Section 4-human Resources

Question 1

What is an internal organisational structure

Answer 1

How a business is organised in terms of communication and decision-making. It identifies specific jobe roles in the organisational hierarchy and indicates who reports into whom and who is responsible for which particular staff members

The organisational structure therefore identifies the relationship between different employees, departments and locations

Question 2

Why businesses have internal organisational structures

Answer 2

As a business grows, it will need a formal organisational structure to ensure that it runs as efficiently as possible.

Organisational structure will make it clear of the direct reporting lines found within the business and identify specific job roles to ensure that there is no duplication of workload. This will ensure staff have clear responsibilities and therefore can operate as productively as possible

Question 3

Organisational chat

Answer 3

Directors-responsible for the business’s strategy. The directors decide on strategy and targets at regular board meetings
Managers-organise the carrying out of directors strategy. A large firm may have senior,middle and junior managers

The directors are in top of layer if hierarchy, and operatives on lowest
Chain connecting directors to operators is chain of command
Supervisors-rankled below managers. Usually look at specific projects or small team operatives
Operatives-workers who aren’t responsible for other staff. Given specific tasks to perform by managers or supervisors

Question 4

Span of control

Answer 4

The number of employees for whom a manager is directly responsible for.
Span of control 7-wide
Span of control 3-narrow

Question 5

Chain of command

Answer 5

Shows line of authority within the business upon which communication passes

Question 6

Delegation

Answer 6

Delegation-manager or seniors employee giving some of workload to another less senior employee.
Subordinate is given permission or authority to do job that has been delegated, but does not take responsibility for work.
Responsibility remains with the manager who delegated the job

Question 7

Tall and flat organisational structures

Answer 7

Tall:
-long chain of command with more layers of management
-narrow span of control which makes firm more effective as managers can monitor the employees they are responsible for more closely

Flat:
-short chain of command
-wide span of control which means each manager has to manage a lot of employees at once-can be difficult to manage a lot of employees effectively

In tall organisational structure, communication up and down hierarchy can be difficult and slow as more people need to pass message. Can also be hard to use verbal communication if lots kf managers need to be involved in conversation.
Emails can be used to make conversation faster but not great when a discussion is needed-meetings needed to be set up

Communication up and down a flat structure can be much faster as there sre fewer layer of management. Verbal communication can still be difficult if span of control is very wide and need to talk to each worker individually. Can use emails or group meetings

Question 8

Delayering

Answer 8

When business grows it becomes more difficult to control,coordinate and organise. Therefore, in some cases, it might be necessary to add additional managerial positions into hierarchy,creating another layer in organidation

In reverse, kf a business is decreasing size or aiming to reduce costs, it may take out of layer of management-delayering

Question 9

Advantages and disadvantages of delayering

Answer 9

Advantages:
 It may help to improve communication within the business
 Decision making should be quicker / the business should be more flexible
 Reduced wage costs, as less staff employed

Disadvantages:
 It will reduce promotional opportunities, as a layer of management has now
been removed
 Employee motivation levels may fall, as staff will be expected to take on more
responsibility with possibly no extra pay
 The business may incur additional costs to train staff in their new role

Question 10

Centralisation

Answer 10

Businesses that are centralised keep decision-making
firmly at the top of the hierarchy, amongst the most
senior management.

Question 11

Advantages and disadvantages of centralisation

Answer 11

Advantages:
• Easier / quicker to implement
common policies and practices
for the business as a whole
• Decisions are taken for the
benefit of the whole business,
not one division or department
• Consistency will exist amongst
branches, therefore the
customer experience will be
uniform

Disadvantages:
• Lack of authority down the
hierarchy may reduce staff
motivation
• There are often more layers in the
organisation, which will increase
costs
• Local or junior managers are likely
to be much closer to customer
needs, therefore the best decisions
for the local area may not be
taken by the business

Question 12

Decentralisation

Answer 12

In a decentralised organisation, decision-making is
spread out to include more junior managers in the
hierarchy, as well as individual business units, such as
specific stores or trading locations.

Question 13

Advantages and disadvantages of decentralisation

Answer 13

Advantages:
• Decisions are made closer to the
customer and therefore are more
likely to reflect their specific
needs
• Good way of training and
developing junior management
• Should improve staff motivation

Disadvantages:
• Decision-making is not necessarily
looking to the long term future
direction of the business
• More difficult to ensure consistent
practices and policies, customers
might prefer consistency from
location to location
• Harder to control costs, which
means the business may end up
over-spending

Question 14

What is recruitment and selectiom

Answer 14

is the process of identifying the
need for a job, defining the
requirements of the position and
the job holder,
advertising the position and
choosing the most appropriate
person to fill the vacant post.

Question 15

What is job analysis

Answer 15

When a vacancy arises in an organisation, the
organisation will need to decide whether the job is
still really required. This stage is called job analysis.
If the business decides there is a vacant position, job
analysis will also involve collecting and interpreting
information about the position, which will then be
used to draw up the person specification and the
job description. This process will help the business
make effective recruitment and selection decisions.

Question 16

Job description

Answer 16

is a document that details the roles and
responsibilities of the vacant position. The job description
will usually include the following information:
❑ Job title
❑ Purpose of job
❑ Duties
❑ Line manager / line management responsibilities
❑ Location
❑ Hours of work

Question 17

Person specification

Answer 17

Lists the qualifications,experience,skills and attitudes needed for job

A person specification refers to the type of person the
organisation is looking for to fill the post. It is an important
document in helping the business decide which applicant is
the most suitable to fill the vacancy.

Question 18

Job advertisement

Answer 18

Where a job vacancy is advertised will
be determined by:
❑ The type of job itself
❑ Whether the business will hope to fill
the position internally or externally
❑ The distance applicants will consider
travelling to carry out the post
❑ The budget available

Question 19

Internal and external recruitement

Answer 19

Internally:
Internal recruitment involves recruiting current employees into new roles. The job position is advertised within company
-advantages are that its cheaper, post can be filled more quickly, candidates will have knowledge of firm, bosses know candidate well
-downside there will be no new ideas and employees move will leave a vacancy to fill

External:
-involves recruiting from outside business. The job can be advertised by local national press, job centres, trade journals,employment websites
-advantage is that job advert will be seen by more people, so more likely that firm will find somebody suited for job
-drawbacks is that its not cheap

Question 20

Business recruiting right people

Answer 20

High productivity-persona with right skills and qualities for job may only need minimal training and will be more productive than someone else without these skills
Hugh quality output-people with best skills will make high quality products
Good customer service-people well-suited and enjoy job will provide better customer service
-staff retention

Question 21

CVs or application forms

Answer 21

• a curriculum vitae is a summary lf a person’s personal details,skills,qualifications and interests. Written in a standard format to give firm the basic facts
  -also ask firms to fill application forms which give firm information it wants. Means there much quicker to process and more relevant to job
  -Many companies now like to use online application forms, where applicants fill in details on company’s website which allows to compare the applications using computer software

Question 22

Advantages of application forms

Answer 22

❑ The business can ask specific questions that
match the job vacancy
❑ The forms are standardised making it easier
for the business to make comparisons between
applications
❑ Application forms can be off-putting for
candidates to complete; this cuts down the
number of applicants who apply for the job
vacancy; the people who do apply are usually
more serious about the job

Question 23

Advantages of CVs

Answer 23

❑ It is less time consuming for applicants to
complete their application, increasing the
number of people from which the business
can choose from
❑ CVs are more informal than application
forms; candidates can inject their own
personality into their CV
❑ Time is not wasted by the business creating
their own, specific application form

Question 24

Selection process

Answer 24

Once the application forms / CVs have
been received by the business, the HR or
management team can start to long list
and then short list who they wish to take
to the next stage of the selection process
❑ The next stage may involve an
interview(s); there are different types of
interview, for example a telephone /
online interview, a face to face panel
interview or an interview with one or
two people

❑ The selection process may include an
assessment centre whereby candidates
are asked to complete different tasks
usually over 1-2 days; tasks can include
role plays, presentations, group
challenges and psychometric or
aptitude testing
❑ This type of testing involves assessing
each candidate’s personality, skills and
intelligence

❑ The business will select the most suitable person
for the vacant post by reviewing how each
candidate has performed in the different
selection methods undertaken
❑ The business may call the applicant’s references
to support their choice and to confirm that how
the candidate performed during the selection
process represents their everyday work ethic
❑ References are extremely important, as
sometimes candidates are extremely good at
interviews, but in reality, they may not be
particularly good at the job itself!

Question 25

Full time employment

Answer 25

Full-time employment means that an employee works the number of hours which is equivalent to a full working week Full-time employment usually equals between 35-40 hours

Question 26

Part-time employment

Answer 26

In contrast, part-time employment relates to any number of hours that is under the full-time working we-gives business flexibility with hours and can also be good as can fill in when other staff members are absent

Question 27

Benefits of full time snd part time

Answer 27

Full time: -workers feel more secured and motivated -fewer staff required,therefore spans of control are narrower -employees may develop better skills and perform their job role at higher standard -better customer relationships can be developed and maintained -staff may feel more loyal and committed ti business -lower costs of recruitement,selection and induction training Part-time: -workers have set contracted hours when demand is high -gives members of staff a better worm life balance -can help to cut wage costs

Question 28

Job share benefits and drawbacks

Answer 28

Benefits:  Employers benefit from the experience and skills of two people rather than just one  The business is able to cover unplanned absence or holidays more easily  Employees are able to enjoy a better work / life balance, which can increase motivation and loyalty to the business Drawbacks:  Communication can be difficult between the “job sharers,” as personalities may clash  All information to complete the job needs to be shared, which is time consuming  The business may need to pay more than a full time workers pay, if the workers require a period of time for a handover  The span of control becomes wider

Question 29

Zero-hour contracts

Answer 29

This is where employees are not guaranteed a set number of hours to work each week

Question 30

Why is having an effective recruitment and selection process for business important

Answer 30

Increase in output and productivity which makes a business more efficient, leading to lower average unit costs and potentially higher profits. The new member of staff will enjoy his / her new position and be motivated to work hard! Different ideas can be introduced into the business which can increase its success in terms of new products or services or just new ways of doing things Improvements in quality and customer service that means the business gains new customers or repeat business from existing customers Increase in staff retention as the right person is appointed for the position in the first place. Therefore, they are unlikely to leave because they have taken the “wrong” job and therefore do not like either the job itself, the business or both!

Question 31

Benefits of motivated workforce

Answer 31

Staff will produce more in the same amount of time, increasing productivity levels Low levels of absenteeism as the employees are content with their working lives and will therefore motivate themselves to attend work, even if they feel “under the weather!” High levels of staff retention lowering training and recruitment costs It will give the business a good reputation as an employer making it easier to recruit the best workers in the future Motivated employees will care about the quality of their work, which can improve product quality and customer service levels

Question 32

Financial motivation processes

Answer 32

-often more worker is paid,more motivated they feel to do their job -workers can be paid wages or with sslary Salary: Fixed amount is paid by employer to employee on a monthly basis Wages: Workers are either paid,weekly,monthly,by the hour according to time worked Commission-this is paid to sales staff every item they sell. It is given to them on top of a small basic salary Profit sharing: -percentage of company's profits divided up between employees

Question 33

Non-financial methods

Answer 33

Job enlargement: -gives staff a variety lf tasks to perform which should make the work more interesting-can take place through job rotation Job enrichment: -involves workers being given greater responsibility and a wider range kf more complex and challenging tasks,resulting in employees experiencing an i crease sense of achievement Training: -motivate staff to do existing job well, learn new techniques for future posts, including promotions;employees will feel more valued and loyal Management styke: -autocratic means that employees are told what to do;they are not involved in decision making. Democratic involves giving more freedom to workers and more say in decision making

Question 34

Management styles:

Answer 34

Autocratic: Although employees are not directly involved in decision-making, in certain low skilled professions, workers may prefer this management style, as they will be clear of the tasks they need to perform and would prefer being told what to do, increasing their efficiency Democratic: Employees will be motivated by managers involving them in the decision-making process; this means that staff members will “buy into” decisions made and be motivated to work harder, as they will feel that the business values their input Paternalistic: Paternalistic leadership is a management approach where leaders act as authoritative yet caring figures, making decisions in employees' best interests. They provide guidance, support, and protection, expecting loyalty and commitment in return. This style fosters a family-like workplace culture but may limit employee autonomy and decision-making Laisezz-faire: Laissez-faire management is a hands-off leadership approach where employees have full autonomy to make decisions. Managers provide minimal supervision, trusting employees to self-direct and take responsibility for their tasks. While it encourages creativity and innovation, it can lead to inefficiency or confusion if employees lack discipline or clear objectives.

Question 35

Frunge benefits

Answer 35

Fringe benefits, often known as perks, are extra items that are given to employees whilst they work in a business. Examples of these include: company cars, travel subsidies, childcare provision, free lunches, staff uniforms and staff discounts.

Question 36

Induction training

Answer 36

This type of training is received by an employee when he / she first starts a new job. The length of induction training will vary from job to job and will depend on: • The complexity of the job • The size of the business • The level or position of the job within the business. Induction training may also be needed when employees start a new position within a business, where they already work.

Question 37

Benefits of induction training

Answer 37

New employees can become productive as quickly as possible Can help avoid costly mistakes by employees not knowing the procedures or techniques of their new jobs Improves motivation, as employees will feel part of the business and get to know work colleagues much quicker Increases employee retention, as employees are more likely to leave if they do not have a good start to their new job Future recruitment and selection costs can be reduced

Question 38

Off the job training positve and negatives

Answer 38

This occurs when employees are taken away from their usual place of work to be trained. Benefits: A wider range of skills or qualifications can be obtained  Can learn from outside specialists or experts  Employees can be more confident in their work  No interruptions will occur when training takes place  Improves worker motivation and potentially productivity / staff retention Negatives: External training courses can be expensive to attend / there may be additional costs incurred with travel and accommodation  Lost working time and potential output from employee  Employees now have new skills / qualifications and may leave for better jobs

Question 39

On job training benefits and negatives

Answer 39

Employees receive training whilst remaining in the workplace. Benefits: Cost effective, as the staff member stays in the business to complete the training ™ Employees are often productive • Opportunity to learn whilst doing ™ Training alongside real colleagues, gaining first-hand Negatives: Quality depends on ability of trainer and time available Bad habits might be passed on * Learning environment may not be conducive to the best training 図 Potential disruption to production and quality

Question 40

Benefits of training

Answer 40

Higher quality work Increased motivation Better levels of customer service Increased productivity Less supervision required Easier to recruit and retain employees Better able to adapt to changes in technology