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People in business

IGCSE Business Studies · Topic 2

Train
2.1

Why motivation matters

Syllabus
  1. explain why a well-motivated workforce is important (productivity, low absenteeism, low labour turnover)
  2. outline motivation theories: Taylor (money), Maslow (hierarchy of needs), Herzberg (hygiene factors and motivators)
  3. describe financial methods of motivation: wage (time/piece rate), salary, commission, bonus, profit sharing, fringe benefits
  4. describe non-financial methods: job rotation, job enrichment, job enlargement, autonomy, teamworking, training, opportunities for promotion

Source: Cambridge International syllabus

Maslow's hierarchy of needs drawn as a five-level pyramid Maslow's hierarchy of needs, with workplace examples at each level.

Motivated workers work harder, giving higher output Motivated workers work harder, raising output

Motivation 激励 is the drive that makes people want to work hard. A well-motivated workforce 员工队伍 — all the employees 员工 in a business — brings real benefits:

  • higher productivity 生产率 — each worker produces more,
  • lower absenteeism 缺勤 — fewer workers stay away from work,
  • lower labour turnover 员工流动率 — fewer workers leave, so the business spends less time and money hiring and training new staff.

Motivation theories

Three thinkers explain what makes workers work hard.

Thinker Main idea
Taylor Workers are mainly motivated by pay. Pay them more for more work (piece rate) and they work harder.
Maslow People have a hierarchy of needs 需求层次: five levels, from basic pay and safety up to respect and reaching your full potential. You must meet the lower needs before the higher ones can motivate.
Herzberg Two groups of factors. Hygiene factors 保健因素 (pay, conditions, rules) do not motivate, but poor ones cause unhappiness. Motivators 激励因素 (achievement and responsibility) truly drive people to work harder.

Five-level pyramid of Maslow's needs, widest at the bottom (physiological) up to the apex (self-actualisation) Maslow's hierarchy: people meet lower needs before higher ones

Financial methods of motivation

These reward workers with money.

Method What it means
wage 工资 regular pay, often by the hour or week
time rate 计时工资 pay for each hour worked
piece rate 计件工资 pay for each item made
salary 薪金 a fixed yearly amount, paid monthly
commission 佣金 pay based on how much you sell
bonus 奖金 an extra payment for good work
profit sharing 利润分享 workers get a share of the company's profit
fringe benefits 额外福利 extras like a company car, free meals or health care

Worked example. A factory pays a piece rate of £3 per item. Anya makes 210 items in a week. Ben is on a time rate of £12 per hour for a 40-hour week. Who earns more, and what risk does the piece rate carry? Anya earns 210 × £3 = £630. Ben earns 40 × £12 = £480, so Anya earns £150 more. But paying for each item made tempts workers to rush, so quality may fall and more items are rejected - which is why a piece rate usually has to be paired with quality checks. Show the calculation, then judge it: a question that asks who earns more and for an evaluation gives marks for the number and for the drawback.

Non-financial methods of motivation

These motivate without extra money.

  • job rotation 工作轮换 — workers switch between different tasks, so work is less boring.
  • job enlargement 工作扩大化 — adding more tasks at the same level.
  • job enrichment 工作丰富化 — giving more challenging tasks and more responsibility.
  • autonomy 自主权 — letting workers make some of their own decisions.
  • teamworking 团队合作 — working in small groups.
  • training 培训 and chances for promotion 晋升 — helping workers improve and move up.
Explore

Maslow's hierarchy of needs

People are motivated by a ladder of needs — a business motivates staff by helping them up it.

Vocabulary Train
English Chinese Pinyin
motivation 激励 jī lì
workforce 员工队伍 yuán gōng duì wǔ
employees 员工 yuán gōng
productivity 生产率 shēng chǎn lǜ
absenteeism 缺勤 quē qín
labour turnover 员工流动率 yuán gōng liú dòng lǜ
hierarchy of needs 需求层次 xū qiú céng cì
hygiene factors 保健因素 bǎo jiàn yīn sù
motivators 激励因素 jī lì yīn sù
wage 工资 gōng zī
time rate 计时工资 jì shí gōng zī
piece rate 计件工资 jì jiàn gōng zī
salary 薪金 xīn jīn
commission 佣金 yòng jīn
bonus 奖金 jiǎng jīn
profit sharing 利润分享 lì rùn fēn xiǎng
fringe benefits 额外福利 é wài fú lì
job rotation 工作轮换 gōng zuò lún huàn
job enlargement 工作扩大化 gōng zuò kuò dà huà
job enrichment 工作丰富化 gōng zuò fēng fù huà
autonomy 自主权 zì zhǔ quán
teamworking 团队合作 tuán duì hé zuò
training 培训 péi xùn
promotion 晋升 jìn shēng
2.2

Organisation and management

Syllabus
  1. draw and interpret simple organisational charts; explain hierarchy, chain of command, span of control and delayering
  2. explain the role and functions of management (planning, organising, coordinating, commanding, controlling)
  3. describe leadership styles: autocratic, democratic and laissez-faire, and when each is appropriate
  4. explain the role of trade unions in business

Source: Cambridge International syllabus

Managers in a business meeting Managers organise and lead the workforce so the business meets its objectives.

Organisational charts

An organisational chart 组织结构图 is a diagram that shows how a business is organised — who reports to whom. It shows several ideas:

  • hierarchy 层级 — the levels of staff, from the top down.
  • chain of command 指挥链 — the line along which orders pass down from managers to workers.
  • span of control 管理幅度 — the number of subordinates 下属 (people directly below) that one manager controls.
  • delayering 扁平化 — removing one or more levels to cut costs and speed up messages.

A long chain of command (a "tall" structure) slows messages down. A wide span of control gives one manager many people to watch.

Organisation chart with a director over two managers, each in charge of three workers, marking the chain of command and a manager's span of control An organisation chart shows the chain of command and each manager's span of control

Functions of management

The five main jobs (functions) of management 管理 are:

  • planning 计划 — setting aims and deciding how to reach them,
  • organising 组织 — arranging people and resources,
  • coordinating 协调 — making different parts work together,
  • commanding 指挥 — giving instructions and guiding staff,
  • controlling 控制 — checking that targets are met.

Leadership styles

A leadership style 领导风格 is the way a manager leads people.

Style How it works Best when
autocratic 专制型 the leader decides alone and gives orders a crisis, or with new and untrained staff
democratic 民主型 the leader asks staff for ideas before deciding staff are skilled and want a say
laissez-faire 放任型 the leader sets goals, then lets staff work freely creative, expert teams

Trade unions

A trade union 工会 is a group of workers who join together to protect their shared interests. A union can bargain for better pay and conditions, support a worker in a dispute, and push for safer work.

Explore

Choose the ownership form

Compare ownership, control and liability in real business types.

Vocabulary Train
English Chinese Pinyin
organisational chart 组织结构图 zǔ zhī jié gòu tú
hierarchy 层级 céng jí
chain of command 指挥链 zhǐ huī liàn
span of control 管理幅度 guǎn lǐ fú dù
subordinates 下属 xià shǔ
delayering 扁平化 biǎn píng huà
management 管理 guǎn lǐ
planning 计划 jì huà
organising 组织 zǔ zhī
coordinating 协调 xié tiáo
commanding 指挥 zhǐ huī
controlling 控制 kòng zhì
leadership style 领导风格 lǐng dǎo fēng gé
autocratic 专制型 zhuān zhì xíng
democratic 民主型 mín zhǔ xíng
laissez-faire 放任型 fàng rèn xíng
trade union 工会 gōng huì
2.3

Recruitment, selection and training

Syllabus
  1. describe the recruitment process: job analysis, job description and person specification
  2. compare internal and external recruitment and selection methods (application forms, CVs, interviews, tests)
  3. describe types of training: induction, on-the-job and off-the-job, and their benefits/limitations
  4. explain why a business may need to reduce its workforce (redundancy and dismissal) and the legal controls over employment

Source: Cambridge International syllabus

A workplace full of staff at workstations A business must recruit, train and motivate enough people with the right skills.

The recruitment process

Recruitment 招聘 is finding and attracting people to apply for a job. Selection 选拔 is choosing the best person from those who apply. The process starts with three documents:

  • job analysis 工作分析 — studying what the job involves,
  • job description 工作描述 — a list of the duties and tasks of the job,
  • person specification 人员规格 — the skills, qualities and qualifications the right person needs.

Recruitment flow: job analysis, then job description, then person specification, then advertise the job, then select the best person The steps of recruitment and selection, from analysing the job to choosing the best person

Internal and external recruitment

  • Internal recruitment 内部招聘 fills the job with someone already in the business. It is cheaper and quicker, and the person is already known, but it brings in no new ideas.
  • External recruitment 外部招聘 fills the job from outside. It brings new ideas and skills, but it costs more and takes longer.

Common selection methods include the application form 申请表, the CV 简历 (a short summary of a person's education and work history), the interview 面试, and skills tests 测试.

Training

Training improves workers' skills. There are three main types.

  • induction training 入职培训 — given to new workers, to learn about the business and their role.
  • on-the-job training 在职培训 — learning while doing the job, beside an experienced worker.
  • off-the-job training 脱产培训 — learning away from the workplace, for example at a college.
Type Benefits Limitations
on-the-job cheap; uses real tasks the trainer stops their own work; bad habits can pass on
off-the-job expert teaching; no work distractions costs more; the skills may not fit the exact job

Reducing the workforce

Sometimes a business must cut staff numbers.

  • Redundancy 裁员 — the job is no longer needed, for example because a machine now does it. It is not the worker's fault.
  • Dismissal 解雇 — the worker is removed for a good reason, such as breaking rules or poor work.

Most countries have employment laws 劳动法 that protect workers. They cover a fair contract of employment 雇佣合同, safe conditions, fair pay, and protection from being sacked unfairly.

Explore

Human resources decision lab

Classify HR actions by the job they do inside the workforce.

Vocabulary Train
English Chinese Pinyin
recruitment 招聘 zhāo pìn
selection 选拔 xuǎn bá
job analysis 工作分析 gōng zuò fēn xī
job description 工作描述 gōng zuò miáo shù
person specification 人员规格 rén yuán guī gé
internal recruitment 内部招聘 nèi bù zhāo pìn
external recruitment 外部招聘 wài bù zhāo pìn
application form 申请表 shēn qǐng biǎo
CV 简历 jiǎn lì
interview 面试 miàn shì
tests 测试 cè shì
induction training 入职培训 rù zhí péi xùn
on-the-job training 在职培训 zài zhí péi xùn
off-the-job training 脱产培训 tuō chǎn péi xùn
redundancy 裁员 cái yuán
dismissal 解雇 jiě gù
employment laws 劳动法 láo dòng fǎ
contract of employment 雇佣合同 gù yōng hé tóng
2.4

Communication

Syllabus
  1. explain the importance of effective communication and the features of good communication
  2. compare one-way and two-way communication and internal and external communication
  3. describe communication methods and barriers to effective communication and how to reduce them

Source: Cambridge International syllabus

Why communication matters

Good communication 沟通 means information is sent, received and understood correctly. It helps workers know what to do, cuts mistakes, and makes people feel valued.

The communication process has five parts: a sender 发送者, a message 信息, a medium 媒介 (the way it is sent), a receiver 接收者, and feedback 反馈 (the receiver's reply, which shows the message was understood).

The communication process: a sender passes a message through a medium to a receiver, and feedback returns from the receiver to the sender The message flows from sender to receiver, and feedback confirms it was understood

Types of communication

  • One-way communication 单向沟通 — information flows in one direction only, with no reply (for example, a public notice).
  • Two-way communication 双向沟通 — the receiver can reply and give feedback. It is usually better, because it checks understanding.
  • Internal communication 内部沟通 — between people inside the business.
  • External communication 外部沟通 — between the business and outside people, like customers 顾客 or suppliers 供应商.

Barriers to communication

A communication barrier 沟通障碍 is anything that stops a message getting through clearly. Common barriers include:

  • a message that is too long or unclear,
  • a poor medium, such as a weak phone line,
  • language differences between sender and receiver,
  • a receiver who is not paying attention.

To reduce barriers: keep messages short and clear, choose the right medium, and ask for feedback to check the message was understood.

Explore

Communication route lab

Watch a message move from sender to feedback and see where noise can enter.

Vocabulary Train
English Chinese Pinyin
communication 沟通 gōu tōng
sender 发送者 fā sòng zhě
message 信息 xìn xī
medium 媒介 méi jiè
receiver 接收者 jiē shōu zhě
feedback 反馈 fǎn kuì
one-way communication 单向沟通 dān xiàng gōu tōng
two-way communication 双向沟通 shuāng xiàng gōu tōng
internal communication 内部沟通 nèi bù gōu tōng
external communication 外部沟通 wài bù gōu tōng
customers 顾客 gù kè
suppliers 供应商 gōng yìng shāng
communication barrier 沟通障碍 gōu tōng zhàng ài
2.4

Exam tips

  • Link motivation to its benefits: higher productivity, lower absenteeism, and lower labour turnover.
  • Match each theory: Taylor (pay / piece rate), Maslow (a hierarchy of needs — lower needs before higher), Herzberg (hygiene factors stop unhappiness; motivators drive real effort).
  • Separate financial methods (wage, piece rate, salary, commission, bonus) from non-financial ones (job rotation, job enlargement, job enrichment, autonomy).
  • On an organisation chart, know the chain of command (the line orders travel down) and the span of control (how many people report to one manager).
  • Distinguish redundancy (the job is no longer needed — not the worker's fault) from dismissal (the worker is removed for a reason such as breaking rules).

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