Edexcel GCSE Business: Training and motivation (1BS0) – Revision Notes

These notes condense Theme 2, Topic 2.5 Making human resource decisions from the Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0) specification, Issue 2, July 2022. They cover items 2.5.3 (Effective training and development) and 2.5.4 (Motivation). For full explanations and worked examples, read the study guide.

Course links: the Business hub, the printable checklist, the practice questions and the free diagnostics.

Key terms

Term	Short definition
Training	Teaching an employee the skills needed to do a job well
Development	Preparing an employee for more responsibility over time (standard knowledge: the specification does not define it)
Formal training	Planned, structured, often away from the work area, may give a qualification
Informal training	Learning during normal work, such as shadowing or coaching
Self-learning	The employee takes charge of their own learning
Target	A goal to be reached by a set time; good targets are clear, measurable, achievable and dated (standard knowledge, SMART-style)
Performance review	A meeting to assess work against targets and agree next steps
Retention	Keeping employees rather than losing them
Motivation	The desire to work hard and do the job well
Productivity	Output for a given input, usually per worker (standard knowledge, not given in the specification: output ÷ number of employees)
Remuneration	Payment for work: a wage (often hourly or weekly) or a salary (fixed annual amount); the wage and salary split is standard knowledge
Bonus	An extra payment for meeting a target or for good results
Commission	Pay linked to sales made, usually a percentage of sales
Promotion	Moving to a higher post with more responsibility, usually with more pay
Fringe benefits	Extras given on top of pay
Job rotation	Moving between tasks or jobs at planned times
Job enrichment	Adding more challenging, responsible tasks to a job
Autonomy	Freedom to decide how to do the work

2.5.3 Training and development

Ways to train and develop

Way	Example	Plus	Minus
Formal training	Outside course, college day release	Consistent content; qualification	Cost; time away from work
Informal training	Shadowing, coaching at the workstation	Cheap; fits the real job	Depends on the teacher; slows the teacher
Self-learning	Online module, manual, practice	Own pace; low cost	Needs discipline; hard to check
Ongoing training for all employees	Regular updates for new and long-serving staff	Skills stay current	Repeated cost and time
Target setting	A stated output or quality goal with a deadline	Clear expectations	Unrealistic targets cause stress
Performance reviews	Yearly or half-yearly meeting with a manager	Feedback; finds training needs	Takes manager time

Why train and develop

• Link: training can build confidence and satisfaction, which can raise motivation, which can improve retention.
• Retention saves recruitment costs: advertising, interviewing and lost output while a newcomer learns.
• Retraining for new technology: employees learn the new equipment or software so the investment is used well.
• Risk to weigh: a trained employee may leave for a rival.

Method in steps: recommending a training method

1. Identify the need (new skill, new technology, weak performance, new starter).
2. Match a method to it (for example, a supplier course for new software, shadowing for local knowledge).
3. State the cost, including time away from work.
4. Say how success will be checked (a target and a review).
5. Reach a judgement and give a reason.

2.5.4 Motivation

Why it matters

Reason	Think
Attracting employees	Better applicants; wider choice
Retaining employees	Fewer leavers; lower recruitment cost; experience kept
Productivity	More output per worker; fewer errors

Financial methods

Method	One-line point	Typical drawback
Remuneration	Wage or salary	Pay alone may not hold people
Bonus	Extra for target or results	Quality may suffer if only the target matters
Commission	Percentage of sales	Pay uncertain; pushy selling
Promotion	Higher post and usually more pay	Few posts; disappointment
Fringe benefits	Non-pay extras	Cost; valued differently

Non-financial methods

Method	One-line point	Typical drawback
Job rotation	Variety; wider skills; cover for absence	Extra training; slower at first
Job enrichment	More challenge and responsibility	May expect more pay; needs training
Autonomy	Trust and freedom to decide	Poor decisions; some want guidance

Worked reminders

Commission. A sales assistant earns a basic £1,400 a month plus 5% commission. Sales are £24,000. Commission = 0.05 × 24,000 = £1,200. Total = £1,400 + £1,200 = £2,600.

Bonus. A workshop pays £2.50 for every unit above a target of 120 units. An employee makes 164. Extra units = 164 − 120 = 44. Bonus = 44 × 2.50 = £110.

Productivity. A workshop makes 3,150 items with 7 employees. Productivity = 3,150 ÷ 7 = 450 items per employee.

Percentage change. Leavers fall from 12 to 9. Change = (9 − 12) ÷ 12 × 100 = −25%, a fall of 25%. Divide by the starting figure.

Mean. Five employees had 2, 5, 3, 6 and 4 days of training. Mean = (2 + 5 + 3 + 6 + 4) ÷ 5 = 20 ÷ 5 = 4 days.

Applying it to a case

If the case says…	Link to make
New software or machines are being introduced	Retraining so the investment is used well; fewer mistakes; less anxiety
Many staff are leaving	Retention: training, promotion prospects, pay, fringe benefits; recruitment costs avoided
Output per worker is low	Productivity: targets, bonus or commission, job enrichment, autonomy
Jobs are repetitive	Job rotation or job enrichment to reduce boredom
The business struggles to fill vacancies	Attracting employees: competitive remuneration, benefits, a reputation for training
The business has little spare cash	Low-cost methods: informal training, self-learning, autonomy

Method in steps: an evaluation of a motivation method

1. Name the method and say what it is.
2. Explain how it affects attracting employees, retaining them or productivity.
3. Give a cost or drawback, using figures from the case if there are any.
4. Compare with an alternative.
5. Decide, and give a reason that refers to the business.

Command words in this topic

Command word	What the specification says it asks for
Define	Define a term from the specification content
Give	Recall an answer from the specification content
Calculate	Use mathematical skills on given data; workings should be given
Outline	Two linked points placed in context
Explain	A statement of fact with two expansion points; no context
Discuss	Extended answer, no context
Analyse	Extended answer placed in context
Justify	Use the information to recommend one of two options
Evaluate	Reach a supported conclusion about a business situation

Must-know distinctions

• Training teaches skills for the present job. Development prepares for the future (standard knowledge).
• Formal training is planned and structured. Informal training happens during work.
• A bonus is linked to a target or results. Commission is linked to sales made.
• Remuneration is payment for work. Fringe benefits are extras beyond that pay.
• Job rotation changes the task. Job enrichment makes the task more responsible.
• Autonomy is about deciding how to work. Job enrichment is about what the work contains.
• Motivation is the desire to work well. Productivity is the measured output.
• Retention keeps existing employees. Attracting brings in new ones.

Quick self-test

1. Give one example of informal training.
2. State what a performance review is.
3. Explain one reason why a business might retrain staff when new technology arrives.
4. A team leader earns £1,400 plus 5% commission on sales of £24,000. Calculate total pay.
5. Seven employees make 3,150 items. Calculate productivity.
6. Which is a financial method: job enrichment, autonomy or a bonus?
7. Staff leavers fall from 12 to 9. Calculate the percentage change.
8. Explain the difference between job rotation and job enrichment.
9. Six employees each go on a £250 course. Calculate the total course fee.
10. Of 24 employees, 18 had a review this year. Calculate the percentage reviewed.
11. Give two ways in which motivation can help a business.
12. Calculate the mean number of training days for 2, 5, 3, 6 and 4 days.

Answers

1. Shadowing a colleague, or being coached at the workstation.
2. A meeting where a manager and employee assess work against targets, give feedback and agree next steps.
3. Employees may not know how to use the new equipment, so retraining lets them use it correctly. This means the investment is used well and employees feel less anxious about their jobs.
4. £1,400 + (0.05 × 24,000) = £1,400 + £1,200 = £2,600.
5. 3,150 ÷ 7 = 450 items per employee.
6. A bonus.
7. (9 − 12) ÷ 12 × 100 = −25%, a fall of 25%.
8. Job rotation moves employees between tasks, giving variety. Job enrichment adds more challenging, responsible tasks to a job.
9. 6 × £250 = £1,500.
10. 18 ÷ 24 × 100 = 75%.
11. Any two of: attracting employees, retaining employees, raising productivity.
12. (2 + 5 + 3 + 6 + 4) ÷ 5 = 4 days.

Where marks are usually lost

• Naming a method with no explanation of how it motivates or trains.
• Mixing up a bonus and commission, or rotation and enrichment.
• Writing about motivation in general when the question names a business and its situation.
• Dividing a percentage change by the new figure instead of the original.
• Giving only the advantages of a method and no drawback.
• Forgetting the cost of training, including time away from work.
• Ending an “evaluate” or “justify” answer without a clear decision.
• Claiming that money is the only motivator.

Frequently asked questions

What is the difference between formal and informal training? Formal training is planned and structured, often away from the work area and sometimes leading to a qualification. Informal training happens during ordinary work, such as shadowing a colleague, and is cheap but depends on the person teaching.

What are the financial methods of motivation in Edexcel GCSE Business? The 1BS0 specification lists remuneration, bonus, commission, promotion and fringe benefits. Promotion usually brings higher pay, so it sits among the financial methods.

What is the difference between job rotation and job enrichment? Job rotation moves employees between different tasks at planned times to reduce boredom. Job enrichment redesigns a job to include more challenging, responsible tasks.

Why does motivation matter to a business? The specification gives three reasons: attracting employees, retaining employees and productivity. Motivated staff are less likely to leave, which cuts recruitment costs.

Official syllabus

Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0), Specification, Issue 2, July 2022, published by Pearson Education Limited. Theme 2: Building a business, Topic 2.5 Making human resource decisions, items 2.5.3 and 2.5.4.