2.5 human resource decisions Flashcards
Hierarchy
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
Chain of command
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
Span of control
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
centralised structure
In a centralised structure, decision-making authority is concentrated at the top of the organization with senior management making most of the decisions
decentralised structure
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
Organisation charts
A business’s organisational structure can be shown using an organisation chart.
Tall Organisational Structure
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
Flat Organisational Structure
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
Tall Organisational Structure - pros
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
Flat Organisational Structure - pros
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
Tall Organisational Structure - cons
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
Flat Organisational Structure - cons
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
Barriers to Effective Communication
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
Effective communication between a business and its stakeholders is vital because…
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
too much communication can be overwhelming
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
too little communication can leave people feeling ignored or undervalued
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
Full-time employees
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
Flexible employees
Flexible employees may be full-time or part-time and have some choice over when they complete their hours of work
Shift working
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
permanent contract
A permanent contract means that a worker is employed until such a point that they want to leave or they are made redundant
temporary contracts
temporary contracts last for a specified period of time (e.g. seasonal retail staff may be employed for the months leading up to Christmas)
Fixed term contracts
Fixed term contracts guarantee a certain amount of hours of work for workers for a specific period of time
Zero hours contracts
Zero hours contracts do not guarantee hours of work to employees but workers are expected to be available should they be needed
freelance worker
A freelance worker is a self-employed contractor who works for a variety of businesses on a job-by-job basis
Benefits of Remote Working for Businesses
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
Benefits of Remote Working for employees
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
use of technology for work
- 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
Director
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
Senior Manager
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
Supervisor or Team Leader
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
Operative or Support Staff
Responsibilities:
Carrying out work delegated by supervisors
Support colleagues as directed
Examples (in a school):
Teachers
Teaching Assistants
Finance & Administrative staff
IT Technicians
Person specification
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).
Job description
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
Curriculum vitae (CV)
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.
Application forms
a customised document that all applicants have to answer. The customisation makes it easier to compare candidates
recruitment process
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.
Benefits of an Application Form
All applicants provide identical information in the same format so they are easy to compare
Benefits of a CV
More applicants may apply because it is easier for candidates to prepare and adapt a standard CV
Drawbacks of an Application Form
Limited information can be expressed by candidates so key desirable attributes may not be identified
Drawbacks of a CV
Comparing different formats and content of CVs can take more time and lengthen the recruitment process
Internal Recruitment
Where a person who already works for a business is appointed to a job role
This is commonly achieved through promotion or reassignment
External Recruitment
Where a business hires an employee from outside of the business
Internal Recruitment - pros
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
Internal Recruitment - cons
When an employee moves to a new role their old job needs to be filled
There may be resentment amongst employees who are overlooked
External Recruitment - pros
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
External Recruitment - cons
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
The recruitment process
- Draw up recruitment documents - Including job adverts, job particulars, job descriptions and job specification.
- Receive applications - Through CVs, application forms and letters
- Shortlisting - A list of suitable candidates is drawn up
- Selection - Involves interviews and assessments; references might be requested
- Training - To develop skills using on-the-job and off-the-job training (all staff, but especially new staff)
Formal Training
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
Informal Training
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
Formal Training - pros
Experts are likely to deliver high-quality training
Employees can focus on learning if they are away from the workplace
informal Training - pros
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
Formal Training - cons
It is likely to be expensive
A member of staff is taken away from the workplace
informal Training - cons
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
Self Learning
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
Induction Training
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
Ongoing training
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
Target Setting & Performance Reviews
- 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
Why Businesses Train & Develop Employees
- 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.
Technology and training
New technology has benefits and drawbacks when training employees.
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.
staff retention rate
Motivation
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
intrinsic Motivation
Motivation can be intrinsic, coming from within a person (values, beliefs etc)
extrinsic Motivation
Motivation can be extrinsic, coming from external factors (rewards or punishments)
impact of motivation on productivity
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
impact of motivation on the reliability of workers
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
impact of motivation on turnover rates
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
Financial Incentives to Improve Performance
- 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
Remuneration
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
Commission
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
Bonus
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
Promotion
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
Fringe benefits
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
Non-financial Incentives to Improve Performance
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
Autonomy
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
Job enrichment
Involves adding more challenging or meaningful tasks to a job
Staff feel more motivated and engaged, leading to improved productivity
Job rotation
Involves moving staff between different roles in the business
Exposes staff to new challenges and experiences which can increase motivation, understanding and skill
