Topic 2.5 - Making HR Decisions Flashcards
hierarchy
A hierarchy refers to the levels of authority within an organization
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 defines who reports to whom and who is responsible for making decisions
span of control
Span of control refers to the number of employees that a manager or supervisor can effectively manage
centralised structure
a structure in which decision-making authority is concentrated at the top of the organization with senior management making most of the decisions
decentralised structure
decision-making authority is distributed throughout the organization, with lower-level employees having decision-making power too
two main organisational structures
- tall
- flat
Tall Organisational Structure
Characterised by multiple levels of management and a more centralised decision making process
A long chain of command
which type of organisation has a Tall Organisational Structure?
Common in large organisations with complex operations e.g. government agencies and universities
Flat Organisational Structure
Characterised by fewer levels of management and a more decentralised decision-making process
A short chain of command
where is flat organisational structure common?
Common in small organisations or start-ups e.g. tech start-ups and small businesses
pros of tall organisational structure (3)
Provides a clear hierarchy of authority and defined roles and responsibilities
Promotes specialisation and expertise within each department or function
Offers opportunities for career advancement and promotion within the organization
pros of flat organisational structure (3)
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
cons of tall organisational structure (3)
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 -> too many employees, costs higher than they should be
cons of flat organisational structure (3)
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
decentralised (2) vs centralised (2) organisational structure
Decentralisation can promote flexibility and innovation, while centralisation can promote consistency and control
pros of effective communication (4)
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
what do Effective communications need to be? (6)
- accurate
- clear and easily understood
- complete
- appropriate for the intended audience
- via the right medium
- provide a chance for feedback
implications of too much communication (3)
- managers have to attend so many meetings, they become distracted from achieving business objectives
- employees may receive too many emails, which will take away their focus on the work they are currently doing
- communications sent from different staff members may be inconsistent with each other (provides problems for customers + suppliers)
implications of too little communication (3)
- managers may lack crucial information to help them make good decisions
- workers may become stressed, feel undervalued or demotivated if they are not involved in/informed about business decisions
- customers may complain about poor customer service if key information is not made available
barriers to effective communication (3)
- 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
permanent contract
a worker is employed until such a point that they want to leave or they are made redundant
temporary contract
a contract in which the contractor can lose the job at any time the business wants
Fixed term contracts
Fixed term contracts guarantee a certain amount of hours of work for workers for a specific period of time
Zero hours contract
Zero hours contracts do not guarantee hours of work to employees but workers are expected to be available should they be needed
freelance worker
A freelance worker is a self-employed contractor who works for a variety of businesses on a job-by-job basis
pros of remote working for business (3)
Costs are reduced as less workspace is needed
Staff are less likely to take time off so the absentee rate is lower
Staff are likely to be more motivated and remain with the business because they can work flexibly
pros of remote working for employees (3)
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
shift working
Shift working involves working set hours outside of the normal nine-to-five pattern and usually on a rotation basis
role or director (and examples of what they do)
Overall business performance
e.g:
Target setting
Corporate objectives
Making key business decisions
Reporting to shareholders and other key stakeholders
role of senior manager (and examples of what they do)
Managing and leadership of business functions
e.g:
Functional strategies
Overseeing the work of teams and their supervisors
Medium-term decision making
Supervisor or Team Leader (and give examples of what they do)
Managing a group of workers
e.g:
Delegate work
Reward and discipline operative staff
Make routine decisions
Department budgeting
Organise staffing
role of Operative or Support Staff
- Carrying out work delegated by supervisors
- Support colleagues as directed
person specification
A document that captures the essential and desired characteristics of an ideal candidate
job description
A document which lists the key duties and responsibilities that the employee will perform
application form
A customised document that all applicants have to answer. The customisation makes it easier to compare candidates
curriculum vitae (cv)
Hey document that contains the applicants educational and work experience history
pro of application form (vs CV) (1)
All applicants provide identical information in the same format so they are easy to compare
con of application form (vs CV) (1)
Limited information can be expressed by candidates so key desirable attributes may not be identified
pro of cv (vs application form) (1)
More applicants may apply because it is easier for candidates to prepare and adapt a standard CV
con of cv (vs application form) (1)
Comparing different formats and content of CVs can take more time and lengthen the recruitment process
internal recruitment
Where a person who already works for the business is appointed to a job role
This is commonly achieved through promotion or reassignment
pros of internal recruitment (4)
The member of staff is already familiar with business culture and working practices
The business is aware of the employee’s strengths and weaknesses
There is no need for induction training so employees can start working immediately
Expensive advertising is not needed
internal recruitment cons (2)
When an employee moves to a new role their old job needs to be filled
There may be resentment amongst employees who are overlooked
external recruitment
Where a business hires an employee from outside of the business
external recruitment pros (3)
A higher number of applicants may be attracted
New recruits are usually highly motivated and keen to impress
New ideas and experience are brought into the business
external recruitment cons (3)
New employees may need support from colleagues and induction training which slows down productivity
Advertising for external staff can be expensive and take a long time for prospective employees to apply
interview process takes a lot of time + energy
shortlisting
Where candidates from the pool of applicants who best meet the essential and desirable criteria for the job opening in question are invited to the next stage of the recruitment process
If a business needs to recruit quickly or if it is struggling to find the right employee it may use a recruitment agency to carry out the advertising and recruitment process on their behalf
New employees may be found quickly through a recruitment agency which has potential candidates already enrolled
It can be expensive as businesses have to pay a fee for these services
fairs
training (of employees)
Training is the formal teaching of new skills
development (of employees)
Development is the informal formation of new skills via watching youtube videos, being mentored, attending a masterclass
formal training
Training that is structured and has specific objectives
examples of formal training
Examples include certificated courses and apprenticeships
is formal training delivered outside or inside the business?
outside, by experts
is informal training delivered outside or inside the business?
inside, by colleagues
informal training
Training that is less structured and takes place as and when required
informal training examples
Examples include observing or shadowing other employees
pros of off-the-job training (2)
Experts are likely to deliver high-quality training
Employees can focus solely on learning if they are away from the workplace
cons of formal, off-the-job training (2)
It is likely to be expensive
A member of staff is taken away from the workplace
pros of informal, on-the-job training (3)
It is focused on the specific skills needs of the business
It is quick and inexpensive to implement
Trainees are able to ask questions and ask for demonstrations to be repeated
cons of on-the-job training (2)
It relies on the expertise and communication skills of the trainer
Productivity of both the trainee and the trainer is likely to be lower during training
self-learning
It involves workers studying or practising skills without the presence of a teacher of trainer
pros of self learning (2)
It can take place outside of normal working hours and if online it can be undertaken anywhere
Workers can learn at their own pace
con of self learning (1)
Feedback is unlikely to be immediate and trainees cannot easily ask questions
ongoing training
Ongoing training is provided to workers throughout their career and is a key way to continuously improve productivity as they understand how to fulfil their job roles effectively
productivity
A measure of how effective a business is at using its assets to generate output, commonly measured in units per worker.
pros of ongoing training (3)
It ensures that workers stay up to date with working practises
It allows skills to be improved
It reminds employees of business priorities
con of ongoing training (1)
- employees may feel demotivated to continue training even after getting the job
target setting
setting targets for the business to meet (it ain’t that complicated 🦧)
performance review meetings
annual meetings which discuss progress towards targets and further training needs (and other stuff too)
staff retention
An organisation’s ability to prevent employee turnover, or the number of people who leave their job.
Reasons for training and development (4)
- Keeps employees skills and knowledge up-to-date
- Helps to identify mistakes or inefficiency
- Improves the confidence of employees/ makes them feel valued
- Meet legal requirements
staff retention rate (SRR) formula
SRR = 100 x number of employees staying/ total number of employees
motivation
the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome
explain the impact of motivation on productivity (3)
Motivated employees are more productive and efficient as they are more likely to be engaged in their work and take initiative in order to meet or exceed their goals
They will generate higher levels of output and quality
Increased productivity results in higher profits for the business
Explain the impact of motivation on the reliability of workers. (3)
Motivated employees are more likely to be reliable and dependable
They take pride in their job, show up on time, meet deadlines, and take fewer sick days
This leads to increased trust between the business and its employees and higher productivity
Staff Turnover
A measure of the number of staff leaving over a given period of time in relation to the workforce as a whole.
Explain the impact of motivation on turnover rates (3)
Motivated employees are more likely to stay with the company long-term which reduces the turnover rate
Lower turnover rates reduce the need for costly recruitment and training
This extra finance available may be invested in R&D for a new product, which will help a business differentiate from competitors.
explain commission
A percentage of sales revenue paid to workers who sell products or services
Commonly used in sales roles and motivates staff to sell more and increase their sales revenue
ways of financial motivation (5)
- commision
- bonus
- remuneration
- raise/promotion
- fringe benefits
explain remuneration
This refers to the basic wage or salary that a worker receives for their labour
Employees who work on an hourly rate are paid wages
Salaries are paid to full time staff and usually accompanied by benefits
explain a bonus
An additional payment given to staff as a reward for achieving specific goals, completing projects on time, or exceeding performance expectations
The opportunity to earn more money may motivates staff to work harder and achieve better results
explain job promotion
Promotion usually demands a higher level of responsibility from an employee in the job role
Higher pay is usually offered to reflect the increased responsibility
A clear promotion pathway can act as a motivator to improve productivity and staff performance
explain fringe benefits
These are additional benefits usually offered to salaried employees and include benefits such as a company car, private healthcare, gym membership etc.
Employees can be motivated to work hard in order to keep their job and the associated fringe benefits
non-financial motivation for employees (3)
- autonomy
- job enrichment
- job rotation
explain autonomy
Involves giving staff the authority and resources to make decisions and take action without first receiving management approval
Increases staff sense of ownership and responsibility, leading to improved productivity
Gives employees a sense of ownership and control over their work, which can lead to improved productivity, especially for skilled workers
explain job enrichment
Involves adding more challenging or meaningful tasks to a job
Staff feel more motivated and engaged, leading to improved productivity
explain job rotation
Involves moving staff between different roles in the business
Exposes staff to new challenges and experiences which can increase motivation, understanding and skill
