Topic 3-Organisational structures and ways of working Flashcards
What are Human Resources?
The people who do the work for the business.
Give an example of Human Resources…
The employees.
What is the purpose of Human Resources?
To carry out the function of a business.
What do production workers do?
Make the product or service.
What to finance workers do?
Send out bills and collect payments.
What do marketing workers do?
Encourage buyers for goods and services.
What do Human Resource workers do?
They are responsible for all aspects concerning staff.
What is a human resource plan?
A plan detailing the workers a business needs.
Why do businesses need to plan for Human Resources?
- They need to know wages.
- Higher chance of success.
- Making sure that staff are trained.
- Recruit the right people.
What could happen to a business if they didn’t plan the Human Resources?
There could be long queues or they could run out of products.
What can change the demand for Human Resources?
- If the demand for a product increases or decreases.
- Machines.
- Expansion of the business.
- New competition.
Why do businesses organise staff in an organisational structure?
- So that everyone knows what their job is.
- Everyone knows who they are responsible to.
- This can help motivate their workers.
What 4 functional areas are business usually organised into?
- Marketing
- Production
- Finance
- Human resources
What is authority in a business?
The power that one person has to make decisions and to control what other workers do.
What is a function in a business?
The specific job that a person or department must do.
What is the chain of command in a business?
The link between the levels of authority.
What is a line manager in a business?
A person who is responsible for other workers in the organisation.
What is a subordinate in a business?
The person that the line manager is responsible for.
What is the span of control in a business?
The amount of people you are in charge of.
What is delegation?
The process of giving a manager authority to a subordinate to make decisions.
What are advantages to having a narrow span of control?
- Manager can communicate quickly with employees and control them easily.
- Feedback from workers are more effective.
- less skill required because there are less employees to control.
What is the disadvantage of having a narrow span of control?
Additional costs.
what are the advantages of having a wide span of control?
- communication is faster.
- costs less money.
what are the advantages to delegation?
- boss can concentrate on other jobs.
- motivates other staff.
- makes it easier to identify staff that have the qualities needed for promotion.
what are the advantages to tall structures?
- responsibilities of workers are clear.
- the span of control is likely to be narrower which means there are less people to look after.
- motivates workers.
what are the advantages of flat structures?
- faster communication.
- likely there will be fewer mistakes in messages.
- people at the bottom may share more ideas
- motivates them.
what is delayering?
When one or more layers of management are removed from the organisation chart.
What is the distribution channel?
How the product gets to the customer.
What are the two types of distribution methods?
Digital and physical.
The longer the chain in physical distribution…
The less money the producer gets.
What is a regional distribution centre?
A warehouse owned by a retailer to store their products.
What is digital distribution?
When products are distributed electronically. This involves no physical movement of goods.
What are some advantages to digital distribution?
- the customer can access it 24 hours a day.
- the goods are available instantly.
- saves money for the business because products don’t have to travel.
What are some disadvantages to digital distribution?
- not all goods are suitable.
- more competition as it is worldwide.
- not all customers have access to it.
What is an organisation chart?
The diagram of an internal structure of a business.
What is full time work?
When a person 35 hours or more a week.
What is part time work?
When a person works fewer than 35 hours per week.
What are three advantages to the business of working from home?
- workers can work longer.
- workers may feel more motivated.
- workers may be more focused if there are fewer distractions there.
What are three disadvantages to the business of working from home?
- worker can’t exchange ideas with other workers.
- worker may produce less if they don’t concentrate enough.
- the worker may need the business to buy technology such as computers for them to work at home.
What are three advantages to working at home for the worker?
- more freedom about how much they do.
- may save money by not traveling to work.
- less stress about other workers maybe.
What is a disadvantage to working from home for the worker?
They may miss the social side of work.
What are three advantages of part time working to the worker?
- it suits people who have to look after their family.
- it suits semiretired people.
- it suits students who may need to study as well.
What are two disadvantages to part time working for the worker?
- it may mean a lower income.
- the hours may be inconvenient for the worker.
What are three advantages of part time working for the business?
- experienced workers that are retiring can still participate to the business.
- the business has more choice when recruiting.
- it can reduce overtime costs of employing workers.
What are two disadvantages of part time working for the business?
- recruitment and training costs may be higher.
- it may be more time consuming for managers to look after larger numbers of workers.
What is flexible working?
When a worker can choose to have a zero hour contact, work part time or choose to work shifts.
What is temporary working?
When a person works for the business over a fixed time on a contract.
What is self-employment?
When a person works as their own business and sell their work to buyers who may be customers or other businesses.
What is communication?
The transmission of a message from a sender to a receiver.
What is one way communication?
When a message is sent but there is no reply.
What is internal communication?
When people who work in the same organisation contact each other.
What is an example of formal communication?
Letters.
What is an example of informal communication?
A staff social event.
Why is communication important in marketing?
It needs to be informative and persuasive to encourage sales.
Why is communication important in finance?
It needs to be persuasive to get banks to give loans.
Why is communication important in Human Resources?
It needs to be clear to make sure the workers are fully trained.
Why is communication important in production?
Number of goods needed must be accurately communicated.
What are three advantages to using social media to communicate?
- Lots of people will see it.
- Visual images can be used to entice customers to buy products.
- The business gets feedback from customers.
What is a disadvantage to using social media to communicate?
-There could be negative feedback.
Give an example of verbal communication.
meetings.
Give an example of written communication.
emails.
What is recruitment?
The process finding and hiring the best qualified candidate for a job opening and in a timely and costly manner.
Give two reasons why a business may recruit.
- a seasonal peak in demand.
- maternity leave.
How does digital communication affect competition for a business.
It makes it increase because customers can see other businesses online as well and so compare easily.
In a big business who carries out the recruitment process?
The human resource department.
In a small business who carries out the recruitment process?
The owners.
What does a job description contain?
- job title.
- pay.
- duties.
What does a person specification contain?
- -qualifications.
- skills.
Why is a person specification good?
It allows the candidate to see if they would be suitable for a job and if they meet all of the requirements.
What is internal recruitment?
When a job is filled by someone who already works in the organisation.
What two advantages of internal recruitment ?
- cheaper to advertise it.
- more confident the person is suitable for the job.
What are two disadvantages of internal recruitment?
- limited choice.
- could cause jealousy.
What is external recruitment?
When someone from outside the organisation fills a job.
What is motivation?
The reasons for acting or behaving in a certain way.
What are the two broad types of motivation?
Financial and non-financial.
What are the four types of financial motivation?
- Pay.
- Bonus.
- Profit sharing.
- Fringe benefits.
What are the three types of non-financial motivation?
- Praise.
- Award schemes.
- Working environment.
What is a disadvantage to motivating employees?
Employees may rush the job.
How can employees rushing their job be a disadvantage for the business?
It could lead to waste and therefore increase the costs which has an impact on the business profit and quality.
What does employee retention mean?
Keeping the staff inside a business.
What are fringe benefits?
An item an employee receives in addition to their normal wage or salary.
What is profit sharing?
A benefit paid to the employees based on the level of profit.
What are bonuses?
A reward that’s given out when specific performance targets have been met.
What is training?
The action of teaching an employee a skill or behaviour.
What is induction training?
A type of training that introduces an employee to the business when they are new.
What is on-the job training?
Coaching or mentoring while doing the job.
What are two advantages to on-the job training?
- Cheaper than sending an employee to a training centre.
- Learning can be put into use immediately.
What are two disadvantages to on-the job training?
- Some workers can have bad habits that they pass on.
- A new worker may not pick up on skills straight away.
What is off the job training?
Training that occurs away from the job.
Give an example of off the job training…
Online courses.
What is a disadvantage to off the job training?
It is a lot more expensive.
What is an advantage to off the job training?
- More focused environment with less distractions.
- Less stressful compared to on the job.
Why is off the job less stressful than on the job?
You don’t have to learn skills as you go along.
Give three reasons a business may train their workers…
- Skills shortages.
- Productivity.
- Motivation.
Why does a business train their workers to increase productivity?
They may be more skilled leading to them working at a faster rate which increases profit.
Why do businesses train their workers for motivation?
The employees are motivated because training them shows a commitment for the future meaning they will stay with the business and they won’t have to pay recruitment costs.
Why would a business train workers because of a skill shortage?
Skills give a sense of a competitive advantage to the business.
