Topic 4 Flashcards
What is an organisational structure?
An organisational structure is the way a business arranges itselfs to carry out its activities
What is an organisational chart?
An organisational chart is a plan showing the roles of, and relationships between, all the employees in a business.
What is a line manager?
A line manager is an employee’s immediate superior or boss
What is authority
Authority is the power to control others and to make decisions
What is the span of control?
The span of control is the number of employees managed directly by another employee.
What are levels of hierarchy?
Levels of hierarchy are the layers of authority within a business
What is the chain of command?
The chain of command is the line of authority within a business along which communication passes
What is it meant by ‘delayering’ in business
Delayering is the removal of one or more levels of hierarchy from a business’s organisational structure.
What is delegation
Delegation is the passing down of authority to more junior employees
What is communication?
Communication is the exchange of information between two or more people
What does decentralisation mean in business
Decentralisation allows employees working in all areas of the business to take decisions
What does centralisation mean in business?
Centralisation occurs when a small number of senior managers in a business take all the important decisions
What are three types of communication that take place within a business?
- downward communication
- upward communication
- horizontal communication
What does downward communication mean?
Downward communication is from senior employees to more junior ones
What does upward communication mean?
Upward communication is from junior employees to their lines managers and other more senior employees
What does horizontal communication mean?
Horizontal communication takes place between employees at the same level in the organisation, for example; a discussion between managers
What does retention mean?
Retention is the proportion of a business’s workforce who remain with the business over a period of time, usually one year.
What is recruitment?
Recruitment is the process of finding and appointing nee employees.
What does selection mean in business?
Selection is choosing the right employees from among those who have applied for a job
What does internal recruitment mean?
Internal recruitment takes place when a job vacancy is filled from within the existing workforce.
What is diversification?
Diversification occurs when a business starts selling new products in new markets
What is external recruitment
External recruitment is filling a job vacancy from any suitable person not already employed by the business
What is job analysis
Job analysis is the collection and interpretation of information about a job
What is a job description
A job description states information about the duties and tasks that make up a particular job.
What is a person specification
A person specification sets out the qualifications and skills required by an employee to fill a particular job.
What is a curriculum vitae (CV)?
A CV provides information about a person, including qualifications, employment history and interests
What is productivity?
Productivity is the quantity of goods or services produced by an employee over a periods of time, such as: one year
What is a contract of employment?
A contract of employment is a legal document stating the hours of work, rates of pay, duties and other conditions under which a person is employed
What is full-time employment?
Full-time employment occurs when someone works a number of hours equal to the normal working week, normally between 35-40 hours.
What is part-time employment?
Part-time employment takes place when an employee works for fewer than the normal number of working hours per week
What is a ‘job share’?
A job share exists when two or more employees agree to share the responsibilities of a single job
What is a zero hours contract?
A zero hour contract allows employers to hire staff without any guaranteed hours of work
What is motivation?
Motivation is the range if factors that influence people to behave in certain ways
How does ‘Maslow’s hierarchy of needs’ work? (P, S, L&B, E/S-E & S-A)
- Physiological needs: most basic needs that a person has and relates to the needs of the human body
- Safety needs: people need to be safe and secure in their lives and not at risk of threat to the quality of their lives.
- Love and Belonging needs: workers want to be part of a group and accepted as part of that group
- Ego or Self-Esteem needs: it is normal for people to want to feel good about themselves and to know that the people they work with, respect them for their ability to do the job
- Self-Actualisation: this is Maslows’ top-level need - it is the need to be given the oppurtunity to stretch yourself and to work your full potential
What is job enrichment
Job enrichment is designing a job to give interesting and challenging tasks
What are fringe benefits
Fringe benefits are the ‘extras’ that employees may recieve in addition to their pay, for example, a company car
What is piecework?
Piecework is a method of payment under which employees are paid according to the quantity of products they produce
What is the national living wage?
The national living wage is an hourly rate os pay which is set by the government. All employees above a certain age must recieve at least this rate of pay
What is training
Training is a range of activities giving employees job-related skills and knowledge
What is induction training
Induction training is the training given to an employee when he or she first starts a job
What is on-the-job training
On-the-job training is given in the workplace
What are the different types of on-the-job training?
- work shadowing
- formal training sessions
- computer-based training
What is off-the-job training?
Off-the-training is provided outside the employee’s place of work, for example: an accountancy firm may pay for an employee’s uni course to gain accountancy qualifications
What are the steps in the recruitment process?
- Identify the vacancy
- Write ths job description and the person specification
- Advertise
- Evaluate applicants + short list
- Interview applicants short listed
- Select canditate(s) - offer contract
- Give feedback to unsuccessful candidates
What are some advantages of internal recruitment?
- lower recruitment costs
- staff motivation
- quicker process
- already know the abilities of the candidate and if they work well with others in the company
- shorter induction process
- high staff retention rates
What are some disadvantages of internal recruitment?
- reduces skills available
- limits number of applicants
- no new ideas
What are some advantages of external recruitment?
- increases skills available
- provides new ideas
- increase of choice
- diversifies the workspace and its methods
What are some disadvantages of external recruitment?
- increase in recruitment costs
- difficult to assess personality in the process
- takes longer to train a external employee
- internal resistence to external change/entrance
What are some benefits of a good recruitment process?
- lower training costs
- increase n wuality
- good customer servuce
- high staff retention
- reduced absenteeism
What is a tall organisational structure?
Narrow spans of control and many layers
What are some advantages of tall structures?
- more promotional oppurtunities
- less workload
- easy to monitor
- good departmental communication
What are some disadvantages of tall structures?
- management costs are higher
- communication throughout sturcture can be poor
- corruption risk
What is a flat organisational structure?
Wide span of control with a few layers
What are some advantages of flat structures?
- more creativity
- better communication
- managers need to delegate more work = more responsibility and motivation
What are some disadvantages of flat structures?
- cost of training employees increase
- more stress for employees
- can be overwhelming due to fewer stages
Why would some use a wide span of control?
- With a wide span of control, each leader oversees a large number of direct reports.
- This results in fewer hierarchical levels and a “flat” organizational structure.
Why would you use a narrow span of control?
- Each director, manager, or team leader oversees a small group of employees.
- This may require more layers of hierarchy, resulting in a ‘tall’ organizational structure.
What are some benefits of a highly motivated workforce?
- high productivity
- better customer service
- less mistakes
- less waste
- improved business
- increased retention rates
- reduced absenteeism
What are some methods of financial motivation?
- salary
- wage
- commission (share of sales they do)
- profit sharing (employees share profit)
What are some non-financial methods of motivation?
- training
- greater responsibility -> job enrichment -> Self-actualisatin (Maslow)
- fringe benefits (gym memberships, etc.)
What are some benefits of training?
- increased productivity (due to higher rates of self-actualisation)
- ability to deal with change in tech
- increased motivation
- high staff retention rates
- production of high quality goods
- customer satisfaction
- reduced absenteeism
What are some pros of induction training?
- helps new employees settle in
- health and safety legal recuiremnt reached
- improves understanding of their position
- increases established rapports with other (senior/junior) employees
What are some cons of production induction training?
- monetary costs and time costs increase
- less personal than training from colleagues or supervisors
- may be intimidating (overwhelming workspace/environment)
- may feel excluded (may not be accepted in by other employees)
What are some pros of on-the-job training?
- cost effective
- delivered by people within the business
- familiar environment
- familiar equipment
- familiar people
- boosted morale
What are some cons of on-the-job training?
- oppurtunity cost of trainer and their time
- bad habits may be passed on
- may nit be the most efficient form of training for trainee
What are some pros of off-the-job training?
- delivered by specialists
- may lead to qualifications -> resulting in motivation
- gives them a sample of freedom - which can benefit them when being delegated with important tasks when at work
- improves their online capabilities (or e-commerce skills), if o-f-t training is completed via. Online technology
- teaches them repsonsibility and independence -> makes them more equipped for arduous tasks during work
What are some cons of off-the-job training?
- instructions might not be specific to the requirements of an individuals firms
- can be expensive
- people may not be productive (cba to do anything)
- will not be able to get that in-job experience -> may prove to be a challenge when transitioning into physical workspace
- has not been able to build strong, irl rapports with employees (senior/junior) -> does not help with belonging and accommodating to the waorkspace
What are some advantages of decentralisation?
- Decentralisation relieves pressure on senior managers, allowing them to focus on key issues like finance and customer negotiations.
- Empowering employees to make decisions can boost motivation and improve job performance, ultimately enhancing overall business performance.
- Better decisions can result from decentralisation, as local employees have the knowledge to make choices tailored to their specific areas, such as ordering more of popular products.
- Faster decision-making is facilitated by decentralisation, enabling employees to act immediately without consulting senior managers, potentially benefiting the business by seizing opportunities like purchasing supplies at lower prices.
What are some disadvantages of decentralisation?
- All the business’s employees must understand its aims or goals. This will help ensure that they take decisions in the best interests of the whole business and not just their branch, factory or shop.
- Training may be needed. If employees are asked to take on new duties such as negotiating with suppliers, they may not have the skills they need. The business may have to invest in the necessary training, which can be costly.
- Good communication is very important. Senior managers must be aware of key decisions taken in all parts of the business and must be able to send messages to all employees in the business.
