Making human resource decisions Flashcards
Organisational structure
An organisational structure outlines the reporting relationships, roles, and responsibilities of employees in the organisation.
Businesses must determine what the best structure is for them so as to e ffectively implement their ideas and achieve their objectives.
They should consider how the structure may a ffect the management and eff ectiveness of operations and communications.
A well-designed organisational structure helps to promote clarity, e fficiency, and accountability
Hierarchy
A hierarchy refers to the levels of authority within an organisation.
It describes the ranking of positions from top to bottom.
The higher the position in the hierarchy, the more authority and power it holds.
The hierarchy usually includes top-level management, middle-level management, and lower-level employees.
Chain of command
The chain of command is the formal line of authority that flows downward from the top management to lower-level employees.
It de fines who reports to whom and who is responsible for making decisions.
The chain of command helps to establish a clear communication channel and helps to maintain accountability within the organisation.
Span of control
Span of control refers to the number of employees that a manager or supervisor can effectively manage.
It is based on the principle that a manager can only eff ectively manage a limited number of employees.
A narrower span of control means that there are more layers of management.
A wider span of control means that there are fewer layers of management.
Centralised and decentralised structures
In a centralised structure, decision-making authority is concentrated at the top of the organisation with senior management making most of the decisions.
In a decentralised structure, decision-making authority is distributed throughout the organisation, with lower-level employees having more decision-making power.
Decentralisation can promote flexibility and innovation, while centralisation can promote consistency and control.
Different types of organisational structure
Tall organisation structure - Characterised by multiple levels of management and a more centralised decision making process.
A long chain of command.
Common in large organisations with complex operations.
Flat organisational structure - Characterised by fewer levels of management and a more decentralised decision-making process.
A short chain of command.
Common in small organisations or start-ups.
Advantages and disadvantages of tall organisational structures
Advantages - Provides a clear hierarchy of authority and defi ned roles and responsibilities.
Promotes specialisation and expertise within each department or function.
O ffers opportunities for career advancement and promotion within the organisation.
All of the above increases e fficiency and motivation.
Disadvantages - Can create communication barriers between upper and lower levels of the hierarchy.
Decision-making can be slow as information must pass through multiple layers of management.
Can lead to bureaucracy and excessive levels of management.
All of the above reduces e fficiency and motivation.
Advantages and disadvantages of flat organisational structures
Advantages - Promotes a culture of collaboration and open communication.
Decision-making can be faster and more efficient.
Encourages creativity and innovation, as employees have more autonomy and flexibility.
Disadvantages - Can lead to role ambiguity and lack of clear hierarchy.
May not provide clear opportunities for career advancement or promotion.
May require employees to take on multiple roles and responsibilities leading to burnout and overwhelm.
All of the above reduces e fficiency and motivation.
Importance of effective communication
E ffective communication between a business and its stakeholders is vital.
It helps managers and employees to minimise mistakes.
It supports everyone involved in a business to understand their role and what is expected of them.
It ensures that the businesses values and objectives are clear.
It provides customers with the information they need to understand goods and services.
Managers should make sure that communication is controlled and organised to ensure that a suitable level of communication exists between key stakeholders.
E ffective communications need to be: accurate, clear and easily understood, complete, appropriate for the intended audience, via the right medium, provide a chance for feedback.
Insufficient or excessive communication
Excessive communication - managers may have to attend so many meetings that they are distracted from achieving business objectives.
Employees may receive large numbers of emails or instant messages which take their focus away from their job role.
Suppliers and customers may have communications from several different staff members so messages become confusing.
Insufficient communication - managers may lack crucial information to help them make good decisions.
Staff motivation may be affected or workers may become stressed if they are not fully informed of decisions related to their job roles.
Customers may complain about poor customer service if key product or service information is not made available.
Barriers to effective communication
Communication may not be eff ective for a range of reasons.
Written communication can be affected by poor spelling and grammar, illegible handwriting or unclear presentation.
Verbal communication can be affected by language difficulties, the speed of speaking, or strong accents.
The use of jargon can also be a barrier.
Jargon refers to technical language or acronyms that may not be understood
by a non-expert.
Different ways of working
Full-time employees usually work for more than 35 hours per week whilst part-time employees work fewer hours but are entitled to the same bene fits such as paid holidays.
Flexible employees may be full-time or part-time and have some choice over when they complete their hours of work.
Shift working involves working set hours outside of the normal nine-to- five pattern and usually on a rotation basis.
Different terms of contract
A permanent contract means that a worker is employed until such a point that they want to leave or they are made redundant whereas temporary contracts last for a specified period of time.
Fixed term contracts guarantee a certain amount of hours of work for workers for a specific period of time.
Zero hours contracts do not guarantee hours of work to employees but workers are expected to be available should they be needed.
A freelance worker is a self-employed contractor who works for a variety of businesses on a job-by-job basis.
Impact of technology on working ways
Advances in technology have made remote working a popular option for many businesses.
Employees can work from home and enjoy greater flexibility and a better work-life balance.
Technology has meant that communication with all stakeholders can take place quickly and be very cost e ffective.
Email and messaging software allows messages to be sent and received instantly at little cost.
Online meeting software such as Skype or Zoom allows for face-to-face communication without the need for travel.
Processes such as recruitment can be speeded up as documents can be transferred and signed electronically.
Mobile devices such as laptops and tablets can be used anywhere allowing employees to remain productive outside of their normal workplace.
Advantages of technology on working ways
Advantages for businesses - Costs are reduced as less workspace is needed.
Staff are less likely to take time of so the absentee rate is lower.
Sta ff are likely to be more motivated and remain with the business because they can work flexibly.
Advantages for employees - Flexibility may give workers the opportunity to start and finish work whenever they want.
Less time is spent travelling to and from work.
Workers are less likely to be distracted from work by colleagues and may be more productive.
