2.5 Making Human Resource Decisions

Question 1

2.5.1

Answer 1

Organisational Structures

Question 2

Organisational Structures

Answer 2

Organisational Structures are:
- charts that look similar to family trees - they can be hierarchical (also known as tall) or flat
- useful to show the internal structure and the roles and responsibilities of staff in businesses

Question 3

Hierarchical Structures

Answer 3

• Have lots of levels of authority.
• Can motivate staff to strive for the next level of promotion due to their many management levels.
• Can be expensive (lots of managerial salaries).
• Communication can be slow and distorted due to numerous levels of authority.
• Examples: NHS, local government, the police force.

Question 4

Flat Structures

Answer 4

• Have few levels of authority.
• Are responsive to change (staff have the authority to make decisions.
• May leave staff feeling overwhelmed if few levels of management for support.
• Examples: small family business, the creative industries.

Question 5

Business Decisions

Answer 5

• Some businesses prefer big decisions to be made by senior management in a head office; this is known as being centralised.
• With centralisation all branches or stores of a business will have the same policies, prices and look.
• Centralisation can slow communication between the shopfloor and senior management - to overcome this, some businesses prefer to be decentralised.
• Decentralised businesses make decisions at a local level, by local managers who know what their customers’ needs are and can quickly respond to them without having to refer to Head Office.

Question 6

Effective Communication

Answer 6

• It is vital for a business to have strong communication with all of its managers, staff and customers; this minimises mistakes.
• A business with too little communication, staff may make wrong decisions, causing mistakes, wastage, loss of time and poor motivation levels.
• A business with too much communication can give staff too much information; staff might feel overwhelmed by emails or by attending too many meeting.
• Sometimes communication is poor due to other reasons, such as:
  ○ it uses too much jargon
  ○ it uses the wrong language, which is open to misinterpretation
  ○ it may be biased or untruthful
  ○ it may not seek feedback (or act upon feedback) from staff or customers

Question 7

Different Ways of Working

Answer 7

• Full-time staff work for around 35 hours per week (and, due to regulation, no more than 48 hours per week).
• Part-time staff gain the same benefits as full-time staff but work for less than 35 hours per week.
• Working hours can be rigid, e.g. 9-5, or flexible.
• Flexible hours are when someone will work the number of hours they are contracted to but with more choice over when they work.
• Contracts may be permanent (on an ‘until-further-notice basis’).
• Businesses may have staff they permanently hire (on a full-time, part-time or flexi-time basis) for day-to-day work and recruit temporary staff for busy periods or to cover staff holiday or sickness (on a temporary basis).
• Freelance contracts are when someone is self-employed and they choose to work for different businesses on a contract-by-contract basis.
• Freelance workers tend to be highly specialist, e.g. architects.
• Technology has brought change to the work environment; people are able to work together from different locations, which is known as remote working.

Question 8

2.5.2

Answer 8

Effective Recruitment

Question 9

Key Job Roles

Answer 9

• Sole traders and partnerships are the main decision makers for their business, however they want or need to employ staff to work with them.
• Private limited companies and public limited companies have boards of directors who are the people responsible for the business. Directors:
  ○ meet regularly to decide the aims and objectives of the business
  ○ make decisions that affect all the stakeholders, not just the company’s shareholders
  ○ are the people who decide whether dividends will be paid (paying profits to shareholders)
  ○ need to be aware of their legal responsibilities as directors
  ○ may decide to employ senior managers to be responsible for the day-to-day operations of the business in order for aims and objectives to be achieved.
• Senior managers might need to hire supervisors or team leaders to help them communicate with, manage and motivate staff.
• Supervisors and team leaders work with staff and have the authority to delegate work, reward and discipline staff; as line managers, they are in charge of staff during their shift and are normally paid a higher salary for this responsibility.
• Operational staff are staff hired to look after other day-to-day jobs, such as receptionists and administration staff.
• Support staff are those who carry out specific jobs that facilitate business success, e.g. (IT) technicians, canteen staff.

Question 10

Internal Recruitment

Answer 10

• Internal recruitment is when a business appoints someone for a job who already works for the business.
  ○ the member of staff is familiar with the business and the business knows the applicant is reliable
  ○ there is no need for expensive advertising and induction training
  ○ if a member of staff moves from one role to another within the business, their old job still needs to be filled
  ○ some members of staff may be resentful if a colleague is promoted for a job they desire
  ○ methods of advertising include: notices in staff rooms, emails, management recommendation and announcements at meetings.

Question 11

External Recruitment

Answer 11

• External recruitment is when a business hires people from outside of the business.
  With external recruitment:
  ○ new recruits are often highly motivated and productive
  ○ new recruits will require expensive induction training, time to settle into the role; they may also need support from other staff, which might slow existing staff productivity
  ○ advertising for external recruitment can be an expensive and lengthy process, e.g. senior members of staff might have to give notice of three months with their existing employer
  ○ methods of advertising include: online advertising, notices in job centres, recruitment agencies, advertising in newspapers.

Question 12

Documentation for Recruitment

Answer 12

• A CV (curriculum vitae) is a summary of persona, career, education and skills details.
• An applicant may leave their CV with a business to consider.
• A job description is a document prepared by a business that explains the responsibilities and duties of a job.
• A person specification is a document prepared by a business that explains what they are seeking in any applicant for a job; it lists essential and desirable qualifications, skills, attitudes, characteristics and experience.
• A job application form is a form prepared by a business for a candidate to complete when applying for a job. An application form allows specific questions to be asked, in a format that helps a business to treat all staff equally.

Question 13

Hiring Process

Answer 13

1. Job Posting
2. Review of Applications
3. In-Person Interview
4. Job Testing
5. Job Offer

Question 14

2.5.3

Answer 14

Effective Training and Development

Question 15

What is Training and Development?

Answer 15

• Training is the action of teaching a person new skills.
• Development is improving or perfecting existing skills.

Question 16

Types of Training

Answer 16

This includes formal training, informal training, self-learning, observation.

Question 17

Formal Training

Answer 17

• Formal training is when a business arranges for staff to have training that has specific objectives.
  Formal training:
  ○ is provided by specialists and tends to be away from work, e.g. when employees go on a course to gain a new qualification with other learners from different businesses
  ○ is highly structured; upon completion the employee may be given a certificate
  ○ is of a high standard; it allows employees to learn without interruptions
  ○ is expensive and takes a member of staff away from the workplace.

Question 18

Informal Training

Answer 18

• Informal training is when a business arranges for staff to receive less structured training.
  Informal training:
  ○ usually takes place within the workplace and involves other team members to provide training
  ○ is useful for teaching staff how to use specific equipment e.g. how to use a till
  ○ can be tailored to the employee in a familiar setting
  ○ is quick and cheap to arrange
  ○ is sometimes not taken seriously and relies on the expertise of the trainer.

Question 19

Self-learning

Answer 19

• Self-learning is when an employee studies without the presence of a teacher or colleague.
  Self-learning:
  ○ often includes computer courses, online learning and watching videos
  ○ allows employees to learn at their own pace
  ○ is cheap
  ○ does not allow the learner to get immediate feedback or questions answered because there is no teacher.

Question 20

Observation

Answer 20

• Observation (often called ‘shadowing’) is when an employee watches another member of staff to learn how a job is done. With observation:
  ○ staff are able to ask questions
  ○ the member of staff being observed is able to check understanding by asking questions
  ○ sometimes members of staff do not enjoy being observed, which can cause resentment
  ○ the training is only as good as the member of staff being observed; they may teach bad habits.

Question 21

Training and Business Target Setting

Answer 21

• Successful businesses tend to regularly review their aims and objectives.
• This involves constantly reviewing legal, marketing, customer needs and technological changes; this can help with target setting.
• Staff need to be trained to keep up with all of these changes through ongoing training.
• Through regular appraisals with staff, businesses can identify gaps in knowledge or skills and devise a training plan by setting targets for individuals, monitoring their progress through performance reviews.
• Performance reviews are formal and give staff feedback on their performance over a period of time.

Question 22

Why Businesses Train and Develop Staff

Answer 22

• Businesses need to train staff to be able to carry out their roles effectively.
  Staff who are better trained:
  ○ are more likely to produce better quality goods and services, which means less wastage and more efficiency, which reduces costs
  ○ can be productive, which can benefit the business and help them produce more
  ○ have higher levels of motivation and are more likely to enjoy their roles, giving better customer service
  ○ attract new recruits to the business who are interested in career development.

Question 23

2.5.4

Answer 23

Motivation

Question 24

A Motivated Workforce is Good for Business

Answer 24

• Motivation is about encouraging staff to want to give their best effort and care about the business they work for.
  A motivated workforce:
  ○ is more likely to attract new recruits because if applicants see that people are enjoying their work, they are more likely to want to work for the business; the more applicants a business has, the larger a talent pool they have to choose from, which means they should be able to hire the best quality staff
  ○ is more likely to recommend others to come and work for their firm, which can save on job advertising costs
  ○ can reduce staff turnover, which is the percentage of staff who leave a business during a certain period of time
  ○ is more likely to bring new ideas to a business because their satisfaction shows
  ○ is more likely to be productive and efficient, which can increase quality output and reduce mistakes, thus increasing profit.

Question 25

Financial Methods of Motivation

Answer 25

• Remuneration means financial payment for work completed or services performed.
• Some people are motivated by high remuneration and work harder if they know they will be paid more.
• Workers on a piece rate (which is a method of paying staff according to how many pieces of work they produce) may be motivated to work more quickly to produce more goods or services if they know their wages will be higher, however a business will need to make sure that quality does not suffer if workers rush their jobs.
• Some businesses pay staff a bonus if they reach certain targets.
• Bonuses can be incentive for staff to try their hardest to achieve a relatively hard target, which is a motivator for people who like a challenge.
• However, businesses have to be careful their staff do not cut corners to reach these targets. Also, after the target is reached, some staff stop giving their best effort because they have already been rewarded.
• Commission is a method used to pay staff once they have either made or sold something.
• With commission, the employee tends not to receive any payment until they have made or sold something particular, e.g. an estate agent will be paid once a house has been sold.