Mini-Lesson
People in business
This mini-lesson covers Cambridge Section 2 โ People in business : motivation , organisation and management , recruitment, selection and training , and internal & external communication .
motivation (theory) structure & recruitment training & 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 โญ 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?
Piece rate (a financial method) โ
Job enrichment โ
Job rotation โ
Praise โ
Calculate
Your turn โ piece-rate pay
1 A worker is paid $0.50 per unit and makes 240 units in a shift. Calculate their pay for the shift.
$
Check โ
Hint: pay = rate per unit ร units = 0.50 ร 240.
2.2 Organisation & management
Organisation & management
An organisation chart shows the structure of a business.
Hierarchy & chain of command โ levels of authority from top to bottom.
Span of control โ how many people one manager directly supervises.
Delegation โ 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 โ span of control
2 A supervisor has 9 staff reporting directly to them. State the span of control.
people
Check โ
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.
๐งโ๐ผ Management role
2.3 Recruitment & training
Recruitment, selection & training
Recruitment fills vacancies:
Internal (from existing staff โ cheaper, quicker) vs external (fresh skills, slower and costlier).
Documents: job description (the role) and person specification (ideal candidate).
Training โ induction, on-the-job and off-the-job โ 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.
Calculate
Your turn โ staff turnover
3 A business employs 60 staff and 9 leave in a year. Calculate the staff turnover rate.
%
Check โ
Hint: turnover = (staff who left รท average staff) ร 100 = (9 รท 60) ร 100.
2.4 Communication
Internal & external communication
Communication is sending and receiving information.
Internal โ within the business; external โ 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 โ commission
4 A salesperson earns 6% commission on sales of $30,000 . Calculate their commission.
$
Check โ
Hint: commission = sales ร rate = 30,000 ร 0.06.
Calculate
Your turn โ total wage bill
5 A shop employs 12 staff, each paid $1,500 a month. Calculate the total monthly wage bill.
$
Check โ
Hint: total = pay per person ร number of staff = 1,500 ร 12.
Quick check
Two-way communication
? Why might a manager prefer two-way communication over one-way when introducing a big change?
It allows feedback, so staff can raise concerns and feel involved โ
It is always faster than any other method โ
It removes the need for any manager โ
It guarantees profit โ
Quick check
Reducing staff turnover
? A business has high staff turnover. Which action is most likely to improve retention?
Improving motivation, pay and working conditions โ
Making communication one-way only โ
Widening every span of control to 50 โ
Removing all training โ
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 โ People in business. Press Finish to see your score.
๐
Mini-lesson complete!
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You've worked through People in business for Cambridge IGCSE Business Studies. ๐
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