2.5 Making Human Resource Decisions Flashcards
Organisational structure
Outlines the reporting relationships, roles and responsibilities of employees in the organisation.
On what basis should a business choose their organisational structure?
- how the structure may affect management and effectiveness of operations and communications
- helps to promote clarity, efficiency and accountability
Hierarchical structure
- refers to the level of authority within the organisation - i.e: the ranking of positions from top to bottom
Chain of command
A formal line of authority that flows downward from the top management.
What does the chain of command help the business to do?
- define who reports to whom and who is responsible for making decisions
- it also helps to establish a clear communication channel.
Communication
How information is passed on within a business/business to customers
Span of control
the number of employees which a manager directly controls
narrower - less people
wider - more people
What is a centralised structure?
where decision making authority is concentrated at the top of the organisation with senior management making most of the decisions
Decentralised structure
where decision making is spread throughout the business and employees have more decision making power.
Advantages and disadvantages of centralised?
Ad:
- customers know exactly what to expect no matter which branch they visit
- senior management team have more experience in difficult decision making, reducing risk of outcome.
Dis:
- can demotivate employees
- lower productivity
- the same techniques and practices may not be suitable for all business loactions
What are the advantages and disadvantages of decentralised structure?
Advantages:
- increases motivation => more responsibility given to employees
- managers can make decisions based on what is suitable for where the branch is located
Dis:
- managers may make ineffective decisions
- cannot guarantee things would be the same when going from one branch to another.
Characteristics of each: Hierarchical or flat structure (4)
Hierarchical - many layers of management; managers have a narrow span of control; promotional opportunities for staff; slower communication flow
Flat - few layers of management, more delegations and authority given to staff, managers have a wider span of control, communication is quicker
When is communication effective within a business?
When:
- everyone is aware of what the business wants to achieve
- everyone knows exactly what their role is and what they have to do to fulfil it
What is the problem with excessive or inadequate communication?
Excessive: may cause employees to feel overwhelmed and stressed, whilst also leading to important info being overlooked/missed
Inadequate: an employee may not understand what they have to do, leading to demotivation
What must effective communication be?
- accurate
- clear and easily understood
- via the right medium
- complete
- appropriately worded/communicated to intended audience
What are the barriers to effective communication?
- Noise
- Inappropriate medium e.g: a telephone call
- distance
- personalities
- jargon
- language barriers
Full-time working
usually classed as someone who works 35 hours a week or more, but not more than 48
Part-time
employees who work less than 35 hours in a week, but they have exactly the same rights as full time member of staff
flexible hours
An employee will have to work a certain number of hours a week, but there is flexibility as to when those hours of work can be completed.
zero hours contract
no guaranteed work hours for an employee, they don’t need to accept the work offered. Often used in businesses with large fluctuations in demand
What is a permanent job contract?
an employee has a contract of employment that has no end date.
Give one advantage and disadvantage of a permanent contract?
Ad:
- may be more motivated as employees have job security
Dis:
- higher costs compared with temporary staff
What is a temporary job contract?
A business may employ people for a set period of time to fill any gaps or fill in busy periods
Advantages and disadvantages of a temporary job contract?
Ad:
- saves the business money, as they only pay for workers when needed
Dis:
- workers may lack experience
What is a freelancer?
self- employed people who are hired by a business to work on a specific project for a period of time. Usually high qualified and can work to a pre-agreed budget.
advantages and disadvantages of free lancer contract?
Ad: usually experts in their field
Dis: Lack of commitment to the business.
What is the impact of technology on the ways of working?
- remote working can now be done through video conferencing, emails, phones and so on.
- efficient for the business as time is saved and expenses are reduced - less workspace needed, staff less likely to take time off
Time is saved, as less time is spent travelling + also being distracted by other employees.
Technology can help reduce the effect of _________ _____ communication.
barriers to
What are the responsibilities of a director?
- these are the people at the top of the business who are responsible for implementing new policies, investing new profit, or opening new offices.
What are the responsibilities of the senior managers?
- below the directors in the business and the highest level of managers within the business
- responsible for all the staff below them
- makes the key day-to-day operational decisions for a business and set business strategy or direction.
What are the roles of the supervisors/team leaders?
- sit below the senior managers in the hierarchy
- often manage a team of employees - daily duties, deciding working hours, and making sure that they fulfil their roles.
What is the role of the operational staff?
- complete tasks that fulfil the purpose of the business
What is the role of the support staff?
These people assist with the daily operations of the business. Their duties do not contribute directly to the purpose of the business.
What is recruitment? Is there any documentation needed, if so, what are they?
This is the process of deciding who will fulfil a specific job role. These include: the person specification, the CV, job description, application form.
What is a person specification?
A document that tells applicants about the skills and characteristics that are needed to be able to complete the job.
What is the job description?
A document outlining all the details of the job itself, what the main duties are, who the person would report to and what the wage or salary is.
What is the CV?
A document that tells the business about the education, qualifications and employment history of the applicant.
What is an application form?
- completed by a potential employee when they apply for a job
- includes a series of questions for a potential employee to answer, so that the business can learn more about them.
What is internal recruitment?
Filling a job vacancy with an existing member of staff. Occurs as a result of a promotion/an employee wishing to fulfil a different role within the business.
Advantages and disadvantages of internal recruitment.
Ad:
- employee will already know the business
- it is a faster, easier and cheaper way to recruit
Dis:
- usually a small pool of applicants
- may result in a lack of fresh ideas within a business.
What is external recruitment?
Filling a job vacancy by employing someone outside of the business
Advantages and disadvantages of external recruitment?
Ad:
- New employees may bring fresh ideas
- may be a bigger pool of potential applicants to choose from
- external recruitment may be necessary if the vacancy has arisen due to the growth of the business.
Dis:
- expensive to recruit
- new employee previously not known by the business
- can take more time than internal recruitment
How people are recruited through external or internal recruitment?
- Interview - applicants are asked questions to answer
- testing and role play - given questions or a scenario
- tour of the facilities - shown around the premises
- group discussion - given a topic to discuss
- presentation
What is training and development?
Training - the teaching of new skills
Development - this is the improvement of new skills
What are the two types of training?
- Formal - training that is structured and has specific objectives.
- Informal - training that is less structured and that takes place as and when required.
What does the type of training delivered to employees depend on?
- finance
- timescale available
- specific needs of the business and employee
Benefits and drawbacks of formal training.
Benefits:
- training can be tailored to the individual
- it is a cheaper way to train people
Drawbacks:
- poor working practices
- having to train whilst undertaking a new job can be stressful.
Benefits and drawbacks of formal training.
Benefits:
- training is delivered by specialists
- usually highly structured and provides the employee with a qualification.
Drawbacks:
- attending training courses can be expensive
- can take employees away from their work.
self learning training
employee teaching themselves a skill or part of their role without being taught by another employee or external training supplier
ongoing training
training that takes place continuously throughout an employee’s time working for a business
target setting and performance reviews
Performance reviews -undertaken by businesses to ensure employees know how they are performing and how they could improve in the future. Target setting - the process of setting goals or objectives for employees
appraisal
A formal meeting between an employee and a manager to discuss the employee’s performance in their job role and set targets.
How do performance reviews and target setting work?
- employee will have an appraisal with their manager and they will see what they need to improve on/ try to achieve within the coming time.
- training is provided so that employees can gain the skills needed to achieve these new goals set
- a performance review is done. Employee’s progress towards achieving goals would be monitored + new goal setting.
Why does a business train its employees?
- Retention
- Motivation
What is retention?
Retention refers to keeping employees working for a business. Different industries tend to have different staff retention rates.
What is motivation?
Motivation refers to how driven and happy an employee is in their role. If an employee is motivated, they are more likely to do a good job and work hard.
Technology is constantly becoming more _______ and changing as new _______, software and _______ ____ __________ are introduced.
- advanced
- machinery
- ways of working
Why is it important that an employee is retrained to use new technology?
Doing so makes employees more efficient and skilled in their roles.
What does the type of training depend on?
The type of technology a business invests in will depend on the type of business.
Why is motivation important? (4)
- retention levels high, staff turnover less.
- lowers staff absence
- attracts employees
- better customer service to customers
- more committed workforce, who work more for business success
- improves communication
- increases productivity.
What are the financial methods to motivate employees?
- Remuneration - salary
- Bonus - a sum of money paid as a rewards for achieving a target.
- Commission - a percentage of sale that the employee receives
- Fringe benefits - perks that carry a financial value that are given to employees.
- Promotion - being rewarded with a job that carries more authority and with it a higher pay.
What are the non-financial methods of motivation?
- Job rotation - gives employees opportunities to work in a number of areas, completing a range of jobs
- Job enrichment - giving employee tasks that carry greater responsibility
- Autonomy - giving employees the freedom to make decisions about their own working life. Employees feel trusted and that their contribution is valued.
