Human Resources

What is an organisational structure?

The way a business arranges its employees, job roles, responsibilities + levels of authority.

What is a hierarchy?

The levels of authority within an organisation from the most senior to the most junior employees.

Why do businesses need organisational structures?

To make job roles, responsibilities, authority + communication clear.

What is span of control?

The number of employees directly supervised by a manager.

What is a wide span of control?

A manager is directly responsible for many employees.

What is a narrow span of control?

A manager is directly responsible for relatively few employees.

What is the chain of command?

The route through which instructions and information pass between levels of the hierarchy.

What is a tall organisational structure?

A structure with many levels of hierarchy + usually narrow spans of control.

What is a flat organisational structure?

A structure with few levels of hierarchy + usually wider spans of control.

What are advantages of a flat structure?

Faster communication, employees may have more responsibility + fewer managers can reduce costs.

What are disadvantages of a flat structure?

Managers may have wide spans of control + less time to supervise each employee.

What are advantages of a tall structure?

Clear promotion opportunities + managers have narrower spans of control so can supervise employees closely.

What are disadvantages of a tall structure?

Slower communication, higher management costs + employees may have less responsibility.

Why can communication be faster in a flat structure?

Fewer management levels mean information passes through fewer people.

What is delegation?

Passing authority for a task or decision to a subordinate while the manager retains overall responsibility.

What are benefits of delegation?

Managers have more time for important tasks + employees gain responsibility and may become more motivated.

What are drawbacks of delegation?

Employees may make poor decisions if they lack skills/experience + managers lose some direct control.

What is delayering?

Removing one or more levels of management from an organisational structure.

How can delayering reduce costs?

Fewer managers need to be paid.

How can delayering improve communication?

Fewer management layers can make communication faster.

What are possible disadvantages of delayering?

Managers may have wider spans of control + remaining employees/managers may have greater workloads.

What is centralisation?

Decision-making authority is concentrated among senior managers.

What are advantages of centralisation?

Senior managers retain control + decisions across the business can be consistent.

What are disadvantages of centralisation?

Decision making may be slower + employees may feel less involved or motivated.

What is decentralisation?

Decision-making authority is delegated to employees/managers lower in the organisation.

What are advantages of decentralisation?

Local decisions can be faster + employees may be more motivated and use their specialist/local knowledge.

What are disadvantages of decentralisation?

Senior managers have less control + decisions may be inconsistent across the business.

When might centralisation be appropriate?

When a business wants tight control + consistent decisions across the organisation.

When might decentralisation be appropriate?

When lower-level managers have useful local/specialist knowledge + need to respond quickly.

Why might a business need to recruit employees?

Growth, employees leaving, changing job roles or a need for new skills.

What is internal recruitment?

Filling a vacancy with an existing employee.

What are advantages of internal recruitment?

Business knows the candidate, candidate knows the business, cheaper/faster recruitment + opportunities for promotion can motivate employees.

Why can internal recruitment require less induction training?

The employee already understands the organisation and how it operates.

What are disadvantages of internal recruitment?

Smaller choice of applicants, no new external ideas + another vacancy may be created.

What is external recruitment?

Filling a vacancy with someone from outside the business.

What are advantages of external recruitment?

Larger choice of candidates + can bring new skills, experience + ideas into the business.

What are disadvantages of external recruitment?

Can be slower/more expensive + the business knows less about the candidate.

What is job analysis?

Identifying the tasks, responsibilities + skills required for a particular job.

What is a job description?

A document describing the duties, responsibilities + main tasks of a job.

What is a person specification?

A description of the skills, qualifications, experience + personal qualities required from the applicant.

What is the difference between a job description and person specification?

Job description describes the job - person specification describes the ideal person for the job.

What are the main stages of recruitment and selection?

Identify vacancy/job requirements - job analysis - produce job description/person specification - advertise - receive applications - select candidates - choose suitable employee.

What selection methods can businesses use?

Application forms/CVs, interviews + other appropriate selection tests or activities.

Why is an effective recruitment process important?

It helps the business select employees with the right skills and qualities.

How can effective recruitment increase productivity?

Employees with appropriate skills can work more effectively + produce more output.

How can effective recruitment improve quality?

Employees with appropriate skills are less likely to make mistakes + may produce higher-quality output.

How can effective recruitment improve customer service?

Suitable employees may communicate effectively + provide customers with better service.

How can effective recruitment improve staff retention?

Employees who are well suited to their jobs may be more satisfied + less likely to leave.

What is staff retention?

A business's ability to keep its employees rather than having them leave.

What is a full-time contract?

An employment contract where an employee works the business's normal full-time hours.

What is a part-time contract?

An employment contract where an employee works fewer hours than a full-time employee.

What are benefits of full-time employees to a business?

They are available for more hours + may provide greater continuity.

What are benefits of part-time employees to a business?

Greater flexibility, can cover busy periods/holidays + costs can be kept lower when full-time cover is unnecessary.

What is job sharing?

Two employees share the hours + responsibilities of one full-time job.

What are benefits of job sharing?

Provides flexibility + the business can benefit from the skills of two employees.

What are drawbacks of job sharing?

Communication/coordination may be difficult + there may be less continuity.

What is a zero-hour contract?

A contract where the employer does not guarantee a minimum number of working hours.

What is an advantage of zero-hour contracts for a business?

Staffing can be adjusted according to demand.

What is a disadvantage of zero-hour contracts for employees?

Income + working hours can be unpredictable.

What is employee motivation?

The willingness of employees to work hard + effectively for the business.

What are benefits of a motivated workforce?

Higher productivity + improved staff retention.

How can motivation increase productivity?

Motivated employees may work harder/more efficiently - increasing output.

How can motivation improve staff retention?

Satisfied/motivated employees may be less likely to leave.

What is financial motivation?

Using monetary rewards to encourage employees to work effectively.

What are the four main financial methods of motivation required by AQA?

Salary, wage, commission + profit sharing.

What is a salary?

A fixed amount of pay usually expressed as an annual amount + paid regularly.

What is a wage?

Pay based on hours worked or amount of work completed.

What is commission?

Payment linked to the amount/value an employee sells.

How can commission motivate employees?

Higher sales can increase their pay - encouraging them to sell more.

What is a disadvantage of commission?

Employees may focus too much on making sales rather than customer needs/service.

What is profit sharing?

Employees receive a share of the business's profits.

How can profit sharing motivate employees?

Employees benefit financially when the business performs well - encouraging them to contribute to its success.

What is non-financial motivation?

Motivating employees using rewards or factors not directly based on pay.

What non-financial methods of motivation does AQA require?

Management styles, training, greater responsibility + fringe benefits.

How can greater responsibility motivate employees?

Employees may feel trusted, valued + more involved in the business.

How can training motivate employees?

Employees may feel valued + gain skills and opportunities for progression.

What are fringe benefits?

Additional benefits provided alongside normal pay.

Give examples of fringe benefits.

Company car, private healthcare, staff discounts or other employment benefits.

How can fringe benefits motivate employees?

They increase the overall benefits of working for the business + may encourage employees to stay.

How can management style affect motivation?

Employees may be more motivated when they feel appropriately involved, trusted + supported by managers.

Do you need to learn Maslow's hierarchy of needs for AQA GCSE Business?

No - specific motivation theories such as Maslow will not be examined.

What is employee training?

Developing employees' skills + knowledge so they can perform their jobs effectively.

What are the three training methods required by AQA?

Induction, on-the-job + off-the-job training.

What is induction training?

Training given to new employees when they join a business.

What can induction training include?

Introduction to the workplace, job role, colleagues, procedures + health and safety.

What are benefits of induction training?

New employees understand their role/business faster + can work safely and effectively sooner.

What is on-the-job training?

Training employees while they perform their job in the workplace.

What are advantages of on-the-job training?

Usually cheaper, directly relevant to the job + employee continues producing while learning.

What are disadvantages of on-the-job training?

Trainer's time is used, mistakes may occur + poor working practices could be passed on.

What is off-the-job training?

Training that takes place away from the employee's normal workplace or normal job duties.

What are advantages of off-the-job training?

Specialist trainers/facilities may be available + employees can focus fully on learning.

What are disadvantages of off-the-job training?

Can be expensive + employee is away from productive work.

How can training increase productivity?

More skilled employees can perform tasks faster + more efficiently.

How can training help a business deal with technological change?

Employees learn how to use new equipment, software + working methods.

How can training increase employee motivation?

Employees may feel valued + gain confidence, skills and opportunities.

How can training improve staff retention?

Employees who feel invested in may be more satisfied + less likely to leave.

How can training improve product quality?

Skilled employees may make fewer mistakes + work to a higher standard.

How can training improve customer service?

Employees gain the knowledge + skills needed to help customers effectively.

Why does the best training method depend on the business?

It depends on cost, job complexity, skills required, available trainers + consequences of employee mistakes.

When might on-the-job training be most appropriate?

When practical job-specific skills can be safely taught by experienced employees.