2.5 making human resource decisions

Define organasational structure

the way that employees and their job roles are organised in a business

this can be shown via and organisational chart

Define chain of command

the flow of information, power and authority through a business

Define span of control

the number of employees for whom the manager is responsible for

Define subordinate

an employee who is lower in rank or job position than their manager

Define delegation

where a task is given to a subordinate employee in the hierarchy

Describe a tall/hierarchial structure

many layers within the organisation

lots of opportunity for promotion

information takes a long time to get from the top to the bottom

takes a long time for decisions to be made

work is shared amongst more people so less stress

narrow span of control

What are the advantages and disadvantages of a narrow span of control ?

Advantages

less mistakes and increased efficiency as staff are closely supervised

more promotional opportunities can exist wwithin the organisation

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Disadvantages

communication may become difficult due to lots of layers within the organisation

Describe a flat structure

one manager with alot of subordinates

wide span of controll

short chain of command

What are the advantages and disadvantages of a wide span of control

Advantages

less layers of management can motivate employees as they have more contact with senior staff

number of managers reduced lowering labour costs

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disadvantages

possibility of an increased workload, as less mangaers exist within the organisation

What is communication and the different types of ti

how information is exchanged between different stakeholders the types of organisational structure the business is will effect the types of communication used

* written
* emails
* verbal communication

what are the advantages of effective communication

* everyone is aware of what they have to achieve
* employees will know their role
* increase motivation and efficiency

What are the disadvantages of poor communication

What are the barriers to effective communication

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* noise
* language barriers
* cultural differences
* Jargon (use of technical language)
* inappropriate mediums
* distance - different time zones
* personalities

What is training

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

What are the 5 types of training

* formal training
* informal training
* ongoing training
* self - learning
* performance reviews and target setting

Describe formal training, give advantages and disadvantages

emplyees are taken away from their usual place of work

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Advantages

* can learn from outside specialists or experts
* no interuptions during training

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Disadvantages

* expensive
* lost working time and output from employee

Describe informal training, give advantages and disadvantages

training is recieved in the workplace via observation

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Advantages

* cost effective within a business
* opportunity to learn whilst putting into practice

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Disadvantages

* bad habits may be passed on
* quality depends on ability of trainer and time available

Describe ongoing training

training provided to employees throughout their career

based on the needs of the individual and business

Describe self-learning, give advantages and disadvantages

independant training in the workplace

online tests can assess knowledge

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Advantages

cheaper for the business

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Disadvantages

relies on motivation of the employee

Describe performance reviews,

an employee meeting with their manager tp discuss their performance over the past year

based on this review targets are set for the future

better performnce may lead to development training so that the employee can take on more senior roles

What factires affect the choice of training

* tyoes of job
* firm’s budget
* time available

What are the benefits of training

* higher quality work
* increased motivation
* less supervison required
* increased productivity

What are the 4 main roles in an organisation

* directors
* senior management
* supervisors
* operational/support staff

describe directors

top - level decision making

make medium to long term decisions

the decison making will have a significant impact on the long term success of the business

Describe senior managements

in charge of a number of subordinates

short to medium term decison making

they plan,organise, monitor, evaluate and report

Describe suoervisors

in charge of a group of employees

normally lead a department

often responsible for low skilled workers

Describe operational/support staff

carry out work that is necessary for a business to function which isnt in operations

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What are the 4 recruitment documents

* job description
* personal specification
* application form
* curriculum vitae (cv)

Describe a job description

a document outlining the roles and responsibilities that the successful candidate will have to perform

Describe a person specification

a document outlining what type of person is required

Describe an application form

it is produced by the business and completed by a candidate

Describe a curriculum vitae (CV)

produced by the candidate

may be accompanied by a covering letter of application

benefits of effective recruitment and selection process

* high productivity - employees have the right skills
* high quality output - employees are commited
* customer service
* staff retention - suited for job hence stay longer

What are the 2 types of recruitement

* internal
* external

What is internal recruitment, advantages and disadvantages

internal recruitment is appointing an existing employee to a new role

Advantages

* cheaper
* already know busines so easier to intergrate

Disadvantages

* limited pool of applicats
* lack of new ideas to business
* difficult to supervise previous employees

What is external recruitment advantages and disadvantages

external recruitment is appointing an employee forom outside the bsuiness

Advantages

* larger pool of applicants
* can provide new info to better company

disadvantages

* expensive - recruitment process
* may alianate internal candidates
* take time to understand business

What is a centralised organisation

they keep decision making firmly at the top of the hieracrchy amongst the most senior management

What are the advantages and disadvantages of a centralised structure

Advantages

* easier/quicker to impliment policies
* consistency amongst branches

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Disadvantages

* lack of authority will reduce staff motivation
* local managers likely to know customer needs

What is a decentralised organisation

decison making is split/ spead out to include more junior managementt as well as individual units and stores

What are the advantages and disadvantages of a decentralised structure

Advantages

* decisions are made closer to customer
* training and developing junior management
* improve staff motivation

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Disadvantages

* not looking at the long-term
* difficult to ensure consistent practices
* poor decision making can create a bad reputation

what is full-time employment

the employee works the number of hours of a full workiing week usually 36-40 hours a week

What are the benefits of full-time employment

workers feel more secure and motivated

fewer staff required, therefore spans of control are narrorer

employees may develop better skills and perform their job to a higher standard

staff may feel more loyal and commited to the business

better customer relationships

What is part-time employment

the employee working anthing uder 36 hours providing mor flexibility

benefits of part time employment

more flexibility for the business when covering staff absence

gives members of staff a better work life balance

the business can rota staff to work when they are required

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What are the 4 ways of working flexible hours + description

* annualised hours - work a certain number of hours over the year but flexibility about when they work
* flexi-time - chooses when to start and end work
* compresed hours - wroking full time hours over fewer days
* job shares - two or more employees agree to share work and pay of one full time position

What is permanent employment

full-time, salaried position whith a contract to work the minimum amount of 36 hours

you are employed by the company until either you leave or you get fired/ made redundant

What is temporary employment

when the employer only needs extra staff for a limited amount of time

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What is freelance

a self-employed worker who works on a contract to contract basis

they set their own wage rate

What is motivation

commitment to do something

reasons why is it important for staff to be motivated

* increased productivity levels
* low levels of absence
* high levels of staff retention
* good reputation making it easier to recruit
* increased quality

What are the two methods of motivation

* financial
* non - financial

What are the 5 ways of financial motivation + explanation

* remuneration - increasing wages/salaries/ piece rate
* Bonus - additional lump sum of money
* commision - payment based on how much is sold
* promotion - employee can get job role further up the heirarchy
* fringe benefits - perks or extra items e.g car, travel, lunches

Benefits and drawbacks of financial motivation

Benefits

* incoruage to sell more


* increased productiviity

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Drawbacks

* only temporary

What are the non-financial ways of motivation

* job enlargement - gives staff greater variaty of tasks to perform
* job enrichment - give staff more responsibilty
* training - help do existing job well
* autonomy - gives more freedom to staff

Advantages and disadvantages of non financial promotion

Advantages

* cheaper
* feel more valued and loyal
* increased sense of achievement

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Disadvantages

* may not want added roles
* training is expensive
* greater autonomy may lead to higher mistakes

Explain one reason why it is important to keep staff retention rates high

one reason is lower costs

this is because less recruitment will need to occur

this leeds to less cash spent on recruitment

therefore lower break even levels/ increased cask flow