2.5 - Making Human Resource Decisions

Question 1

Describe a Hierarchical structure

Answer 1

There is a long chain of command with more layers of management. This can make communication between the top and bottom of the structure difficult and slow because more people need to pass on the message Each manager only has a narrow span of control. This can make a firm more effective as managers can monitor the employees they are responsible for more closely .

Question 2

Describe a flat structure

Answer 2

There is a short chain of command. This means that messages can be passed on quickly. However, each manager also has a wide span of control. This means that each manager has to manage a lot of employees at once it can be difficult to manage a lot of employees effectively

Question 3

Why is effective communication important?

Answer 3

Effective communication in a business is really important - it means that different areas of the business work well together, and that everyone in the business knows what they should be doing and why. It can improve staff motivation as staff will know what’s going on in the firm and are likely to feel more confident that they’re doing their job properly

Question 4

What barriers are there to effective communication? (4)

Answer 4

> Noise-it’s difficult to hold a conversation in a noisy environment, such as a busy factory.
Personalities -some employees may feel uncomfortable communicating with other people in the firm because, e.g. they don’t get on personally or feel they are unapproachable.
Distance-many businesses operate across different sites, sometimes many miles apart, so it can be difficult to speak to people face-to-face.
Jargon -technical language used in one department may not be understood by people in other departments.

Question 5

What is the difference between part-time and full-time employment?

Answer 5

Working full-time usually means that employees work around 35-40 hours a week. Part-time staff work usually between 10-30 hours.

Question 6

What is a flexible hour contract?

Answer 6

Employees that have been with a firm for more the 26 weeks can request to work flexibly - this is when working hours and patterns are adapted to suit the employee. This can be very motivating for staff as it makes it easier to fit other commitments around their working life.

Question 7

What is a zero hour contract?

Answer 7

When the employer doesn’t have to offer work to the employee. Nor does the employee have to accept any work that is given to them. These are used in businesses that have a lot of fluctuation in demand. They are a cheap form of labour - they don’t waste money paying for staff when they’re not really needed and they don’t need to pay sick pay or holiday pay.

Question 8

What is a permanent contract in employment?

Answer 8

Has no end date. The person stays at the firm unless:

i) They choose to leave
ii) They’re dismissed for misconduct
iii) Their job is made redundant

Question 9

What is temporary contract in employment?

Answer 9

For a fixed period. At the end of the period, the contract can be renewed, or the person can leave the company

Question 10

What is a freelance contract in employment?

Answer 10

When a self-employed person is recruited by a company, usually to work on a specific project. Freelancers can usually be hire and dismissed at short notice.

Question 11

How do temporary and freelance contracts benefit businesses?

Answer 11

They make it easier for the firm to employ people with particular skills for a particular period without a permanent contract. This can make it easier to adjust the number of staff according to the needs of the business.

Question 12

How has technology impacted ways of working? (3)

Answer 12

> Made processes more efficient. Bigger part of people’s jobs, changes the way people work.
Easier for employees to share information and communicate with each other. Employees can communicate via emails, video calls and mobile devices allow people to communicate from many different locations.
Easier for employees to work remotely, so they can work whenever they want, more motivated

Question 13

What are directors in a business?

Answer 13

Responsible for the business’ strategy (its overall direction). The directors decide on strategy and targets at regular board meetings.

Question 14

What are senior managers?

Answer 14

Organise the carrying out of the directors’ strategy. A large firm may have middle and junior managers ranked below senior managers.

Question 15

What are supervisors or team leaders?

Answer 15

Ranked below managers. They usually look after specific projects or small teams of operational or support staff.

Question 16

What are operational and support staff?

Answer 16

Workers who aren’t responsible for other staff. They’re often given specific tasks to perform by managers, team leaders or supervisors.

Question 17

What is a job description?

Answer 17

Includes the formal title of the job, the main purpose of the job, the main duties plus any occasional duties. It will also state who the job holder will report to, and whether they will be responsible for any other staff.

Question 18

What is person specification?

Answer 18

Lists the qualifications, experience, skills and attitudes needed for the job.

Question 19

What is a CV?

Answer 19

A curriculum vitae (CV) is a summary of a person’s personal details, skills, qualifications and interests. It’s written in a standard format to give the firm the basic facts. Almost all firms ask for a CV.

Question 20

What is an application form?

Answer 20

Many businesses also ask candidates to fill in an application form. These forms give the firm the information it wants- and nothing else. This means they’re much quicker to process and more relevant to the job than open-ended letters written by the candidates. Many companies now like to use online application forms, where applicants fill in their details on the company’s website. This allows the company to compare the applications using computer sofware.

Question 21

What is internal recruitment?

Answer 21

Involves recruiting current employees into new roles. The job position is advertised within the company.

Question 22

What are the advantages and the disadvantages of internal recruitment?

Answer 22

> The advantages are that it’s much cheaper, the post can be filled more quickly, the candidates will already know a lot about the firm, and bosses may already know the candidate well.
On the downside, there will be no ‘new blood’ or new ideas, and the employee’s move will leave a vacancy to fill.

Question 23

What is external recruitment?

Answer 23

Involves recruiting from outside the business. The job can be advertised in lots of places, e.g. the local and national press, job centres, trade journals and employment websites.

Question 24

What are the advantages and disadvantages of external recruitment?

Answer 24

> An advantage is that the job advert will be seen by more people, so it’s more likely that the firm will find somebody really suited to the job
However, advertising externally isn’t cheap only specialist and senior jobs get advertised in the national press because it’s very expensive.

Question 25

Describe informal training (4)

Answer 25

Done ‘on-the-job’ the employee learns to do their job better by being shown how to do it, and then practising. There is no strict plan to the training and it is usually given by other workers. It’s cost-effective for the employer because the employee works and learns at the same time). A problem is that bad working practices may be passed on.

Question 26

Describe formal training (4)

Answer 26

Involves a set plan with learning objectives and a schedule. The training can involve learning in a firm’s training department or away from the workplace, e.g. at a local college. It’s more expensive than informal training, but it’s often higher quality because it’s usually taught by people who are better qualified to train others.

Question 27

Describe self-learning as a training method

Answer 27

In some firms employees are encouraged to self-learn. This is where employees seek out their own training and development - e.g. they might be given access to online videos, apps and courses which teach different skills. They can pick and choose what they want to learn depending on where they want to take their career.

Question 28

Why do employees need ongoing training?

Answer 28

This could be to retrain them so they learn new processes or how to use new technology or just to help them develop so that they’re doing their job as well as possible.

Question 29

How are performance reviews used as a method of training?

Answer 29

Firms set employees targets and then review their performance to make sure they’re developing as they should. People who meet or beat their targets may be rewarded with higher pay or a promotion. If a worker doesn’t meet their targets, the manager can decide what training or support they might need to help them improve

Question 30

What are the benefits of training and development? (3)

Answer 30

> Makes staff more productive - makes them better at their jobs - may work faster - could lower unit cost
Help staff stay up to date with changes in the business, such as knowing how to use new technology
Likely to make staff feel motivated - shows the firm is interested in how well staff are doing their jobs and are willing to help them improve, and it makes staff feel like they’re progressing business - might increase staff retention.

Question 31

How is having motivated staff beneficial? (3)

Answer 31

> Work harder - high productivity - workers want the firm t do well so they do their jobs well
More likely to stay in the job - less time and money spent on recruitment - reduces firm’s costs
Attracts new employees - easier to recruit new staff as there are lots of applicants.

Question 32

What financial methods are there to motivate staff? (5)

Answer 32

> Remuneration 
> Bonus
> Commission
> Promotion 
> Fringe benefits

Question 33

What non-financial methods are there to motivate staff? (3)

Answer 33

> Job rotation
Job enrichment
Autonomy

Question 34

How is remuneration a method of motivation? (7)

Answer 34

Payment for work. More that a worker is paid, the more motivated they are in their job. Can be paid with wages or salary. Wages are usually paid to manual workers. The amount paid is based on the amount of work that the employee does. A salary is a fixed amount paid every month - doesn’t change even if the n.o of hours worked changes. Usually paid to staff who do not directly help to make the product.

Question 35

What is commission?

Answer 35

This is paid to sales staff for every item they sell. It is given on top of a small basic salary.

Question 36

What is a bonus?

Answer 36

A lump sum added to pay, usually once a year. It’s commonly paid if the worker has met their performance targets.

Question 37

What are fringe benefits?

Answer 37

Any reward that is not part of a worker’s main income. Examples include staff discount on the firm’s products, the use of a company car, gym membership, a daily meal allowance or free health insurance. All of these perks cost money for the business and save it for the worker.

Question 38

How can promotion boost motivation?

Answer 38

Employees can be trained to learn new skills. This means that they can start to take on new tasks and have a greater responsibility. This may lead to them getting a promotion, which is likely to mean that they get paid more. So promotion and the opportunity to get promoted can motivate staff.

Question 39

What is job rotation and how does it improve motivation?

Answer 39

Reduces jobs from getting boring and repetitive by occasionally moving workers from one job to another. This motivates workers as they don’t get so bored. They also learn to do different jobs, so if someone’s ill they can cover. However, if one boring job is replace by another, it doesn’t improve job satisfaction.

Question 40

What is job enrichment and how does it improve motivation?

Answer 40

Job enrichment is when a worker is given greater responsibility. As a worker becomes good at their job they become more productive - they can do the same work in less time. So, giving workers more responsibility can stop them from feeling that their increased productivity is being punished by more of the same work. lt gives workers new challenges and so may motivate them to work harder. A problemn is that they may expect a pay rise as well.

Question 41

What is autonomy and how does it improve motivation?

Answer 41

Giving workers the freedom to make their own decisions. Workers may be told their overall goal but not told specifically how they should achieve it. This responsibility motivates workers as it makes them feel trusted and like their contribution is valued.