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2.5.1 - What is an organisational chart?

A diagram which shows the internal structure of an organisation.


2.5.1 - What is a span of control?

The number of people who report directly to another worker in an organisation.


2.5.1 - What is a chain of command?

The path from a line manager to a worker through which orders are passed.

In a company, this goes from the board of directors down to other workers in the organisation.


2.5.1 - Why is it beneficial to have a structure in a business?

  • All businesses have to organise what they do
  • A clear structure makes it easier to see which part of the business does what, and who has which job role
  • Makes communication easier across the company
  • Employees should find it easier to be aware of their roles and responsibilities and can see potential career development paths


2.5.1 - What is delegation?

  • Delegation is where a task is given to a subordinate (lower) employee in the hierarchy
  • Good managers are good at delegating tasks to the right employees
  • A task that has been delegated may have a deadline so managers can see if the task has been completed on time


2.5.1 - What is a hierarchical structure?

  • Tall and thin structure
  • Small spans of control and long chains of command
  • Lots of layers with few people on each layer


2.5.1 - What are the benefits and limitations of a hierarchical structure?


  • Lots of layers in the hierarchy means lots of opportunities for promotion (motivation)
  • Supervisors normally have a small span of control so they can get to know their subordinates really well
  • Knowing subordinates means they can delegate the right tasks and make sure their team is well trained


  • Lots of layers and a long chain of command can mean that the business is very inflexible
  • It can also mean that communications within the organisation are slow
  • This is expensive as there are more managers and supervisors
  • Decisions can take longer because of the layers they must be passed through


2.5.1 - What is a flat structure?

  • Short and wide
  • Wide spans of control and and short chains of command
  • Few layers with lots of people on each level


2.5.1 - What are the benefits and limitations of a flat structure?


  • Fewer layers of hierarchy between the bottom and the top of the organisation may mean that communication is fast
  • Lots of delegation means that staff are given greater responsibility, which might mean more opportunities to use their abilities


  • Staff can be overstretched or overworked in a flat structure as there is less supervision, this can cause stress and demotivation
  • Can create a power struggle if the manager is rarely around as subordinates jostle for roles and responsibilities
  • Wide span of control means managers have too many staff to manage and may lose touch with them and delegate poorly


2.5.1 - Through what means can people in a business communicate? 

  • E-mail 
  • Telephone
  • Text
  • Messenger
  • Twitter
  • Written document
  • Social media
  • Website


2.5.1 - What are the pros and of a centralised structure?

A centralised structure is when all of the decision making is controlled by a few people at head office and decsions are then passed to the branches/layers below. 


  • Quicker decision making
  • Easier to co-ordinate and monitor
  • Economies of scale as purchasing decisions made centrally
  • Easier to implement policies, maintain consistency


  • Customer service experiences inflexibility
  • Lack of manager motivation as they have little or decision making abilities
  • Unable to respond to local markets


2.5.1 - What are the pros and of a decentralised structure?

A decentralised structure is one where decision making is spread throughout most if not all branches/employees


  • Flexible decisions with situational understanding- able to respond to local interests
  • Improves customer service
  • Good way of training juniors
  • Should improve motivation as staff feel empowered to make decsions, have authority to implement change


  • Decisions aren't 'strategic' (long-term beneficial or rational)
  • Consistency is hard to achieve
  • No strong leadership in crisis
  • Hard to have tight financial control as many employees may be ordering in an ineficient way, so unable to benefit from economies of scale. 


2.5.1 - Why is communication important for a business?

  • Easier to control and coordinate business activity because stakeholders are clear on what needs to be done
  • Makes successful decision making easier
  • Ensures that the businesses vision, mission and objectives are clear and understood by all employees to ensure the organisation can achieve its overall aims
  • Ensures that customers are able to undertand products and services
  • Employees feel motivated because they understand their role within an organisation


2.5.1 - What are the problems with insufficient communication?

  • If communication skills are poor, employees lack enthusiasm in doing their work 
  • Poor business communication skills will also demotivate the employees 
  • They are provided with unclear instructions on projects, leading to confusion and boredom and istakes which can be costly
  • Customers can misunderstand the products/services you provide


2.5.1 - What are the problems with excessive communication?

  • Can lead to workers not getting to important information
  • Can be confusing and stressful leading to demotivated workers
  • May put off potential employees and reduce staf retention
  • Customers can misunderstand the products/services you provide


2.5.1 - What are some barriers to effective communication?

  • Overload: Too much information reduces chance of important information getting through and can increase possibility of mistakes and misinformation
  • Structural layers: Too many structural layers can mean that messages get altered as they travel up/down
  • Inconsistency: Conflicting messages can lead to confusion of what decisions to make
  • Use of jargon: the use of technical language can mean that some users do not understahd the message and whether its understood will depend on the skill level of the sender and received


2.5.1 - What are the three ways you could work (in terms of time)

  • Full time: Working the whole working week, generally 39-40 hours
  • Part time: Working a fraction of the working week
  • Flexible working (flexi hours): Spreading out a certain amount of time at work as you please. 


2.5.1 - What are the three types of ways to work (in terms of contracts)?

  • Permanent: With a contract to work for the foreseeable future
  • Temporary: With no permanent contract
  • Freelance: Workers who tend to be self employed and do particular pieces of work for a business as a supplier.


2.5.1 - How has technology affected ways of working?

  • It has allowed for better efficiency in working and communication. 
  • It also allows people to work from home


2.5.1 - What are the pros and cons of remote work (work from home)?


  • Fit a business round a family, gives a good work-life balance
  • The owner can work hours that suit their lifestyle
  • No commute, so reduction in costs of travelling
  • No expensive premises to pay for, so a reduction in fixed costs
  • Less stress from travelling and tension with colleagues


  • No socialisation with other workers, so business owner may not have anyone to bounce ideas off
  • Work is all around the business person so they may find it hard to switch off
  • The business owner may find that they work more hours than a regular job as they don’t keep track of the time that they work
  • Needs lots of self discipline to avoid distractions
  • Too easy to be lazy and not work


2.5.2 - What are the key roles and responsibilities of the directors of a business?

  • A board of Directors in a business makes strategic decisions
  • Directors have a responsibility to run a business so that it is successful for all its stakeholders, not just shareholders
  • Sometimes they must take difficult decisions, when times are hard, to withhold a dividend or to pay a low one, because using a small profit for this may cause long-term problems for the business


2.5.2 - What are the key roles and responsibilities of the senior managers of a business?

  • Senior managers are at the top level of the business
  • They deal with tactical day to day decisions for the business
  • They lead and manage each of the key functuns such as finance, marketing and operations. 
  • These are often appointed by the board of directors to help the business meet its objectives


2.5.2 - What are the supervisors/team leaders key roles and responsibilities of a business?

  • Person in the first-line management who monitors and regulates employees in their performance of assigned or delegated tasks
  • Supervisors are usually authorised to do the disciplining, rewarding and other associated activities regarding the employees in their departments
  • Supervisor will be in charge of all the employees on shift


2.5.2 - What are the operational staff (operatives) key roles and responsibilities in a business?

  • These are the staff that take care of the day to day tasks of running the business
  • These staff are not involved in the strategy or management of the business


2.5.2 - What are the key roles and responsibilities of the support staff within a business?

  • Support staff are there to carry out a specific role which helps the business to run or the organisation to function
  • In a school support staff may be: teaching assistants; learning support assistants; learning mentors etc, the catering staff.


2.5.2 - What documents are involved in recruitment?

  • Person specification
  • Job specification
  • Job description
  • Application form
  • CV


2.5.2 - What is a person specification?

This is a wish list of qualities and charaacteristics that the business would like the new member of staff to have

This outlines the:

  • Personal qualities
  • Qualifications
  • Work
  • Experience
  • Skills


2.5.2 - What is job description?

  • As part of the recruitment process the business will also write a job description.
  • This describes the duties and responsibilities of the role.
  • It also describes what the new employee would do on a day-to-day basis


2.5.2 - What is an application form? Whatis the key advanatge of using an application form for a business (rather than just getting a CV from the applicant)

Those applicants who wish to apply may be asked to fill in a specific from designed by the business, which collects information about the candidates such as job history and education,  which will help detrmine the candidates' suitability for the role.

The key advantage is that the organisation will only receive information that is relevant to the job role which may cut down time in reviewing the applications. 


2.5.2 - List the stages involved in the recruitment and selection process. 

1. Job analysis- is this role still needed, does tyhe job description need to be updated? 

2. Job description

3. Person specification is confirmed

4. Job advertisisement is written and posted confrimed

5. Cansdidtes apply for the job

5. Long list/short list/interviews/assessment centres



2.5.2 - What is a CV?

(Curriculum Vitae)

  • A business may also ask applicants to send in their CVs so they can be attached to their application forms.
  • A CV is a summary of the applicants working life to date.
  • Some businesses now ask for video CVs


2.5.2 - What are the benefits of internal recruitment?

  • Internal candidates favoured as their track record and skills are already known
  • Internal candidates are already loyal to the business and can be more productive quickly as they don’t have to be inducted
  • Internal candidates will already fit with company culture, no expense of a new person not fitting in, leaving and having to be replaced – therefore less risky and cost effective to recruit
  • Less expensive – no cost of advertising


2.5.2 - Why may some businesses use external recruitment?

  • Internal candidates may not have skills set required for a new position – as these might not be able to be trained in.
  • Vacancy may have to be advertised externally if there is no-one suitable already working in the business


2.5.2 - What is the difference between internal and external recruitment?

Internal recruitment is taking someone who is already wronging in the business to a new position while external recruitment is hiring a completely new employee


2.5.3 - What is formal training?

  • Trainer sets the objectives
  • Usually away from the job but can be on the premises
  • Outside experts brought in
  • Expensive, cost of the trainer
  • Strict learning schedule
  • May offer a certificate at the end


2.5.3 - What is informal training?

  • Learner sets the objectives
  • Training takes place on the job
  • Quick training by other members of staff
  • Cheap, no cost except some loss of productivity while training is taking place


2.5.3 - What is self learning and why is it beneficial?

  • Self-learning means studying without a teacher, classroom or formal setting.
  • In a business context this means staff may carry out an online course to improve their skills (e.g. on computer) 
  • This can be beneficial as it is cheap and won't cost too much productivity


2.5.3 - What is ongoing training and why is it beneficial?

Regular staff training is important to keep up with a dynamic business environment, benefits to the business:

  • Keep up with industry changes
  • Keep up with new technology S
  • tay ahead of competitors
  • Identifies staff weaknesses
  • Increases job satisfaction levels


2.5.3 - What are performance reviews and why are they needed?

  • This is a discussion between the employee and their supervisor about the job.
  • This should be formal and documented
  • This recognises high performing employees and is an opportunity for the employee to get feedback on how they are doing at work
  • It motivates employees to work harder as they know they are being reviewed


2.5.3 - What is the link between training, motivation and retention?

  • Employees being trained makes them feel more valued.
  • This makes them more motivated and therefore more likely to continue working for the business


2.5.3 - Why is re-training often needed?

  • New technology in the business will mean that staff will need to be retrained to use the new technology
  • As soon as they are trained then productivity will rise
  • Older staff may be resistant to change and may need more persuasion to train on the new equipment


2.5.4 - What are financial methods of motivating employess?

  • Remuneration
  • Bonus
  • Commission
  • Promotion
  • Fringe benefits


2.5.4 - Why is motivation important in the workplace?

  • Attracts employees: Meaning you have a larger recruitment and can easily find who you want to work for you
  • Retains employees: Meaning your better workers will be staying and doing work for you
  • Increases productivity: Meaning more money is able to be made


2.5.4 - What are non-financial methods of motivation?

  • Job rotation
  • Job enrichment
  • Autonomy


2.5.4 - What is a remuneration?

  • Remuneration means payments given to an employee in return for work or service.
  • This may be employee’s wages, or salary.
  • To motivate some employees a business may decide to pay them more, to give them a “pay rise”


2.5.4 - What is a bonus?

Extra money earned on top of salary for different situational reasons


2.5.4 - What is a commission?

  • Employee receives a reward for every sale made. (e.g. 10% of every sale they make).
  • Some jobs are advertised with “OTE” which means on target earnings and gives the employee an idea of how much commission they can earn.


2.5.4 - What is job promotion?

  • It is important for a business to promote their staff.
  • This keeps employees motivated as their earnings will go up with the new job.
  • If a business promotes from within staff will remain more loyal to the business.


2.5.4 - What are fringe benefits?

  • Also known as ‘perks’
  • Items an employee receives in addition to their normal wage or salary (e.g. company car, private health insurance, free meals)
  • Often increases loyalty to company as these benefits are not always taxed or are taxed at a reduced rate
  • More likely to recruit best people to company


2.5.4 - What is job rotation and what are the advantages and disadvantages?

Employees are rotated between different jobs 


  • Relieves boredom
  • Easy to find an employee to cover for an absent colleague
  • More motivated due to wider range of skills


  • Training costs are high
  • Fall in output due to less specialisation
  • Could be simply a greater number of boring tasks with less social benefits due to constant changing of groups


2.5.4 - What is job enrichment and what are the advantages and disadvantages?

Employees are given redesigned jobs that have more challenge and responsibility


  • Develops unused skills and challenges employees
  • Allows employees to contribute to decision making process Increased feelings of achievement


  • Some employees may feel under pressure not simply challenged
  • Costly
  • Benefits only when thinking long term as employees have to be trained
  • Not all jobs can be enriched (e.g. bin men [aww man that's just rubbish])


2.5.4 - What is autonomy and what are the advantages and disadvantages?

Autonomy means allowing employees to make their own decisions


  • Employees feel more ownership of their own work and so are more motivated
  • Employees able to use their own thinking skills to complete their work at their pace


  • Some employees may become unhappy as they need more direction in their work and want recognition from their boss
  • Some employees may want to make more decisions than they are entitled to.