Introduction to Business Studies

This document provides an introduction to business studies, covering topics such as HR and financial management. It explains the concept of motivation and discusses different motivational theories. The document also explores the role of financial managers in a company and the various sources of finance available. It is a useful resource for students studying business or related subjects.

Introduction to
Business Studies

Table of Contents
Task 3 : HR: Case Study (HR area of Motivation).........................................................................2
Definition of HR.........................................................................................................................2
What is motivation......................................................................................................................3
Motivational theories .................................................................................................................3
Task 4: Financial management Report .........................................................................................5
Introduction.................................................................................................................................5
Financial Management................................................................................................................6
Importance of financial management .........................................................................................6
Role (job) of the Financial Manager in a company ....................................................................6
Sources of finance ......................................................................................................................7
Conclusion..................................................................................................................................8
REFERENCES................................................................................................................................9
Task 3 : HR: Case Study (HR area of Motivation)
Definition of HR
Human resource forms a vital and most important division and functional department of
an organisation that is responsible for for attracting, finding, screening, recruiting, selecting,
directing and providing regal training for a job applicant (Sætersdal and Johannessen, 2019).

Further, HR department is also having the charge of admins rating all needs and benefit
preprogram of employees with main aim of developing their skills and motivating employees for
better results.
What is motivation
Motivation basically represent a set a process that leads and initiates guidance for
employees and maintain a goal oriented and positive behaviour in employee in order to keep
them encouraged towards there work and action (Stolfova and Fajfrlikova, 2019). Thus,
motivation comprises of a biological forces, social aspects, emotional behaviour and other
cognitive forces that enforces and direct employees to activate their behaviour in order to
achieve and lead better performance.
Motivational theories
These comprises of set of action and procedure which are tasked at discovering the needs,
ways and desires that derives individuals to work more effectively and efficiently towards
accomplishment and achievement of set goals (Sætersdal and Johannessen, 2019). The two most
common strategies and motivational theories used by Marks and Spenser are provided and
discussed below to motivate its employees in order to make them productive and ensure
economic use of resources.
Maslows Hierarchy of needs
This motivational theory comprises of five tier model of human needs based on
psychology of an individual which is presented in form of a hierarchical levels of a pyramid. The
another concept of Maslows Hierarchy of needs theory comprises of evidence that needs lower at
the pyramid must be satisfied first to attend and reach higher up desires and needs. The
description and discussion about these needs of an individuals and employees is provided below
in context of Marks and Spencer.
Physiological needs- It represent the set if most basic needs of an individual which
composes of food, water, shelter, cloth, sleep etc. Physiological needs are defied as the most
basis requirement of an employee which must be satisfied by employer to provide a better mind
set and ability to work (Tuan, 2018).
Safety and security needs- These needs comprises of the control and safety level of
individuals which is usually based on their financial and emotional security and comprises of law
and order, social stability, freedom from fear along with safety from miss happening to ensure

personal well-being. To fulfil safety and security needs of its employees, Marks and Spencer
provides a safe working environment with positive atmosphere which boost emotional and
physical safety of employees to lead better motivation and positive attitude towards there work
(Nieves and Osorio, 2017).
Belongingness and love- These aspect of Maslows theory compromise of state and
feeling of being loved and affectionate by the people. Thus, employee must provide an
atmosphere where interpersonal relationship can be easily developed and created by an
employees which comprises of friendship, intimacy, trust, and acceptance along with receiving
and giving affection and love.
Esteem needs- These type of need is basically associated with the level of dignity and
respect from other that plays a vital role in driving motivation in employees. To meet and fulfil
esteem needs of its employees, Marks and Spencer is having a policy of providing regular reward
and recognition to its employees which drives better recognition and dignity of employees to
ensure better motivation and performance.
Self-actualization needs- It is the highest level need that an employees or individual can
achieve and is mainly associated with the personal growth and development of an employee. To
ensure fulfilment of Self-actualization needs regular personal development programmes and
training is provided by Marks and Spencer to ensure high skill development and enriched
motivation in its employees (Sætersdal and Johannessen, 2019).
Herzbergs 2 way theory
This theory was given by Frederick Herzberg's who bifurcated all the factors resent at
workplace of an organisation into two main categories comprise of motivating and hygiene
factors. A discussion about these two factors of Herzbergs theory is provided below in context of
Marks and Spencer:
Motivating factors- These are the factors at workplace that motivates employee for
working harder and mainly founds in actual job itself (Stolfova and Fajfrlikova, 2019). The
motivating factors that ensures high motivation and performance level in employee comprise of
timely achievement, appraisal and recognition of employees along with ensuring proper growth
and advancement in job role and reasonability of employees on regular basis by the employer of
Marks and Spencer.

Hygiene factors- These factors comprises of aspects that does not add on in the
motivation level of employees but absence of theses factors could lead and result in form of
dissatisfaction. The Hygiene factors provided by Marks and Spencer to boost satisfaction and
loyalty level of its employees comprises of effectuate company polices, participative supervision
and positive workplace relationship along with goof working conditions and regular and timely
salary and remuneration for its employees (Sætersdal and Johannessen, 2019).
Background of the company and Steps for motivating employees
Marks and Spencer well known and famous British multinational retailer and considered
as one of the major British supermarket which is having its headquarter situated at London,
England. The Marks and Spencer covers and provide a wide range of products and branded
items to its customer which consists of Blazers, Cardigans, Cashmere, Jeans, Linen, shirt, skirt,
and other clothes for all men, women and kids along with availability of home accessories,
furniture for Bedroom, living room, dining room, lighting etc. Being a multinational organisation
it become vital and essential for Marks and Spencer to provide proper motivation and direction
to its employees (Tuan, 2018). The steps taken by Marks and Spencer to motivate its employees
comprises of ensuring effective communication at workplace along with adopting participative
leadership style that leads and ensure a positive workplace environment and better employee
engagement to motivate them for better performance. Apart from this, regular training and
development preprogram along with extra incentives and timely recognition is also provided by
Marks and Spencer to keep its employees motivated for better performance and higher efficiency
(Nieves and Osorio, 2017).
Task 4: Financial management Report
Introduction
Financial management report is a most commonly used management tool that aim at
communicating key financial aspects and information with both internal and external
stakeholders of a company (Amornkitvikai and Harvie, 2018). This report comprises of a
description about the definition of financial management along with its importance for an
organisation. Further, role of financial manager in a company is also form a part of current report
writing along with a description about the sources of finance.

Financial Management
The concept of financial management is described as a area of management that is
concerned with the profitability, cost, expenses, cash, credit and other aspects of a finance so that
an organisation could have better analysis of its performance and success in terms of profit
earned and other measurable. Thus, it can be evaluated that financial management is mainly
associated with and defining and analysing with money and cost of an organisation made in
various investments and other aspects to accomplish and conduct business decisions in a more
efficient and viable way. Financial management is mainly associated with short term working
capital and day to day cash flow of an organisation but also reflects the long term profitability
and growth of an organisation to its stakeholders (Martin, 2016). The main aim and focus of
financial management is on focusing towards profit maximisation and better investment and
management of monetary aspects and expenses of an Nixonisation to minimize its operating and
administration cost. Thus, financial management comprises of a process of leading efficient
planning, organising, controlling and monitoring the monetary and financial resources of an
organisation with the main view of achieving organisational goal and objectives in an efficient
manner.
Importance of financial management
Financial management is important for an organisation as it is mainly associated with the
strategic planning and organising of financial resources along with proper directing and
controlling of financial undertaking of an organisation through applying various management
principles. Financial management forms vital and crucial part of a company as it ensures and
maintain proper supply of funds along with ensuring better return on investment for stakeholders
through optimum and efficient utilization of available funds (Matthew, 2016). Financial
management is important and viable for Marks and Spencer as it helps in effective financial
planning and provide assistance for this organisation to have acquisition and availability of
sufficient amount of finance. Beside this, financial management also ensures improvement in
profitability of Marks and Spencer through more optimum utilisation of investment of money to
increase value of return on investment along with providing more economic stability.
Role (job) of the Financial Manager in a company
The financial manager are responsible for maintaining the financial health and liquidity
of an organisation through setting a control and check over the financial resources of a company

(Finkler, Smith and Calabrese, 2018). The role and duties of financial manager in a company
comprises of producing regular financing report and other needed budgets for various activities
of a firm to have a control and monitoring over the expenses and cost of various task, Further,
leading effective financial decision and strategies regarding the investment of finance also forms
a vital aspect and duty of a financial manager in Marks and Spencer which aims at enhancing
return on investment and achieve financial goal of a company.
Sources of finance
The sources of finance that are available for a business organisation comprises of equity,
debt, retained earnings, debentures, long term loans, venture funding, etc. which are classified
and varied as per the time period, ownership and control along with there source of generation.
The main type of short term and long term source of finance that are available for an
organisation to start or run a business are described below:
Short Term sources of finance
These are the sources of finance which mainly provided monetary assistance for a time
period of less than one year and are mainly used to meet the day to day expanses and manage
working capital and liquidity of an organisation (Shapiro and Hanouna, 2019).
 Trade credit
They are also known as a account payables and are the most common form of short term
finance for an organisation comprises of extended credit from a seller to a buyer for a specified
period of time (Trade Credit: Meaning, Features, Advantages and Disadvantages, 2020). The
main advantage and disadvantage of trade credit as short term sources of finance are listed as
follows:
Advantage Disadvantage
 Most easy and an automatic sources of
shirt term finance with no legal
formalities.
 Does not requires any negotiation or
formal agreement between parties thus,
provides a spontaneous source of
financing.
 Trade credit is only available for those
organisation which are having a good
track record (Martin, 2016).
 Expensive sources of financing if
payment is not made on due date.

Long term sources of finance
It is mainly available for a time period of 1 to 10 financial years and utilised to meet lone
term financial needs and big investment of a company.
Bank loan
It represent the sum of money that is taken and availed from a bank or other authorised
financial institution which is usually given to the borrower on the basis of some collateral
security for certain time period. Advantages and disadvantage of financing through Bank loan
are as follows:
Advantages Disadvantage
 Bank loan are available at the the
cheapest and lowest rate of interest
thus, provide most cost efficient way
for long term financing (Amornkitvikai
and Harvie, 2018).
 Taking bank loan is a complex and time
consuming method of financing as it
requires many formalities and
agreement.
Conclusion
On the basis of this task of assignment it can be summarised that financial management is
vital branch of an organisation which comprises of having effective planning, organising,
controlling and checking all financial aspects of a company. Further, it has been also evaluated
that financial manager plays vital role in meeting financial goal of a firm through preparing
timely reports and financial budget. At last, it can be summarised that trade credit is a short term
sources of financing where as Bank loan provide long term availability of monetary funds.

REFERENCES
Books and Journals
Amornkitvikai, Y. and Harvie, C., 2018. Sources of finance and export performance: Evidence
from Thai manufacturing SMEs. The Singapore Economic Review. 63(01). pp.83-109.
Finkler, S.A., Smith, D.L. and Calabrese, T.D., 2018. Financial management for public, health,
and not-for-profit organizations. CQ Press.
Martin, L. L., 2016. Financial management for human service administrators. Waveland Press.
Matthew, B. T., 2016. Financial management in the sport industry. Taylor & Francis.
Nieves, J. and Osorio, J., 2017. Commitment-based HR systems and organizational outcomes in
services. International Journal of Manpower.
Sætersdal, H. and Johannessen, J. A., 2019. The Future of HR: Understanding Knowledge
Management for Motivation, Negotiation, and Influence. Emerald Group Publishing.
Sætersdal, H. and Johannessen, J.A., 2019. HR and Enthusiasm as Motivation. The Future of
HR, pp.41-58.
Shapiro, A.C. and Hanouna, P., 2019. Multinational financial management. John Wiley & Sons.
Stolfova, A. and Fajfrlikova, P., 2019. Development of employees' evaluation and motivation
systems in Czech NGO. International Journal of Public Sector Performance
Management. 5(1). pp.26-45.
Tuan, L. T., 2018. Driving employees to serve customers beyond their roles in the Vietnamese
hospitality industry: The roles of paternalistic leadership and discretionary HR
practices. Tourism Management. 69. pp.132-144.
Online
Trade Credit: Meaning, Features, Advantages and Disadvantages. 2020.[Online]. Available
Through: <https://www.yourarticlelibrary.com/financial-management/sources-of-
finance/trade-credit-meaning-features-advantages-and-disadvantages/43840>