Section 2
People in Business
Covers how businesses motivate employees, how they are organised and managed, the process of recruiting and training staff, and the different methods of internal and external communication.
Select a topic from the sidebar. Each topic includes key definitions, core concepts, and examiner tips. Work through them in order or jump to the topic you need. Pair with the topical past papers for best results.
Section 2 Topics
4 topicsWhy Motivation Matters
Motivated employees are more productive, produce better quality work, have lower absenteeism and are less likely to leave.
Taylor’s Scientific Management
Workers are motivated purely by money. Breaking tasks into simple steps and paying piece-rate maximises output.
Maslow’s Hierarchy of Needs
Five levels of need: physiological, safety, social, esteem, self-actualisation. Higher needs motivate once lower ones are met.
Herzberg’s Two-Factor Theory
Hygiene factors (pay, conditions) prevent dissatisfaction. Motivators (achievement, recognition) actively motivate.
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Organisational Structure
Shows the hierarchy of a business, lines of authority and communication, and how roles are grouped.
Span of Control
The number of subordinates a manager directly supervises. Wide spans = fewer layers; narrow spans = more layers.
Delegation & Authority
Passing responsibility for tasks to subordinates. Frees up managers but requires trust in the workforce.
Leadership Styles
Autocratic (manager decides), Democratic (staff involved), Laissez-faire (staff decide). Each suits different situations.
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Internal Recruitment
Filling a vacancy from within the existing workforce. Cheaper and faster but limits new ideas entering the business.
External Recruitment
Hiring from outside the business. Brings in new skills and ideas but is more expensive and time-consuming.
On-the-Job Training
Learning while working, e.g. shadowing or coaching. Cheaper but the trainer’s productivity may fall during the process.
Off-the-Job Training
Training away from the workplace, e.g. courses or college. Broader skills gained but costs more and takes staff away.
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Internal Communication
Communication within the business — between employees, managers and departments. Can be formal or informal.
External Communication
Communication with those outside the business — customers, suppliers, government. Affects business reputation.
Communication Methods
Written (email, reports), verbal (meetings, phone), visual (charts, videos). Choice depends on audience and urgency.
Barriers to Communication
Noise, language differences, information overload, wrong channel. Effective communication removes these barriers.
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