contract of employment:
see Chapter 8, page 119.
It is often difficult to identify how much of each need has been met and which level
each worker is on.
Money might also satisfy esteem needs as well as those lower down the
hierarchy.
Not everyone has the same needs as those in Maslow’s Hierarchy.
Self-actualisation is rarely, if ever, achieved. Therefore, unless more challenging
tasks are always being provided, it is unlikely that work will help to satisfy this need.
There is the risk that if jobs are no longer challenging that the worker becomes
demotivated.
ACTIVITY 6.2
Each of the following could help an individual to achieve one of the needs identified by Maslow. Copy and complete the table
below by entering each of these into your table against the correct level.
1 Pay received is high enough to buy basic needs.
2 The manager praises workers.
3 Workers are given a contract of employment setting out their pay and working conditions.
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IGCSE Business Studies
Section 2 People in business
4 Workers are organised into teams or groups.
5 Workers are provided with protective clothing.
6 Work is challenging.
7 The business is very profitable.
8 Workers are given responsibility for completion of tasks.
9 Workers are given free meals at work.
10 Workers are given the opportunity to develop new skills to increase their potential.
11 Workers are given the opportunity for promotion.
13 Workers receive payment during periods of illness.
14 Respect from other workers.
15 Workers are trained how to use equipment correctly.
Physical needs
Safety needs
Social needs
Esteem needs
Self-actualisation
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How a business helps individuals to satisfy their needs
PL
Level of need
E
12 Social activities are organised for workers.
Key motivational theories: Taylor and Herzberg
Many researchers have carried out studies to try to find out what motivates people
at work. These studies have produced a number of motivational theories. Many of
these theories have identified that individuals are motivated by the wish to satisfy
‘needs’. You have already seen how Maslow’s research described these needs. You
are now going to learn about the work of other motivational theorists and how their
studies may help management to motivate workers.
KEY TERMS
The theory of economic
man: the view that humans are
only motivated by money.
Piece-rate: paying workers for
each unit produced.
F. W. Taylor – scientific management theory
Taylor’s scientific management theory aims to reduce inefficiency in the workplace
by finding the quickest method of performing each task and then training all
workers to use this method. The scientific management approach is still used in
many countries today; for example workers involved in flow production specialise
in performing one task really well.
Taylor believed that workers were motivated by money alone. To get workers
to increase their efforts they had to be rewarded with more money. Th is is
sometimes known as the theory of economic man. The piece-rate method of
paying production workers developed from Taylor’s research. Workers are paid
a fi xed amount for every unit they produce. If workers are motivated by money
then they will work harder because the more units they produce the more they
will be paid.
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5: Business objectives and stakeholder
6: Motivating
objectives
workers
Flow production: see
PL
Chapter 15 page 209.
Figure 6.4 A flow production process
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Fredrick Herzberg – two-factor theory
Herzberg wanted to find out about the factors that motivated people at work. His
research identified two groups of factors which he called hygiene factors and
motivators. These factors are shown in Table 6.1.
KEY TERMS
Hygiene factors
Hygiene factors: the factors that
must be present in the workplace
to prevent job dissatisfaction.
■
Working conditions
■
The work itself
■
Relationship with others
■
Responsibility
Motivators: the factors that
influence a person to increase
their efforts.
■
Salary or wage
■
Advancement
■
Supervision
■
Achievement
■
Company policy and administration
■
Recognition of achievement
77
Motivators
Table 6.1 Herzberg’s two-factor theory
Hygiene factors
Working conditions – includes things such as how clean and safe the workplace
is and what facilities are provided for workers, for example washrooms, drinks
machines and canteen for meals.
2 Relationships with others – this factor considers the importance to a worker of
having good working relationships with other workers – the need for friendship and
to belong to a group – and a good relationship with managers – to be treated fairly
and with respect.
3 Salary and wage – Herzberg argued that people had to be paid enough to
encourage them to do a job, but money was not enough for them to want to do
the job well.
1
TOP TIP
Don’t assume that an increase
in pay automatically motivates
workers to increase output. There
may be other factors that cause
an increase in output.
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Section 2 People in business
IGCSE Business Studies
Supervision – this factor considers the importance of leadership style and how
closely workers are supervised.
5 Company policy and administration – these are the rules and procedures which
control and affect the way that workers work and their relationship with others
in the workplace.
4
KEY TERM
Job dissatisfaction: how
unhappy and discontent a person
is with their job.
According to Herzberg, hygiene factors must be present at a level which is
acceptable to workers to prevent job dissatisfaction. Improving hygiene factors
makes job dissatisfaction less likely, but will not motivate workers to work more
efficiently.
According to Herzberg, managers can use one or more motivators in order
to increase the motivation of workers. However, these motivators will not
work unless there is an acceptable level of hygiene factors to prevent job
dissatisfaction.
The effect of hygiene factors and motivators on worker satisfaction and
motivation is shown in Figure 6.5.
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TOP TIP
It is more important that you
can apply the ideas of different
theories to business situations
than to list all the findings.
PL
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Motivators
1 The work itself – the tasks that workers do are an important influence
on the motivation of workers. The work needs to be varied and challenging
and Herzberg suggested that this could be achieved by introducing job enrichment.
2 Responsibility – giving workers more responsibility for the tasks they perform,
for example allowing them to make decisions about their tasks. The manager is
showing that they trust workers and value their contribution.
3 Advancement – workers have the opportunity for promotion.
4 Achievement – workers need to feel that they have reached challenging goals.
5 Recognition of achievement – workers need to have their achievements recognised
by management and the other people they work with.
Workers are
dissatisfied
and
demotivated
Hygiene
factors
Workers
are not
dissatisfied
but are not
motivated
Motivators
Workers are
satisfied and
motivated
Figure 6.5 Hygiene factors and motivators
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5: Business objectives and stakeholder
6: Motivating
objectives
workers
ACTIVITY 6.3
The senior managers of Farook Fashions (FF) are concerned about the fall in productivity at one of its factories – Factory A.
The company’s Human Resources Director has produced the following data for last year.
Factory A
220
350
Average number of days’ absence per
worker
19
8
Number of workers who left
40
18
$126
$125
Average weekly wage
E
Average weekly productivity per worker
Average for FF’s
other factories
PL
Factory A employs 500 workers and is the oldest of FF’s factories. Workers in Factory A have often complained to the factory
manager about their poor working conditions compared to workers in FF’s other factories.
In a recent meeting when this issue was raised again, the factory manager said: ‘I do not understand why you keep
complaining about working conditions. You all have well-paid jobs. All factories are noisy and dirty places, this one is no
different.’ This was a typical comment from a manager who was not very well liked by the workers. He never showed any
interest in them. The only time he spoke to them was to give orders or to tell them off for breaking one of the many rules he
had introduced when he became manager 20 years ago.
1 Identify two factors that suggest workers in Factory A are less well motivated than in FF’s other factories.
2 Calculate the percentage of workers who left Factory A in the last year.
79
3 Do you think that money is the cause of poor motivation at Factory A? Justify your answer.
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4 How might the senior managers at FF use Herzberg’s two-factor theory to improve productivity at Factory A?
TEST YOURSELF
1 List, in the correct order from bottom to top, the five levels of need as identified by
Maslow.
2 Explain the difference between Herzberg’s motivators and hygiene factors.
KEY TERMS
Financial rewards: cash and
non-cash rewards paid to workers
which are often used to motivate
workers to increase their efforts.
Non-financial rewards:
methods used to motivate
workers that do not involve giving
any financial reward.
Methods of motivation
Managers can motivate workers in several ways. These can be divided into
financial rewards and non-financial rewards as shown in Figure 6.6, page 80.
Financial rewards and methods
The theorists we looked at earlier agree that money is an important reason why
people work. However, they do not all agree on how important money is as a
motivator. Taylor’s view of ‘economic man’, for example, argues that money is
the most important motivator, whereas Herzberg’s theory only sees money as
important for preventing job dissatisfaction, but not as a ‘motivator’.
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IGCSE Business Studies
Section 2 People in business
Methods of
Motivation
Non‐financial rewards
• Hourly wage rate
• Job rotation
• Salary
• Job enlargement
• Piece‐rate and commission
• Job enrichment
• Bonus schemes
• Quality circles
• Fringe benefits
• Team working
• Profit‐sharing
• Delegation
E
Financial rewards
Figure 6.6 Financial and non-financial methods of motivation
KEY TERM
Hourly wage rate
An hourly wage rate means that workers are paid a fi xed amount per hour worked.
The longer a worker is at work the more they get paid. For example, if a worker
is paid $5 per hour and works 40 hours in a week, then they will earn a wage of
$5 × 40 = $200.
This is the most common method of paying production workers and nonmanagerial staff.
The main advantage of this method is that the business only pays workers for
the number of hours they are at work.
However, the disadvantage is that workers’ pay is not linked to how much they
produce. For example one worker might produce an average of 20 units per hour
and another may produce 28 units per hour, but both workers will receive exactly
the same pay.
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Hourly wage rate: payment to
workers based on a fixed amount
for each hour worked.
PL
If money is an important motivator then managers need to consider how best to
use it to achieve a well-motivated workforce. The methods of financial rewards
identified in Figure 6.6 are explained below.
KEY TERM
Salary: fixed annual payment to
certain grades and types of staff
not based on hours worked or
output.
KEY TERM
Piece-rate: payment to workers
based on the number of units
produced.
Salary
With a salary, workers are paid a fi xed amount per year, which is usually paid
monthly. This method is best used for workers whose work effort is not directly
linked to production, for example supervisors, managers and professional staff.
The advantage of this payment method is that workers do not receive more pay
if they have to work longer hours to complete a task. The main disadvantage is that
salary is not linked to worker effort or the amount produced.
Piece-rate
Piece-rate means that pay is based on the number of units of output workers
produce. For example if a worker is paid $0.25 for every unit they produce, and they
produce 600 units in a week, then their wage will be $0.25 × 600 = $150. Piece-rate
systems are only used to reward production workers.
The main advantage of this method is that workers are only paid for the number
of items they produce. The main disadvantage is that the quality of goods produced
may be poor because workers try to work too quickly to increase their output and pay.
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5: Business objectives and stakeholder
6: Motivating
objectives
workers
KEY TERMS
Bonus: an additional reward
paid to workers for achieving
targets set by managers.
Performance-related pay:
a bonus scheme used to reward
staff for performing to the
required standard.
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ACTIVITY 6.4
Bonus scheme
A bonus scheme is a method of performance-related pay. Workers receive an
additional payment for achieving a target set by managers. This method can be
used to reward any individual worker or group of workers where a performance
target can be set by managers. If the targets set by managers are realistic then they
can motivate workers to work harder because they know they will receive a bonus.
The main advantage to businesses of this method is that it is linked to
performance targets. Workers are only awarded a bonus if they increase their
productivity. An increase in productivity will reduce average costs. The main
disadvantage is that if the targets set are unrealistic then workers could become
demotivated. Also, if the target is group-based and the target is reached, all workers
in the group will receive the bonus even if some have worked harder than others to
achieve the target. This could lead to conflict between members of the group.
E
Commission: payment to sales
staff based on the value of the
items they sell.
Commission
With commission, pay is based on the value of sales made by staff. This method is
only ever used to reward sales staff.
The main advantage of this method is that pay is linked to the value of goods
sold. The main disadvantage of this payment method to workers is that they are
never certain about how much they will earn. This may mean that they leave as
they cannot guarantee that they will earn enough to pay for their basic needs.
This might then become a disadvantage to the business because they will have to
spend more time and money on recruiting and training new workers.
PL
KEY TERM
81
The table below shows how the pay and average weekly output of workers at three different companies is calculated.
Company A
Company B
Company C
Hourly rate
$4.75
–
$4.50
Piece-rate
–
$0.10
–
Bonus based on producing more
than 1,900 units per week
$5
–
$15
Hours worked
40
40
40
1,850
2,000
1,950
Average weekly output per worker
1 Calculate the average weekly wage for a worker in each of the three companies. Show your workings.
2 Based on your results to question 1, which company would you choose to work for? Justify your answer.
KEY TERM
Fringe benefits: non-cash
rewards often used to recruit or
retain workers and to recognise the
status of certain employees.
Fringe benefits
Fringe benefits are an alternative to cash payments. They include discounts on
company products, company cars, health insurance and pensions received by the
workers in a business.
All workers could receive fringe benefits. It is more usual for different types
of fringe benefits to be linked to the individual’s status within the business.
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IGCSE Business Studies
Section 2 People in business
For example all workers might receive a discount if they want to buy the firm’s
products, but only managers receive a company car.
The main advantage of fringe benefits is that they can help in the recruitment
and retention of workers. The main disadvantage is that fringe benefits are often
linked to status and not performance.
TOP TIP
Focus on understanding how
different rewards may motivate
workers not just learning what the
different rewards are.
ACTIVITY 6.5
Read the two job adverts for vacancies at the same health and fitness company and then answer the questions that follow.
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E
Profit-sharing: an additional
payment to workers based on the
profits of the business.
Profit-sharing
Profit-sharing is an additional payment to all staff based on the profits of the business.
It is usually paid once a year. It may be in the form of a cash payment, calculated as a
percentage of a worker’s wage or salary, or workers may be given shares in the company.
It can be used to provide additional financial reward to all workers, or just
certain groups of workers. The argument for using profit-sharing to reward workers
is that everyone – from senior managers to production workers – has contributed to
the business earning the profit and they should all, therefore, share in the success.
The main advantage is that profit-sharing is directly linked to the performance
of the business. The better the performance, the higher the profit and the greater
the share of profits for workers.
The main disadvantage is that any profit given to employees might reduce the
dividends to shareholders or reduce the amount available to be reinvested into
the business.
PL
KEY TERM
Advert A
ications
Director of Commun
and Marketing
0+
Salar y package $100,00
ceptional
We are looking for an ex
sional to take forward
communications profes
g communications
an ambitious, far-reachin
a strong track record
strategy. You will have
marketing, excellent
in communications and
well-developed strategic
interpersonal skills and
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5: Business objectives and stakeholder
6: Motivating
objectives
workers
1 Identify the pay systems the businesses are using to recruit workers for these two jobs.
2 How much will the receptionist earn in a week if they work 40 hours?
3 Using Advert A, identify and explain the meaning of the term ‘fringe benefits’.
4 Why do you think the business in Advert A is offering fringe benefits, but the business in Advert B is not?
5 Choose one fringe benefit you think the company can offer to attract better quality applications for the receptionist
post? Explain your choice.
Non-financial rewards and methods
Job enlargement: increasing or
widening tasks to increase variety
for workers.
E
Job rotation: increasing variety
in the workplace by allowing
workers to switch from one task to
another.
Job rotation, enlargement and enrichment
■
■
■
Job rotation – instead of doing the same task, workers switch from one job to
another. This makes the work more interesting and helps prevent boredom.
Workers become multi-skilled, which helps create a more flexible workforce.
Job enlargement – workers are given a greater variety of similar-level tasks
to do. Their jobs become more interesting and, as with job rotation, this
reduces boredom.
Job enrichment – this method was developed from Herzberg’s research. Work is
organised so that workers are able to use more of their skills and abilities. They
often become more involved in decisions affecting their job. Workers feel more
valued by their employer and this increases their job satisfaction, efficiency and
motivation.
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KEY TERMS
PL
KEY TERMS
If Maslow and Herzberg are correct about money not being enough to motivate
workers, then managers need to consider non-financial methods of motivation.
The methods listed in Figure 6.6 are explained below.
Job enrichment: organising
work so that workers are
encouraged to use their full
abilities.
Job satisfaction: how happy
and content a person is with
their job.
Increasing the variety or difficulty of tasks workers do, using any of the above
methods, is known as job redesign. The aim of job redesign is to make the work
more interesting and more challenging for workers. It can also help them to learn
new skills which may help their chances of promotion.
ACTIVITY 6.6
Ever since the management of Company X increased automation and introduced new technology into the workplace,
production line workers have not been happy. Many have left and those that remain are less productive than they used
to be and absenteeism is much higher. Many of the workers no longer use their skills. The work is boring and does not
have the same level of interest or challenge for workers.
Company X has appointed a new operations manager, Eduardo. He has been told by the directors that he ‘must improve
productivity and reduce absenteeism and recruitment costs’. Eduardo thinks that job redesign is the solution to these
problems.
1 Identify two factors that may have caused motivation problems at Company X.
2 Identify and explain two benefits to Company X of improving worker motivation.
3 Do you think that Eduardo is right in thinking job redesign is the solution to the problems at Company X? Justify
your answer.
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KEY TERMS
Quality circles: groups of
workers who meet regularly to
discuss work-related problems.
Team-working: organising
production so that groups of
workers complete the whole unit
of work.
Delegation: passing
responsibility to perform tasks
to workers lower down in the
organisation.
Section 2 People in business
Quality circles
Quality circles are groups of workers who meet regularly to discuss work-related
issues. Workers come up with solutions to problems or suggest how improvements
can be made. The results of quality circles are presented to managers and good
ideas and solutions are introduced into the workplace. This approach is similar to
Herzberg’s ‘responsibility’ motivator.
Team working and delegation
■
■
Delegation: see Chapter 7,
PL
page 92.
Team working – production workers are organised into groups or teams
and are given the responsibility for the completion of the whole task. For
example, a team of workers might be responsible for the production of a
complete car engine instead of individual workers completing just one small
part of it.
Delegation – this involves managers passing authority for the
performance of tasks to lower-level workers. It is often combined with
empowerment – for example, allowing workers to make decisions about
how tasks are performed.
E
IGCSE Business Studies
ACTIVITY 6.7
Work in pairs to discuss the method(s) you think might be the most appropriate for motivating workers in each of the
following circumstances.
84
1 A shop assistant who works in a large fashion outlet.
SA
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2 Workers on a production line where the level of faulty products has increased over the past three months.
3 A pizza delivery driver.
4 A marketing manager for a shoe manufacturer.
5 Someone who works as a bank cashier.
6 A car salesman.
7 A farm labourer.
8 A young university graduate who has worked for a company for 12 months.
9 Staff who work in the Research and Development Department of a cosmetics manufacturer.
10 A teacher in your school or college.
Choosing methods of motivation
We have seen that managers can use different methods to motivate workers.
However, there is no ‘best’ method of motivation. Managers must choose the
method that they think is best to motivate different types of worker. They may
consider the following factors when choosing which method to use:
■
What is the cost to the business of using a particular method? Every method we
have discussed above will increase costs. Can the business afford it? Will the
benefit to the business of motivating workers be greater than the increase in costs
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PL
E
5: Business objectives and stakeholder
6: Motivating
objectives
workers
Figure 6.7 A quality circle
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of doing so? For example, using job redesign to improve motivation might reduce
the absenteeism of workers or reduce the number leaving the business. This will
improve productivity and reduce recruitment costs. If this cost-saving is greater
than the costs of redesigning jobs, then it has been a success.
Some methods of motivation can only be used for certain types of workers; for
example piece-rate system is only suitable for production workers.
A method of motivation which works for one worker or group of workers, may not
work for other workers. For example, some workers might be motivated by higher
pay for working longer hours, but others might be satisfied with lower pay and
longer leisure hours.
■
■
TEST YOURSELF
1 Using examples, explain the difference between financial and non-financial
methods of motivation.
2 What is the difference between job rotation and job enrichment?
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IGCSE Business Studies
Section 2 People in business
ACTIVITY 6.8
1 What is meant by ‘working conditions’?
2 What is meant by ‘performance-related bonus’?
E
Muzmed Footwear Company (MFC) is a manufacturer of ladies’ fashion shoes in India. The company employs 200, mainly
female, workers. Each worker is skilled in one part of the production process; for example ten workers cut out the shape of
the soles for shoes from sheets of leather or rubber. All workers involved in the production of shoes are paid using the piecerate system.
Recently another footwear manufacturer has opened a factory in the same area as MFC. This factory is very modern and
offers workers better working conditions than those offered by MFC. They pay workers an hourly rate, plus a performancerelated bonus.
Some workers have already left MFC to work for this new competitor. The owner of MFC is worried that he is going to lose
more of his skilled workers to this new competitor company.
3 Identify and explain one advantage and one disadvantage to MFC of its workers being skilled in one part of the
production process.
4 Identify and explain two reasons why workers might be leaving MFC to work for the new competitor?
PL
5 The owner of MFC is considering changing the way he pays his workers. Do you think this is a good idea? Justify
your answer.
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M
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6: Motivating workers
Revision checklist
Exam practice questions
●
Many factors which motivate people to work
were identified by the research of Taylor,
Maslow and Herzberg.
●
Financial and non-financial motivation
methods can be used to make sure a
business has a well-motivated workforce.
1 The diagrams below show the payment received by
workers in two manufacturing companies, Company A
and Company B.
Company A is a manufacturer of televisions. The number of
televisions produced by the workforce during the past four
weeks were 270, 240, 280 and 250.
E
Company B are manufacturers of pottery items. Workers do
not require any special skills to complete their tasks. Many
workers leave before completing one year of employment
with the company.
PL
Company A pays workers based on an hourly rate. Workers
work an average of 40 hours per week.
In addition to their wage, Company B provides all workers
with fringe benefits.
TOP TIPS
Information in examinations
might be presented in the form
of diagrams. Make sure you
understand what such diagrams
show.
$200
Company B
Average weekly wage
Average weekly wage
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Company A
Output per week
87
Output per week
a What is meant by ‘fringe benefits’?
[2]
b Calculate the hourly rate Company A pays its workers. [2]
c Identify and explain the method of payment
Company B uses to reward its workers.
[4]
d Identify and explain two financial methods
Company A could use to improve the motivation
of its workers.
[6]
e The management of Company B believes that money
is the only way to motivate workers. Do you agree?
Justify your answer.
[6]
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IGCSE Business Studies
Section 2 People in business
2 ABC is a candy manufacturer. It employs 50 workers.
Workers are paid $150 per week based on a 40-hour week.
Workers also receive a bonus if they reach production targets
set by management.
The factory manager receives a salary of $30,000 per year
plus a company car. All managers at ABC are part of a profitsharing scheme. They also receive private health insurance.
The motivation of production workers is low. They leave the
company after an average of only 16 months.
[2]
b What is meant by the term ‘motivation’?
[2]
c Identify and explain two benefits to ABC of offering
fringe benefits to its managers.
[4]
d Identify and explain how any two non-financial
methods of motivation might be used by ABC to
improve the motivation of production workers.
[6]
e Do you think that the production workers should
receive the same fringe benefits and share of profits
as the factory manager? Justify your answer.
[6]
PL
E
a What is meant by the term ‘bonus’?
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Total available marks 40
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