B120 MTA Revision

Questions
Question 1
Define “Business" illustrating the followings:
 
a. Tools for exploring internal and external
environment.
b. Different types of business structure.
c. Internal and external stakeholders
D. Employee Expectations and psychological contract
Business enables objectives to be achieved through the
interaction of individuals. All businesses have three
common factors: people, objective and structure.
Although every business is different, there are
common characteristics that can be used to identify a
business.
Businesses can be categorized in terms of the sector
they belong to : public or private. They are also
categorized according to their objectives: profit or
non- profit.
a. External environment can be analyzed using the
STEEP model. It stands for sociological, technological,
economic, environmental and political.
SWOT is an analysis tool that provides an overview of
the organization's internal and external environments.
It stands for strength, weaknesses, opportunities and
threats. Strengthes and weaknesses are related to the
internal environment. Opportunities and threats are
related to the external environment.
 b. A business might be structured by:
 
- function
- product
- service
- geography
c. Stakeholders are people or groups who have an
interest in the activities of the business and other
organisations in the society.
 Internal stakeholders include employees,
shareholders, managers, directors and trustees.
External stakeholders include customers, suppliers,
competitors, funders and authorities.
D. Employee Expectations and psychological
contract
is unwritten contract between the employer and the
employee.
It concerned with expectations, obligations and
promises that both parties believe have been made
with regard to what each owes and expects to receive
from the other. It should be linked to outcomes such
as positive employment relations, employee
commitment, motivation and job satisfaction which
will lead to a better motivational environment.
Question 2
a) Define Entrepreneurship.

b) Discuss motivation factors that derive entrepreneurs.

a) Entrepreneurship is the activity of entrepreneur. It
involves people who are considered as a risk-taker, who
create new products, services, process and markets.
b) Key motivational aspects of the would-be
entrepreneurs:
More freedom
Make money
Be my own boss
Gain more respect
Dissatisfied with job
Need a job
More of a challenge
Lead and motivate others
Family tradition
Implement and idea or innovation
Question 3
a) Define HRM highlighting the difference between
HRM and personnel management.

b) Define psychological contract providing proper

example
a) HRM is that an organisation gains competitive
advantage by using its people effectively, drawing on
their expertise and ingenuity to meet clearly defined
objectives. The major difference is that personnel
management rarely central to business strategy, while
HRM is directly linked to business objectives.
b) The psychological contract between the employer and
the employee differs from a written employment
contract in that it is concerned with implicit
expectations, obligations and promises that both
parties believe have been made with regard to what
each owes and expects to receive from the other. This
contract should be linked to outcomes such as positive
employment relations, employee commitment,
motivation and job satisfaction. This will lead to a
better motivational environment.
Question 4
 
“Achieving the strategic objectives of the business
require some monitoring of current performance and
future potential of individuals”. Based on your
understanding of this statement answer the following:
 
a) Define performance management.
b) Explain the process of performance appraisal
outlining why it is important for businesses.
a) Performance management is a crucial aspect of HRM.
It involves the process of linking employees’ activities and
outputs to business goals. Achieving business objectives
requires monitoring employee performance. Performance
management can be achieved by ensuring that staff are
motivated, pursuing common goals, have knowledge &
skills to do their job properly. Assessing and appraising an
employee performance would address any shortfalls and
make the link with rewards where appropriate. The key to
manage & develop staff performance is to have a clear idea
of what job holder needs to do to be effective. Employees
need to know how they are performing and the
opportunity to develop new skills.
 b) The appraisal formalizes the feedback and
performance assessment that has already take place,
looking back and reviewing performance and looking
forward to future opportunities. It has benefits to the
individual, the manager and the business. Effective
performance depends on:

clarity of objectives
professional training and development
motivation
Objective quantitative standards of performance
 
Quantitative standards may involve numerical targets,
timescale and deadlines, amounts, costs and resource
usage.
However, it could be argued that some objectives are
not easily described in a single testable measure ( Ex.
customer satisfaction if it is to be the basis for a reward
Another difficulty is that with objective quantitative
measures may not be as robust (strong) as they appear
and are in reality, quite subjective. (ex: profitability
measures)
Subjective, qualitative standards of performance
 
Qualitative standards require more subjective judgment
about whether or not they are met.
Subjective measures are just as important as objective
ones, but are associated with a variety of problems.
When assessing, a person social influences and personal
preferences invariably come into play.
It may be that you get on better with a particular person
or that you know more about their personal
circumstances.
Judgments may also reflect ethnicity, gender, appearance
or personal biases rather than pure performance.
Employee performance appraisal entails the
identification for a set of standards and which can be
difficult to define and apply consistently. Some aspects
of performance lend themselves to the setting of clear
quantitative targets, while others may be more
subjective and require qualitative judgment.
Question 5
Finding the right people to work for the business is
usually the responsibility of the HRM function.
Identify and discuss the THREE methods of
selecting potential employees for a business
The main methods of selecting potential employees
for a business are:

Interviews: The aim of the selection interview is to

determine whether the candidate is interested in the
job and competent to do it. It is also used to explain
the work of both the business and the job and to
establish expectations on both sides. In terms of being
a two way process, it is also a chance for the applicant
to assess whether they want the job offered. Interviews
are often criticized as being too subjective: individual
biases and prejudice get in the way of an objective
assessment of an individual’s abilities.
 
Tests: There are various types of tests and ways in
which they might be used as part of the selection
process. Tests can be used to measure aptitude, such as
competence in literacy or numeracy, or personality
(often called psychometric tests). Tests and their
results are likely to form a part rather than the whole
of a selection process as they provide quantitative but
not qualitative information about an individual. They
are often used in an attempt to reduce some of the
inherent subjectivity of the interview method.
Assessment Centre: This is a process, rather
than a place, which uses a number of selection
techniques in combination. Assessment centres
help those selecting candidates to see their
abilities from a number of different angles: for
example, interpersonal skills in a panel
interview or role play exercise, team-working
skills in a group activity, IT competence (if
appropriate) in a computer simulation.
Question 6
Explain the difference between induction and
socialization
Induction is usually something quite specific like a
short course or meeting the individuals with whom
the newcomer will be working. An induction program
is usually short term and includes the more obvious
and practical business such as the provision of a job
description, safety procedures, grievance and
discipline policies, and an internal telephone and
email directory
Socialization is more long term and less tangible. It is
an ongoing process of understanding in terms of how
the newcomer makes sense of the business and their
role within it. It is much more about the unwritten
rules of business (referred to as the organizational
culture) as the formal procedures
Question 7
Explain how a SWOT analysis may be useful for a
business in understanding both its internal and
external environments (8 Marks). Support your
answer with examples (2 Marks)
SWOT stands for strengths, weaknesses, opportunities
and threats. An analysis of these gives the business an
overview of its position in relation to its external
environment. The strengths and weaknesses of a business
arise from its internal environment; that is, resources and
their use, structure, culture, and the different business
functions. Which strengths a business decides to build
upon and which it seeks to minimize depends on the
impact of opportunities and threats from the external
environment. Once the external influence on a business
have been identified, they can then be judged to be either
a threat or an opportunity and can be dealt with, or taken
advantage of, as appropriate. ( Mention examples for
strengths, weaknesses, opportunities and threats. )
Question 8
Identify and Explain the FIVE dimensions of
business structure (15 Marks).
The following dimensions (factors) are helpful in
identifying the type of structure within a business and
the reasons for it:
Specialization: the extent to which specialized tasks and roles
allocated to individuals who work in the business.
Standardization: the extent to which a business has standard
procedures.
Formalization: the extent to which rules, procedures,
instructions and so on are written down or formalized.
Centralization: the extent to which decision making and
authority are located at the top of the hierarchical structure
and/ or at the centre of the business if there is more than one
site.
Configuration: the shape of the role structure, whether the
chain of command is long or short
Question 9
Define business ethics. Explain the FOUR
perspectives of the responsibilities of business in
society .
Business ethics can be described as the study of how
we ought to conduct business; the study of what
makes certain actions within the business context the
right, rather than the wrong, thing to do, from a value-
based perspective. It often involves making choices
between conflicting values. It is about more than
obeying the law and it is the concern of all types of
organization, not just profit-seeking private
companies.
Four broad perspectives have been adopted towards
the role, or the purpose of business in society. These
are as follows:

1- The responsibility of business is to build

shareholder value
Businesses exist for the purpose of maximizing the
wealth of shareholders. Nothing else counts.
2- The responsibility of business is to build long-term
shareholder value.

This is a longer –term approach than perspective 1 above. For

example, it suggests that businesses will be more successful if they
treat employees fairly because employees will be more committed to
the business and will work more productively. Similarly, Businesses
should build enduring, mutually supportive relationships with
suppliers because this will be in the long-term interests of
commercial success. Furthermore, Businesses should adopt ethical
policies that conform to the expectations of customers and other
stakeholders, because without the support of these stakeholders,
business would not be profitable in the long-term.
Although this perspective encourages managers to consider wider
ethical considerations than perspective 1, the overriding principle is
the same:
Businesses exist for the purpose of maximizing shareholder wealth.
3- The responsibility of business is to respect the rights of a range
of stakeholders
This perspective proposes that businesses have a responsibility to a
wide range of stakeholders including employees, customers, suppliers,
local communities and shareholders. This multi-stakeholder approach
recognizes the responsibilities that businesses have to conserve the
natural environment. The difference between this rationale and
perspectives 1 and 2 is that the multi-stakeholder approach holds that
shareholders are only one of a number of groups to whom businesses
have ethical responsibilities.
For example:
Employees may develop firm specific skills and forego other
employment opportunities in the service of a particular business.
Therefore, their interests are deserving of consideration by the
managers of that business.
Businesses benefit from special privileges such as tax relief and
government subsidies. They also make use of the resources of
society. Therefore, businesses have a responsibility the interest of
society.
4- The responsibility of business is to help to shape
the society
This perspective goes one stage further than
perspective 3. It proposes that businesses should be
proactive in supporting good causes as it occupies
influential position in society. Therefore, in
conducting its relationships with employees and
communities and in marketing its products, a business
should consider the positive and negative impact that
it may have on society and should respond accordingly.
Question 10
Identify Five of the types of government support that
should be provided to encourage and sustain small
businesses.
The government can support small businesses through
‘bringing about economic growth, improved
productivity and a wider involvement in enterprise’ for
all by:

Building an enterprise culture.

Encouraging a more dynamic start-up market
Building the capability for small business growth
Improving access to finance for small businesses
Encouraging more enterprise in disadvantaged
communities and underrepresented groups
Improving small businesses’ experience of government
services.
Developing better regulation and policy.
Question 11
Abraham Maslow’s theory is the most famous of a
group of theories which suggest that motivation is
based on psychological need.
Explain the theory in detail and support your answer
by drawing Maslow’s hierarchy of needs. Give
examples on how the needs in the hierarchy are met
through HRM policies.
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Maslow suggests that motivation is based on
psychological need. When our needs are unmet, we
experience tension that we try to put right. In other
words, we behave in ways that satisfy our needs.
Maslow believed that all people are motivated by the
same things, but there are different levels of needs.
When one set of humans needs are met in the
hierarchy, they work harder to fulfill the next level.
According to Maslow, the needs in the hierarchy
have several properties:
A need is not effective as a motivator until the ‘Lower
level’ needs are met.
A satisfied need is not a motivator. If you are safe and
well fed, you turn your attention elsewhere.
We have an inbuilt desire to work our way up through
the hierarchy of needs.
Not meeting these needs has a negative effect on our
mental health.
The experience of self actualization stimulates the
desire for more. This can’t be satisfied in the way that
the other needs can.
Meeting Maslow’s needs through HRM policies:
 

 
Good working conditions, attractive salaries, subsidized housing, etc.
Safety
Private health insurance, safe working conditions
 
Relationships
Company sports and social clubs, office parties, barbeques, etc.
 
Esteem
Regular positive feedback, prestige job titles etc.
 
Self-actualization
Challenging job assignments, encouraging creativity, etc.
Question 12
Define job design. Explain the Socio-technical
approach to job design and describe its principles .
Job design is about
how work might be organized or
reorganized to meet the social needs of individuals
and the operational needs of a business (3 Marks)
Trist & Bamforth (1951) developed the idea of a
business being the amalgamation of two
interrelated systems: the social and the
technological. Their work was based on the idea
that businesses should be thought of as ever-
changing and very complex systems. In terms of jab
design, seeking a technically perfect or socially
perfect way is impossible. The aim should be to
meet both types of needs adequately
The principles of socio- technical approach to job design are:
The design of one part of the system should not
dictate the design of the other part.
Job redesign should not take place in a way that is
removed from wider factors such as culture &
group identity. Changing one part of the system
has implications for the other part.
Redesign should involve employees. It should
evolove in an organic way, based on recognition of
the social and technological needs of the system.
It should not be based on sets of general principles
or techniques.
 This approach led to the development of a new way of
looking at job design. The basis is that the planning of
job design there is a part of a broader discussion about
the need to balance employee input & technical
parameters throughout decision-making processes. In
other words, it is an attempt to bring the people element
back into planning of work.
 
The socio- technical approach has had a considerable
impact in terms of working practices, illustrated, for-
example, by the introduction of the semi-autonomous
work groups in businesses. Semi-autonomous work
groups are a specific type of work groups that are self-regulating to
some degree.
Question 13
Compare & contrast: Objective quantitative standards
and subjective qualitative standards
Objective quantitative standards of performance

Quantitative standards may involve numerical targets, timescale

and
manger wants to reward sale staff according to customer
satisfaction, deadlines, amounts, costs and resource usage.
Some objectives are not easily described in a single testable
measure. If a customer service they will have to define, develop
and test any criteria before using them in managing performance.
Objective quantitative measures may not be as robust (strong) as
they appear and are in reality. For example profitability would
seem to be a tried and tested measure, yet accountants know that
statement of profits reflect decisions on how to treat costs and
revenues. In other words, many apparently objective measures are,
in reality quite subjective.
Subjective, qualitative standards of performance

Qualitative standards require more subjective judgment

about whether or not they are met.
Subjective measures are just as important as objective
ones, but are associated with a variety of problems.
Difficulties
When assessing, a person social influences and personal
preferences invariably come into play.
It may be that you get on better with a particular person or
that you know more about their personal circumstances.
Judgments may also reflect ethnicity, gender, appearance
or personal biases rather than pure performance.
Question 14
Compare & contrast: Job description & person
specifications
The job description
A written document derived from the job analysis and
stating what the job holder is responsible for and what
he/she is required to do.
Within the recruitment process, job description leads
to the next stage of specifying the type of person the
business is looking for to fill the vacancy.
Outside the recruitment process, job description is
used to review staff performance in appraisals or to
assess training needs when someone new starts with
the business
The person specification
It is important for the business to be as precise as
possible about the skills, knowledge, qualifications,
and attributes required for the job and about the
experience and personal characteristics that are
needed.
To decide on the qualities required for the person
specification, key features are identified from the job
description. The context of the job and the wider
business requirements should also be considered
Question 15

Identify and discuss the FOUR

advantages of having a business
structure .
There are four advantages of having a clear business
structure:
Enabling participation. The structure of any business will
determine how all the relevant sections and parties join in its
activities and influence its decisions.
Providing a framework for the allocation of responsibilities and
authority. Structure is at the heart of the differentiation and
integration of work. It is structure that makes it clear who is doing
what and helps people to work together.
Establishing an identity for the business, especially in allocating
responsibilities for external contacts (e.g. suppliers and customers
need to be able to identify whom to contact within the business).
Continuity and change. Many businesses deal with change and
uncertainty. Structure can provide continuity. Without a
structure, there is a tendency for people to constantly set up new
systems and procedures in response to new situations.
Question 16
Douglas McGregor’s theory X and
Theory Y is one of the most well-
known models of motivation in
business studies. Explain the
theory in detail.
McGregor’s Theory X and Theory Y is one of the most
well known motivational models in business studies.
Elaborate on both theories highlighting the two
different sets of assumptions that lead managers in a
business to adopt two different management
styles .Support your answer with examples. (25 marks)
 
McGregor’s Theory X and Theory Y is one of the most well known
motivational models in business studies.
It comprises two different perspectives of individuals at work is illustrated:
 Thekind of people they are.
 What managers need to do to keep them working?

Theory X and Theory Y can be thought as two different sets of

assumptions that lead managers in a business to adopt two different
management styles. (5marks)
Theory X managers: (8 marks)
Believe that workers are motivated only by money; they are lazy,
dislike work and lack ambition and thus they need to be controlled.
Theory Y managers: (8 marks)
believe that workers are motivated by many needs. They can take
pride and responsibility in doing a good job. Mangers should trust
workers and help them to their best.
For providing supporting examples (4 marks)
Question 17
Although the small to medium sized enterprise (SME)
sector has many benefits to the society, the risk of
personal loss often acts as a barrier against starting a
small business.
Explain the benefits of SMEs and discuss the risks
involved in starting them .
The benefits of small businesses ( Mention at least 4 benefits)
The SME sector plays a major role in creating employment, and
new jobs impact on business activity through increasing
spending power.
SMEs can offer specialized services to customers that larger
businesses may not regard as cost effective to provide. SMEs often
work as subcontractors on big projects being managed by larger
companies.
SMEs are likely to have specialized knowledge of the local
business environment and can tailor their products and services
appropriately.
SMEs contribute to the local infrastructure through assisting in
regional and local growth.
Smaller businesses may be able to innovate in ways that larger
ones would find difficult. They tend to be less bureaucratic and
more flexible in their response to customer demands.
The risks involved (Mention at least 4 risks)
There is no guarantee that your product or service will capture a
share in the marketplace; Market share has to be won in a
competitive business environment.
You need to find the start-up capital from somewhere. This may be
lost if the business fails.
sometimes you may need to borrow and the lender will normally
require security, that is, a guarantee that if things go wrong with the
business there will be a way of repaying the loan by the sale of assets.
In the early stages of the new business, income may be low, or even
non-existent, as you meet start-up costs such as paying for your stock
and employing others.
A lack of knowledge about the opportunities and support for
entering self-employment.
A lack of role models within the society and/or within the family of those
who have set up their own businesses.
Question 18
Define STEEP model and discuss
two of its headings/factors in
detail.
STEEP model is used as a means of analyzing,
describing and reflecting upon the external
environment of a business. STEEP stands for five
factors: sociological, technological, economic,
environmental, and political .
Sociological Factors:
Demographic changes in the age and structure of
populations, patterns of work, gender roles, patterns of
consumptions and the ways in which the culture of a
population or country changes and develops.
Technological Factors:
Business has been greatly affected by information and
communication technology (ICT). The implications of the
technological change for businesses include the following:
ICT is lowering barriers of time and place and opening up great global
opportunities for businesses, which also means increased competition.
ICT creates new industries, not only in areas of hardware, software and
telecommunications, but also in start-ups, new businesses, and e-
commerce (e.g. ICT enabled many banks and insurance companies to
start by building their operations solely on the basis of electronic
information and communication).
Many individual jobs and internal service functions have been
transformed and are now based on ICT systems (e.g. production planners
and credit controllers). This has led to a massive shift in the skills needed
for most jobs (e.g. computer literacy is now essential for many jobs)
 
Economic Factors

Economic factors that affect businesses include the rate of economic growth, interest
rates, inflation, energy prices, and levels of employment.
 The state of a country’s economy affects all aspects of business life. It affects the level
of demand for goods and services, the availability and cost of raw materials, buildings,
land and labor.
 If businesses and individuals expect the economic growth to be high, business are
likely to invest and expand and individuals to spend more. In contrast, if the economy
is expected to contract, businesses invest less and individuals spend less.
 Governments change interest rate in an attempt to achieve short-term adjustment in
the levels of demand, investment and spending.
 Exchange rate is the price of a particular currency and is based on the supply and
demand of such currency;
 Varying exchange rates cause the following problems for businesses:
If the domestic currency strengthens, exporting becomes more difficult because the
price of goods exported is higher and foreign products are more competitive in the
home market.
If the currency weakens, exports are easier and opportunities may open up for new
markets, while imports become more expensive.
 
Environmental Factors
  

Businesses need to consider a number of environmental factors:

Legislation: rules and regulations put to control pollution and waste
disposal.
Information: Larger businesses may carry out regular environmental
audits and publish them in their annual reports.
Employees: employees are concerned about environmental
credentials of their employers.
Shareholders: A category of ethical, or ‘green’, investors is emerging,
and businesses may wish to consider whether they should present
themselves as eligible for such investments.
Pressure groups: became a permanent part of the political scene (e.g.
consumer groups have fought to get the levels of salt and fat in foods
lowered).
Customers: opportunities for businesses operating to high
environmental standards to gain market advantage.
Political Factors
There are political influences on business in terms of rules and
regulations imposed by government, as well as the influences of such
organizations as chambers of commerce, trade unions and co-
operatives. The following list emphasizes the importance of political
factors for businesses:
Legislation affects many aspects of business life, such as health and
safety at work, equal opportunities and employee protection.
Trading relationships are influenced by political factors such as the
World Trade Organization (WTO) and the European Union (EU).
Government is a major party to many transactions. In all countries,
the government is one of the largest employers and the largest
purchasers of goods and services.
The level and nature of public services. For example, health services
and education.
Governments determine levels of taxation- on the individual, on
businesses, on property and on goods and services.
Question 19
Discuss the FOUR types of
information and support that may
be useful for a newcomer in an
organization
 The types of information and support that may be useful for a newcomer in an
organization are structured into the following four levels as suggested by Fowler
(1996):
 Individual level: Personal contractual issues and personal support this could include
information on hours of work and breaks; leave; expenses; payment methods; salary
increases and rewards; welfare and other benefits, such as sports and social facilities;
training and development opportunities; sickness and absence procedures.
 Job/task level: A general idea of the work to be done and how the employee should
make a start. This is likely to include knowledge on health and safety, work procedures,
use of telephones, data protection, etc. 
 Support at departmental level: The relationship of the employee’s job and other jobs in
the department and to the jobs of the people in other departments. This may include
meeting key contacts; defining internal customers; identifying where joint work is
required; departmental communication mechanisms.  
 Organizational level: Wider issue to do with the structure, objectives and wider context
of the business as a whole. This could include policies, aims and core values; HRM
policies such as equal opportunities, staff development; the structure and functions of
the business; competitors’ nature and size.
 
Question 20
Define job design. Explain the Job
Characteristics Model (JCM) by
Hackman and Oldham and its
usefulness in job design
Job design is about how work might be organized or
reorganized to meet the social needs of individuals and
the operational needs of a business.
 The job characteristic model (JCM) developed by
Hackman and Oldham (1980) offers a framework for
analyzing first, the key characteristics of a job and,
second, the key responses to that job by the individuals
doing it.
This model looks at the relationship between core job
characteristics, employees’ psychological states and key
outcomes
Core job characteristics Critical psychological Outcomes
states
 Skill variety Experienced High intrinsic
 Task identity meaningfulness of the work motivation
 Task significance

 Autonomy Experienced responsibility High job

of work outcomes satisfaction

 Feedback from the Knowledge of results of High work

job work activities effectiveness
Skill variety:
Is the extent to which a job includes a variety of
activities and therefore requires the employee to use a
number of different skills and talents. If doing the jobs
does not utilize the employees’ skills and abilities, it is
unlikely that they will be learning very much. On the
other hand, if jobs include too much variety,
employees may find that there are too many different
demands on their time and they can’t develop the
skills they need to do the job well and hence are likely
to feel fragmented
Task identity: It is about doing the job from beginning to end. It
is the extent to which the job requires completion of a whole and
identifiable piece of work. It evaluates the degree to which the
individual feels involved with the outcomes of their work. Adding
related tasks to a job can increase task identity  
Task significance: Is defined as the degree to which the job is
perceived by the employee to have an impact on the lives or work
of other people, whether within the business or the external
environment. Some jobs, such as health care and education, have
a more obvious impact than others, but this is about employees’
perceptions. If employees can see how their job and contribution
fit into the overall achievement of the objectives of the business,
they are likely to feel more motivated than if they cannot.
Autonomy: Is about the extent to which the job allows
employees to exercise choice in their work. For example,
giving an employee the opportunity to schedule or
prioritize work would give that employee a sense of
responsibility for getting the job done

Feedback from the job: Is the extent to which the job

itself-as opposed to other people- provides information
about how the job holder is performing. This can take the
form of seeing that an initiative or change introduced to
the job is effective
 In Hackman and Oldham’s model, these core job
characteristics are said to produce the following ‘critical
psychological states’:
Experienced meaningfulness of the work - Thought to be
influenced by skill variety, task identity and task
Significance.
Experienced responsibility for outcomes of the work-
Thought to be influenced by the degree of autonomy
Knowledge of the actual results of work- affected by
feedback from the job
These psychological states are, in turn, believed to
influence motivation, satisfaction and work performance
(described in the model as outcomes).
Question 21
Identify factors that motivate
people to work, illustrating how
businesses measure demotivation.
Financial motivation: To earn money.
Non-financial motivation:
Job satisfaction: job is interesting, and offers good benefits.
Socialising: Going to work is a good way of meeting people and
making friends.
Perception of other people: our own self-esteem is affected by our jobs.
Gaining identity: we feel we belong to a group of people.
Vocation: Some people are drawn to work that does good for others.
Building a career, to be promoted, through training, gaining extra
qualifications.
- Demotivation is often signaled with a higher than average level
of absence from work. An employee’s absence from work is an
indication of their need for a temporary break from work or
because of a stress-induced illness. High level of turnover is
another indication of demotivation.
Question 22
Shaheen Enterprise wants to recruit 3 persons for
Marketing Manger post. HRM is seriously discussing
the steps to be followed to recruit the right candidates.
The HR manager ask to develop job descriptions and
person specifications for the marketing executive
position. You are one of the staff working in HR
department Shaheen Enterprise. Describe the process
you will follow to develop job description and person
specifications.
Job Description (4 marks)
Job description states what the job holder is responsible
for and what they are required to do. An accurate job
description has various uses, example, it can be used to:
(a) Review staff performance in appraisals
(b) Assess training needs when someone new starts
with the business.
Job description leads on to the next stage of specifying
the type of person the business is looking for to fill the
vacancy.
Person Specification (4 marks)
A person specification describes the requirements a job
holder needs to be able to perform the job
satisfactorily. These are likely to include:
 Education and qualifications
Training and experience
Personal attributes / qualities
To decide on the qualities required for the person
specification, key features are identified from the job
description. The context of the job and the wider
business requirements should also be considered.
Description for Marketing Executive (8 marks)
Marketing executives' Job work usually involves:
(a) Analyzing the market, including competitors and consumers
(b) Executing marketing strategies and campaigns
(c) Monitoring and arranging the distribution of promotional
materials
(d) Monitoring and coordinating the production of promotional
materials
(e) Overseeing and implementing product distribution
(f) Attending and organizing sales promotional events and exhibitions
(g) Coordinating with and reporting to managers to carry out
campaigns
(h) Acting as liaisons between the media, suppliers, and clients
Person Specifications for Marketing Executive Position (9 marks)

(a) Marketing Executive who has managed a small marketing division

effectively and efficiently
(b) Has proven track record of delivering measurable results
(c) Has experience in developing advertising campaigns – both online
and print
(d) Has experience of PR
(e) Analytical and commercial
(f) Able to formulate plans and persuade others to support such plans
(g) Imaginative / Customer oriented
(h) Strong organizational and project management skills.
(i) Has experience of mass marketing and direct marketing
(j) Has built relationships with customers and market intermediaries
Question 23
Explain the followings and support your answers with
relevant examples: (25 marks)
Stakeholders and their primary and secondary
expectations. (14 marks)
Why people go to work? (11 marks)
Stakeholders and their primary and secondary
expectations. (14 marks)
 
Stakeholders are people, or groups, who have a legitimate
interest in the activities of businesses and other organizations
in their society. All businesses have internal stakeholders,
different stakeholders have different interests and these
interests may be in conflict, stakeholders’ behavior affects the
culture, structure, and control system within a business and
owners and shareholders are protected by property and
company law, whereas the interests of other stakeholders are
protected, if at all, only by regulation or management
discretion. Examples – Owners, managers, employees,
shareholders, customers, suppliers, local communities and
the state. (5 marks)
Stakeholders and their primary and secondary expectations from an organization: (7
marks)

Stakeholders Expectations
Primary Secondary

Owners Financial return Capital growth

Employees Pay Work satisfaction,

training, Social
integration

Customers Supply of goods/ services Quality

Creditors Creditworthiness Security

Suppliers Payment Long-term relationships

Community Safety and Security Contribution to the

community
Government Compliance Improved
competitiveness
For providing supporting examples (2 marks)
Why people go to work? (11 marks)
(1) Financial Reasons: (3 marks)
Earn money to secure a reasonable standard of living for
themselves and their families.
(2) Non financial reasons are: (5 marks)
(a) Job satisfaction: (feeling satisfied and interested).
(b) Meeting people and making friends.
(c) People’s perception and self-esteem affected by the
job a person does.
 Work gives people an identity.
(d) Work does good things for others: (school teachers
and nurses).
(e) Building a career.
For providing supporting examples (3 marks)
Person Specifications for Marketing Executive Position (9 marks)

(a) Marketing Executive who has managed a small marketing

division effectively and efficiently
(b) Has proven track record of delivering measurable results
(c) Has experience in developing advertising campaigns – both
online and print
(d) Has experience of PR
(e) Analytical and commercial
(f) Able to formulate plans and persuade others to support such
plans
(g) Imaginative / Customer oriented
(h) Strong organizational and project management skills.
(i) Has experience of mass marketing and direct marketing
(j) Has built relationships with customers and market
intermediaries
Person Specifications for Marketing Executive Position (9 marks)

(a) Marketing Executive who has managed a small marketing

division effectively and efficiently
(b) Has proven track record of delivering measurable results
(c) Has experience in developing advertising campaigns – both
online and print
(d) Has experience of PR
(e) Analytical and commercial
(f) Able to formulate plans and persuade others to support such
plans
(g) Imaginative / Customer oriented
(h) Strong organizational and project management skills.
(i) Has experience of mass marketing and direct marketing
(j) Has built relationships with customers and market
intermediaries
Question 24
The quality of employees and their development
through training and education are major factors in
determining long-term profitability of a business.
Identify and explain five of the different options of
employees’ development. (25 marks)
 TYPE OF TRAINING EXPLANATION
Coaching (informal A way of transferring knowledge and skills from a more
training) experienced person to a less experienced person
Mentoring (informal Is similar to coaching, but the person carrying out the
training) mentoring should not be the other person’s line manager
Job rotation (informal Encouraging members of a team to be able to work
training) proficiently in each other’s job, thus creating greater
flexibility and skills within the team as a whole

Special assignments/ Increasing the skills base of individuals by arranging

projects supervised project work in preparation for greater
responsibilities
Action learning A group of individuals who work on their own chosen
problems, but share advice and approaches to solving each
other’s problems
‘In-house’ courses A means of conveying knowledge and skills to groups of
individuals through training (provided either from within
the business or by external trainers)

Courses provided by To convey knowledge or skills to groups of individuals, for

external agencies example by specialist trainers or through attendance at a local
college
Distance learning  Ex. On- line learning
Question 25
Discuss Taylorism and Socio -Technical approaches of
Job design. Support your answer by highlighting the
criticism and giving examples of each. (25 marks)
 Approach One: Taylorism: (10 marks )
 Is also referred to as the Scientific Management Approach developed by Fredrick Taylor in 1911.
Many businesses and jobs are structured along the objectives of:
 Efficiency: achieved by increasing the output per work and reducing deliberate ‘under
working by employees.
 Standardization: of job performance, achieved by dividing up work tasks into small and
clearly specified sub-tasks.
 Discipline: achieved by establishing hierarchical authority. One key principle of discipline
was a clear division between the responsibilities and tasks of workers and managers.
  
 Criticisms of Taylorism: (2.5 marks)
 It is a very naïve approach.
 Taylorism represents a limited view of working.
 Taylor’s idea that there was ‘one best way’ and that this approach would work in any business can
create some bias.
  
 Examples of businesses adopting this approach
 The worldwide fast-food chain McDonald’s is scientific management in action.
  
 Approach Two: Socio-Technical Approach: (10 marks )
 Developed by Trist & Bamforth 1951.They developed the idea of a business being the
amalgamation of two interrelated systems: the social and the technological. This approach
developed new ways of looking at job design. In planning of a job design there is a need to
balance employee input & technical parameters throughout decision-making processes. I.e. to
bring the people element back into planning of work . For-example by the introduction of the
semi-autonomous work groups in businesses. Semi-autonomous work groups are a specific type
of work groups that are self-regulating to some degree.
  
  Principles of this approach include:
 The design of one part of the system should not dictate the design of the other part.
 Job redesign should not take place in a way that is removed from wider factors such as culture
& group identity. Changing one part of the system has implications for the other part.
 Redesign should involve employees. It should be based on recognition of the social and
technological needs of the system.

 Criticisms of the Socio-Technical Approach: (2.5 marks)

 Group dynamics and interpersonal conflicts. First, groups can become so cohesive that
adding new members becomes problematic. Second differences in status and pay within small
groups can lead to conflict.
 The organizational context. Factors such as pay and the structure of rewards must be
appropriate.
 Management commitment: the degree to which there is genuine commitment to the idea of
semi-autonomous working (a specific type of work group in that they are self-regulating to some
degree) from the immediate managers and supervisors of groups of workers. Management
practice has to move in the direction of increasing real autonomy and this raises the question of
power and the extent to which autonomy undermines managerial power and authority.
 Communication. No more than 20% of employees believed that members of senior
management were well informed about those aspects of working life that were important to the
people at lower levels in the business.
 The impact on people in supervisory levels. Semi-autonomous work groups by definition
need less control and direction. This may present a difficulty for supervisors who have to
appreciate that their role has changed. They may be aware of a loss in perceived power and
status, and need help to cope with their new role.
  
 Examples of businesses adopting this approach: Fiat, Volvo, ICI, and Philips.
