2.5 | Making human resource decisions

Question 1

define centralised organisational structure

Answer 1

All major decisions are made by one person or a few managers at the top of the structure

Question 2

define decentralised org structure

Answer 2

decision making is shared out between managers or senior employees

Question 3

give 2 pros of a centralised or structure

Answer 3

p:

• consistency across the business
• operations and decisions are closely controlled and managed

Question 4

give 2 cons of a centralised org structure

Answer 4

• can slow down decision making as communication will take long to reach employees demotivating them
• lowers productivity as business depends on a few people who may lack specialist knowledge

Question 5

give 2 pros of a decentralised org structure

Answer 5

• improved employee motivation as there is more autonomy increasing productivity
• changes can be made quickly as decisions do not have to be discussed with managers allowing the firm to meet changes in trends rapidly and stay ahead of competition

Question 6

give 2 cons of a decentralised org structure

Answer 6

• consistency is not achieved across all departments

- managers can make ineffective decisions negatively impacting sales and overall business performance

Question 7

give two features of a hierarchical structure and an impact of each

Answer 7

• long chain of command making communication slow and difficult
• narrow span of control making a firm more effective as managers can monitor employees

Question 8

give two features of a flat structure and an impact of each

Answer 8

• short chain of command leading to more autonomy for employees increasing productivity
• wide span of control so there is more workload for managers and so management may not be as effective

Question 9

when if flat structure and hierarchical structure appropriate for business

Answer 9

FS: best for small business run by owner as no need for additional mangers
HS: when a business grows and employs more staff thus managers are needed to control things

Question 10

give 2 reasons why effective communication is important

Answer 10

• everyone has a clear understanding of their job role improving staff motivation as they feel confident they are doing their job properly
• make decisions faster

Question 11

give 2 impacts of insufficient communication

Answer 11

• negatively impact efficiency and motivation, as employees may not fully understand what is required of them
• may result in duplication of tasks which wastes time and money decreasing productivity

Question 12

give 2 impacts of excessive communication

Answer 12

• receive the same message via multiple channels causing employees to become confused or feel stressed
• could lead to wasted time reducing efficiency productivity and output

Question 13

briefly define the 3 barriers to communication and their impact (1)

Answer 13

• jargon: technical language used in one department may be misunderstood by another
• distance: operating at different sites
• lack of understanding
• reduces business efficiency and cause mistakes

Question 14

what is full time work

Answer 14

Full time usually refers to an employee working more than 35 hours per week

Question 15

what is part time work

Answer 15

refers to an employee working for only part of the working week

Question 16

what are flexible hours and a positive impact of them

Answer 16

employees are given a set number of hours to work but choose when they work

• lead to higher staff retention and better productivity

Question 17

what are zero hour contracts and give 2 impacts ( n+p)

Answer 17

there is no specified number of work hours per week
- they are given work when a business requires them

-provides flexibility but no regular income

Question 18

define permanent and temporary contracts

Answer 18

permanent - one that has no fixed end date until the employee decides to leave
temporary - has an end date when the worker is only employed for a certain period of time

Question 19

what are free lance contracts

Answer 19

where a self-employed individual is engaged to carry out a specific piece of work over a defined period of time

Question 20

give two impacts of technology on efficiency

Answer 20

• increased efficiency and productivity of a business

- allows for remote working less need for large premises

Question 21

give 3 reasons why motivation is important in a business

Answer 21

• attracts employees
• higher retention of employees decreasing training costs due to high skill and experience
  productivity: increases productivity increasing revenue

Question 22

give the 4 financial methods of motivation and briefly define them/impact

Answer 22

remuneration: money employees are paid in return for working in a business. ( bonuses)
commission: paid on top of normal wage or salary making them work harder
fringe benefits: perks of working there allowing workers to save money
promotions: provide a higher rank within a business granting them more responsibility

Question 23

give the 3 non financial methods of motivation and impacts

Answer 23

job rotation: gives workers variety and change reducing boredom
job enrichment : providing wide range of tasks giving them greater responsibility and higher staff retention
autonomy: has the ability to make more decisions making them feel valued and trusted by the employer