2.5 making human resource decisions!!

the last topic :ooooooo

What’s a centralized organizational structure?

COS - a few people at the top of the hierarchy who make all of the important decisions about a business.

Benefits

—> people at the top of the company usually has the most experience and expertise

—>typically have consistent decisions

Costs

—>usually slow since there’s only a few people making the decisions

—>people at the top are less involved in day-to-day operations, becoming disconnected from reality

What’s a decentralized organization?

Decentralized organization - management delegates responsibilities to lower/middle managers

Benefits

—> decisions can be made faster since it travels through less layers

—> decisions made by people who are closer to day-to-day operations

Costs

—> decisions may not align with the overall aim /objective of the business

TALL vs flat organizational structures

TALL

—> hierarchy with a long chain of command

—> typically, a manager has small span of control over a few individuals

flat

the opposite - managers have a large span of control over a lot of people. however, a manager is responsible for loads of employees, which makes it difficult to monitor each employee closely

Internal and external recruitment

Internal

—> job recruitment advertised to people who already work at that business (lower costs as there’s no need for advertising)

External

—> business looks for people outside of the business to recruit

—> new people may bring different ideas for the business

—> typically more expensive as because of advertising and training new hires

4 stages to the recruitment process

Job analysis

—> business analyzing function of the job, and what kind of person they need to hire

Job description

—> advertising the job

Person specification

—> business will state requirements such as: qualifications, education, language etc.

Selection methods

—> CVs - document abt education, qualifications & work experience etc

—> interviews - which most jobs do

What are the benefits to effective recruitment?

→ higher productivity

→ high quality output - since they are more skilled

→ good customer service

→ staff retention

What’s staff retention?

refers to keeping employees working for a business

eg. employee benefits maintains good staff retention

What are the ways of training employees?

1) on the job training - employee learns how to do the job at a high standard while actually doing the job

—-> advantages: low cost

——> disadvantages: bad habits from other employees can be passed on

2) Induction training - introduces a new employee to the job and provides them initial training

—-> advantages: employees more comfortable in surroundings

+ less likely to make mistakes

What’s staff retention?

increased motivation to act in the best interests of the business

non-financial methods of motivation

• job rotation - describes an employee moving jobs within an organisation

• fringe benefits - company cars, health insurance etc