2.5 human resource decisions

Question 1

Hierarchy

Answer 1

A hierarchy refers to the levels of authority within an organization
It describes the ranking of positions from top to bottom
The higher the position in the hierarchy, the more authority and power it holds
The hierarchy usually includes top-level management, middle-level management, and lower-level employees

Question 2

Chain of command

Answer 2

The chain of command is the formal line of authority that flows downward from the top management to lower-level employees
It defines who reports to whom and who is responsible for making decisions
The chain of command helps to establish a clear communication channel and helps to maintain accountability within the organization

Question 3

Span of control

Answer 3

Span of control refers to the number of employees that a manager or supervisor can effectively manage
It is based on the principle that a manager can only effectively manage a limited number of employees
A narrower span of control means that there are more layers of management
A wider span of control means that there are fewer layers of management

Question 4

centralised structure

Answer 4

In a centralised structure, decision-making authority is concentrated at the top of the organization with senior management making most of the decisions

Question 5

decentralised structure

Answer 5

In a decentralised structure, decision-making authority is distributed throughout the organization, with lower-level employees having more decision-making power
Decentralisation can promote flexibility and innovation, while centralisation can promote consistency and control

Question 6

Organisation charts

Answer 6

A business’s organisational structure can be shown using an organisation chart.

Question 7

Tall Organisational Structure

Answer 7

Characterised by multiple levels of management and a more centralised decision making process

A long chain of command

Common in large organisations with complex operations e.g. government agencies and universities

Question 8

Flat Organisational Structure

Answer 8

Characterised by fewer levels of management and a more decentralised decision-making process

A short chain of command

Common in small organisations or start-ups e.g. tech start-ups and small businesses

Question 9

Tall Organisational Structure - pros

Answer 9

Provides a clear hierarchy of authority and defined roles and responsibilities

Promotes specialisation and expertise within each department or function

Offers opportunities for career advancement and promotion within the organization

All of the above increases efficiency and motivation

Question 10

Flat Organisational Structure - pros

Answer 10

Promotes a culture of collaboration and open communication

Decision-making can be faster and more efficient

Encourages creativity and innovation, as employees have more autonomy and flexibility

All of the above increases efficiency and motivation

Question 11

Tall Organisational Structure - cons

Answer 11

Can create communication barriers between upper and lower levels of the hierarchy

Decision-making can be slow as information must pass through multiple layers of management

Can lead to bureaucracy and excessive levels of management

All of the above reduces efficiency and motivation

Question 12

Flat Organisational Structure - cons

Answer 12

Can lead to role ambiguity and lack of clear hierarchy

May not provide clear opportunities for career advancement or promotion

May require employees to take on multiple roles and responsibilities leading to burnout and overwhelm

All of the above reduces efficiency and motivation

Question 13

Barriers to Effective Communication

Answer 13

Written communication can be affected by poor spelling and grammar, illegible handwriting or unclear presentation
Verbal communication can be affected by language difficulties, the speed of speaking, or strong accents
The use of jargon can also be a barrier
Jargon refers to technical language or acronyms that may not be understood by a non-expert

Question 14

Effective communication between a business and its stakeholders is vital because…

Answer 14

It helps managers and employees to minimise mistakes
It supports everyone involved in a business to understand their role and what is expected of them
It ensures that the businesses values and objectives are clear
It provides customers with the information they need to understand goods and services

Question 15

too much communication can be overwhelming

Answer 15

managers may have so many meetings to attend that they are distracted from achieving business objectives

employees may recieve large numbers of emails or instant messages which take their focus away from their job role suppliers and customers may have comminications from several different staff members so messages become confused

Question 16

too little communication can leave people feeling ignored or undervalued

Answer 16

managers may lack crucial information to help them make
good decisions

staff motivation may be affected or workers may become stressed if they are not fully informed of decisions related to their job roles:

customers may complain about poor customer service if key product or service information is not made available

Question 17

Full-time employees

Answer 17

Full-time employees usually work for more than 35 hours per week whilst part-time employees work fewer hours but are entitled to the same benefits such as paid holidays

Question 18

Flexible employees

Answer 18

Flexible employees may be full-time or part-time and have some choice over when they complete their hours of work

Question 19

Shift working

Answer 19

Shift working involves working set hours outside of the normal nine-to-five pattern and usually on a rotation basis
E.g. working during the night for one week followed by a week of working during daytime hours, with time off between the types of shift

Question 20

permanent contract

Answer 20

A permanent contract means that a worker is employed until such a point that they want to leave or they are made redundant

Question 21

temporary contracts

Answer 21

temporary contracts last for a specified period of time (e.g. seasonal retail staff may be employed for the months leading up to Christmas)

Question 22

Fixed term contracts

Answer 22

Fixed term contracts guarantee a certain amount of hours of work for workers for a specific period of time

Question 23

Zero hours contracts

Answer 23

Zero hours contracts do not guarantee hours of work to employees but workers are expected to be available should they be needed

Question 24

freelance worker

Answer 24

A freelance worker is a self-employed contractor who works for a variety of businesses on a job-by-job basis

Question 25

Benefits of Remote Working for Businesses

Answer 25

Costs are reduced as less workspace is needed

Staff are less likely to take time off so the absentee rate is lower

Staff are likely to be more motivated and remain with the business because they can work flexibly

Question 26

Benefits of Remote Working for employees

Answer 26

Flexibility may give workers the opportunity to start and finish work whenever they want

Less time is spent travelling to and from work

Workers are less likely to be distracted from work by colleagues and may be more productive

Question 27

use of technology for work

Answer 27

• Email and messaging software allows messages to be sent and received instantly at little cost
• Online meeting software such as Skype or Zoom allows for face to face communication without the need for travel
• Processes such as recruitment can be speeded up as documents can be transferred and signed electronically.
• Mobile devices such as laptops and tablets can be used anywhere allowing employees to remain productive outside of their normal workplace

Question 28

Director

Answer 28

Responsibilities:
Overall business performance
Target setting
Corporate objectives
Making key business decisions
Reporting to shareholders and other key stakeholders

Examples (in a school):
Governors
Headteacher

Question 29

Senior Manager

Answer 29

Responsibilities:
Managing and leadership of business functions
Functional strategies
Overseeing the work of teams and their supervisors
Medium-term decision making

Examples (in a school):
Deputy and Assistant Headteachers

Question 30

Supervisor or Team Leader

Answer 30

Responsibilities:
Managing a group of workers
Delegate work
Reward and discipline operative staff
Make routine decisions
Department budgeting
Organise staffing

Examples (in a school):
Head of Year
Head of Department/Faculty

Question 31

Operative or Support Staff

Answer 31

Responsibilities:
Carrying out work delegated by supervisors
Support colleagues as directed

Examples (in a school):
Teachers
Teaching Assistants
Finance & Administrative staff
IT Technicians

Question 32

Person specification

Answer 32

A person specification contains a description of the characteristics, qualifications, experience and skills that are required to meet the needs of the job description. These factors are normally broken down into:

• essential characteristics (must have)
• desirable characteristics (would like).

Question 33

Job description

Answer 33

A job description contains the essential information about a job role. It will include:

• the job title
• who the person is responsible to (line manager)
• who the person is responsible for (subordinates)
• the key duties
• the salary or wage

Question 34

Curriculum vitae (CV)

Answer 34

A CV is a document that lists a person’s experience and qualifications, including details of their:

• education and qualifications
• employment history
• skills and experience
• references from current or previous employers.

Question 35

Application forms

Answer 35

a customised document that all applicants have to answer. The customisation makes it easier to compare candidates

Question 36

recruitment process

Answer 36

Before a business starts to look for new employees it writes a person specification and a job description. Once the job is advertised the business may accept applications from candidates via Curriculum Vitae (CV) or an application form.

Question 37

Benefits of an Application Form

Answer 37

All applicants provide identical information in the same format so they are easy to compare

Question 38

Benefits of a CV

Answer 38

More applicants may apply because it is easier for candidates to prepare and adapt a standard CV

Question 39

Drawbacks of an Application Form

Answer 39

Limited information can be expressed by candidates so key desirable attributes may not be identified

Question 40

Drawbacks of a CV

Answer 40

Comparing different formats and content of CVs can take more time and lengthen the recruitment process

Question 41

Internal Recruitment

Answer 41

Where a person who already works for a business is appointed to a job role

This is commonly achieved through promotion or reassignment

Question 42

External Recruitment

Answer 42

Where a business hires an employee from outside of the business

Question 43

Internal Recruitment - pros

Answer 43

The member of staff is already familiar with business culture and working practices

The business is aware of the employee’s strengths and weaknesses

There is no need for induction training

Expensive advertising is not needed

Employees can be ready to start their new role immediately

Question 44

Internal Recruitment - cons

Answer 44

When an employee moves to a new role their old job needs to be filled

There may be resentment amongst employees who are overlooked

Question 45

External Recruitment - pros

Answer 45

A higher number of applicants may be attracted

New recruits are usually highly motivated and keen to impress

New ideas and experience are brought into the business

Question 46

External Recruitment - cons

Answer 46

New employees may need support from colleagues and induction training which slows down productivity

Advertising for external staff can be expensive and take a long time

A candidate who performs well at interview may be unsuitable for the job when they start work

Question 47

The recruitment process

Answer 47

1. Draw up recruitment documents - Including job adverts, job particulars, job descriptions and job specification.
2. Receive applications - Through CVs, application forms and letters
3. Shortlisting - A list of suitable candidates is drawn up
4. Selection - Involves interviews and assessments; references might be requested
5. Training - To develop skills using on-the-job and off-the-job training (all staff, but especially new staff)

Question 48

Formal Training

Answer 48

Training that is structured and has specific objectives

Examples include certificated courses and apprenticeships

It is likely to be delivered outside of the business by experts

Question 49

Informal Training

Answer 49

Training that is less structured and takes place as and when required

Examples include observing or shadowing other employees

It is usually delivered during working hours within the business by colleagues

Question 50

Formal Training - pros

Answer 50

Experts are likely to deliver high-quality training

Employees can focus on learning if they are away from the workplace

Question 51

informal Training - pros

Answer 51

It is focused on the specific skills needs of the business

It is quick and inexpensive to implement

Trainees are able to ask questions and ask for demonstrations to be repeated

Question 52

Formal Training - cons

Answer 52

It is likely to be expensive

A member of staff is taken away from the workplace

Question 53

informal Training - cons

Answer 53

t relies on the expertise and communication skills of the trainer

Productivity of both the trainee and the trainer is likely to be lower during training

Question 54

Self Learning

Answer 54

Improvements in technology and the increasing availability of vocational courses has made self learning an attractive option for businesses
* It involves workers studying or practising skills without the presence of a teacher of trainer
* It can take place outside of normal working hours and if online it can be undertaken anywhere
* Workers can learn at their own pace
* Feedback is unlikely to be immediate and trainees cannot easily ask questions

Question 55

Induction Training

Answer 55

Induction training is usually delivered as soon as possible after new workers join a business and can involve several elements:
* tour of the premises
* role specific duties
* meeting key collegues
* issuing equipment
* Health and safety policy
* company story and culture

Question 56

Ongoing training

Answer 56

Ongoing training is provided to workers throughout their career and is a key way to continuously improve productivity as they understand how to fulfil their job roles effectively
It ensures that workers stay up to date with working practises
It allows skills to be improved
It reminds employees of business priorities

Question 57

Target Setting & Performance Reviews

Answer 57

• Training and development is usually linked to targets for employees to aim for and is a key part of the performance management process
• Targets may be negotiated between an employee and their supervisor who ensures that training targets support business objectives
• Progress towards targets and further training needs are discussed during performance review meetings which are usually held annually
• The successfully completion of training can support a worker’s application for promotion or increased pay

Question 58

Why Businesses Train & Develop Employees

Answer 58

• Motivation - as employees improve their skills and knowledge, their confidence will also improve. This can lead to a highly motivated and happy workforce.
• Skills - training employees will improve their skills and value to the business. Having the most skilled employees may give a business a competitive advantage over its rivals.
• Retention - investing money in training employees shows that the business values its employees. This means they are less likely to leave to find a job elsewhere, so improving the business’s retention rates.

Question 59

Technology and training

New technology has benefits and drawbacks when training employees.

Answer 59

Pros
* New technology enables training as employees can use computer simulations (e.g. pilots and surgeons).

• Training can be more flexible and can be accessed remotely using webinars and online courses.

Cons
* Employees need to be retrained whenever new technology is introduced. This can be expensive and can lower productivity.

Question 60

staff retention rate

Answer 60

Question 61

Motivation

Answer 61

Motivation refers to the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome.

Motivation plays a critical role in a business’s success, and can have a significant impact on productivity, reliability and loyalty of the workers, and labour turnover rates

Question 62

intrinsic Motivation

Answer 62

Motivation can be intrinsic, coming from within a person (values, beliefs etc)

Question 63

extrinsic Motivation

Answer 63

Motivation can be extrinsic, coming from external factors (rewards or punishments)

Question 64

impact of motivation on productivity

Answer 64

Motivated employees are more productive and efficient as they are more likely to be engaged in their work and take initiative in order to meet or exceed their goals
They will generate higher levels of output and quality
Increased productivity results in higher profits for the business

Question 65

impact of motivation on the reliability of workers

Answer 65

Motivated employees are more likely to be reliable and dependable
They take pride in their job, show up on time, meet deadlines, and take fewer sick days
This leads to increased trust between the business and its employees and higher productivity

Question 66

impact of motivation on turnover rates

Answer 66

Motivated employees are more likely to stay with the company long-term which reduces the turnover rate
Lower turnover rates reduce the need for costly recruitment and training

Question 67

Financial Incentives to Improve Performance

Answer 67

• Financial incentives are rewards or payments given to employees in return for their labour - or improved performance - e.g.
• Remuneration
• Commission
• Bonus
• Promotion
• Fringe benefits

Question 68

Remuneration

Answer 68

This refers to the basic wage or salary that a worker receives for their labour

Employees who work on an hourly rate are paid wages

Salaries are paid to full time staff and usually accompanied by benefits

Question 69

Commission

Answer 69

A percentage of sales revenue paid to workers who sell products or services

Commonly used in sales roles and motivates staff to sell more and increase their sales revenue

Question 70

Bonus

Answer 70

An additional payment given to staff as a reward for achieving specific goals, completing projects on time, or exceeding performance expectations

The opportunity to earn more money may motivates staff to work harder and achieve better results

Question 71

Promotion

Answer 71

Promotion usually demands a higher level of responsibility from an employee in the job role
Higher pay is usually offered to reflect the increased responsibility

A clear promotion pathway can act as a motivator to improve productivity and staff performance

Question 72

Fringe benefits

Answer 72

These are additional benefits usually offered to salaried employees and include benefits such as a company car, private healthcare, gym membership etc.

Employees can be motivated to work hard in order to keep their job and the associated fringe benefits

Question 73

Non-financial Incentives to Improve Performance

Answer 73

Non-financial incentives are rewards or motivators not directly related to money
These incentives are usually intangible and include methods that lead to recognition, praise, job satisfaction, and work-life balance - e.g:
* Autonomy
* Job enrichment
* Job rotation

Question 74

Autonomy

Answer 74

Involves giving staff the authority and resources to make decisions and take action without first receiving management approval

Increases staff sense of ownership and responsibility, leading to improved productivity

Gives employees a sense of ownership and control over their work, which can lead to improved productivity, especially for skilled workers

Question 75

Job enrichment

Answer 75

Involves adding more challenging or meaningful tasks to a job

Staff feel more motivated and engaged, leading to improved productivity

Question 76

Job rotation

Answer 76

Involves moving staff between different roles in the business

Exposes staff to new challenges and experiences which can increase motivation, understanding and skill