Making Human Resource Decisions Flashcards
Does a business with a hierarchical structure have a long or short chain of command?
Has a long chain of command. This makes the business easier to control and provides opportunities for promotion, but it can be costly and slows down effective communication.
Does a business with a flat structure have a lot or a few levels of management?
Has few levels of management but a wide span of control. This improves the business’s flexibility but lines of authority are not always clear.
What is span of control?
The number of employees that are managed by a manager (e.g. if a person manages three employees, their span of control is three).
What are centralised decisions?
Decisions made by senior managers (normally at head office).
What are decentralised decisions?
Decentralised decisions are delegates to regional employees at local stores and branches.
What is an advantage of centralised decisions?
Increased control and standardisation
What is a disadvantage of centralised decisions?
Decisions can be slow
What is an advantage of decentralised decisions?
Decisions devolved to branches or divisions that may know their local customers better
What is a disadvantage of decentralised decisions?
Loss of control
Why might a business downsize (reduce size) or delayer (reduce the number of layers in the hierarchy)?
To:
Reduce costs
Improve efficiency
Improve communication
What does effective communication ensure?
That the business’s vision, mission and objectives are clear, that customers are able to understand its products and services, and that employees feel motivated because they understand their role within the business.
For communication to be effective, what happens?
The sender has to choose an appropriate medium to reach the receiver
Feedback should also be available to ensure the communication has been successful
What is the impact of poor communication?
Insufficient or excessive communication can have an impact on:
Employee motivation
Customer service
The number of mistakes made
The understanding of employees
The efficient implementation of decisions
The image/brand of the business (through advertising).
What are the two types of communication?
Formal communication- is approved by the organisation. It follows set rules of communication used within a business.
Informal communication- (e.g. gossip) is also used in business. It can get in the way of effective communication
What are some barriers to effective communication?
Using inappropriate mediums or email system failure
Being angry or tired
Cultural differences
Use of jargon. This depends on the skill or knowledge of the sender or receiver
Too much or too little information
What is information overload?
When workers are faced with too much information (e.g. receiving more than 100 emails a day or complicated instructions), their motivation and efficiency will fall. Managers must ensure communication is controlled and organised effectively to ensure that this does not happen.
What are the six types of workers?
Full-time hours Flexible hours Permanent contract Temporary contract Freelance contract Part-time hours
Why might a business use flexible working contracts?
It has more control over its costs and can increase or lower its capacity when it needs to.
When are freelance contracts used?
Often used when a business needs to employ a specialist, such as a consultant or accountant, for a short period of time.
What is the problem with flexible contracts?
Employees might not be committed to the business if they do not have long-term job security.
What is remote working?
Employees can work from home while keeping in touch with colleagues through teleconferencing and email. Working arrangements can be agreed to meet the needs of the business and its workers, e.g. working from home one day a week.
What is video conferencing?
Face-to-face communication and presentations can be streamed live over the internet so that employees no longer need to travel long distances to meet clients or share important information. This is more efficient as employees do not have to spend time and money travelling.
What are management information systems?
Business intranet systems hold vast amounts of information that employees can access using a computer anywhere in the world.
What are directors responsible for?
Overall business performance
Business target-setting and strategy formation