2.5- Making Human Resouce Decisions Flashcards
What are hierarchical organisations?
- Have lots of layers of management
- Managers have a lot of employees to look after
- In h managers have a small span of control( only man age 3 or 4 employees)
- Employee likely to be paid more if they are higher up in hierarchy
- Decisions have to be made through the layers(must seek permission from manager)
What are the benefits of hierarchical structures?
- Provide lots of opportunities for employees to seek promotion+ chance to earn more money
Disadvantages of hierarchical structure
- Need to seek permission through layers
- Communication is harder + slower
What is a flat structure?
- Has few levels of management
- Managers have a wide span of control( they look after a large no. Of employees)
Advantages of a flat structure
- Communication is quicker + more efficient
Disadvantages of flat structure
- Managers have more employees to look after
- Managers workload becomes large
- Makes it difficult to make sure all employees are supported
- Limiting: does not offer employees many opportunities for promotion
What is a centralised structure?
- Decisions are made at the ‘centre’ of the organisation
- Decisions must be approve by managers before implementing
Benefits of a centralised structure
- Business activities are very focused
- Vison of organisation is clear
- Performance of employees is tracked and managed
- High levels of control
- Accountability of all members of staff in the business is clear
What is a decentralised structure?
- Decisions are made locally
- Decisions are made at a lower level
Benefits of a decentralise structure
- Senior management can focus on the bigger picture
- Local managers can be more creative in their thinking + respond to local needs of customers+ don’t have to seek permission
- Fewer mistakes made+ business operates better
- Local managers + employees feel more empowered and responsible
- Low cost
Disadvantages of a decentralised business
- Managers and employees must be highly trained
- Managers must be able to make good decisions
- Need to clearly communicate what is going well
- Id they don’t they can be confusion + cost a lot of money
How does communication take place in a business?
- Having conversations in offices
- Discussing things in meetings
- Talking to colleagues on phone
- Use digital methods of conference
Why does communication become a problem when a business grows?
- Business communicates too little
- Business communicates too much
- Other info or activities act as barriers and get in the way of communication
What is the impact of insufficient communication in a business?
- Leads to managers + employees being unaware of what is happening
- Can lead to mistakes+ inefficiency
- Fatal consequences + financial difficulties
What is the impact of excessive communication in a business?
- Managers + employees unlikely to do their jobs efficiently coz of time needed to read through all of it
- E.g E-mail overload
- Too many forms to fill out