2.5 - Making Human Resource Decisions

Question 1

What are directors responsible for in a business?

Answer 1

Responsible for the business’s strategy
They decide on strategy and targets at regular board meetings

Question 2

What are senior managers responsible for in a business?

Answer 2

Organise the carrying out of the directors strategy

Question 3

What are the four key functions of management?

Answer 3

Planning, Organizing, Leading, Controlling.

Question 4

What is planning in management?

Answer 4

Setting objectives and deciding how to achieve them.

Question 5

What is organizing in management?

Answer 5

Arranging tasks, people, and resources to accomplish goals.

Question 6

What does leading involve in management?

Answer 6

Motivating, directing, and influencing others to work hard to achieve goals.

Question 7

What is controlling in management?

Answer 7

Monitoring performance and taking action to ensure goals are met.

Question 8

What is a SWOT analysis?

Answer 8

A strategic tool used to identify Strengths, Weaknesses, Opportunities, and Threats.

Question 9

What are internal factors in a SWOT analysis?

Answer 9

Strengths and Weaknesses.

Question 10

What are external factors in a SWOT analysis?

Answer 10

Opportunities and Threats.

Question 11

What is strategic planning?

Answer 11

Long-term planning that sets broad goals and strategies to achieve them.

Question 12

What are SMART goals?

Answer 12

Specific, Measurable, Achievable, Relevant, Time-bound.

Question 13

What is the purpose of a mission statement?

Answer 13

To define the organization’s core purpose and focus.

Question 14

What does a vision statement describe?

Answer 14

What the organization aims to become in the future.

Question 15

What are the three levels of management?

Answer 15

Top-level, Middle-level, and Lower-level (or First-line) management

Question 16

What is top-level management responsible for?

Answer 16

Strategic decisions and overall direction of the organization.

Question 17

What is middle-level management responsible for?

Answer 17

Implementing policies and plans set by top management; coordinating departments.

Question 18

What is lower-level management responsible for?

Answer 18

Day-to-day operations and supervising non-managerial staff.

Question 19

What is span of control?

Answer 19

The number of employees a manager directly supervises

Question 20

What is centralization in management?

Answer 20

When decision-making authority is concentrated at the top levels

Question 21

What is decentralization?

Answer 21

Distributing decision-making authority to lower levels in the hierarchy

Question 22

What is an organizational chart?

Answer 22

A diagram showing the structure of an organization, including roles and relationships.

Question 23

What is a line organization?

Answer 23

An organizational structure with direct, clear lines of authority from top to bottom.

Question 24

What is a line-and-staff organization?

Answer 24

A structure where staff specialists support line managers.

Question 25

What is a matrix organization?

Answer 25

A structure combining functional and product departmentalization for dual authority.

Question 26

Why is effective communication important in business?

Answer 26

It helps different parts of a business work together, improves efficiency, and reduces mistakes.

Question 27

What barriers can affect communication?

Answer 27

Noise, language differences, unclear messages, and unfamiliar technology

Question 28

What problems can insufficient communication cause?

Answer 28

Inefficiency, demotivation, repeated mistakes, and staff feeling left out.

Question 29

What problems can excessive communication cause?

Answer 29

Confusion, time-wasting, low morale, and feeling overwhelmed.

Question 30

What's the difference between full-time and part-time employment?

Answer 30

Full-time is around 35–40 hours a week, part-time is fewer hours, offering more flexibility.

Question 31

What are flexible hours?

Answer 31

Employees choose when to work, within limits, to balance work and life.

Question 32

What are the three types of employment contracts?

Answer 32

Permanent (ongoing), Temporary (fixed time), Freelance (short-term or project-based).

Question 33

How has technology changed working?

Answer 33

It allows remote work, flexible hours, faster communication, and higher productivity.

Question 34

What are the stages of recruitment?

Answer 34

Job analysis, advertisement, receiving applications, shortlisting, interviewing, hiring.

Question 35

Why should a business be clear about a job on offer?

Answer 35

To attract the right candidates and avoid wasting time and resources.

Question 36

What's internal recruitment?

Answer 36

Hiring from within the business; quicker and cheaper, but may limit fresh ideas.

Question 37

What's external recruitment?

Answer 37

Hiring from outside; brings new skills, but is costlier and slower.

Question 38

How do CVs and application forms help?

Answer 38

They give structured info to compare candidates and select the best match.

Question 39

Why is training important?

Answer 39

It helps employees learn new skills, boosts performance, and motivates them.

Question 40

What are the types of training?

Answer 40

On-the-job (practical, at work) and off-the-job (formal, classroom-based).

Question 41

What are the benefits of training?

Answer 41

More productivity, less waste, better morale, improved staff retention.

Question 42

How do performance reviews help?

Answer 42

They track progress, set goals, and identify training or support needs.

Question 43

Why is it important to have motivated staff?

Answer 43

They work harder which leads to higher productivity More likely to stay in the firm Attract new employees

Question 44

What are examples of financial motivation?

Answer 44

Remuneration for the work they do for an employee More a worker is paid, the more motivated they are to do a job

Question 45

What is a salary?

Answer 45

Fixed amount paid every month

Question 46

What are wages?

Answer 46

Commonly paid weekly or monthly Amount paid is based on the work done

Question 47

What are examples of extra financial incentives?

Answer 47

Commission - paid to sales staff for every item they sell on top of a basic salary Bonus - a lump sum added to pay usually at te end of a year if the worker has met their performance targets Fringe benefit - any reward not part of income. Like discounts if buying from their own firm

Question 48

How can job rotation increase motivation?

Answer 48

A lot of production jobs can be boring and repetitive Rotating, reduces this Motivates so they dont get so bored Job satisfaction

Question 49

What is job enrichment?

Answer 49

When a worker is given greater responsibility such as supervising the work of new staff

Question 50

What is autonomy?

Answer 50

Giving workers the freedom to make their own decisions Motivates workers as it makes them feel trusted and like their contribution is valued