4. Human Resources

Question 1

What is an organisational structure?

Answer 1

An organisational structure is the way in which the organisation is divided into levels of management, functions and responsibilities

Question 2

Why do businesses have organisational structures?

Answer 2

Businesses have organisational structures to know who is responsible for what

Question 3

What are the four basic layers in a hierarchy

Answer 3

• Directors
• Managers
• Supervisors
• Operatives

Question 4

What is the role of Directors in a hierarchical structure?

Answer 4

Directors are responsible for the business’ strategy (overall direction) and make important decisions

Question 5

What is the role of Managers in a hierarchical structure?

Answer 5

Managers communicate the strategy of the firm to their subordinates and organise the carrying out the director’s strategy (by organising their subordinates)

Note: A firm may have more than one layer of managers (senior & junior managers)

Question 6

What is the role of Supervisors in a hierarchical structure?

Answer 6

Supervisors look after specific projects or small teams of operatives
- They are the lowest level of people in a hierarchy that are still responsible for managing other people
- They manage people at the lowest level of the organisation

Question 7

What is the role of Operatives in a hierarchical structure?

Answer 7

Operatives are the workers at the lowest level in an organisation
- They are not responsible for anybody else
- They are often given specific tasks to perform by their supervisors or managers

Question 8

What are subordinates?

Answer 8

Subordinates are the people that are below you in a hierarchical structure

e.g: supervisors are subordinates to managers, operatives are subordinates to supervisors

Question 9

Define span of control

Answer 9

Span of control is the number of people for whom a manager is directly responsible for

Question 10

Define chain of command

Answer 10

Chain of command is the line through the hierarchy that shows who is responsible for whom from top to bottom of an organisation

Question 11

Define delayering

Answer 11

Delayering is where a business removes layers of its management so that there are fewer levels of management

Question 12

Define delegation

Answer 12

Delegation is where a task is allocated to someone down the chain of command, who would not normally be responsible for it

(Responsibility is passed down)

Question 13

Define what a tall organisational structure is

Answer 13

An organisational structure with a narrow span of control and a long chain of command, with many levels of hierarchy

Question 14

Describe the impacts of a tall organisational structure

Answer 14

• Managers can monitor the employees they are responsible for more closely as each manager has a narrow span of control
• Communication up and down the hierarchy can be very difficult and slow as there is a long chain of command

Question 15

Define what a flat organisational structure is

Answer 15

An organisational structure with a wide span of control and few levels of hierarchy, with a short chain of command

Question 16

Describe the impacts of a flat organisational structure

Answer 16

• A wide span of control means that it can be difficult to manage a lot of employees effectively
• Communication is faster and easier as there is a shorter chain of command (fewer layers of management)

Question 17

Describe what a centralised organisation is

Answer 17

A centralised organisation is where all major decisions are made by one person or senior people at the top of the hierarchy

Question 18

What are the advantages of centralised organisation?

Answer 18

• The people at the top of the hierarchy have the most experience and they an overview of the whole business, so they are able to make the right decisions
• Consistent decisions and uniform policies across the business
• The business has a clear direction

Question 19

What are the disadvantages of centralised organisation?

Answer 19

• Decision making can be slow as all the decisions have to be made by one to few people
• Communication of decisions can take a long time to filter through to employees
• People at the top of the hierarchy are less involved in the day-to-day work of the business and can become disconnected from reality, leading to poor decisions
• It can demotivate employees

Question 20

What is a decentralised organisation?

Answer 20

Decentralised organisation is where the authority to make decisions is shared out and delegated through the organisation

Question 21

What are the benefits of decentralised organisational structures?

Answer 21

• Decisions are being made by employees who have specialist knowledge and are closer to the day-to-day operations of the business
• They don’t need to seek approval from managers for decisions, so less communication which means changes can be made quickly
• Improved employee motivation as they feel like they are needed and have an effect on the business

Question 22

What are the drawbacks of decentralised organisational structures?

Answer 22

• Inconsistencies may develop between departments or regions
• The decision-makers may not be able to see the overall needs of the business, so they may make decisions that are not aligned with the business’ aims or objectives

Question 23

What type of organisational structure would a small business usually have?

Answer 23

A small business is likely to have a flat organisational structure

Question 24

Define recruitment

Answer 24

Recruitment is the process of hiring a new employee

Question 25

Why do businesses need to recruit people?

Answer 25

Businesses need to recruit people to:
- Increase their size
- Gain new people with expertise
- Replace staff that have left

Question 26

What are the two methods of recruitment?

Answer 26

• Internal recruitment
• External recruitment

Question 27

What is internal recruitment?

Answer 27

Internal recruitment is where the job position is advertised to people who already work inside the company and involves recruiting current employees into new roles

Question 28

What are the benefits of internal recruitment?

Answer 28

• It is much more cheaper as there is no need for expensive advertising, recruitment and selection processes
• Candidates already have an understanding of the business and how it works
• …So less training is needed

Question 29

What are the drawbacks of internal recruitment?

Answer 29

• It may create another vacancy in the business
• There is no ‘new blood’ or new ideas

Question 30

What is external recruitment?

Answer 30

External recruitment is when a business recruits new people from outside the business

Question 31

What are the advantages of external recruitment?

Answer 31

• The job can be advertised in lots of places, which will attract a wide range of people, so it is likely the business will find somebody who is suited for the job
• New people from another business may bring new ideas

Question 32

What are the drawbacks of external recruitment?

Answer 32

• It is expensive to advertise externally and to also train new people

Question 33

What are the 4 main stages in the recruitment process

Answer 33

1. The business conducts Job analysis
2. The business advertises the job, and posts the Job Description and…
3. …Person specification
4. They then select the best applicant using the Selection methods

Question 34

Describe what Job analysis is

Answer 34

Job analysis is where the business analyses what the function of the job will be, examining every little detail, and what sort of person they are looking for

Question 35

Describe what Job Description is

Answer 35

Job Description is a document that describes what the job is, the duties, responsibilities, salary etc.

Question 36

Describe what Person Specification is

Answer 36

Person Specification is a list of the required qualifications, skills, experience and attitudes needed for the job

Question 37

Describe what the selection methods are

Answer 37

The selection methods are used to choose the right candidate after the business recieves applications for the job

Question 38

What are the different types of selection methods?

(What are the different ways a business can select the right applicant?)

Answer 38

• CVs - A document containing a person’s personal details, skills qualifications and interests
• Application forms - They include a series of questions that only gives the firm the information it wants to gain a better understanding of the applicants
• Interviews - The traditional and most common form of selection that involves the applicants being assessed by the interviewer on their social and verbal skills and attitudes

Question 39

What are the benefits of having an effective recruitment and selection process for a business?

Answer 39

• High productivity - An firm with an effective recruitment process will have more skilled and hard-working employees, leading to high productivity
• High quality output - People who are more skilled and better fitted for the job will produce higher quality output
• Customer service - People who are well suited to their role or enjoy their job will care more about the brand image and provide better customer service
• Staff retention - Finding a person that is right for the job will likely mean that they stay much longer (as if a person finds out that the job is not right for them, they may leave)

Question 40

What is a contract of employment?

(Don’t need to memorise, just read)

Answer 40

A contract of employment is a legal agreement between a business and an employee. It contains information on the pay of the employee, their roles, the start and end date of their employment and the hours they will work. It also gives information on sick leave, holiday pay and maternity or paternity leave.

Question 41

What are the different types of contracts of employment?

Answer 41

• Part-time
• Full-time
• Job sharing
• Zero Hour contracts