6 Motivating employees

Activity 6.1
• Miguel works as a farm labourer for a rich landlord. He has a small house on the
estate and is allowed to grow his own food on a piece of land next to his house. He
grows enough food to feed himself and his family and is paid a small wage, which
pays for the other needs of the family such as clothes, shoes and medicines.
• Pierre works in a car factory on the assembly line. He works in a team with other
workers welding the car body together. He is also a member of the company
football team. He is well paid and his family can afford quite a few luxuries.
• Anya has a degree in Business Management and professional qualifications in
human resources management. She is the Human Resources Manager of a large
company. She has her own office with her name on the door and is in charge of the
rest of the human resources staff. She works long hours but feels it is worth it if the
right employees are recruited to the company.
• Identify which of Maslow’s needs are being satisfied for each of these
employees. Explain the reasons for your choices.
Activity 6.2
a From the following list of jobs, say what you could measure to find out how
effectively the employees are working:
• car production worker
• shop assistant
• waiter
• teacher
• police officer
• soldier
• baker
b Are there any jobs on the list for which output is difficult to measure? If so,
explain why it is difficult to measure the output in each case.
c If you cannot measure workers’ output, how can you pay them more money if
they work harder or more effectively?
d Does this present problems for modern economies today where the majority of
the workforce work in service sector jobs?
Activity 6.3
Case study
• Company A employs 100 workers taking telephone orders and
making calls to potential customers. The company thinks it treats
its workers well. The offices they work in are well lit, warm but
not too hot, the salary is similar to the pay in other similar jobs, the
supervisors are polite and keep checking the work of the
employees. The workers are told what to do and have no
opportunities for promotion. There is no recognition of workers
who have done well in their jobs. The management is worried
because the workers do not seem to be particularly happy and have
not increased their productivity. There is high labour turnover.
• Read the case study above.
• a Why do you think the workers might not be happy in their jobs?
• b Suggest ways the management might use to increase the
motivation of their employees.
Activity 6.4
• For the following jobs, say which methods of motivation would be most suitable
and why. (Remember to consider whether it is easy to measure their output – this
may affect how you decide to reward their efforts.)
• a Car production worker
• b Hotel receptionist
• c Teacher
• d Shop assistant
• e Managing director
• f Taxi driver
• a Car production worker: probably piece-rate because where the output is
measurable it is easier to implement pay related to the output produced; fringe
benefits could be discounts on new cars purchased. Non-financial methods might be
teamworking and job enrichment.
• b Hotel receptionist would probably be paid a salary; it would be difficult to pay by
the number of bookings taken. They could be given a share of the profits or a scheme
in the hotel for sharing out money when they have had a successful year. Fringe
benefits could be free accommodation at other hotels if they are in a chain, and
discounts on meals. Non-financial methods could include training, job rotation and
opportunities for promotion.
• c Teacher: paid a salary as output is not really measurable. A bonus might be paid for
good student exam results. Fringe benefits depend on the country the school is in;
they may include free accommodation, free education at the school for their own
children, pension, health care paid for, limited free trips home if working at a foreign
school. Non-financial methods could include opportunities for promotion.
• d Shop assistant: would probably be paid a salary, but pay could be related to the
number of sales made - commission. Fringe benefits would most likely be employee
discounts on purchases. Non-financial motivators might be job rotation, for example,
in different departments of the shop.
• e Managing director: paid a salary, profit-related pay, bonus if a good year. Fringe
benefits include share options, free health care, company vehicle, generous expense
account. He/she is likely to be motivated by doing a challenging, responsible job.
• f The taxi driver would just get paid by the number of journeys made. A fringe benefit
could be the use of the taxi for their own use if the car belongs to a taxi firm. Difficult
to use non-financial methods.
• There needs to be explanation of the above: discussion of whether output can be
measured, seniority of the job, whether fringe benefits are expected in certain jobs
Activity 6.6
• Duncan is a computer programmer. He has a degree in Computer Studies and enjoyed writing
programs as part of his degree course. He thought computer programming would be his ideal
job. However, all he does is write simple programs for businesses’ Accounts departments which
allow the processing of their paperwork. He is told what to do by his manager and is given little
opportunity to visit the client to discuss its requirements and does not go to install the software at
the business when it is finished. He is so fed up he is looking for another job.
• Sita works in a clothes shop. She spends her time looking after the changing room, where she
checks customers into the changing rooms and takes the garments which are not going to be
purchased from them when the customers have tried them on. There are several other shop
employees, one works at the cash till, one puts out the clothes on the rails and does the shop
displays, one person works in the stock room and there is a manager who does all the ordering
and administration for the shop. The shop can be very quiet on some days and very busy on
others. Sita does not care if customers find the right clothes – she gets paid whether they buy the
clothes or not.
• Tim works in a clothing factory. He cuts out the collars for shirts. The rest of the processes for
making shirts are carried out by other employees. He has done this job for two years now and
gets very fed up with what he is doing. He does not worry too much if the collars are slightly
uneven as he thinks customers will not notice. The other employees who work with him in the
shirt department feel the same as he does.
• These three employees are not happy in their work. Suggest how you would try to improve their
job satisfaction. Explain the reasons for your suggestions. (You may suggest more than one way
for each of the employees.) Which do you think would be the best one to use in each case and
Exam-style questions: Short
answer and data response
• 1 Joe owns a business which produces wooden furniture. He employs 20 workers
in the Production department and three workers in the offices. Joe pays all his
workers wages which are calculated by time rate, but he is thinking of changing
to piece rate. He has a high labour turnover from the factory as his workers are
not well motivated.
• a Define ‘piece rate’. [2]
• b Identify two examples of non-financial benefits Joe could give to his
employees. [2]
• c Outline two reasons why many employees leave their job at the furniture
company. [4]
• d Explain two ways Joe can improve the job satisfaction of his employees. [6]
• e Do you think a wage calculated by piece rate is a suitable method of payment
for all Joe’s employees? Justify your answer. [6]
• 1 a This is where the workers are paid depending on the quantity of products made.
• b Examples:
• i. Discounts on the company‘s products; ii. Health care; iii. Subsidised meals; iv.
'Prizes’ for good performance.
• c Examples:
• i Obtained another job that pays piece-rate.
• ii Find the job boring, found a more interesting job making furniture.
• iii Do not feel motivated at work and find another business that makes furniture that
makes the employee feel appreciated.
• d Examples:
• i Increased wage rates, as increase in pay will make the worker feel appreciated,
especially if they have been making furniture for Joe for many years.
• ii Change to piece-rate from time rate, as the worker will be more motivated to make
more furniture as they get paid more.
• iii Job enrichment: add responsibilities to the work so that the job becomes more
interesting; perhaps carry out more than one process in making the furniture that
requires additional skills.
• e Yes, because it will give workers an incentive to work harder and will be motivating
in order to reduce the labour turnover.
• No, because it may lead to lower quality product being made as workers are only
concerned with quantity and not quality.
• Student's overall conclusion, e.g. Yes, because Joe needs to reduce the number of
workers leaving as this is expensive for the business to keep recruiting new workers.
As long as he uses quality control methods to check the furniture is of good quality
then piece-rate is suitable, and it will improve his business.
Exam-style questions: Short
answer and data response
• 2 Sasha is a hotel manager. She has 30 employees and they are divided into
teams working in the following departments: kitchen; restaurant; hotel reception;
housekeeping (room cleaning). Two of the hotel receptionists have been trained
by Sasha in some aspects of hotel management. A modern hotel has recently
opened two kilometres away. Sasha wants to improve the motivation of all the
employees and is thinking of introducing a bonus. She thinks it will make the
hotel more profitable.
• a Define ‘bonus’. [2]
• b Identify two reasons why people work. [2]
• c Outline two levels in Maslow’s hierarchy of needs experienced by the hotel
workers. [4]
• d Explain two benefits to the hotel of having well-motivated employees. [6]
• e Do you think introducing a bonus is the best way to improve the motivation of
the employees at the hotel? Justify your answer. [6]
• 2. a. A bonus is an additional amount of payment above basic pay as a reward for good work.
• b. Any two of: i. money; ii. security; iii. job satisfaction; iv. esteem needs (self-importance); v. social needs.
• c. Possible answers:
• i. Physiological needs: wages paid to kitchen workers need to be high enough to meet weekly bills such as food and
shelter; rest and recreation also needs to be sufficient.
• ii. Safety/security needs: this will give job security and protection against danger and fair treatment for room cleaners.
• iii. Social needs: hotel reception colleagues will be supportive at work and give a sense of belonging to a team and
friendship.
• iv. Esteem needs: being given recognition for a job well done to the restaurant head chef; having high status and
recognition for achievement and independence.
• v. Self-actualisation: hotel manager succeeding to their full potential; being promoted and taking responsibility for the
good of the company and everyone and not just for self-gain.
• d. Possible answers:
• i. The workers will feel happier in their jobs and therefore give a better service to customers of the hotel. Hotel guests
may tell their friends about the excellent service received at the hotel and so it will gain a better reputation.
• ii. Workers are less likely to leave their jobs if they are well motivated and therefore Sasha will not have to spend time
recruiting new staff for the kitchen, restaurant, hotel reception or housekeeping. Sasha can spend her time doing other
work for the hotel to improve the business.
• e. Answers might include:
• Yes: it will increase the take-home pay of the hotel workers and they can buy more products or services and this will
make them want to work harder. Money is a main motivator, as said by Taylor. Many of the jobs in the hotel will not have
high wages and so a wage increase will be appreciated by these workers.
• No: employees might want their other needs satisfying as identified by Maslow. So praising them for good customer
service or giving them more responsibility in the hotel may make them feel more motivated to work for Sasha.
• Student's overall conclusion, e.g. Sasha should ask employees about their levels of motivation and what would improve
their motivation as just increasing wages might not be effective if they feel their social needs are not being met.
7 Organisation and
management
Activity 7.2

Read the case study above.

• a Study the job description. Do you think Bill is looking to recruit an experienced shop
assistant? What evidence is there to support your answer?
• b Make a list of the important tasks and responsibilities Bill still has to perform himself.
Activity 7.3

Read the case study above.

• a Draw the organisation chart for this telephone business.
• b What is the span of control of the supervisors?
• c What would be the advantages and disadvantages of removing the supervisors altogether? Your
answer should include references to:
• chain of command
• delegation
• span of control
Activity 7.4
Activity 7.4
• Read the case study above.
• a What are the advantages and disadvantages of this tall organisational structure
for Cosy Corner plc?
• b Give three examples of conflicts which may arise from this structure.
• c Do you think this organisational structure increases motivation for its
employees?
• d What are the benefits of having a regional division for the business?
Exam-style questions: Short
answer and data response
• 1 Sasha owns a business which produces office furniture. She employs 100
workers in the Operations department and 15 workers in the offices. Sasha
believes in a democratic leadership style. Sasha says that being a good manager
is very important to the success of the business. Very few workers leave each
year. She sees no need for any of her workers to join a trade union.
• a Define ‘democratic leadership’. [2]
• b Identify two other leadership styles Sasha could use. [2]
• c Outline two roles/functions Sasha undertakes as the manager of this business.
[4]
• d Explain two reasons why having good managers is important to this business.
[6]
• e Do you think Sasha is right to say that her workers do not need to join a trade
union? Justify your answer. [6]
• 1 a It is a leadership style that gets other employees involved in the decision-
making process.
• b i Autocratic leadership style
• ii Laissez-faire leadership style
• c Examples:
• i Plans - to produce a certain quantity of office furniture.
• ii Organises - what jobs/tasks are carried out by the office and production workers.
• iii Co-ordinates - the office workers’ jobs with those of the production workers.
• iv Controls - ensuring the production workers have carried out all their tasks
correctly.
• d Examples:
• i To motivate employees. This will increase the efficiency in the factory; more office
furniture will be produced.
• ii To give guidance and advice to production and office workers, ensuring they are
confident and happy in doing their jobs.
• iii To keep costs under control so raw materials such as wood are not wasted;
increase profitability of the business.
• e No, because a trade union could improve communication between her and her
employees.
• Yes, because employees might demand wage increases Sasha cannot afford and
they may take industrial action.
• Student's overall conclusion, e.g. Yes, she is right because Sasha uses a democratic
leadership style and talks to her workers so there is less need to use a trade union
to communicate between her and her 115 employees.
Exam-style questions: Short
answer and data response
• 2 The following organisation chart is for PPB Ltd. It is a private limited
company which owns and operates a chain of supermarkets. The organisational
chart shows the hierarchical structure of the business.
Exam-style questions: Short
answer and data response
• a Define ‘hierarchical structure’. [2]
• b Identify the span of control for the: [2]
• • Operations Director
• • Finance Director
• c Outline two functions of the Managing Director. [4]
• d Explain two disadvantages to this business of having a tall organisational
structure. [6]
• e Do you think more delegation would be a good idea for this business? Justify
your answer. [6]
• 2 a It means there are different levels in the organisation and each level has a different degree of authority.
• b i. 10 supermarket managers; ii. 3 departmental managers
• c Possible answers:
• i One function will be to coordinate the work of different departments. A decision to open a new
supermarket will need all four departments to work together.
• ii The MD will need to plan ahead. If the demand for online food shopping is growing, then he/she might
need to plan for the creation of a new website.
• d Possible answers:
• i Communication will not be as quick as a short chain of command as the message has several managers and
supervisors or layers to go through to get to the intended person. This might mean that the message is not
accurate as it may get distorted.
• ii The span of control may be narrower as each manager has fewer people to manage. This may mean that
managers, such as the departmental managers, are less likely to delegate tasks to subordinates, giving them
less opportunity for job enrichment.
• e Answers might include:
• Yes: it will make the work more interesting and rewarding for the employees and they will feel more
important, which will increase motivation. It can also give the managers more time to concentrate on the
most important parts of their job and so make the supermarket more competitive.
• No: subordinates may not do the job properly and this could cause problems for the supermarket if mistakes
are made. The subordinates may not be capable of doing some of the tasks and therefore fail, which could
lead to poor customer satisfaction.
• Student's overall conclusion, e.g. If the business plans to expand, a move towards more delegation, perhaps
with the removal of one level of hierarchy, would improve employee job enrichment and communication.
8 Recruitment, selection
and training of
employees
 Activity 8.2
• On a large sheet of paper, copy out the table below and then fill in the gaps.
• Advantages and disadvantages of the different methods of recruitment
Method of Advantages Disadvantages Examples of jobs
recruitment suitable for this
method of
recruitment

Internal: Do not have to advertise. Fewer No new ideas are This would be
Noticeboard applications, therefore less time brought into the suitable for most
at the looking through application business. No new levels of employees
company (or forms/CVs. The person is already business practices within a large
company known to the company - they know will be brought from business. However,
newspaper) if they are punctual, reliable, etc. elsewhere. There the more senior the
The person already knows the could be jealousy position, the more
organisation's way of working and and rivalry between likely it is that
what is expected of employees. It existing employees. people from outside
can be very motivating for other the organisation will
employees to see their fellow be recruited.
workers given a chance.
 Activity 8.2
• Advantages and disadvantages of the different methods of recruitment

Method of Advantages Disadvantages Examples of jobs

recruitment suitable for this
method of
recruitment
External: Cheap to advertise in. Only seen by people Jobs that do not
Local newspapers Seen by many local in the local area and require a high level of
people who are likely only those who buy skill. Clerical and
to be able to apply for the newspaper. manual positions, e.g.
the job. secretary, van driver,
production worker.
National newspapers The national Expensive to advertise Usually more senior
newspapers will be in national positions where a high
read by many people newspapers. degree of skill and/or
who live in different qualifications are
parts of the country or required, e.g. senior
even overseas. manager, accountant.
 Activity 8.2
• Advantages and disadvantages of the different methods of recruitment
Method of Advantages Disadvantages Examples of jobs suitable for this
recruitment method of recruitment
Specialist Seen by Might be expensive to The same types of jobs as for
magazines people who advertise in. Could be newspapers, except these will usually be
have the missed by people who for well qualified people, e.g. a research
right skills do not access the scientist, engineer.
for the job. specialist magazines.
Online Seen by Might be expensive to The same types of jobs as for
recruitment people who advertise in. Could be newspapers, except these will usually be
sites have the missed by people who for well qualified people, e.g. a research
right skills do not access the scientist, engineer.
for the job. specialist sites.
 Activity 8.2
• Advantages and disadvantages of the different methods of recruitment

Method of Advantages Disadvantages Examples of jobs suitable

recruitment for this
method of recruitment
Recruitment They advertise and Expensive because often a This varies but usually the
agencies interview people for proportion of the person's same types of jobs as for
you. They use their salary in the first year will national newspapers,
expertise to select have to be paid to the specialist magazines and
suitable people. It agency. online recruitment sites.
saves the business
time in not having to
interview people.
Government- Cheap to advertise in - Many people may not Unskilled or semiskilled
run Job usually does not cost visit the job centre and jobs, e.g. production
Centres anything. therefore may not know worker, warehouse worker,
about the job. cleaner.
Activity 8.3

• Read the case study on the previous page.

• a Which advert would have appeared in a national newspaper and which would
have been in a local newspaper? Explain your choice.
Activity 8.4: Who to employ?
• a Study this job advertisement and the information from three application forms
below. Which of the three people would be most suitable for the job? Give
reasons for your choice of the successful applicant and why you would reject the
other two applicants.
Activity 8.4: Who to employ?
• b What additional questions do you think should have been on the application
form? Why should they have been asked?
Activity 8.5
• Imagine that you are now going to interview candidates for the vacancy that you
advertised in Activity 8.3. You have drawn up the following six questions to ask
the interviewees:
• 1 What is it about the job that attracted you to apply for it?
• 2 What do you know about the company?
• 3 Tell me more about your hobbies and interests.
• 4 Why do you feel you are particularly suitable for the job?
• 5 Where do you see yourself in five years’ time?
• 6 Do you have any questions?
• • What is the purpose of each of these questions? What are you hoping to find
out?
Activity 8.6
• a An international construction company has just won a contract to build a dam
in an African country. How might the Human Resources department recruit the
following workers for the contract?
• • Experienced engineers
• • Labourers
• b An international airline is expanding its operations in South America. It needs
to recruit staff to be based only in this continent, as the flights will not go all
around the world. What recruitment and selection methods would it use to
appoint:
• • airline pilots
• • cabin crew (air stewardesses and stewards)?
 Activity 8.7
• Copy out the table below and fill in the gaps.
• Advantages and disadvantages of methods of training

Method Description Advantages Disadvantages

of
training
Induction Training carried out Introduces the A lot of information is given out
training when the employee is employee into the in one go and it may be too
new to the post. company. They will much for the employee to
quickly settle into their remember.
work.
 Activity 8.7
Method Description Advantages Disadvantages
of
training
On-the- The worker is trained Individual tuition is given. Only really suitable for
job by watching a more Trained in the workplace, unskilled or semi-skilled jobs.
training experienced worker which may be cheaper. Some The trainer will not be as
doing the job. They work will be carried out productive as they would be
are shown what to while the trainee is learning while showing the trainee
do. what to do. what to do and not working
as fast as normal. The trainer
may have bad habits that
they pass on to the trainee.
Off-the- The employee goes A broad range of skills can be Cost of training. Lost output
job away from the place taught. Evening courses are unless evening classes are
training of work. Varied cheaper as the employee can used - but these are tiring for
techniques are used still do their normal work in employees and they may be
to train the workers, the day - only the course fees less effective at work the
for example, lectures, will need to be paid. Access next day. There may be less
simulation, role play, to trainers with up-do-date control over what is being
case studies, often in knowledge. Recognised taught than with on-the-job
a classroom. qualifications. training.
Activity 8.8
• For each of the examples below, decide what type of training would be most
appropriate and why.
• a S&S plc has just introduced a new computer program into the Accounts
offices. All the Accounts employees will need to know how to use the new
software.
• b Sandeep has been given a job as a trainee manager with a large retail company.
The training will last for about two years.
• c James has just got a job as a hotel porter. He has never done this type of job
before. He is starting work next week.
Activity 8.9
• Consider the way in which Gowri Kumaran was treated by her employer.
• She applied for a job as machine operator in a television assembly factory. The
employer offered her the job and said that her contract of employment would be
sent to her after one month’s trial. After one month, Gowri received her wages
but was surprised to see that her wage rate was much less than expected. She was
also earning much less than other workers doing the same work. There had been
several deductions from her wages which she did not understand. She did not
receive a contract of employment as had been promised.
• Gowri had complained to her supervisor that there were some loose electrical
wires on her machine but no action had been taken. She worked 10-hour shifts
with only one break. Gowri decided to join a trade union but when the manager
heard about this he called her into his office. He told her that her work was
unsatisfactory and she was no longer required. Gowri was very upset about the
way she had been treated. She asked for your advice, as her legal adviser, on
what she should do.
• c What might be the advantages to employers of treating their employees well?
Exam-style questions: Short
answer and data response
• 1 Sarah owns a business which manufactures musical instruments. There has
been an increase in sales and profits over the last two years but there has been a
fall in demand for some products. She employs 50 skilled production workers.
She wants to recruit five more factory workers to make pianos but she needs
fewer workers to make violins. She intends to carry out a job analysis for the
factory workers who make pianos. Sarah uses on-the-job training for new
workers joining the business.
• a Define ‘job analysis’. [2]
• b Identify two examples of suitable ways in which Sarah could advertise the
vacancies. [2]
• c Identify two questions which Sarah could ask the job applicants at interview.
Outline why each question is asked. [4]
• d Explain two advantages of on-the-job training for this business. [6]
• e Sarah needs fewer skilled workers to make violins. What do you think Sarah
should do? Justify your answer. [6]
• 1 a This identifies and records the responsibilities and tasks relating to a job.
• b Examples: i. Local newspapers; ii. Government job centres; iii. Factory noticeboard;
iv. Business website
• c Examples:
• i Why should I give you the job? To see what experience in instrument
manufacturing the candidate can offer.
• ii What are your strengths? To see what skills in manufacturing the candidate can
offer.
• iii Do you have any experience in instrument manufacturing? To see if the candidate
will need training if they are offered the job.
• d Examples:
• i Employees do not need to be sent away to be trained in the manufacture of pianos,
so Sarah will save the cost of sending employees to an external training
establishment.
• ii Musical instrument manufacturing is a specialised process so few external
establishments may offer training; own employees pass on correct skills.
• iii Training is specific to musical instruments so piano manufacturing requires specific
skills; ensures the culture of Sarah's business is passed on to the new employees.
• e She could downsize the organisation by making these workers redundant as they
are no longer needed. But perhaps she should keep them as they are known to
Sarah and may be good employees, so she may not want to lose them.
• Student's overall conclusion, e.g. She could offer them part-time contracts; however,
it would be better to use on-the-job training for these workers so they can make
pianos and not recruit 5 more factory workers. This will keep all her existing
employees and make them more useful if demand for violins increases in the future.
Exam-style questions: Short
answer and data response
• 2 Mr Patel owns an insurance company. He advises clients and arranges
insurance policies for customers, who pay a fee for his services. He employs ten
well-qualified workers who offer a high level of customer service. His business
needs to recruit an extra five well-qualified workers and will need to draw up a
job description and job specification. He also needs to recruit two supervisors.
Mr Patel intends to use external recruitment to recruit the supervisors.
• a Define ‘job description’. [2]
• b Identify two examples of requirements Mr Patel might put in a job (person)
specification. [2]
• c Outline two reasons why Mr Patel wants to recruit well-qualified workers. [4]
• d Explain two features Mr Patel could include in an induction training
programme. [6]
• e Do you think external recruitment is better than internal recruitment for the two
supervisors? Justify your answer. [6]
• 2 a A job description outlines the responsibilities and duties to be carried out by someone employed to do a
specific job.
• b Any two of: i. The level of education; ii. The amount of experience and type of experience; iii. Special skills,
knowledge or a particular aptitude; iv. Personal characteristics, such as particular type of personality
• c Possible answers:
• i So the employees have the right qualifications to do the job well and he will know that the employees have
the right knowledge to give the correct information about insurance policies to his clients.
• ii Well-qualified employees will give good advice to his customers and this will improve the reputation of his
business. Clients will then tell their friends and when the friends need a car insurance policy they will be
more likely to use Mr Patel's business.
• d Possible answers:
• i A talk about administrative details that will go over the business's regulations, health and safety and dress
code so that the new employee knows what they should do when they work for the business and this makes
them an effective worker more quickly.
• ii He should take the new employee on a tour around the business to show them where everything is, such as
their work desk, and introduce them to the other ten employees. This will mean the new employee will feel
happier about starting work and will immediately feel that their social needs are being met.
• e Answers might include:
• Yes: it will make it more likely to employ someone who can do the job well and have the right qualifications.
When there are only a few other qualified employees the business find it difficult to recruit internally anyway.
• No: the business may be able to promote one of the employees if they are at a lower level. This may be
motivating for the other employees as they will feel they have a chance of being promoted.
• Student's overall conclusion, e.g. If the existing employees are well qualified the business may lose them to
other businesses if they are not offered the chance of internal promotion.
9 Internal and external
communication
Activity 9.3: Communicating
with workers
Sales were below target at the Co-operative Retail Store. The manager was very
concerned about this. She decided to write to every worker, about 30 in all, to warn
them of the problem of falling sales and how jobs were now at risk. In the letter she
asked for ideas on how to increase sales. Workers were asked to confirm that they
had received the letter and tell her if they had any good ideas.
a In this case study, identify:
• • the sender of the message
• • the medium being used
• • the receiver of the message
b Did the communication involve feedback?
c Do you think that the letter sent by the manager to workers was the best way to
communicate with them? If not, which method would have been more effective?
Explain your answer.
Activity 9.4
• Refer to the list of messages on pages 114–115. The method used to send or
transmit each message is also given. Which messages are most likely to lead to:
• a two-way communication?
• b one-way communication?
• Give reasons for your answer in each case.
 Activity 9.5: Methods of communication
Copy out this table of communication methods. Under the headings of Speed,
Written record and Feedback, fill in the key advantages or disadvantages of each.
The first one has been done for you.
Speed Written record Feedback
Letter Slow – takes time to Yes – receiver has the Likely to be slow - the
write letter and postal letter and the sender receiver may not reply
service might be poor is likely to keep a copy at all
Telephone call Very quick, if the No Immediate
receiver is available to
take the call
Meeting with Takes time to organise No, but someone Immediate, if the
employees and there could be a might keep a written main sender allows
lengthy discussion at record of main points others to respond to
the meeting raised; these are the message
called 'minutes of the
meeting’
Social network site Fast If the messages and Very quick if the
tweets can be printed receivers are
online/using their cell
phones at the time
Activity 9.5: Methods of communication
Copy out this table of communication methods. Under the headings of Speed,
Written record and Feedback, fill in the key advantages or disadvantages of each.
The first one has been done for you.
Speed Written record Feedback
Staff newspaper Slow, takes time to print Yes No, letters to the
and distribute paper might be
encouraged but
few will bother to
write them
Website Fast If printable Depends on
whether the
receivers are
online
Email Fast Yes, can be Very fast if the
printed receiver is using
email at the time
Notice Slow as it might take Yes Not usually
several days before every
potential receiver reads
the message
Activity 9.5: Methods of
communication
Copy out this table of communication methods. Under the headings of Speed,
Written record and Feedback, fill in the key advantages or disadvantages of each.
The first one has been done for you.

Speed Written record Feedback

Face-to-face Fast once the No Immediate
conversation meeting between
sender and
receiver has been
arranged
Advertising poster Slow, potential Of the advert, yes No
receivers may take
a long time to see
poster
Text message Fast No Yes, if receiver has
(sms) cell phone with
them and can
reply to text
immediately
Activity 9.6
Which communication method might be most appropriate for the following
messages? Justify your answer in each case.
• a There should be no smoking in the staff canteen.
• b The management want to instruct all employees on how the new computer
system works.
• c Details of the business’s sales figures for the last four years are being sent to
shareholders.
• d The Finance Manager wants to remind the Operations Manager that they have
arranged a meeting for next week.
• e The Product Development Manager wants to inform directors of the market
research into three new product ideas. He hopes that they will agree to launch
one of these products.
 Activity 9.6
Which communication method might be most appropriate for the following
messages? Justify your answer in each case.

Message Method Why?

a No smoking Notice Needs to be available at all
times to remind workers
b Computer instruction Meeting Allows for clear explanations
and feedback if unsure
c Sales data Written document There might be many
shareholders; they would not
want to attend a meeting for
this information alone
d Meeting reminder Email Quick and cheap; easy
feedback
e Market research Written report Likely to be much information;
too detailed for verbal
communication. Directors may
want to study it at length
Activity 9.6
Which communication method might be most appropriate for the following
messages? Justify your answer in each case.
• f The Office Manager wants to obtain views from all office workers on how
paper waste could be reduced.
• g A supervisor plans to warn (for the last time) a worker who is always late for
work.
• h Next year’s holiday dates need to be made available to all workers.
• i The Human Resources Manager wants to invite an applicant for a job to an
interview.
Activity 9.6
Which communication method might be most appropriate for the following
messages? Justify your answer in each case.

Message Method Why?

f Reducing paper waste Meeting Important to get all
workers’ opinions
g Warning Letter This needs to be a formal
document that can be
referred to later, for
example, at employment
court/tribunal
h Holiday dates Notice Needs to be referred to
by all workers but not
urgent information
I Invitation to applicant Email (if time is limited Quick, can contain details
otherwise it could be of time of interview, etc.
letter too)
Activity 9.6
Which communication method might be most appropriate for the following
messages? Justify your answer in each case.
• j The Operations Manager wants to send the plans for a new factory to the
Managing Director, who is on a foreign business trip.
• k Existing customers of a bank are to be informed about a new type of bank
account.
• l A new contract needs to be agreed and signed between a farmer and the
cooperative he sells his milk to.
• m The Marketing department of a cosmetics business wants to launch a new
perfume aimed at women with above-average incomes.
Activity 9.6
Which communication method might be most appropriate for the following
messages? Justify your answer in each case.

Message Method Why?

j plans Email with Plans are complex and cannot be
attachment communicated verbally
k New bank Website or email Many bank accounts are now
account managed ‘online’ so this could be the
best way to communicate with
customers
I New contract Written contract Must be written and with evidence as
letter there might be a dispute over the
terms of the contract
m New perfume Social networking A form of viral marketing that can
sites spread the news of the product very
quickly
Activity 9.7: Reducing
communication barriers
Sanchez is a successful business leader. He started his own business, STC,
importing tea and coffee five years ago. He now employs 45 people – 30 in his
country and 15 in countries that produce the tea and coffee. As he is very busy he
holds few meetings with his workers. He emails his managers daily and expects
them to pass on his instructions to the workers they are responsible for. In recent
weeks, some supplies of tea and coffee have not been to the exact quality and taste
that Sanchez demands and he is very angry. He wants to tell his managers and
workers how they must improve. He wrote to them all several months ago for new
ideas on how to improve the business but he did not get any replies!
• a Identify four possible causes of communication barriers within STC.
• b Explain to Sanchez how he could overcome the four communication barriers
that you identified in a.
Exam-style questions: Short answer
and data response
• 1 Manuel is HR Manager for a large bank. His responsibilities include internal
communication with individual workers and groups of workers. Sometimes he
wants to send a message to all 15 000 workers employed by the bank. Some
workers complain that unless they spend time reading notices or email messages
they fail to receive important information.
• a Define ‘internal communication’. [2]
• b Identify two benefits to the bank of effective internal communication. [2]
• c Outline two possible barriers to communication within the bank. [4]
• d Explain two ways in which Manuel could communicate with individual
workers about their pay and working conditions. [6]
• e Do you think that electronic forms of communication are always the best ones
to use when communicating with large numbers of workers? Justify your answer.
[6]
• 1 a Sending messages between people working for the same organisation.
• b i Quicker communication to employees about a pay rise.
• ii All employees will be able to respond to an important message about bank
opening times.
• c i There are many workers - 15 000 - which means that Manuel will not be able to
arrange meetings for them all, so feedback might be difficult.
• ii Using emails in such a large organisation can lead to 'information overload’.
• d i He could meet the workers and explain these details to them, but as the bank is
so large he might only do this with senior workers or managers.
• ii He could put these details in a letter and post this to the workers, who would
then have to write a reply to provide feedback. This might be slow, especially if
some of the bank's many workers are employed abroad.
• e Yes: these IT based methods are now so widely used that all workers are likely to
have access to a computer/mobile (cell) phone and know how they work. It is
quick, easy and cheap to send messages, and feedback is also possible.
• No: they do not encourage meetings to be held and often these are best for
discussions on important issues; IT based methods do not allow for 'body
language'.
• Student's overall conclusion, e.g. It might depend on how big the business is and
how important the message is. So no, they may not always be the best methods to
use in all circumstances especially when discussion or explanation of a decision is
needed, then a meeting with all the workers may be better.
Exam-style questions: Short answer
and data response
2 SEP manufactures electrical appliances such as cookers and heaters. One of Phil’s
responsibilities as Marketing Manager at SEP is to communicate with thousands of
customers in many countries. Some of these customers are wholesalers but many are
individual consumers who have bought products directly from the business. Phil is
worried that communication barriers sometimes prevent his messages being received
effectively.
• a Define ‘communication barriers’. [2]
• b Apart from customers, identify two external groups SEP might need to
communicate with. [2]
• c Outline two types of written communication with customers that Phil could use. [4]
• d Explain two possible causes of communication barriers between Phil and SEP’s
customers. [6]
• e SEP has discovered a major safety problem with one of its products. It needs to
communicate with customers quickly. Explain the advantages and disadvantages of i
telephoning all customers and ii sending an email to them. Which method of
communication is best in this case? Justify your answer. [6]
• 2 a Restrictions that prevent a message from being sent/received/understood
effectively.
• b i. Suppliers; ii. Bank
• c Possible answers:
• i He could send a promotional leaflet to them to tell them about new electrical
products the business is selling.
• ii He could send a letter with a bill or invoice for them to pay a sum by a certain date
for cookers already purchased.
• d Possible answers:
• i SEP has many thousands of customers in other countries so there might be a
language barrier that prevents the message he sends in his own language from being
understood and acted upon.
• ii If he depends on written communication by letters rather than email, for example,
there might be long delays for the post to arrive in the other countries and the letter
might be received too late to act upon such as replies to customer queries about
electrical products leading to customers being unhappy.
• e Answers might include:
• i Telephone: personal communication-shows the business’ concern for customers; two
way - customers can ask specific questions about the product problem, but it is
expensive and time-consuming.
• ii Email: quick and cheap and a reply can be asked for and written details of the
product problem can be sent. But if no reply, follow-up messages may have to be sent;
more limited two way communication and the business may have many hundreds of
separate replies.
• Student's overall conclusion, e.g. An e-mail could be sent requesting notification of
receipt. If that is not received, the business could try ringing customers.