2.5 - Making human resource decisions COPY

Question 1

2.5.1 - What is an organisational chart?

Answer 1

A diagram which shows the internal structure of an organisation.

Question 2

2.5.1 - What is a span of control?

Answer 2

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

Question 3

2.5.1 - What is a chain of command?

Answer 3

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.

Question 4

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

Answer 4

• 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

Question 5

2.5.1 - What is delegation?

Answer 5

• 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

Question 6

2.5.1 - What is a hierarchical structure?

Answer 6

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

Question 7

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

Answer 7

Benefits:

• 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

Limitations:

• 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

Question 8

2.5.1 - What is a flat structure?

Answer 8

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

Question 9

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

Answer 9

Benefits:

• ​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

Drawbacks:

• 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

Question 10

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

Answer 10

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

Question 11

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

Answer 11

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.

PROS:

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

CONS:

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

Question 12

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

Answer 12

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

PROS:

• 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

CONS:

• 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.

Question 13

2.5.1 - Why is communication important for a business?

Answer 13

• 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

Question 14

2.5.1 - What are the problems with insufficient communication?

Answer 14

• 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

Question 15

2.5.1 - What are the problems with excessive communication?

Answer 15

• 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

Question 16

2.5.1 - What are some barriers to effective communication?

Answer 16

• 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

Question 17

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

Answer 17

• 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.

Question 18

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

Answer 18

• 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.

Question 19

2.5.1 - How has technology affected ways of working?

Answer 19

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

Question 20

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

Answer 20

PROS:

• 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

CONS:

• 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

Question 21

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

Answer 21

• 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

Question 22

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

Answer 22

• 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

Question 23

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

Answer 23

• 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

Question 24

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

Answer 24

• 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

Question 25

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

Answer 25

• 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.

Question 26

2.5.2 - What documents are involved in recruitment?

Answer 26

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

Question 27

2.5.2 - What is a person specification?

Answer 27

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

Question 28

2.5.2 - What is job description?

Answer 28

• 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

Question 29

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)

Answer 29

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.

Question 30

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

Answer 30

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

6.

Question 31

2.5.2 - What is a CV?

Answer 31

(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

Question 32

2.5.2 - What are the benefits of internal recruitment?

Answer 32

• 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

Question 33

2.5.2 - Why may some businesses use external recruitment?

Answer 33

• 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

Question 34

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

Answer 34

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

Question 35

2.5.3 - What is formal training?

Answer 35

• 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

Question 36

2.5.3 - What is informal training?

Answer 36

• 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

Question 37

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

Answer 37

• 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

Question 38

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

Answer 38

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

Question 39

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

Answer 39

• 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

Question 40

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

Answer 40

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

Question 41

2.5.3 - Why is re-training often needed?

Answer 41

• 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

Question 42

2.5.4 - What are financial methods of motivating employess?

Answer 42

• Remuneration
• Bonus
• Commission
• Promotion
• Fringe benefits

Question 43

2.5.4 - Why is motivation important in the workplace?

Answer 43

• 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

Question 44

2.5.4 - What are non-financial methods of motivation?

Answer 44

• Job rotation
• Job enrichment
• Autonomy

Question 45

2.5.4 - What is a remuneration?

Answer 45

• 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”

Question 46

2.5.4 - What is a bonus?

Answer 46

Extra money earned on top of salary for different situational reasons

Question 47

2.5.4 - What is a commission?

Answer 47

• 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.

Question 48

2.5.4 - What is job promotion?

Answer 48

• 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.

Question 49

2.5.4 - What are fringe benefits?

Answer 49

• 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

Question 50

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

Answer 50

Employees are rotated between different jobs

PROS:

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

CONS:

• 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

Question 51

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

Answer 51

Employees are given redesigned jobs that have more challenge and responsibility

PROS:

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

CONS:

• 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])

Question 52

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

Answer 52

Autonomy means allowing employees to make their own decisions

PROS:

• 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

CONS:

• 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.