3.4 Human Resources Flashcards
Organisational structure
The way in a which a business arranges itself internally to carry out its activities.
Organisation chart
A diagram/plan showing the internal structure of a business. (Roles and relationships between employees)
Rules of an organisational chart
• Place people in order of importance.
• Only include people employed by the business.
Importance of an organisational chart?
• Clear lines of responsibility for departments and workers.
• Shows communication routes clearly.
• Highlights number of different departments.
Delegate
Passing over responsibility to a subordinate.
Chain of command
How communication is passed down the business.
Subordinate
A person in a lower level of hierarchy.
Span of control
The number of people you are responsible for.
Director
Lead the business and decide on the plans, or the strategy to reach the firms aims and objectives.
Manager
Put strategy into practice and organise work to meet objectives set.
Supervisor
Responsible for a team of employees ensuring targets are met.
Operator
Carry out the day to day work of a business.
Tall organisational structure
• Narrow span of control
• Closer supervision
• Less delegation
• Longer chain of command
Flat organisational structure
• Wide span of control
• Greater freedom
• Increased delegation
• Shorter chain of command
Delayering
The removal of 1 or more levels of hierarchy from a businesses organisational structure.
Positives of Delayering
• Can make the business more efficient.
• Vertical communication is easier.
• Reducing cost on salaries/wages.
Negatives of Delayering
• Redundancies are difficult to process.
• Employees worry about job security, reduces productivity.
• Line managers have more subordinates, increased workload.
Communication
The exchange of information between 2 or more people.
Internal communication
Messages that are sent between people or groups that work for the same business.
• Emails
• Phone calls
• Meetings
External communication
Messages that are sent to people who do not work within the business.
• Social media
• Advertising
• Letters
Types of communication
• Upwards
• Downwards
• Horizontal
Centralised business
Important decision are made by senior managers at the top.
E.g. Fast food business.
Decentralised business
Decision making power is spread (delegated) to junior managers in other departments/locations.
E.g. Hotel Chains.
Positives of a centralised business
• Decisions made by experienced people.
• Decision consistent across whole business.
Negatives of a centralised business
• No ideas or suggestions from staff.
• A standardised approach may not work in all business locations.
Positives of a decentralised business
• Junior managers can make effective and personalised decisions.
• Helpful for quick and urgent decision.
Negatives of a decentralised business
• Poor decisions could harm entire business.
• Training may be required for effective decision (cost).
Recruitment
The process of finding and appointing new employees.
Staff turnover
The rate at which employees leave a business.
Types of recruitment
External: Advertising, job centre, employment agencies.
Internal: Manager tells employees, certain employees invited to apply, advertisements placed on boards, internal websites or sent by email.
Recruitment process
1) Identify the vacancy
2) Undertake job analysis
3) Draw up a job description
4) Draw up a person specification
5) Advertise the vacancy
6) Shortlist applicants
7) Interview applicants
7) Select a candidate
Job analysis
Identifying the tasks and skills needed to perform a job well.
Job description
A job description is a written account of what a job involves.
Includes:
• Job title
• Department
• Salary
• Areas or responsibility
• Tasks
• Location
Person specification
A description of the type of person required to do the job.
Includes:
• Knowledge
• Skills
• Personality traits
• Qualification or training
• Previous experience
Ways of applying for a job?
• Curriculum vitae (CV)
• Letter of application
• Application form
Curriculum vitae (CV)
A brief history of the applicants career. It is general and not specific to any job.
Letter of application
This is specific to the job outlining how you are the best person for that role. Normally attached with a CV.
Application form
This is specific to a company and used instead of CV’s.
Methods of selecting best employees
• Interview
• Assessment centres
• Physchometric tests
Interview
A formal meeting in person, for the assessment of the qualifications of an applicant.
One to one, panel, group.
Assessment centres
A group of participants undertake a series of job-related exercises under observation, so that skills, competencies, and character traits can be assessed.
Physcometric tests
A test to find out wether someone’s personality is suitable for a job/who will fit best in the team.
Motivation
The will to work due to the enjoyment of work itself.
Benefits of a well motivated work force
• Better productivity as they work harder
• Better quality
• Lower levels of absenteeism
• Lower levels of staff turnover
Financial methods of motivation
• Bonus
• Profit sharing
• Commission
• Share options
Non-financial methods of motivation
• Praise
• Promotion
• Job rotation
• Fringe benefits
Contract of employment
A legal agreement between an employer and employee setting out conditions of employment. E.g. hours of work, rates of pay, duties at work.
Benefits of full time employment
• Save costs on recruitment
• Increased security for workers
• Employees more committed
Benefits of part time employment
• Retain valued workers
• Extra skills fo business (more employees)
• Reduced absenteeism
Types of contracts
• Job share
• Zero hour contracts
Job share
An arrangement where 2 or more people ‘share’ responsibilities of a full time job.
• Flexibility for employees
• Cost benefits for the business
Zero hour contracts
The employer is not obliged to give the employee any minimum number of hours, they can just use the employee as and when they are needed.
Training
A range of activities giving employees job-related skills and knowledge.
Benefits of training
• Increased productivity
• Staff retention
• Better customer service
Types of training
• Induction training
• On the job training
• Off the job training
Induction training
Initial training to familiarise new recruits with the systems of a business.
On the job training
When employees receive training as they are working at the place of work e.g. teaching, construction.
Off the job training
When employees receive training away from the work place (not whilst working) e.g. Hairdressers.
Advantages of financial methods of motivation
• Increases staff retention
• Higher productivity
Advantages of non-financial methods of motivation
• Less costly
• Methods like delegation show workers that the business trusts them which improves productivity and staff retention
• Methods like job rotation can also improve the flexibility of the business as workers are trained in more than one role.
• Can be effective where staff are less motivated by money, and want job satisfaction.
