2.5 Making Human Resource Decisions Flashcards
Define organisational structure
Refers to the levels of hierarchy within a business
Define hierarchy
Levels of authority within an organisation
What does an organisational structure do?
Outlines the responsibilities, roles and relationsjips between employees in a business
Define chain of command
The path/chain down which orders are passed
Define span of control
The number of staff a manager is directly responsible for
Define delegation
Passing down authority for work to another worker further down the hierarchy
Define authority
The power or right to give orders within an organisation
Define delayering
Removing layers of management and workers in the hierarchy so that there are fewer workers in the chain of command
What are the two types of organisational structures?
Tall and flat
Describe a tall organisational structure
- has many levels of hierarchy
- has a narrow span of control
- has a long communication flow
Describe a flat organisational structure
- has few levels of hierarchy
- has a wide span of control
- has a short communication flow
What are the advantages of a tall organisational structure?
- Clear lines of formal authority with defined roles and responsibilities
- Promotes specialisation and expertise within each department or function
- Offers opportunities for career advancement within the business
- All of the above increases efficiency and motivation
What are the disadvantages of a tall organisational structure?
- Can create communication problems between the upper and lower levels of hierarchy
- Decision making can be slow as information must pass through multiple layers of management
- Can lead to excessive levels of management
- All of the above can reduce efficiency and motivation
What are the advantages of a short organisational structure?
- promotes a culture of collaboration and open communication
- decision making can be faster and more efficient
- Encourages creativity and innovation as workers have a wider job role, allowing for more autonomy and flexibility
- Low number of managers and supervisors needed, reduces overheads
–> More independent staff = feel more trusted/ motivated
What are the disadvantages of having a flat organisational structure?
- Can lead to role ambiguity and lack of clear hierarchy
- May not provide clear opportunities for career advancement or promotion
- May lead to employees taking on multiple roles, which can lead to burnout and overwhelm
- Manager has less time for staff under their control: do managers know what their staff are doing?
Define centralised structure
Decision making authority is concentrated at the top of the organisation wherein senior management make most of the decisions
Define decentralised structure
Decision making authority is distributed throughout the organisation, with lower level employees having more decision making power
What are the advantages of a centralised structure?
- More consistency across the business
- Senior managers tend to have plenty of experience, and can get an overview of the business
- Easy to implement policies
What are the disadvantages of using a centralised structure?
- May not meet the needs of the local market
- demotivation as employees may not feel involved in the business
What are the advantages of a decentralised structure?
- decisions can be made quickly
- employees can use their expert knowledge of the sector to make informed decisions
- less need for a central office as senior managers are no longer needed as much, which could decrease a firms costs
What are the disadvantages of a decentralised structure?
- Inconsistencies beteen departments or regions
- decision makers may not be able to see the overall needs of the business
Define communication
Transferring information from one part of the business to another
Why is effective communication important?
- Helps managers and employees to minimise mistakes
- supports everyone involved in the business to understand their role and what is expected of them
- ensures business values and objectives are clear
- provides customers with the information they need to understand goods and services
When does effective communication occur?
When communication is sent, recieved and understood by the intended audience
State some examples of internal communication
- emails
- intranets
- message boards
- blogs
- podcasts
- conference calls
State some examples of external communication
- press releases
- marketing materials
- government reports
- telephone conversations
- published financial reports/accounts
What are the barriers of effective communication?
- noise
- jargon
- speed of talking
- poor spelling and grammar
- illegible handwriting
- personalities
What problems can insufficient communication cause?
- inefficiency
- information isn’t passed on
- demotivate staff
- customers may complain about poor customer service
What problems can be caused by excessive communication?
- employees may become distracted
- people start taking less notice of the messages, and miss out the ones that are important to them
- employees may get conflicting information
- time wasted
- staff overwhelmed with excessive information
State the different ways of working
- Full time
- Part time
Define full time workers
Employees that usually work for more than 35 hours a week
Define part time workers
Employees that work less than 35 hours a week, usually between 10-20 hours
Define flexible workers
May be full time or part time, and some may have a choice over when they want to complete their work
What is the difference between a permanent contract and a temporary contract?
- Permanent Contract: worker is employed until they are made redundant/ they want to leave
- Temporary contract: contract that lasts for a specific period of time
What is the difference between fixed contracts and zero hour contract?
- Fixed term: guarantees a certain amount of hours for workers to work
- Zero Hour: do not guarantee hours of work to a worker but they should be available when expected
Define freelance worker
Self employeed contracter who works for a variety of businesses on a day to day basis
What are the benefits of remote working for the business?
- costs are reduced as less workspace is needed
- Staff are less likely to take time off so absentee rate is lower
- Staff are likely to remain motivated and remain within the business because they can work flexibly