2.5 Making Human Resource Decisions

Question 1

Organisational structure

Answer 1

Outlines the reporting relationships, roles and responsibilities of employees in the organisation.

Question 2

On what basis should a business choose their organisational structure?

Answer 2

• how the structure may affect management and effectiveness of operations and communications
• helps to promote clarity, efficiency and accountability

Question 3

Hierarchical structure

Answer 3

• refers to the level of authority within the organisation - i.e: the ranking of positions from top to bottom

Question 4

Chain of command

Answer 4

A formal line of authority that flows downward from the top management.

Question 5

What does the chain of command help the business to do?

Answer 5

• define who reports to whom and who is responsible for making decisions
• it also helps to establish a clear communication channel.

Question 6

Communication

Answer 6

How information is passed on within a business/business to customers

Question 7

Span of control

Answer 7

the number of employees which a manager directly controls
narrower - less people
wider - more people

Question 8

What is a centralised structure?

Answer 8

where decision making authority is concentrated at the top of the organisation with senior management making most of the decisions

Question 9

Decentralised structure

Answer 9

where decision making is spread throughout the business and employees have more decision making power.

Question 10

Advantages and disadvantages of centralised?

Answer 10

Ad:
- customers know exactly what to expect no matter which branch they visit
- senior management team have more experience in difficult decision making, reducing risk of outcome.
Dis:
- can demotivate employees
- lower productivity
- the same techniques and practices may not be suitable for all business loactions

Question 11

What are the advantages and disadvantages of decentralised structure?

Answer 11

Advantages:
- increases motivation => more responsibility given to employees
- managers can make decisions based on what is suitable for where the branch is located
Dis:
- managers may make ineffective decisions
- cannot guarantee things would be the same when going from one branch to another.

Question 12

Characteristics of each: Hierarchical or flat structure (4)

Answer 12

Hierarchical - many layers of management; managers have a narrow span of control; promotional opportunities for staff; slower communication flow
Flat - few layers of management, more delegations and authority given to staff, managers have a wider span of control, communication is quicker

Question 13

When is communication effective within a business?

Answer 13

When:
- everyone is aware of what the business wants to achieve
- everyone knows exactly what their role is and what they have to do to fulfil it

Question 14

What is the problem with excessive or inadequate communication?

Answer 14

Excessive: may cause employees to feel overwhelmed and stressed, whilst also leading to important info being overlooked/missed
Inadequate: an employee may not understand what they have to do, leading to demotivation

Question 15

What must effective communication be?

Answer 15

• accurate
• clear and easily understood
• via the right medium
• complete
• appropriately worded/communicated to intended audience

Question 16

What are the barriers to effective communication?

Answer 16

• Noise
• Inappropriate medium e.g: a telephone call
• distance
• personalities
• jargon
• language barriers

Question 17

Full-time working

Answer 17

usually classed as someone who works 35 hours a week or more, but not more than 48

Question 18

Part-time

Answer 18

employees who work less than 35 hours in a week, but they have exactly the same rights as full time member of staff

Question 19

flexible hours

Answer 19

An employee will have to work a certain number of hours a week, but there is flexibility as to when those hours of work can be completed.

Question 20

zero hours contract

Answer 20

no guaranteed work hours for an employee, they don’t need to accept the work offered. Often used in businesses with large fluctuations in demand

Question 21

What is a permanent job contract?

Answer 21

an employee has a contract of employment that has no end date.

Question 22

Give one advantage and disadvantage of a permanent contract?

Answer 22

Ad:
- may be more motivated as employees have job security
Dis:
- higher costs compared with temporary staff

Question 23

What is a temporary job contract?

Answer 23

A business may employ people for a set period of time to fill any gaps or fill in busy periods

Question 24

Advantages and disadvantages of a temporary job contract?

Answer 24

Ad:
- saves the business money, as they only pay for workers when needed
Dis:
- workers may lack experience

Question 25

What is a freelancer?

Answer 25

self- employed people who are hired by a business to work on a specific project for a period of time. Usually high qualified and can work to a pre-agreed budget.

Question 26

advantages and disadvantages of free lancer contract?

Answer 26

Ad: usually experts in their field Dis: Lack of commitment to the business.

Question 27

What is the impact of technology on the ways of working?

Answer 27

- remote working can now be done through video conferencing, emails, phones and so on. - efficient for the business as time is saved and expenses are reduced - less workspace needed, staff less likely to take time off Time is saved, as less time is spent travelling + also being distracted by other employees.

Question 28

Technology can help reduce the effect of _________ _____ communication.

Answer 28

barriers to

Question 29

What are the responsibilities of a director?

Answer 29

- these are the people at the top of the business who are responsible for implementing new policies, investing new profit, or opening new offices.

Question 30

What are the responsibilities of the senior managers?

Answer 30

- below the directors in the business and the highest level of managers within the business - responsible for all the staff below them - makes the key day-to-day operational decisions for a business and set business strategy or direction.

Question 31

What are the roles of the supervisors/team leaders?

Answer 31

- sit below the senior managers in the hierarchy - often manage a team of employees - daily duties, deciding working hours, and making sure that they fulfil their roles.

Question 32

What is the role of the operational staff?

Answer 32

- complete tasks that fulfil the purpose of the business

Question 33

What is the role of the support staff?

Answer 33

These people assist with the daily operations of the business. Their duties do not contribute directly to the purpose of the business.

Question 34

What is recruitment? Is there any documentation needed, if so, what are they?

Answer 34

This is the process of deciding who will fulfil a specific job role. These include: the person specification, the CV, job description, application form.

Question 35

What is a person specification?

Answer 35

A document that tells applicants about the skills and characteristics that are needed to be able to complete the job.

Question 36

What is the job description?

Answer 36

A document outlining all the details of the job itself, what the main duties are, who the person would report to and what the wage or salary is.

Question 37

What is the CV?

Answer 37

A document that tells the business about the education, qualifications and employment history of the applicant.

Question 38

What is an application form?

Answer 38

- completed by a potential employee when they apply for a job - includes a series of questions for a potential employee to answer, so that the business can learn more about them.

Question 39

What is internal recruitment?

Answer 39

Filling a job vacancy with an existing member of staff. Occurs as a result of a promotion/an employee wishing to fulfil a different role within the business.

Question 40

Advantages and disadvantages of internal recruitment.

Answer 40

Ad: - employee will already know the business - it is a faster, easier and cheaper way to recruit Dis: - usually a small pool of applicants - may result in a lack of fresh ideas within a business.

Question 41

What is external recruitment?

Answer 41

Filling a job vacancy by employing someone outside of the business

Question 42

Advantages and disadvantages of external recruitment?

Answer 42

Ad: - New employees may bring fresh ideas - may be a bigger pool of potential applicants to choose from - external recruitment may be necessary if the vacancy has arisen due to the growth of the business. Dis: - expensive to recruit - new employee previously not known by the business - can take more time than internal recruitment

Question 43

How people are recruited through external or internal recruitment?

Answer 43

- Interview - applicants are asked questions to answer - testing and role play - given questions or a scenario - tour of the facilities - shown around the premises - group discussion - given a topic to discuss - presentation

Question 44

What is training and development?

Answer 44

Training - the teaching of new skills Development - this is the improvement of new skills

Question 45

What are the two types of training?

Answer 45

- Formal - training that is structured and has specific objectives. - Informal - training that is less structured and that takes place as and when required.

Question 46

What does the type of training delivered to employees depend on?

Answer 46

- finance - timescale available - specific needs of the business and employee

Question 47

Benefits and drawbacks of informal training.

Answer 47

Benefits: - training can be tailored to the individual - it is a cheaper way to train people Drawbacks: - poor working practices - having to train whilst undertaking a new job can be stressful.

Question 48

Benefits and drawbacks of **formal** training.

Answer 48

Benefits: - training is delivered by specialists - usually highly structured and provides the employee with a qualification. Drawbacks: - attending training courses can be expensive - can take employees away from their work.

Question 49

self learning training

Answer 49

employee teaching themselves a skill or part of their role without being taught by another employee or external training supplier

Question 50

ongoing training

Answer 50

training that takes place continuously throughout an employee’s time working for a business

Question 51

target setting and performance reviews

Answer 51

Performance reviews -undertaken by businesses to ensure employees know how they are performing and how they could improve in the future. Target setting - the process of setting goals or objectives for employees

Question 52

appraisal

Answer 52

A formal meeting between an employee and a manager to discuss the employee’s performance in their job role and set targets.

Question 53

How do performance reviews and target setting work?

Answer 53

- employee will have an appraisal with their manager and they will see what they need to improve on/ try to achieve within the coming time. - training is provided so that employees can gain the skills needed to achieve these new goals set - a performance review is done. Employee's progress towards achieving goals would be monitored + new goal setting.

Question 54

Why does a business train its employees?

Answer 54

- Retention - Motivation

Question 55

What is retention?

Answer 55

Retention refers to keeping employees working for a business. Different industries tend to have different staff retention rates.

Question 56

What is motivation?

Answer 56

Motivation refers to how driven and happy an employee is in their role. If an employee is motivated, they are more likely to do a good job and work hard.

Question 57

Technology is constantly becoming more _______ and changing as new _______, software and _______ ____ __________ are introduced.

Answer 57

- advanced - machinery - ways of working

Question 58

Why is it important that an employee is retrained to use new technology?

Answer 58

Doing so makes employees more efficient and skilled in their roles.

Question 59

What does the type of technology invested on depend on?

Answer 59

The type of technology a business invests in will depend on the type of business.

Question 60

Why is motivation important? (4)

Answer 60

- retention levels high, staff turnover less. - lowers staff absence - attracts employees - better customer service to customers - more committed workforce, who work more for business success - improves communication - increases productivity.

Question 61

What are the financial methods to motivate employees?

Answer 61

- Remuneration - salary - Bonus - a sum of money paid as a rewards for achieving a target. - Commission - a percentage of sale that the employee receives - Fringe benefits - perks that carry a financial value that are given to employees. - Promotion - being rewarded with a job that carries more authority and with it a higher pay.

Question 62

What are the non-financial methods of motivation?

Answer 62

- Job rotation - gives employees opportunities to work in a number of areas, completing a range of jobs - Job enrichment - giving employee tasks that carry greater responsibility - Autonomy - giving employees the freedom to make decisions about their own working life. Employees feel trusted and that their contribution is valued.