OBU RAP Topic 6 – Analyse and evaluate the effectiveness of key factors that have an impact on employees in an organization

Overview

Employees are an extremely important asset to any organisation. Employee behaviour is very vital to the entire work experience at a company. It is directly correlated to the business operations and ultimately its success. There are many elements, internal and external, that shape the behaviour of its employees and how they react to certain situations and circumstances. Companies rely on their employees to produce high-level quality products. As the employees decide to perform their duties, they are impacted by a variety of factors such as a positive environment, technology, the demands of customers, and their expectations. An organization that is well aware of these factors can manage them well and this has a positive impact on the employees.

Employer expectations and their treatment of employees also play a huge part in the employees’ motivation. This topic emphasizes researching all the possible factors and their effectiveness that can shape employee motivation. Students must follow the following points

• Access to internally generated information such as HR policies is important
• Primary data collection is required

The main objective of this topic is to study and analyze the main forces that are working to influence the employees in an organization. The areas that should be considered while researching the employees are staff behavior, staff roles and team behavior, staff motivation, and leadership. All these aspects are affected by the personal and corporate culture. Many key factors determine how the employees interact and communicate with each other and with the management.

Key features/requirements

The requirements set forth by OBU must be fulfilled which are as follows

• Assessing the key elements that influence employee behaviour
• Evaluating the effectiveness of these key factors on the motivation and overall behaviour of the employee
• With the use of models, analysing the performance of the selected company with these key factors
• Evaluating staff motivation with the help of motivational theories to better study the impact on employees
• Evaluating the impact of leadership style with the help of leadership theories to better study the impact on employees
• Evaluating the organizational culture with the help of organizational theories to better study the impact on employees
• Creating a link between the key factors and the behaviour of employees

Key success factors

The following are the main points that need to be followed to ensure a successful RAP submission

• Selecting an organization whose employee behaviour can easily be studied
• Access to internally generated information such as the HR policies of the company
• Permission from the management to study and research the employee behaviour of the company
• Collection of primary data to enable you to study the impact of key factors on the employees
• Identification of the key elements or factors that are responsible for employee motivation
• In-depth knowledge of all the motivational and cultural theories related to the workplace
• In-depth knowledge of key factors that have an impact on employee behaviour
• Demonstrating a clear understanding of the industry and its competitive peers
• Adequate application of the selected goals and objectives that were set at the beginning of the RAP in the proper sections of RAP
• The implementation of the correct research methodology to get good results on all the selected goals and objectives that were put in place at the beginning of the RAP
• Keeping the discussion logical by keeping all the objectives in mind
• Using reliable and appropriate sources for data gathering
• Properly referencing the information gathered according to the Harvard referencing style as told by the OBU.
• Usage of suitable business models to study different aspects of employee behaviour and its reasons
• A comparison to another organization or the industry sector average

Accounting and Business models for topic 6

Motivation theories: Motivation theory is a way of looking at a person and how this influences their behaviour in personal and professional lives. This specifically relates to their behaviour in business and management. Motivation is the secret to a more productive employee which results in a more profitable business. Some of the most famous motivational theories that can be used on this topic are:

MASLOW’S THEORY OF HIERARCHICAL NEEDS: This theory was presented by Abrahan Maslow who stated that people will only work at their best when all their needs are fulfilled. They not only work for money and security but other needs are also present there. He created a pyramid to demonstrate that ONE CAN NOT CLIMB UP TO THE HIGHER LEVEL UNLESS LOW-LEVEL NEEDS ARE MET.

Below is the hierarchy of needs:

• Physiological needs are basic needs for survival such as air, sleep, food, water, clothing, sex, and shelter.
• Safety needs: Protection from threats, deprivation, and other dangers (e.g., health, secure employment, and property)
• Social (belongingness and love) needs the need for association, affiliation, friendship, and so on.
• Self-esteem is the need for respect and recognition.
• Self-actualization needs the opportunity for personal development, learning, and fun/creative/challenging work.  Self-actualization is the highest-level need to which a human being can aspire.

As these needs are fulfilled, the employee will start to move up to the higher level as mentioned in the pyramid.

Hertzberg’s two-factor Theory

Hertzberg classified the needs into two broad categories: namely hygiene factors and motivating factors:

• poor hygiene factors may destroy motivation but improving them under most circumstances will not improve team motivation
• hygiene factors only are not sufficient to motivate people, but motivator factors are also required

McGregor’s Theory X and Theory Y

Theory X and Theory Y were first explained by McGregor in his book, “The Human Side of Enterprise,” and they refer to two styles of management – authoritarian (Theory X) and participative (Theory Y).

Theory X: Managers who accept this theory believe that if you feel that your team members dislike their work, have little motivation, and avoid work whenever possible, then you should use an authoritarian style of management. It involves micromanaging the employees until work is done.

Theory Y: This relates to a decentralized and supportive management style as the manager believes that people can work without constant supervision, and they do not avoid work.

Organizational culture models: Many diverse types of organizational cultural models can be used by employers to study behaviours.

Hofstede’s Cultural Dimensions

This is one of the most used and popular theories to study global cultural differences in workplaces. Hofstede studied 100,000 different employees from 50 different countries to know about the defining characteristics of global culture at workplaces.

According to his research, six diverse cultural dimensions were presented

• Power distance: refers to the degree to which an authority figure can exert power and how difficult it is for a subordinate to contradict them.
• Uncertainty avoidance describes an organization’s comfort level with risk-taking. Risk and reward are interlinked so companies should not hesitate while take risks at some levels.
• Individualism vs. collectivism: refers to the degree to which an organization integrates a group mentality and promotes a keen sense of community (as opposed to independence) within the organization.
• Masculinity vs. femininity: refers to the ways behaviour is characterized as “masculine” or “feminine” within an organization.
• Long-Term Orientation: It measures the strategic goals of the company.
• Indulgence vs. Restraint: refers to the amount of spending and fulfilment of needs.
• Team behaviour/roles: The team is made up of different individuals who have different roles to play. Usually, there are five roles of an effective team. Leader, coach, Facilitative director, creative director, and a member. You can study how effectively the team worked together to create the results that you see.

Apart from the motivational and organizational culture theories, this topic can also be analysed with the help of financial ratios. A good financial analysis is crucial to the passing grade of the RAP. Financial analysis refers to the usage of financial data to assess a company’s performance and make recommendations about how the company can go forward.  The most suitable is ratio analysis.

• Relevant KPIs can also be used to better analyse this topic. KPIs are the key targets you should track to make the most impact on your strategic business outcomes. KPIs support your strategy and help your teams focus on what’s important. Examples of key performance indicators related to topic 6 would be ‘Timeliness’, ‘attention to detail’, ‘consistency’,’ initiative’, or creativity and innovation. There are many other KPIs that can be considered to judge employee behaviours.

Many other models and modes of analysis can be used to produce a well-researched RAP with the help and guidance of your experienced mentor.

Major benefits of choosing topic 6

Students can benefit from the selection of this topic in the following ways. 

• Students will get to know about the key factors that drive an employee’s motivation
• Students will learn about the relevant companies and the industry of the selected company
• The insight will be gained regarding all the motivational theories
• Students will learn to implement organizational culture and motivational theories into real-life scenarios
• A detailed study regarding the company’s operational and financial performance of the employees will equip the students for their professional careers
• Students can apply their theoretical knowledge to real-world situations.
• A critical analysis of the company’s business and financial performance will help to sharpen the required skills needed by an accountant
• The research serves as a solid foundation for students as they help their clients to improve their HR or employee motivation.
• It will enhance the financial analytical skills and business evaluation skills of students as well which will be very beneficial for their future and career.

Possible limitations faced by the students while researching topic 6

The main aim of conducting research is to set up new facts or confirm the outcomes of the previous research. It enables us to gain new knowledge regarding the subject. However, while preparing for OBU thesis research students face many problems.

Some of the key limitations are as follows:

General limitations:

• Research method: Students need to have a clear understanding of the research methods. The research methods are not relevant or reliable as students are not trained in different methodologies. Simply replicating the knowledge available online or from various sources is not wise. There is a lack of basic knowledge regarding the correct methods of research.
• Confidentiality matters: Students may not be able to get authorization to talk to the higher management and also some information may not be provided due to confidentiality issues.
• Interaction between the subject company and student: There isn’t any proper interaction between the subject company and the student. This means that a substantial amount of data going into the thesis goes untapped. The key issues of the company can only be highlighted with the help of internal company management.
• Time constraints: it is without a doubt that students need to complete their RAP before the deadline hits. Sometimes, the time limit can affect the quality of RAP very negatively. Students need to acknowledge this from the very start and set a schedule to be consistent with their research.
• Data collection process: The diverse ways of collecting data present a strong limitation. If a student conducts an interview person to person or if he does it over the phone, both can have different effects on the interview. Hence, this data limitation must be reflected upon

Specific Limitations:

• Permission letter: The student may not be able to get the permission letter from the management to conduct primary research as companies are not interested in being part of academic research.
• Wrong questionnaires: It makes an integral part of primary data collection. If questions are not set right, then students may not be able to conduct effective research.

Suitable organization for topic 6

The most suitable organization is the one in which primary data collection is possible. It is very crucial to the successful RAP submission of this topic. It is not possible to write on this topic without extensive primary research. Selecting a company that is established enough so that its performance and financial position to be studied over some time is necessary. To make a high-quality RAP, it is essential that students choose a company whose operations are easily understood by the student, and he can make connections between diverse topics.

The following factors should be kept in mind when choosing a company for RAP:

• The general interest of the students in the company
• The amount of information available for the company
• Access to the internal management of the company
• Access to reliable secondary sources of information
• Familiarity with the industry sector associated with the company

The most appropriate organization for this topic would be a charity, public organization, or government authority.

Suggested approach for topic 6

Before starting your research, you should understand the assignment. The guidelines mentioned in the information pack should be read. Word count must be kept between 7001-7500 words. The approach for primary data collection must be devised at the start of the project. You should make questionnaires by understanding the models first. All the objectives must be met and OBU guidelines should be followed through.

In Part 1- (Research objectives and overall research approach), Students need to make a table of contents and a title page mentioning the ACCA reg number and the selected topic. Part 1 mostly contains the introduction and the objectives of the RAP. Its main objective is to study the motivational behaviours of employees and all the factors affecting them. The objectives should be consistent with the research of the project. Your personal aims and goals are not required to be a part of this section. The reasons for selecting the topic must be jotted down. The organization which is suitable for topic 6 and why that organization was deemed appropriate for the topic. Employees are most motivated when they work for a charity or not-for-profit organization. The aims and objectives of the project should be explained in many ways. Research questions are written in detail, and it targets the specific areas that need to be researched. Usually, there are 3 or 4 research questions. Consideration of all these points is important in part 1. If you follow all these instructions, you can move very strongly ahead.

Part 2- (Information gathering/accounting and business techniques) is a crucial section as all your understanding of the business and accountancy models is analysed here. Explain all the models used and also present their limitations. Begin by first mentioning the sources of information that were used to acquire the data for research on topic 6. Topic 6 includes the study of the behaviours of the employees and the main factors responsible for a particular behaviour. Key effectiveness must be judged by these factors.  Students are advised to select only those resources that they can understand easily. The use of primary information is recommended, and students should be able to collect sufficient and reliable primary information through different methods (please refer to section ‘sources of information for more details). Briefly describe all the sources used and why they were considered reliable sources. you are required to conduct surveys and questionnaires to get a true picture of employee behaviours. A discussion of the limitations of your information gathering must be included. Many companies don’t like to share information regarding internal policies. Confidentiality should not be breached. Every part should be backed up by good references. Next, you would list down all the business and accountancy models and their limitations. Maslow and Herzberg’s Motivational theories can be used to study employees’ behaviours effectively. To find out more about the selection of respective models for topic 6, kindly refer to section ‘Accounting and business models for topic 6’ above.  Word count is to be prioritized which is 1800-2000 words.

In part 3, there is a further evaluation, analysis and conclusion. It should contain a description of the results obtained and all the limitations. Further research with examples and comparisons between the two companies is done. It is the most critical section, and most students fail in it if they are not in the hands of an experienced mentor. An extensive analysis of the factors of employee behaviour must be done. It should be made clear in your results why employees behave in a certain way. Do employees behave better when their pay is increased? How do working conditions of the company affect their behaviour, and what were the reasons for employees not concentrating or concentrating? Your results from the application of models must also be summarized. How the employee motivation increases and what factors lead to its decrease? After the conclusions from the models, a financial analysis must also be done. How the company’s financial statements were affected by the motivational levels of employees. The trends of revenue, and profitability over three years can be discussed and you should relate it to employee behaviour as well. You can use graphs to represent your findings. Graphs must also be described in a precise manner. An analysis of 4500 words will be sufficient for this section.

Every student takes his approach regarding the given topic, and this is only an overly broad version of what can be done. The detailed approach depends on the student’s perception of the topic and the sources of information being used. Whatever approach is taken, the guidance of the project mentor is needed every step of the way to pass RAP with good grades.

Suggested approach for SLS

The meetings with the mentor must be planned at the start of the RAP and a track of those meetings must be kept in a diary as it will help later on to write the SLS. Your research should be completed around time. Self-reflection is very important in SLS. Describing the events and meeting sessions alone is not sufficient. The learning process must be documented. Any models that were new to you and you learned through this research must be written. Religiously following the requirements and keeping track of the time is necessary to pass the RAP. All the information gathered should be recorded systemically and needs to be shared with your project mentor so that complete guidance can be given to you. Consultation with the project mentor ensures that a student passes with the highest possible grade. If any issue arises it can be solved by discussing it with your project guide.

Sources of information

There are mainly two types of sources that can be used, primary and secondary.

Primary source: All the information that is collected by the student himself is referred to as primary information. in this topic, primary data collection is very essential and should be done. It can be carried out by making appropriate questionnaires that are relevant to the topic and conducting surveys of the employees asking about their working conditions and factors that affect their work. Moreover, one-on-one interviews can also be done with the management of the company. Feedback from the employees is essential for this topic. Direct observation of the employee’s actions and reactions can also prove to be beneficial.

Secondary source: All the sources that are already available are known as secondary sources. Students must check the reliability and relevance of the information. Many documents such as employee training records, HR policies of the company, Employee files, and records of past performance can be used.