2.5 - Making human resource decisions Flashcards
2.5.1 - Organisational structures 2.5.2 - Effective recruitment 2.5.3 - Effective training and development 2.5.4 - Motivation
2.5.1 - What is an organisational chart?
A diagram which shows the internal structure of an organisation.
2.5.1 - What is a span of control?
The number of people who report directly to another worker in an organisation.
2.5.1 - What is a chain of command?
The path down which orders are passed.
In a company, this goes from the board of directors down to other workers in the organisation.
2.5.1 - Why is it beneficial to have a structure in a business?
- All businesses have to organise what they do
- A clear structure makes it easier to see which part of the business does what, and who has which job role
- Makes communication easier across the company
- Employees should find it easier to be aware of their roles and responsibilities
2.5.1 - What is delegation?
- Delegation is where a task is given to a subordinate (lower) employee in the hierarchy
- Good managers are good at delegating tasks to the right employees
- A task that has been delegated may have a deadline so managers can see if the task has been completed on time
2.5.1 - What is a hierarchical structure?
- Tall and thin structure
- Small span of control and long chain of command
- Lots of layers with few people on each layer
2.5.1 - What are the benefits and limitations of a hierarchical structure?
PROS:
- Lots of layers in the hierarchy means lots of opportunities for promotion (motivation)
- Supervisors normally have a small span of control so they can get to know their subordinates really well
- Knowing subordinates means they can delegate the right tasks and make sure their team is well trained
CONS:
- Lots of layers and a long chain of command can mean that the business is very inflexible
- It can also mean that communications within the organisation are slow
- This is expensive as there are more managers and supervisors
2.5.1 - What is a flat structure?
- Short and fat
- Wide span of control and and short chain of command
- Few layers with lots of people on each
2.5.1 - What are the benefits and limitations of a flat structure?
PROS:
- Fewer layers of hierarchy between the bottom and the top of the organisation may mean that communication is fast
- Lots of delegation means that staff are given greater responsibility, which might mean more opportunities to use their abilities
CONS:
- Staff can be overstretched or overworked in a flat structure as there is less supervision, this can cause stress and demotivation
- Can create a power struggle if the manager is rarely around as subordinates jostle for roles and responsibilities
- Wide span of control means managers have too many staff to manage and may lose touch with them and delegate poorly
2.5.1 - Through what means can people in a business communicate?
- Telephone
- Fax
- Text
- Messenger
- Written document
(Many more but just use common sense)
2.5.1 - What are the pros and of a centralised structure?
A centralised structure is when all of the decision making is controlled by a few people (or even one person)
PROS:
- Quicker decision making
- Easier to co-ordinate
- Economies of scale
- Easier to implement policies
CONS:
- Customer service experiences inflexibility
- Lack of manager motivation
2.5.1 - What are the pros and of a decentralised structure?
A decentralised structure is one where decision making is spread throughout most if not all employees
PROS:
- Flexible decisions with situational understanding
- Improves customer service
- Good way of training juniors
- Should improve motivation
CONS:
- Decisions aren’t ‘strategic’ (long-term beneficial or rational)
- Consistency is hard to achieve
- No strong leadership in crisis
- Hard to have tight financial control
2.5.1 - Why is communication important for a business?
- Motivates employees
- Easier to control and coordinate business activity
- Makes successful decision making easier
2.5.1 - What are the problems with insufficient communication?
- If communication skills are poor, employees lack enthusiasm in doing their work
- Poor business communication skills will also demotivate the employees
- They are provided with unclear instructions on projects, leading to confusion and boredom
2.5.1 - What are the problems with excessive communication?
- Can lead to workers not getting to important information
- Can be confusing and stressful leading to demotivating workers
- May put off potential employees and reduce retainment
2.5.1 - What are some barriers to effective communication?
- Overload: Too much information reduces chance of important information getting through
- Structural layers: Too many structural layers can mean that messages get altered as they travel up/down
- Inconsistency: Conflicting messages can lead to confusion of what decision to make
2.5.1 - What are the three ways you could work (in terms of time)
- Full time: Working the whole working week
- Part time: Working a fraction of the working week
- Flexi-hours: Spreading out a certain amount of time at work as you please
2.5.1 - What are the three types of ways to work (in terms of contracts)?
- Permanent: With a contract to work for the foreseeable future
- Temporary: With no permanent contract
- Freelance: Workers who tend to be self employed and do particular pieces of work for a business as a supplier.
2.5.1 - How has technology affected ways of working?
It has allowed for better efficiency in working and communication It also allows people to work form home
2.5.1 - What are the pros and cons of remote work (work from home)?
PROS:
- Fit a business round a family, gives a good work-life balance
- The owner can work hours that suit their lifestyle
- No commute, so reduction in costs of travelling
- No expensive premises to pay for, so a reduction in fixed costs
- Less stress from travelling and tension with colleagues
CONS:
- No socialisation with other workers, so business owner may not have anyone to bounce ideas off
- Work is all around the business person so they may find it hard to switch off
- The business owner may find that they work more hours than a regular job as they don’t keep track of the time that they work
- Needs lots of self discipline to avoid distractions
- Too easy to be lazy and not work
2.5.2 - What are the directors of a business?
- A board of Directors in a business makes strategic decisions
- Directors have a responsibility to run a business so that it is successful for all its stakeholders, not just shareholders
- Sometimes they must take difficult decisions, when times are hard, to withhold a dividend or to pay a low one, because using a small profit for this may cause long-term problems for the business
2.5.2 - What are the senior managers of a business?
- Senior managers are at the top level of the business
- They deal with tactical day to day decisions for the business
- These are often appointed by the board of directors to help the business meet its objectives
2.5.2 - What are the supervisors/team leaders of a business?
- Person in the first-line management who monitors and regulates employees in their performance of assigned or delegated tasks
- Supervisors are usually authorised to do the disciplining, rewarding and other associated activities regarding the employees in their departments
- Supervisor will be in charge of all the employees on shift
2.5.2 - What are the operational staff of a business?
- These are the staff that take care of the day to day tasks of running the business
- These staff are not involved in the strategy or management of the business
2.5.2 - What are the support staff of a business?
- Support staff are there to carry out a specific role which helps the business to run or the organisation to function
- In a school support staff may be: teaching and classroom assistants; learning support assistants; learning mentors etc.
2.5.2 - What documents are involved in recruitment?
- Person specification
- Job specification
- Job description
- Application form
- CV
2.5.2 - What is a person specification?
This is a wish list of qualities that the business would like the new member of staff to have
This outlines the:
- Personal qualities
- Qualifications
- Work
- Experience
- Skills
2.5.2 - What is job description?
- As part of the recruitment process the business will also write a job description.
- This describes the duties and responsibilities of the role.
- It also describes what the new employee would do on a day-to-day basis
2.5.2 - What is an application form?
- When the business has written the person specification and the job description they will advertise the job.
- Those applicants who wish to apply may be asked to fill in an application form
- This may be the application form of the company or a SAF (Standard application form).
2.5.2 - What is a CV?
(Curriculum Vitae)
- A business may also ask applicants to send in their CVs so they can be attached to their application forms.
- A CV is a summary of the applicants working life to date.
- Some businesses now ask for video CVs
2.5.2 - What are the benefits of internal recruitment?
- Internal candidates favoured as their track record and skills are already known
- Internal candidates are already loyal to the business and can be more productive quickly as they don’t have to be inducted
- Internal candidates will already fit with company culture, no expense of a new person not fitting in, leaving and having to be replaced – therefore less risky and cost effective to recruit
- Less expensive – no cost of advertising
2.5.2 - Why may some businesses use external recruitment?
- Internal candidates may not have skills set required for a new position – as these might not be able to be trained in.
- Vacancy may have to be advertised externally if there is no-one suitable already working in the business
2.5.2 - What is the difference between internal and external recruitment?
Internal recruitment is taking someone who is already wronging in the business to a new position while external recruitment is hiring a completely new employee
2.5.3 - What is formal training?
- Trainer sets the objectives
- Usually away from the job but can be on the premises
- Outside experts brought in
- Expensive, cost of the trainer
- Strict learning schedule
- May offer a certificate at the end
2.5.3 - What is informal training?
- Learner sets the objectives
- Training takes place on the job
- Quick training by other members of staff
- Cheap, no cost except some loss of productivity while training is taking place
2.5.3 - What is self learning and why is it beneficial?
- Self-learning means studying without a teacher, classroom or formal setting.
- In a business context this means staff may carry out an online course to improve their skills (e.g. on computer)
- This can be beneficial as it is cheap and won’t cost too much productivity
2.5.3 - What is ongoing training and why is it beneficial?
Regular staff training is important to keep up with a dynamic business environment, benefits to the business:
- Keep up with industry changes
- Keep up with new technology S
- tay ahead of competitors
- Identifies staff weaknesses
- Increases job satisfaction levels
2.5.3 - What are performance reviews and why are they needed?
- This is a discussion between the employee and their supervisor about the job.
- This should be formal and documented
- This recognises high performing employees and is an opportunity for the employee to get feedback on how they are doing at work
- It motivates employees to work harder as they know they are being reviewed
2.5.3 - What is the link between training, motivation and retention?
- Employees being trained makes them feel more valued.
- This makes them more motivated and therefore more likely to continue working for the business
2.5.3 - Why is re-training often needed?
- New technology in the business will mean that staff will need to be retrained to use the new technology
- As soon as they are trained then productivity will rise
- Older staff may be resistant to change and may need more persuasion to train on the new equipment
2.5.4 - Why is motivation important in the workplace?
- Attracts employees: Meaning you have a larger recruitment and can easily find who you want to work for you
- Retains employees: Meaning your better workers will be staying and doing work for you
- Increases productivity: Meaning more money is able to be made
2.5.4 - What are financial methods of motivating employess?
- Remuneration
- Bonus
- Commission
- Promotion
- Fringe benefits
2.5.4 - What are non-financial methods of motivation?
- Job rotation
- Job enrichment
- Autonomy
2.5.4 - What is a remuneration?
- Remuneration means money given to an employee in return for work or service.
- This may be employee’s wages, or salary or pay.
- To motivate some employees a business may decide to pay them more, to give them a “pay rise”
2.5.4 - What is a bonus?
Extra money earned on top of salary for different situational reasons
2.5.4 - What is a commission?
- Employee receives a reward for every sale made. (e.g. 10% of every sale they make).
- Some jobs are advertised with “OTE” which means on target earnings and gives the employee an idea of how much commission they can earn.
2.5.4 - What is job promotion?
- It is important for a business to promote their staff.
- This keeps employees motivated as their earnings will go up with the new job.
- If a business promotes from within staff will remain more loyal to the business.
2.5.4 - What are fringe benefits?
- Also known as ‘perks’
- Items an employee receives in addition to their normal wage or salary (e.g. company car, private health insurance, free meals)
- Often increases loyalty to company as these benefits are not always taxed or are taxed at a reduced rate
- More likely to recruit best people to company
2.5.4 - What is job rotation and what are the advantages and disadvantages?
Employees are rotated between different jobs [wooaah no way] PROS:
- Relieves boredom
- Easy to find an employee to cover for an absent colleague
- More motivated due to wider range of skills
CONS:
- Training costs are high
- Fall in output due to less specialisation
- Could be simply a greater number of boring tasks with less social benefits due to constant changing of groups
2.5.4 - What is job enrichment and what are the advantages and disadvantages?
Employees are given redesigned jobs that have more challenge and responsibility
PROS:
- Develops unused skills and challenges employees
- Allows employees to contribute to decision making process Increased feelings of achievement
CONS:
- Some employees may feel under pressure not simply challenged
- Costly
- Benefits only when thinking long term as employees have to be trained
- Not all jobs can be enriched (e.g. bin men [aww man that’s just rubbish])
2.5.4 - What is autonomy and what are the advantages and disadvantages?
Autonomy means allowing employees to make their own decisions
PROS:
- Employees feel more ownership of their own work and so are more motivated
- Employees able to use their own thinking skills to complete their work at their pace
CONS:
- Some employees may become unhappy as they need more direction in their work and want recognition from their boss
- Some employees may want to make more decisions than they are entitled to.
