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Cambridge IGCSE Business Studies (0450) · 2 People in business
Mini-Lesson

People in business

This mini-lesson covers Cambridge Section 2 — People in business: motivation, organisation and management, recruitment, selection and training, and internal & external communication.

motivation(theory)structure &recruitmenttraining &communication how a business organises and rewards its people

Work through each screen, answer the questions as you go (some are wordy, some are calculations) and collect ⭐ stars. Press Start when you're ready.

2.1 Motivating employees

Motivating employees

Well-motivated workers are more productive, give better service and are less likely to leave.

  • Financial methods: wages/salary, piece rate, commission, bonus, profit-sharing, fringe benefits.
  • Non-financial methods: job rotation, job enrichment, teamworking, praise, promotion.

Motivation theory: Cambridge references Taylor (money/piece rate), Maslow (hierarchy of needs) and Herzberg (motivators vs hygiene factors).

Quick check

Financial or non-financial?

?A factory pays workers a set amount for each unit they make. Which method of motivation is this?
Calculate

Your turn — piece-rate pay

1A worker is paid $0.50 per unit and makes 240 units in a shift. Calculate their pay for the shift.
$
Hint: pay = rate per unit × units = 0.50 × 240.
2.2 Organisation & management

Organisation & management

An organisation chart shows the structure of a business.

  • Hierarchy & chain of command — levels of authority from top to bottom.
  • Span of control — how many people one manager directly supervises.
  • Delegation — passing authority for a task down the hierarchy.

Managers plan, organise, coordinate, command and control. Leadership styles include autocratic, democratic and laissez-faire.

Calculate

Your turn — span of control

2A supervisor has 9 staff reporting directly to them. State the span of control.
people
Hint: span of control = the number of direct reports = 9.
Sort it

Financial motivation, non-financial motivation, or a management role?

Tap an item, then the group it belongs to.

💰 Financial

🌟 Non-financial

🧑‍💼 Management role

2.3 Recruitment & training

Recruitment, selection & training

Recruitment fills vacancies:

  • Internal (from existing staff — cheaper, quicker) vs external (fresh skills, slower and costlier).
  • Documents: job description (the role) and person specification (ideal candidate).

Training — induction, on-the-job and off-the-job — raises skills and productivity.

Match it

Match the term to its meaning

Tap a statement on the left, then the correct term on the right.

Statement
Answer
Calculate

Your turn — staff turnover

3A business employs 60 staff and 9 leave in a year. Calculate the staff turnover rate.
%
Hint: turnover = (staff who left ÷ average staff) × 100 = (9 ÷ 60) × 100.
2.4 Communication

Internal & external communication

Communication is sending and receiving information.

  • Internal — within the business; external — with customers, suppliers and others.
  • One-way vs two-way (which allows feedback).
  • Barriers to communication include jargon, noise, too-long chains and unclear messages.

Good communication improves motivation, coordination and decision-making; poor communication causes mistakes and low morale.

Calculate

Your turn — commission

4A salesperson earns 6% commission on sales of $30,000. Calculate their commission.
$
Hint: commission = sales × rate = 30,000 × 0.06.
Calculate

Your turn — total wage bill

5A shop employs 12 staff, each paid $1,500 a month. Calculate the total monthly wage bill.
$
Hint: total = pay per person × number of staff = 1,500 × 12.
Quick check

Two-way communication

?Why might a manager prefer two-way communication over one-way when introducing a big change?
Quick check

Reducing staff turnover

?A business has high staff turnover. Which action is most likely to improve retention?
Recap

The big ideas to know

Motivation: financial (piece rate, commission, bonus) & non-financial (enrichment, praise); Taylor, Maslow, Herzberg

Organisation: hierarchy, chain of command, span of control, delegation; leadership styles

Recruitment: internal vs external; job description & person specification; training

Communication: internal/external, one/two-way, barriers

Retention: good motivation and conditions lower staff turnover

You've covered Cambridge Section 2 — People in business. Press Finish to see your score.

🏆

Mini-lesson complete!

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