6.3 improving organisational design and human resources flow o

organisational structure is the

way in which the workforce within a business is organised including job roles and communication flows

organisational charts provide

a visual representation of the organisational structure

organisational design is the

process of structuring an organisation so that it is in a format that enables it to deliver its objectives in both the short term and the long term this process also structures the organisation to enable change to be managed effectively

authority is the

power of an employee to instruct subordinates, make decisions and control the use of resources

Subordinate is

A person under the authority or control of another

4 reasons the organisational structure is important

It determines , authority and responsibility, individual job roles & titles , the formal line of communication

4 types of organisational structures

Functional, product based, matrix, regional

Description of functional organisational structure and what its best for

When the organisation is divided into specialist departments best for stable industries with clearly defined processes

Description of product based organisational structure and what its best for

Divided according to the product it produces best for wide/diverse product range with different focuses.

Description of regional organisational structure and what its best for

Organisations divided based on geographic regions best for clear regional variations in customer needs

Description of matrix organisational structure and what its best for

Structure is both functional and product based, duel reporting relationships exist

Advantages of functional structures

Promotes specialisation and expertise , high productivity, high efficiency

Disadvantages of functional organisational structures

No collaboration between the functional areas , less flexible for rapidly changing industries

Advantages of product based structure

Clear product focus, encourages innovation, faster decisions,

Disadvantages of product based structure

Low efficiency , high unit cost , risk of no collaboration

Advantages of regional organisation structure

Allows for localised approach, customer needs are better met, faster decision making

Disadvantages of regional organisation structure

Duplication of efforts, low efficiency high unit cost

Advantages of matrix structure

Best of functional pros, best of product pros

Disadvantages of matrix structure

Complicated and confusing, who has authority? And demotivating

Chain of command

Describes the lines of authority within a business

Delegation is the

Passing of authority to a subordinate within a business.

Hierarchy is

The way different levels of authority are ranked in an organisational structure

Slang of control is the

Number of employees who are directly supervised by a manager

Pros Of narrow span of control

Tighter control, more opportunities for promotion.

Cons Of narrow span of control

Long communication, more staff = higher costs

Pros of a wider span of control

Lower costs, better communication

Cons of a wider span of control

Few opportunity lor promotion, less direct control

Benefits of a centralised structure

Consistency of product service effective with low skilled labour or when staff input isn't needed

Drabness of a centralised structure

Problem solving may take longer, generic products may a adaptation = less revenue & more waste, local knowledge und experience is ignored

Benefits of a decentralised structure

.quicker decision making can lead to better customer service, benefit from using knowledge and experience of staff closer to customers or doing the job, increases motivation

Drawbacks of decentralised structure

Lack of control can lead to lack of consistency and overspending, duplication of actions = less effictancy

Delayering

Involves removing layers of management from the hierarchy

Human resource flow is the

Movement os employees into the business around the business and only the business

Redeployment is

The process of moving employees to a different job or sending them to work in a different place

Human resource flow includes

Inflow: recruitment and selection

Internal flow: training and redeployment

Outflow: resignations and redundancies

Recruitment means

Identifying a vacancy and attracting suitable candidates. This can be internal and external

Selection means

Ident dying the best candidate fora won among applicants.

A job description

Lets out the duties and tasks associated with A particular job or post

A person specification sets out

the qualifications, skills and experience required or an employee

Methods of internal recruitment

Jobs given to staff already employed by a business, and promotions or reorganisation.

Methods of external recruitment

Job advertisements, recruitment agencies, headhunting, personal recommendation

benefits of internal recruitment

Lowercost, processes can be quicker , skills, experience and behaviour are already known , promotions are good for staff motivation

Advantages of external recruitment

More potential clients , bring in new skills and ideas , help change the culture and bring indiversity

Training is

The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively,

Induction training is the

Introductory training for employees new to an organisation

What is on the job training

Is when employees recieve whilst remaining in the workplace the main methods are demonstrayting, coaching, job rotation

Benefits of on the job training

Cost effective

Trainees are productive

Gives opportunities to learn the business

What is off the job training

Training that takes place away from the workplace

Drawbacks of on the job training

Variable quality, it depends on the skills of the trainer

Bad habbits may be passed on

Disruption to production

Benefit to off the job training

Wider range of skills or qualifications available

Learn from outside specialists or experts

Could provide better training

Dont get in the way

Drawbacks of off the job training

More expencive

No work from employees while training

Not nessecarily specific to the business

Redundancy is when

An employee is dismissed due to their job no longer existing

Redeployment is when

You move an employee to a different job, department, or locations within the same business