02 Cert in Prin of Management RQF 22_02_17 Unit 1 upk

5. Understand training and development
5.1 Explain the benefits of employee development

Benefits of employee development

Employee development is provided to staff so that they can learn new skills, recap
or strengthen current skills and generally develop within the organisation.

Providing development to staff has lots of benefits for both the employer and the
employee, such as:

Benefits

Employee Employer
The employee acquires new skills and The employer can utilise the employee’s
knowledge. new skills and knowledge in other areas
of the business
Current skills can be enhanced and
strengths can be furthered. Employees that have enhanced their
Employee feels supported and confident skills can train others in their strengths.
at work.
Employers can feel confident knowing
Employee weakness can be improved that their employees are confident in the
upon. tasks that they are completing.
Provides professional opportunities to
the employee, such as promotions, etc. Employees with previous weaknesses
will be able to perform better at their role.

The employer has access to resources
with a wider range of skill sets.

Performance levels improve and this
ultimately means that the organisation
works better as a whole.

With the commitment of both the employee and employer, development can be
fruitful for all involved.

Activity 1.23 relates to the above

5.2 Explain the advantages and limitations of different types of training and
development methods

Training and development methods

Every organisation needs to develop their staff in order to achieve their business
objectives. All new employees should be introduced to their workplace effectively
and given the training and development they need (such as an induction). The skills
of existing employees should continue to be developed in line with the organisation’s
short- and long-term objectives.

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Individuals should be encouraged to take responsibility for their personal
development and be made aware of the opportunities open to them, such as:

• Secondment
• Job rotation
• Mentoring
• Coaching
• Work shadowing
• Action learning sets
• Training
• Accessing information or knowledge via the internet
• Distance learning.

Managers have the responsibility to encourage and support their teams in identifying
work-related development needs.

Whether it is a question of someone needing new or different skills/knowledge for an
area in which your business is developing, or a member of your team is not quite up
to scratch in some aspect of their job, some form of learning or development should
always be the first stage. This comes before deciding that the employee is not
capable of performing a task or, for example, changing his role or taking some form
of disciplinary action. A learning opportunity may open the eyes of that member of
staff and they will be able to see matters from a different perspective whilst also
developing their skills.

As manager, there will be lots of areas to consider when arranging for your
employee to undergo training and development. These areas could include the cost
of training to the business, resource issues, and whether or not a certain form of
training and development is suitable for the employee’s needs.

Let’s look at the types of training and development available in more detail.

Secondment

A secondment is an opportunity for an employee to take on a different role within the
organisation temporarily. This can be used as a way for an employee to gain further
knowledge about the business in a different role but also can be used to support the
business when the business is in need of additional resource in other departments.

This can be enlightening for the employee as they get to see a whole other side to
the business, with new team mates to boot. It can also greatly help improve skills
that were lacking in the employee’s current position.

However, this can provide the employee with additional responsibilities and all too
often no reward. The employee may also feel a sense of upheaval when moving
from one role to another which may hinder the learning process.

The organisation may experience resource and operational issues as the
departments swapping or losing staff may have to retrain a secondee or suffer
resourcing issues within their own department.

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Providing secondments can be beneficial for both parties involved but must be
planned efficiently for it to work effectively.

Job Rotation

Job rotation is a very similar method to secondment as it requires moving employees
from one job to another. However, unlike a secondment, job rotation could mean that
employees experience more than one role within the organisation to enable them to
obtain a greater understanding of the organisation and its operations.

This method of training and development can provide in-depth learning and
interaction with all types of people from the organisation which can inevitably lead to
strong working relationships between colleagues. However, employees taking on job
rotation must be prepared to be able to take on many contrasting styles of work and
have the confidence to interact with others with whom they may not be familiar.
Employees may also feel that they are just visitors to a team and, therefore, may not
get much out of the job rotation training and development.

Whilst the employee has the opportunity to learn new things, they may not have a
sense of job stability whilst undertaking job rotation and this could lead to work in
many departments suffering. Again, this type of training and development must be
planned accordingly, otherwise the organisation as a whole may suffer.

Mentoring

Mentoring usually involves an employee being assigned to a more experienced
member of staff who is able to provide on-the-job training and advice. The mentor
should be able to act as a confidant, advisor and trainer to the employee.

This type of training and development is often a very successful one, as the
employee is able to learn on a one-to-one basis and feels secure enough to ask
questions and take in information.

However, for any mentor training and development to work, both the mentor and
employee must be compatible in personalities and learning styles; otherwise, the
employee will not learn much and the mentor will be a wasted resource for the
organisation.

Coaching

Another form of on-the-job training and development is coaching. Usually coaching is
performed on a one-to-one basis between a manager and employee. The employee
is able to gain understanding and knowledge in their required areas.

Managers providing coaching to their employees are able to supervise performance
on a daily basis and provide advice on corrective measures. In addition, they can
provide praise and encouragement on good performance.

Coaching is often seen as one of the best forms of training and development, not
only because the cost of the training and development is usually minimal to the

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organisation but also because the employee is provided with coaching throughout
their time at work and, therefore, they are able to learn quickly and efficiently.

For coaching to work, both the employee and manager must ensure that they trust
and respect each other.

Work shadowing

Work shadowing, also known as job shadowing, allows employees to shadow a
more experienced staff member in their day-to-day job so that the employee can
understand what needs to be done and how it is done.

If an employee is new or needs training on a particular system, this form of training
and development can be very useful as it involves the employee studying a role
which they will soon complete. This is also far more beneficial for the employee than
just reading a manual.

However, work shadowing doesn’t come without its pitfalls. The employee must be
comfortable with an observational form of learning style for them to understand the
role that they are shadowing. In addition, shadowing another role may not meet all of
the training and development needs that are required for the employee.

Action learning sets

Action learning sets are small groups of individuals that meet on a regular basis.
Between the group, they must find ways to understand and solve any challenges or
problems that they are each experiencing.

Each member of the group is able to express their individual issue or challenge while
other members of the group listen and ask questions. The purpose of the group is
that individuals can understand ways of learning how to overcome challenges and
issues through suggestions or questioning from others within the group. After each
meeting, individuals must take action using the knowledge and understanding that
they have taken away from their previous meeting.

These types of groups usually involve a trained facilitator who is able to guide
individuals to asking effective questions and providing effective suggestions.

This form of training and development is a great way for employees to understand
new ways of doing things and building strong relationships. However, if employees
do not feel comfortable within the group they may not open up as much as they
should.

Training

Training can be provided by in-house trainers or external organisations, and can
sometimes be tailored to meet individual business needs.

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There’s no two ways about it, training enhances everybody but in order for it to be
effective it has to be delivered in the right way so that the employee takes in the
information provided to them.

Some employees learn and thrive in classroom situations, whereas others may get
bored and not take in information. Understanding an individual’s learning style and
whether they feel comfortable in a classroom setting or a one-to-one setting will
ultimately provide you with the knowledge as to how best an individual should be
trained.

Training is important for an employee’s growth, understanding and development and
there are many ways training can be delivered. Be sure to understand the best form
of training suited to the individual because if you don’t, the company could lose
resource when the employee is being trained; money from the cost of the training but
most importantly the training will not be effective for the employee.

Accessing information or knowledge via the internet

Looking for information in industry magazines and journals, online or via company
procedures and manuals will obviously provide employees some knowledge and
understanding to meet their training and development needs. However, this type of
learning could be lonely, and boring to the employee. They may also not take in the
information due to their learning style.

Whilst some form of reading and investigation is a good way to learn, interaction with
the employee about what they have learned is always favourable. Sometimes,
information can be incorrect and it’s important as a manager that you discuss this
type of learning and development with your employees so that you can provide
interactions but also advice and guidance on areas they may have read.

Distance learning

This type of training and development can involve learning through materials or e-
learning and is usually associated with an award of an accredited, nationally-
recognised qualification. As opposed to visiting a college or external company to
learn, the employee learns either in their own time or through allocated time at work.

An element of loneliness can come with distance learning training as there isn’t a
class with whom to interact. However, the employee is able to work at their own pace
in their own time which provides a less stressful situation.

It is important as a manager to discuss how the training is going with your employee
and provide encouragement for milestones within the course completed. Again, for
this to work, an employee’s learning style must fit the distance learning criteria and
the employee must have the motivation to see the course through.

Activity 1.24 relates to the above

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5.3 Explain the role of targets, objectives and feedback in employee
development

Identification of Training Needs

A ‘need’ refers to the gap between ‘what is’ and ‘what could/should be’ within a
particular context. This leads to strategies aimed at eliminating the gap.

It is important to identify training needs before trying to implement any training
solutions. Identification involves gathering information to identify areas where
employees could improve their performance. This can arise from the use of
employee surveys, management observations, customer comments, company
meetings and inspections, and from the needs highlighted as part of the performance
management process. It is crucial to assess skill gaps at all levels of the business,
including senior management.

Training needs analysis should focus on what the employee will be required to do
differently back in the workplace, and the resulting training and development can
therefore be structured to address this need.

As well as identifying training needs, there are other benefits that can be gained from
carrying out a needs analysis exercise. For example, the investigation can:

• Uncover problems of motivation
• Identify overlapping responsibilities
• Identify gaps within the organisation's structure
• Identify needs for training to accommodate future business objectives.

There are a variety of ways in which needs may be assessed involving different
employment contexts. These are:

Context analysis

This is an analysis of the business needs or other reasons why training is desired.
The important questions being answered by this analysis are:

• Who decided that training should be conducted?
• Why is a training programme seen as the recommended solution to a business

problem?
• What has been the history of the organisation, with regard to employee training

and other management interventions?

User analysis

This is an analysis dealing with potential trainees and trainers involved in the
process. The important questions being answered by this analysis are:

• Who will receive the training, and what is his or her level of existing knowledge on
the subject?

• What is his or her learning style?
• Who will conduct the training?

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Content analysis

This is an analysis of documents, laws, and procedures used on the job, which
answers questions about what knowledge or information is used on this job. This
information comes from manuals, documents, or regulations. It is important that the
content of the training does not conflict with or contradict job requirements. An
experienced worker can assist (as a subject-matter expert) in determining the
appropriate content.

Training suitability analysis

This is an analysis of whether training is the desired solution. Training is one of
several solutions to employment problems. However, it may not always be the best
solution. It is important to determine if training will be effective in its usage.

Cost-benefit analysis

This involves performing an analysis based on the expected return on investment
(ROI) that will result from the training. Effective training results in a return of value to
the organisation that is greater than the initial investment to produce or administer
the training.

Job analysis

This is an analysis of the tasks being performed, of the job, and of the requirements
for performing the work. Also known as a task analysis or job analysis, this analysis
seeks to specify the main duties and skill level required. This helps to ensure that
the training which is developed will include relevant links to the content of the job.
Since this is such an important part of defining training needs, we will consider the
process of task analysis in a little more detail.

Task analysis

Before training needs can be translated into detailed training plans for each
employee or group, a job analysis needs to be carried out. Failure to analyse jobs in
some detail frequently leads to ineffective training which bears no resemblance to
the real needs of the company or employees. By defining the business needs,
duties, responsibilities, tasks, knowledge and skills which make up a job, and
specifying training accordingly, real training needs will be identified and met.

The process of task analysis involves the use of the job description or specification
to analyse and break the job down into a number of individual tasks, each of which
requires a level of knowledge and skill.

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An extract of a simple work breakdown for the task of boiling an egg is shown below:

Task Analysis

Job Title:

Task Title: Boiling an egg

What enables you What must you know
in order to do it?
What do you do? How do you do it? decide when it's done
What equipment is
correctly? needed and where it is
kept
1. Assemble equipment Take from place of Visual check
Where water supply is
(make a list) storage How to operate tap

2. Fill saucepan Take pan to tap Visual check
Turn pan to tap
Turn tap on
Fill to a depth of 10cm
Turn tap off

In theory, there is no limit to how much a job can be broken down. Fortunately,
many jobs can be taught from the job specification without delving any further. A
simple job breakdown can be sufficient to produce an effective training programme.

Very often, managers (and that includes HR and training managers) have failed to
complete a training needs assessment. Whether formal or informal, an assessment
of training and developmental needs must be completed.

The results from a needs analysis will describe the gap between the current
performance and the desired performance. Exceptional trainers are those trainers
who can truly help to close the gap between current and desired performance, rather
than just having the ability to entertain their audiences.

If a training needs analysis has not been performed, there will be no base line for
defining the training that is needed, what it is required to achieve, and how effective
it has been. The more specific the training needs analysis, and the more complete
the training plan, the more successful the training initiative will be.

A training analysis is completed to not only support the employee with their training
and development needs but also to support the business needs too. Without
understanding suitable training requirements, the business will ultimately suffer.

Training and development objectives and targets

When training needs have been identified, the most suitable type of training can be
selected for delivery. However, you cannot simply spring this on your employees.
Earlier in this unit, we went into detail about why setting objectives and targets was
important. Any form of training that an employee is required to undertake should be
set as an objective for the employee in the same way objectives are set for tasks that
need to be completed.

Whilst training may be supplied to accommodate business needs or individual
personal development, ultimately the employee is required to take training to fulfil

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their role within the organisation. Without clear objectives and targets, the employee
will not understand what is required of them.

As a manager, it is important to discuss the employee’s training needs and
requirements with the employee themselves. This provides both of you the
opportunity to agree upon training objectives and targets that are SMART. This, in
turn, will allow the employee to have a clear training and development plan of each
training objective and target that must be accomplished in order to support the
business and its operations.

Feedback

Feedback is essential in the workplace. As a manager, you will be required to give
feedback to your team members. Feedback must always be two-way. For both you
and your colleagues to develop, it is important that there are opportunities for all
parties to offer feedback on performance.

Feedback should be delivered in the most appropriate manner.

• Ensure it is balanced: give your team members feedback when things go
well, as well as when things go wrong

• Ensure it is timely: it must be as near to the event as possible
• Ensure it is specific: it should be clear, and should focus on what was said or

done at the time.

It is important to remember that feedback applies both to positive and negative
situations. Try to acknowledge achievements at least as often as you bring shortfalls
in quality to the attention of your team members, as this ensures that everyone
remains motivated. Be tactful when giving feedback.

Feedback should not be about telling people off, as it provides an opportunity to do
much more than this. It allows you to motivate team members to complete training
through positive feedback and encouragement, and to offer them any additional
support or resources that they may need. Ultimately, meeting with the team
members – either in a group or individually – allows you to keep the team and its
members focused on the goal - the training and development required.

Activity 1.25 relates to the above

5.4 Explain how personal development plans support the training and
development of individuals

Personal development planning

Personal development planning is the lifelong process of nurturing, shaping,
updating and improving an individual’s skills, knowledge and interests to ensure their
maximum effectiveness and adaptability. It is about enabling individuals to improve
and develop in line with the industry in which they engage or aspire to engage. It is
about widening or broadening their knowledge and skills in order for them to
continue to have a place in the flatter structures of today’s organisations.

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The benefits of personal development planning are that it provides a schedule to
work to motivate the individual and suggests a framework for monitoring and
evaluating achievements.

Example

If you are currently working as a first line manager or senior administrator and aspire
to the position of your manager, you may need to acquire new skills or develop your
lower level skills to a higher level. For example, this could be in budgeting, managing
people, performance review, report writing, and chairing meetings. You would need
to plan how you are going to acquire these skills and over what time-frame.

Personal development planning can also be the basis for:

• Assessing where individuals want to be and how they can get there
• Keep skills up-to-date particularly in IT and technical areas
• Continuous learning
• Gaining satisfaction from achievements
• Building up transferable skills, such as time management, adaptability to change,

self-awareness
• Supporting future employability.

Personal development planning is a cyclical process and should continue right
through life. Remember, nothing stays constant. It can also be started at any point
in the following:

The Personal Development Planning Cycle

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Record the outcomes

Keeping records is essential, both for the organisation and the employee. Records
should not just be the title of the training undertaken but what knowledge, skills and
competences were gained from the development activity. A record of the date, the
development need identified, the chosen method of development, the dates it was
undertaken, the outcomes, and further action should be kept. Having a record
evidences what training and development the employee has undertaken and also
shows the accomplishments the employee has made.

Evaluate and review

Evaluation is the key stage to the personal development cycle as it enables the
employee to discover the value of the activity undertaken; whether it was suited to
their needs, was appropriate, and if and how their working behaviour has improved
as a result.

Goals may change, new tasks may require a new set of skills, and employee
aspirations will develop. It is important to revise personal development plans
accordingly. A personal development plan that does not evolve and adapt will not be
worthwhile.

Activity 1.26 relates to the above

5.5 Explain how to make use of planned and unplanned learning opportunities
to meet individuals’ preferred learning styles

Planned and unplanned learning opportunities

In the previous elements of this unit, we have gone into detail about the importance
of personal development and the planning for this. We now understand that personal
development activities are planned. A plan has been devised and SMART objectives
have been agreed by both the manager and employee so that the employee can
work towards achieving the end target.

In an ideal world, the employee will stick to their plan and work away until they reach
their end goals without disruption; however, everyday work doesn’t always go as we
planned. Sometimes, when we had hoped to get a certain activity completed,
another issue at work crops up that must be completed as a priority, leaving the
original activity on the back burner.

However, challenges, issues or work that wasn’t predictable can have its uses too.
Certain challenges, issues or work that were not necessarily planned into a day can
often bring with them opportunities for employees to learn, especially if the employee
has never experienced them before.

Employees can utilise both planned and unplanned challenges, issues or work to
learn from situations by:

• Observing their work shadow, manager or colleague deal with the situation

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• Using the scenario in their action learning set
• On-the-job training
• Discussing the scenario with their mentor or coach.

Although challenges, issues and work that had not been previously planned for may
seem like a deviation from the employee’s original learning plan, in actual fact they
can help aid the learning and development of the employee. Different areas that may
have otherwise needed to be addressed at a later stage can be experienced and
understood.

Learning style considerations

It’s always important to ensure that when learning and development opportunities
arise, employees’ learning styles are taken into consideration. An individual’s
preferred learning style will directly affect what learning and development
opportunities may be appropriate. There are a number of theories focused on the
way in which individuals learn best. Perhaps the most well-known is referred to as
the VARK theory.

VARK

This theory suggests that there are four basic learning style preferences that
individuals may have, namely:

Visual

The visual learner thinks in pictures, and learns best from demonstrations, visual
displays, illustrated textbooks, diagrams, overhead transparencies, videos, flip
charts, and hand-outs. Visual learners often like to make detailed notes to absorb
the information.

Auditory

The auditory learner prefers verbal lectures, discussions, talking things through, and
listening to what others have to say. He or she identifies underlying meaning in
speech by listening to tone of voice, pitch, speed, and other nuances.

Read/Write

The read/write learner prefers information presented in a written form, which he or
she considers and then writes down to assist in its assimilation.

Kinaesthetic (or tactile)

Kinaesthetic learners learn best through doing things. They have a hands-on
approach, and prefer to explore the physical world around them.
In practice, the distinction is not clear cut, and an individual’s optimum learning
preferences may include elements from a number of these styles. Appropriate
training should acknowledge these differences and include elements and materials
that will cater for the range of preferences.

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The Kolb Model

Of more practical use to the learning style inventory is the model developed by
theorist David Kolb. It organises learner preferences as they relate to his or her
perceived cycle of learning. According to Kolb, the cycle follows a journey through
experience and reflection, followed by conceptualisation. This is then reinforced by
experimentation and practice, and returns again to the next new experience or
learning goal.

Concrete
experience
Activities & practice

Active experimentation
Applying and trying out

new skills

Reflective observation
Feedback & evaluation

Abstract
conceptualisation
Thinking & assimilation

From Kolb’s classification, and from further work by theorists Honey and Mumford,
learners can be thought of as having particular strengths and weaknesses in these
areas. They can, therefore, be defined as being predominantly one of the following:

• Activists
• Reflectors
• Theorists
• Pragmatists.

To illustrate the differences between them, consider a beginner’s class in family
history research:

Activists will prefer hands-on practical work and real experiences. They will dive
straight into internet sources and want to visit the archives, finding their way
intuitively from one clue to the next.

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Reflectors will want to see examples of documents, demonstrations of genealogy
software, and spend time considering all the pros and cons.

Theorists will prefer lectures and authoritative text books. They will want to know as
much as possible about the various sources before they start any real research.

Pragmatists will like case studies and a model to follow. They will get on steadily
with their practical research, asking for advice when stuck and carefully applying
logic and reason.

Understanding your employees’ learning styles will enable training opportunities to
be better understood by the employee.

Activity 1.27 relates to the above

5.6 Explain how to support individuals’ learning and development

Supporting your employees through learning and development

We’ve looked at how to identify training needs, understand learning styles, plan for
training and development, and select appropriate methods of training. However,
what happens when the training is being undertaken by the employee?

As a manager, it is important to ensure that you support your employees throughout
each stage of their training and development. This is not only to ensure that the
employee is actually performing but also to provide encouragement, support and
motivation so that the employee actually wants to learn and develop, and gauges the
new skills you both agreed upon in the planning stage.

To support your employee through their learning and development, you can provide
them with:

• Mentoring
• Coaching
• Feedback, advice and guidance
• On-the-job training
• Resources such as study time.

Providing support to your employees is not only part of your duties as a manager but
it can also be very rewarding for both manager and employee.

Activity 1.28 relates to the above

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6. Understand reward and recognition

6.1 Describe the components of ‘total reward’

Total Rewards

Let’s now look at a concept called ‘total reward’ which involves how the employment
relationship is initiated and maintained between employer and employee.

Organisations have existed for many years and for as long as they have, employers
have been required to ensure that they attract, motivate and retain their employees.
In order for employers to do this, they must ensure that they offer employees a
package that is perceived to be worthwhile. Obviously the way in which employers
provide packages to employers has changed over time. Nowadays, most
organisations use a concept called ‘total reward’. The concept can be summarised
into six core elements and effectively these elements are the tools required for an
employer to attract, motivate and retain employees, whilst also including everything
the employee believes to be of value for the relationship between employer and
employee to succeed.

The six core elements of total rewards are:

1. Compensation

Compensation can otherwise be described as an amount of money that is paid to an
employee by the employer when services have been rendered. This includes
standard salary, incentive pay and possible pay changes based on performance or
results achieved.

2. Benefits

Benefits are used in a similar way to compensation; however, they are not pay
incentives. Instead, benefits can consist of programmes that employees can be
enrolled onto for working with the organisation, such as health insurance, pension
plan and income protection.

3. Work-life Effectiveness

This element states that organisations should set practices and policies to ensure
that employees have a good work-life balance and, therefore, are not entirely
overrun with the stresses of work and are able to succeed at both work and home.

4. Recognition

Employers are encouraged to acknowledge accomplishments, actions, efforts,
behaviours and performance made by the employees that contribute to the
organisation’s success.

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5. Performance Management

This element is provided to ensure that all members of the organisation work
towards common business goals to ensure the overall success of the organisation.
Performance management is, therefore, provided to employees to establish
expectations, skills, assessment, feedback and continuous improvement.

6. Talent Development

The last element outlines that organisations must provide the opportunities and
resources required to develop and enhance employees’ skills, to support not only
their short-term career but also their long-term career aspirations also.

Ultimately, this system provides the employee with fair and achievable rewards for
their services to an organisation.

Activity 1.29 relates to the above

6.2 Analyse the relationship between motivation and reward

Motivation and rewards

The ‘total reward’ theory outlines that without some form of reward, employees would
have little motivation to join a company, provide their services, and be loyal enough
to stay with the company.

As human beings, our motive for wanting to do something is usually the end goal, or
most commonly - a reward. For example, going out to lunch to meet friends and eat
cake sounds like a good reason to be motivated enough to go out on a cold winter’s
day. However, going out to lunch to sit by ourselves and eat food we don’t enjoy
doesn’t sound very rewarding at all. If your option was the latter, you would be more
inclined to stay home rather than go out and eat lunch alone.

In the workplace, rewards are a vital part of ensuring that employees are motivated
too. This is to ensure that employees provide a good standard of work. Employees
want to receive rewards in some form or another for their hard work and employers
know that without rewards, motivation would be lacking and this could be detrimental
to any organisation.

We are all motivated by different rewards. As outlined in element 3.4, Hertzberg’s
two-factor theory attempts to explain the factors that motivate individuals through
identifying and satisfying their individual needs.

In addition, Maslow’s Hierarchy of Needs demonstrates the order in which our
needs become satisfied so that we can move onto higher level needs.

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The Hierarchy of Need Self-
actualisation
Physiological Safety Social Esteem
Growth
Hunger Security Belonging Self-respect Accomplishment
Thirst Protection from Acceptance Achievement Personal
Sleep danger Social life Status Development
Friendship & Recognition
Love

Physiological

These are our physical needs for food, shelter, warmth, sexual gratification and other
bodily functions.

Safety

These include the need to feel safe from physical danger and the need for physical,
mental and emotional security.

Social

This covers the need to belong and be loved, to feel part of a group or organisation.
Implicit in this is the need to give and receive love, to share and be part of a family.

Esteem

These needs fall into two closely-related categories – self-esteem and the esteem of
others. The first includes our need to respect ourselves, to feel personal worth,
adequacy and competence. The second combines our need for respect, praise,
recognition and status in the eyes of others.

Self-actualisation

This is the need to achieve as much as possible, to develop one’s potential to the
full.

Maslow makes two interesting points about these needs.

First, if one of our stronger needs is threatened, we jump down the steps to defend it.
For example, if you are starving, you are not worried about status. Therefore, if you
appear to threaten people’s security by your proposed changes, you should expect a
strongly-defended response.

Second, a satisfied need ceases to motivate. When one area of need is met, the
person concerned becomes aware of another set of needs. These will now begin to
motivate.

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Understanding motivational needs enables managers to increase their awareness of
what motivates each of their team so that they can drive behaviour and influence
performance which leads to the overall success of the team and organisation.

Activity 1.30 relates to the above

6.3 Explain different types of pay structures

Pay structures

As an employee, you will receive a regular income (also known as a salary) for the
work that you provide to an organisation. This could be provided to employees
through a number of ways, such as cheque or BACs payment, and is often made on
a weekly or monthly basis depending on what an employee’s contractual agreement
states.

An employee’s income is often seen as one of the reward motivators we went into
detail about in the last two elements of this unit. However, as a manager it is
important to understand how each employee qualifies for the amount of income they
receive from an organisation and also other payment-related rewards, such as
bonuses.

Most large organisations now use a system called a ‘pay structure’. A pay structure
is a system whereby each employee is assigned to a category based on the
employee’s level of expertise, position, accomplishments or contribution to the
organisation.

The categories can also be known as grades, bands or levels. Each grade, band or
level determines the amount or form of payment-related rewards that should be
allocated to an employee.

It is possible for employees to move from different grades, bands or levels, for
example, if an employee received a promotion, they may receive an increase in
salary which could mean their pay structure category could change too.

Having a pay structure within an organisation allows for a level of fairness,
lawfulness and equality to be used when assigning specific payment-related rewards
to employees.

Different types of pay structures

There are lots of types of pay structures that organisations can adopt. These could
be:

• Graded

- Graded pay structures can consist of either narrow-graded pay structures or
broad-graded pay structures.

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Narrow-graded pay structures follow a system whereby each grade
consists of several pay levels (usually 20% - 50% of the going rate for a
similar position). The jobs within the grades will all comprise of a similar level
of worth to the organisation and therefore the grades are very narrow between
one another. As grades are narrow, it is possible for employees to reach the
top of their allocated pay grade fairly quickly which could mean the
organisation may need to look at the grading system again and reallocate
roles to different grades to accommodate progressive employees. This is
called a grade drift.

Broad-graded pay structures work in a similar way to narrow-grade pay
structures. However, they have far less grades in which to categorise job roles
- usually under ten grades. This means the grading system is not narrow but
instead broader. So while employees are able to progress to the higher end of
their allocated grade, the need to move to a higher grade is reduced due to
the fact broader grades exist. Organisations are less likely to use grade drift
using this method of pay structure.

• Broadband

- Broadband pay structures usually consist of about four or five pay
bands. Whereas the grading pay structure system can consist of lots of
different pay grades, the broadband pay structure merges the pay grades
into a few ‘bands’ and therefore consists of a greater range of pay grade.
As there are less pay bands to which positions can be allocated, there is
greater scope for pay progression without the need to move to an
alternative band level.

• Pay spines

- Pay spine pay structures are often used in the public sector. They
operate in a very similar way to those of narrow-graded pay structures and
are based on various incremental points.

• Job family

- Job family pay structures may sound like it has something to do with
your family but in actual fact it hasn’t. These types of pay structures have
few grade levels. Each grade level consist of groups of positions who all
have similar occupations, functions or worth to the organisation - hence
the name ‘family’. A job family may require a different pay grade level to
another due to the experience that they bring to an organisation and
therefore, cannot be grouped with an alternative job family as the pay
grade may be unfair or incorrect.

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In general, what positions are placed into certain pay levels will largely boil down to
how most pay structures are calculated. This tends to be based on the minimum and
maximum salary for a position whilst also taking into consideration the following
information:

• Economic factors
• Employee experience
• Employee responsibilities
• Employee performance
• Organisational resources.

Each organisation operates differently and may have different pay structures in
place. It is always good to understand what type of pay structure your organisation
offers.

Activity 1.31 relates to the above

6.4 Explain the risks involved in the management of reward schemes

Reward schemes risks

We now understand that having a reward system in place can motivate employees
and if managed correctly, a reward system can strengthen an organisation for the
better. However, if a reward system isn’t managed well, an organisation could
ultimately suffer.

Over the last ten years, there have been some major issues concerning companies
that have been ineffectively managing reward systems, especially within the financial
services industry. This poor management of risks has led to some of these
companies ceasing business altogether. Potential risks that could occur from poor
management of a reward system could be:

Strategic risk

Strategic risk can occur when the business has little or no knowledge of the
organisational reward system in place or how it fits in with the organisation’s goals.
This could lead to potential employees not wanting to join the organisation and to
existing employees leaving their positions. This type of scenario could mean that a
company could be forced to cease business as they would be unable to fulfil the
services that they provide.

Understanding the organisation’s reward system, how these correspond with
organisational goals, and implementing the system correctly is the best way to avoid
strategic risk. This will involve sound policies and procedures being put in place as
well as clear communication throughout the organisational structure.

Behavioural risk

Rewarding employees that do not deliver or behave in line with the organisation’s
interests or policies can lead to all sorts of issues internally for a company. Systems
and operations will suffer for the organisation and customers could be lost as a

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result. A knock-on effect could also occur and other employees may slack, not
perform or illustrate inappropriate behaviours.

Reward structures must promote appropriate employee behaviours. If employees are
managed effectively then rewards can only be provided to those employees that
promote and support the behaviours expected of an organisation.

Financial risk

Understanding the financial situation of an organisation is paramount when issuing
rewards to employees. If the financial element of the reward system is incorrectly
calculated, the company could lower profits or even create a huge loss.

Organisations must ensure that their finances can withstand the reward system that
is in place.

Operational risk

A lack of communication in reward system procedures, not following reward
procedures correctly or even failure to have a reward system in place could
potentially lead to the systems being used incorrectly, and result in legal issues
surrounding the operations of any reward systems in place that have not been
followed correctly. It is always important to ensure that you understand the system in
place and that it is followed lawfully, fairly and with a great deal of understanding
regarding how the system operates.

Implementation risk

Poor implementation of a reward system, reward procedure or changes to a reward
procedure could mean that the overall process is managed ineffectively and,
therefore, will not work as it will not have the required impact on the organisation. If a
reward system and procedure is in place, they must be implemented so that both
employees and employers can reap the rewards from the systems in place.

Legal and ethical risk

When creating a reward system, the organisation must ensure that it is in line with
relevant legislation and regulation requirements. Failure to provide fair, honest and
lawful systems could result in tribunal cases being brought against the company and
regulatory action which could halt business operations.

In order to minimise the potential reward risks that could occur, the organisation’s
managers and hierarchy should work together to perform regular risk management
assessments that will identify areas of potential risk. The risk assessments can
provide insight into how these risks can be kept to a minimum by strategic planning
and implementation.

Activity 1.32 relates to the above

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7. Understand the principles of conflict management

7.1 Evaluate the suitability of different methods of conflict management in
different situations

7.2 Describe the personal skills needed to deal with conflict between other
people

(This section comprises of both elements 7.1 and 7.2)

Managing conflict

Conflict situations can occur at any time in a working environment. How the team
leader deals with the conflict situation will affect how the incident develops. Provided
that the conflict is dealt with efficiently, it should not remain a problem. Conflict in the
workplace often occurs when two or more individuals compete for the same resource
at the same time. Conflict could be as a result of
inappropriate behaviour or relationships within a
team, but underpinning this might be poor
communication or resource issues.

If resources are not well managed, this can
become a major source of conflict within your
team.

Different interpretations

Team members will differ in their views about which resources should be used in a
project or activity, or about how they should be used.

This might be due to lack of information from management.

Scarce resources and competition

Conflicts can arise here because:

• Sufficient resource is not available for everyone to use at the same time
• Resources are planned for use over a year but there is a high demand in a

particular month
• Priority needs to be given and there is conflict over whose project or activity

should come first
• People hoard stocks in case they need something and there are now none

available, for example, pens. How many are in your drawer?
• Someone may need support from a colleague who has a particular skill that is

needed by two members at the same time, for example, a spreadsheet specialist.

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In any context where people are working together, especially in a competitive
business environment, disagreements, differences of opinion and conflicting
perspectives on different issues are bound to arise.

Not all conflict is negative – constructive conflict can be harnessed to find creative
solutions and new ideas.

Most often, though, conflict can be destructive. Where negative emotions are stirred
up, poisoning the atmosphere, undermining morale, creating stress and destroying
workplace relationships, conflict must be dealt with before it de-motivates staff and
destroys relationships. If it is not resolved, it will have an adverse effect on
performance and be costly to the organisation in terms of time and money. Worse
still, a legal situation could arise, which damages the organisation’s reputation.

Effective conflict management can improve morale and contribute to the
development of better teamwork and more productive working relationships.

Conflict arises from the clash of competing ideas and personal interests.

There are many sources of conflict in the workplace, such as:

• Dissatisfaction with the working conditions or remuneration
• Excessive or uneven workloads
• Differences of opinion
• Lack of recognition or promotion
• Perceptions of discriminatory or unfair treatment
• Feelings of insecurity
• Fear of redundancy
• Clashes of personality
• Misunderstandings or breakdowns in communication
• Differing expectations of what constitutes appropriate behaviour.

Conflict may occur between individuals, managers and their staff, team members,
between departments, sections and managers. It may be expressed openly through
lack of cooperation or disagreements, or be hidden, taking the form of irritation, loss
of morale, resentment and lack of commitment. Whichever form it takes, it should be
addressed as soon as possible before it escalates and becomes even more difficult
to tackle.

A team leader who learns to deal with conflict effectively can increase productivity. In
addition, being able to resolve conflict reinforces their stature as a leader. There are
five basic methods for resolving conflict; the effective leader will choose the best
approach for the situation:

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Forcing – the forcing or competitive style is based on the desire to WIN one’s own
concerns at the expense of the other party. A person with a forcing style is likely to
engage in a WIN-LOSE scenario, that is’ I WIN, you LOSE’.

Accommodation – the accommodative style favours appeasement, or satisfying the
other’s concerns without taking care of one’s own.

Sharing – the sharing style is midway between forcing and accommodation. Sharers
prefer moderate but incomplete satisfaction of both parties. The result is
compromise.

Collaboration – in contrast to the sharing style, collaboration reflects an interest in
FULLY satisfying both parties. It is based on a WIN-WIN scenario. The collaborative
approach usually results in an attempt to identify the root cause of the problem and
then to arrive at a solution that genuinely solves it.

Avoiding – the avoider combines uncooperativeness and unassertiveness. They are
indifferent to the concerns of either party. The avoiding style is sometimes used by a
team leader who stays out of a conflict between team members. The members are
left to resolve their own differences.

Whichever style of conflict resolution is chosen, it will still be down to the manager to
ensure that the situation does not get out of hand. Ultimately, they are in control.

An effective way of dealing with conflict is to try and pre-empt it. This can be done by
encouraging respect between staff. Staff do not have to like each other to work
together but respect is important. If staff respect each other, they will be more likely
to help each other which will lead to increased productivity. Make sure that all
members of your team are aware of how important it is to work together as a team. If
you notice a lack of cooperation between certain members of the team, use formal
and/or informal appraisals to discuss this with them, and then think about how it
could be addressed.

Personal skills

If you do have to deal with conflict situations, it’s important to understand the
personal skills that can be used to help aid you as a manager.

Withholding judgement

When a manager comes up against conflict between team members, it can mean
that you are often faced with being in the middle of ‘he said, she said’. It’s important
to remain neutral and not take sides. In addition, you must also ensure that you
respect individual differences. Your position is to facilitate the resolution of the
conflict by using impartial guidance for each party involved and having an open view
for both sides of the situation.

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Empathetic questioning

Empathy can be defined as ‘the power of understanding and imaginatively entering
into another person's feelings’.

Empathy is about feeling with the person. Notice the distinction between for and
with. With empathy, you try to place yourself in that person’s shoes, have a good
sense of what they feel, and understand their feelings.

An empathetic questioning style is a technique that is used to gain information in a
gentle manner. As a manager faced with team members that have conflict with each
other, you need to understand both sides of the situation. Using empathetic
questions will help aid you in gaining clarity of the situation.

If you were to ask stern questions and you did not appear empathetic to each
individual, your team members may not open up and provide you with the
information you may require to resolve the conflict.

Active listening

There is no point in asking questions if you do not listen to what is being said. Active
listening means that you concentrate on the person, not yourself. Not only do you
hear the words, but you also consciously note other details, such as whether the
speaker was nervous, impatient, stressed or worried. This means that you are more
likely to respond both appropriately and tactfully to the situation.

Remain calm

Some conflict situations may result in team members involved not acting calm and
this can sometimes put managers in pressurised situations. The trick to any
resolution is to remain calm, even if both parties involved in the situation are not.
Remaining calm can often create a domino effect whereby others in the room will
start to mirror your calm exterior. Remember, all organisations have a responsibility
to protect staff from being verbally abused or threatened by others. It helps if you
have been trained in how to deal with difficult people, how to diffuse a potential
conflict, and if you do not consider that asking for help from your manager equals
personal failure.

Assertiveness

It’s important when dealing with conflict that you are assertive. However,
assertiveness doesn’t mean you should be aggressive. In fact, being aggressive
could add fuel to the fire and make a situation much worse than it was originally.
Being assertive should be about having self-confidence in your abilities to lead
resolution between two parties experiencing conflict.

Remember, the key to dealing with conflict situations are the skills that you can use
to help aid the resolution of them.

Activities 1.33 and 1.34 relate to the above

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7.3 Analyse the potential consequences of unresolved conflict within a team

Consequences of unresolved conflict within a team

In earlier elements, we looked at why potential conflict occurred in the workplace and
how as a manager you can deal with these situations. However, if conflict is left
unresolved, it could pose as a problem in the workplace and have negative effects
on the team and organisation as a whole.

The consequences for unresolved conflict could be:

Decreased productivity

Conflict between colleagues can lead to stress, strained working relationships and
low morale for those directly involved within the conflict and also for those
surrounding the individuals that are directly involved. If a team harbours these types
of feelings at work, this is likely to affect workplace performance and productivity
meaning that the team will suffer and so will the organisation as a result.

Employee turnover

No one likes being in situations where conflict is apparent. If there is unresolved
conflict within the workplace, it is likely that employees won’t stick around forever
waiting for the situation to improve on its own. Employees are likely to seek
employment elsewhere which could cause potential issues for the company when
needing to recruit for positions and train new staff.

Divided teams

Conflict between colleagues can create divisions within the team and a breakdown in
how the team operates. Leaving conflict unresolved could ultimately lead to the
team’s inability to communicate with each other and function as it should do.

Poor management

As a manager, it is your duty to ensure that your team works well and that conflict is
also resolved and managed well. If your team has unresolved conflict, this will
ultimately be a reflection on your management skills. Therefore, it is important to
ensure that you manage conflict accordingly.

Unhealthy confrontation

Conflict between others can build up over time and if left to build, conflict can all too
often take shape in the form of confrontation. We would all like to think that we are
able to handle situations in a mature and professional manner; however, if feelings
are running high and conflict is left confrontational, situations could take a turn for the
worst. Verbal or physical confrontation should never be tolerated. However, if conflict
is dealt with appropriately at the early stages, confrontation should never be an
issue.

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As a manager, you are responsible for ensuring that if conflict arises, it is dealt with
and resolved in accordance with your organisation’s policies and procedures. Simply
ignoring the issues could cause havoc for the organisation and reflect poorly on you.

Activity 1.35 relates to the above

7.4 Explain the role of external arbitration and conciliation in conflict
resolution

Alternative avenues for conflict resolution

When organisations have exhausted all of their resources to try and resolve a
conflict matter internally, other alternative methods can be used. Using alternative
methods to resolve conflict could not only bring potential peace and a mutual
agreement to a situation but can also prevent the hassle, time and cost that
attending court may bring with it.

Both arbitration and conciliation are carried with the purpose of resolving conflict
within the workplace. They both possess differences in their approach; however,
they both have the same end goal of resolution. Let’s look at these methods of
resolution in more detail.

External arbitration

If an organisation has followed procedures to resolve conflict internally but is
unsuccessful in its endeavours, an alternative route for resolution can be sourced in
the form of an ‘external arbitrator’.

As the name would suggest, an arbitrator is an external and impartial third party
brought into an organisation to hold an informal hearing with the parties involved in
either a dispute or conflict matter that could not be resolved within the organisation
internally. Prior to the hearing, the arbitrator chosen to attend is usually mutually
agreed upon by both parties involved within the dispute or conflict matter.

The arbitrator is responsible for setting the terms and conditions of the hearing and
for settling the dispute. Once an arbitration has taken place, the outcome of the
hearing is considered final and binding to both parties involved which ultimately
means the conflict should, in theory, be resolved.

Using an external arbitration to resolve conflict is deemed as an alternative to taking
the issue to the courts.

Conciliation

Conciliation is undergone to, ultimately, offer the end resolution to a dispute or
conflict matter. It does, however, differ somewhat from arbitration. While conciliation
does involve a third impartial party to work with both parties involved within the
dispute or conflict matter, the purpose of the conciliator is to meet with both parties
and between them negotiate a resolution agreed by all. An arbitration, on the other
hand, is similar to that of a court hearing.

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The conciliator chosen is often largely responsible for going back and forth between
the parties in conflict so that a mutual agreement between both sides can be made.
In fact, the process rarely involves both parties meeting together but instead each
party will individually meet with the conciliator alone to discuss issues and negotiate
methods of resolution.

The process of conciliation can take time as going back and forth to arrive at an
agreement between both parties can involve a lot work, meetings and negotiation.
However, when an agreement has been made, it is something that has been
achieved between both parties which aids the resolution process. Conciliation is not
legally binding and for all involved, it can be a much more informal process than
arbitration.

Activity 1.36 relates to the above

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