Topic 2.5 Making Human Resources Decisions Flashcards
What is a centralised organisation?
An organisation in which most decisions are made at head office
What is a decentralised organisation?
On organisation which allows staff to make decisions at a local level
What is a flat structure?
An organisation with few layers of hierarchy (each manager is responsible for many staff)
What is a hierarchical structure?
An organisation with many layers of management, creating a tall organisational pyramid
What are the advantages of flat structure?
- Fewer managers needed which saves costs
- Managers give more responsibility to workers so they get greater job satisfaction
- Faster, more effective communication
What are the disadvantages of flat structure?
- Greater span of control
- Might be harder to manage all subordinates
- Fewer promotion opportunities
- Need reliable staff to ensure they work efficiently and safely
What are the advantages of hierarchical structure?
- Promotion opportunities
- Easy to maintain standards as there is a strict line of authority
- Clear career path
- Easy to check employees work as there are lots of managers and supervisors
What are the disadvantages of hierarchical structure?
- Communication can be problematic
- Decision making can be slow
- Position in structure seen as a status symbol, creating division between management and workers
What are the advantages of decentralised structure?
- Workers are empowered to make decisions
- Workers tend to be more motivated
- Branches can respond to change quickly
What are the disadvantages of decentralised structure?
- Senior managers have no insight into the day-to-day decisions that are made
- More managers with skills are needed which can expensive
What are the advantages of centralised structure?
- Decisions can be taken with an overview of the whole business
- Policies and decisions are implemented consistently across the company
- Decision making can be quick
- Communication can be quick
What are the disadvantages of centralised structure?
- Job satisfaction can be reduced due to lack of autonomy
- Opportunities can be missed because local managers can not make decisions
- Reduced delegation which can reduce a business’ reaction/responses
What does level of hierarchy mean?
The number of layers within an organisation
What does span of control mean?
The number of subordinates a supervisor manages
What does chain of command?
Levels of authority in an organisation where communication and instructions flow down the hierarchy and accountability flows upwards
What is the purpose of communication?
- Give instructions
- Provide or collect information
- Ensure everyone is working to business objectives
In order to be effective what does communication need to have?
- Clarity
- Accuracy
- Complete
- Appropriate
- Via right medium
- Feedback
What are consequences of insufficient communication?
- Misunderstanding and rumours
- Inefficiency
- Low levels of motivation
- Profit lost
What are consequences of excessive communication?
- Information overload
- Wasted time
- Reduced employee morale
What are the barriers to communication?
- The person sending the communication might not explain themselves properly
- The receiver may not understand the message due to the technical language or ‘jargon’ used
- The receiver may not hear or receive the message due to a technical problem
- The message may get distorted in its transmission (many management layers)
What are the different categories of employment?
- Full time
- Part time
- Flexible hours
What are the different employment contracts?
- Temporary
- Permanent
- Freelance
What is the impact of technology on efficiency?
Automation makes a business more effective as it improves productivity and apps are more convenient for customers
What is the impact of technology on remote working?
Decreases costs because they can get smaller offices and pay less for utilities. However, employee morale may go down
