Topic 2.5 - Making HR Decisions

Question 1

hierarchy

Answer 1

A hierarchy refers to the levels of authority within an organization

Question 2

chain of command

Answer 2

The chain of command is the formal line of authority that flows downward from the top management to lower-level employees
It defines who reports to whom and who is responsible for making decisions

Question 3

span of control

Answer 3

Span of control refers to the number of employees that a manager or supervisor can effectively manage

Question 4

centralised structure

Answer 4

a structure in which decision-making authority is concentrated at the top of the organization with senior management making most of the decisions

Question 5

decentralised structure

Answer 5

decision-making authority is distributed throughout the organization, with lower-level employees having decision-making power too

Question 6

two main organisational structures

Answer 6

• tall
• flat

Question 7

Tall Organisational Structure

Answer 7

Characterised by multiple levels of management and a more centralised decision making process

A long chain of command

Question 8

which type of organisation has a Tall Organisational Structure?

Answer 8

Common in large organisations with complex operations e.g. government agencies and universities

Question 9

Flat Organisational Structure

Answer 9

Characterised by fewer levels of management and a more decentralised decision-making process

A short chain of command

Question 10

where is flat organisational structure common?

Answer 10

Common in small organisations or start-ups e.g. tech start-ups and small businesses

Question 11

pros of tall organisational structure (3)

Answer 11

Provides a clear hierarchy of authority and defined roles and responsibilities

Promotes specialisation and expertise within each department or function

Offers opportunities for career advancement and promotion within the organization

Question 12

pros of flat organisational structure (3)

Answer 12

Promotes a culture of collaboration and open communication

Decision-making can be faster and more efficient

Encourages creativity and innovation, as employees have more autonomy and flexibility

Question 13

cons of tall organisational structure (3)

Answer 13

Can create communication barriers between upper and lower levels of the hierarchy

Decision-making can be slow as information must pass through multiple layers of management

Can lead to bureaucracy and excessive levels of management -> too many employees, costs higher than they should be

Question 14

cons of flat organisational structure (3)

Answer 14

Can lead to role ambiguity and lack of clear hierarchy

May not provide clear opportunities for career advancement or promotion

May require employees to take on multiple roles and responsibilities leading to burnout and overwhelm

Question 15

decentralised (2) vs centralised (2) organisational structure

Answer 15

Decentralisation can promote flexibility and innovation, while centralisation can promote consistency and control

Question 16

pros of effective communication (4)

Answer 16

It helps managers and employees to minimise mistakes
It supports everyone involved in a business to understand their role and what is expected of them
It ensures that the businesses values and objectives are clear
It provides customers with the information they need to understand goods and services

Question 17

what do Effective communications need to be? (6)

Answer 17

• accurate
• clear and easily understood
• complete
• appropriate for the intended audience
• via the right medium
• provide a chance for feedback

Question 18

implications of too much communication (3)

Answer 18

• managers have to attend so many meetings, they become distracted from achieving business objectives
• employees may receive too many emails, which will take away their focus on the work they are currently doing
• communications sent from different staff members may be inconsistent with each other (provides problems for customers + suppliers)

Question 19

implications of too little communication (3)

Answer 19

• managers may lack crucial information to help them make good decisions
• workers may become stressed, feel undervalued or demotivated if they are not involved in/informed about business decisions
• customers may complain about poor customer service if key information is not made available

Question 20

barriers to effective communication (3)

Answer 20

• Written communication can be affected by poor spelling and grammar, illegible handwriting or unclear presentation
• Verbal communication can be affected by language difficulties, the speed of speaking, or strong accents
• The use of jargon can also be a barrier
  Jargon refers to technical language or acronyms that may not be understood by a non-expert

Question 21

permanent contract

Answer 21

a worker is employed until such a point that they want to leave or they are made redundant

Question 22

temporary contract

Answer 22

a contract in which the contractor can lose the job at any time the business wants

Question 23

Fixed term contracts

Answer 23

Fixed term contracts guarantee a certain amount of hours of work for workers for a specific period of time

Question 24

Zero hours contract

Answer 24

Zero hours contracts do not guarantee hours of work to employees but workers are expected to be available should they be needed

Question 25

freelance worker

Answer 25

A freelance worker is a self-employed contractor who works for a variety of businesses on a job-by-job basis

Question 26

pros of remote working for business (3)

Answer 26

Costs are reduced as less workspace is needed Staff are less likely to take time off so the absentee rate is lower Staff are likely to be more motivated and remain with the business because they can work flexibly

Question 27

pros of remote working for employees (3)

Answer 27

Flexibility may give workers the opportunity to start and finish work whenever they want Less time is spent travelling to and from work Workers are less likely to be distracted from work by colleagues and may be more productive

Question 28

shift working

Answer 28

Shift working involves working set hours outside of the normal nine-to-five pattern and usually on a rotation basis

Question 29

role or director (and examples of what they do)

Answer 29

Overall business performance e.g: Target setting Corporate objectives Making key business decisions Reporting to shareholders and other key stakeholders

Question 30

role of senior manager (and examples of what they do)

Answer 30

Managing and leadership of business functions e.g: Functional strategies Overseeing the work of teams and their supervisors Medium-term decision making

Question 31

Supervisor or Team Leader (and give examples of what they do)

Answer 31

Managing a group of workers e.g: Delegate work Reward and discipline operative staff Make routine decisions Department budgeting Organise staffing

Question 32

role of Operative or Support Staff

Answer 32

- Carrying out work delegated by supervisors - Support colleagues as directed

Question 33

person specification

Answer 33

A document that captures the essential and desired characteristics of an ideal candidate

Question 34

job description

Answer 34

A document which lists the key duties and responsibilities that the employee will perform

Question 35

application form

Answer 35

A customised document that all applicants have to answer. The customisation makes it easier to compare candidates

Question 36

curriculum vitae (cv)

Answer 36

Hey document that contains the applicants educational and work experience history

Question 37

pro of application form (vs CV) (1)

Answer 37

All applicants provide identical information in the same format so they are easy to compare

Question 38

con of application form (vs CV) (1)

Answer 38

Limited information can be expressed by candidates so key desirable attributes may not be identified

Question 39

pro of cv (vs application form) (1)

Answer 39

More applicants may apply because it is easier for candidates to prepare and adapt a standard CV

Question 40

con of cv (vs application form) (1)

Answer 40

Comparing different formats and content of CVs can take more time and lengthen the recruitment process

Question 41

internal recruitment

Answer 41

Where a person who already works for the business is appointed to a job role This is commonly achieved through promotion or reassignment

Question 42

pros of internal recruitment (4)

Answer 42

The member of staff is already familiar with business culture and working practices The business is aware of the employee's strengths and weaknesses There is no need for induction training so employees can start working immediately Expensive advertising is not needed

Question 43

internal recruitment cons (2)

Answer 43

When an employee moves to a new role their old job needs to be filled There may be resentment amongst employees who are overlooked

Question 44

external recruitment

Answer 44

Where a business hires an employee from outside of the business

Question 45

external recruitment pros (3)

Answer 45

A higher number of applicants may be attracted New recruits are usually highly motivated and keen to impress New ideas and experience are brought into the business

Question 46

external recruitment cons (3)

Answer 46

New employees may need support from colleagues and induction training which slows down productivity Advertising for external staff can be expensive and take a long time for prospective employees to apply interview process takes a lot of time + energy

Question 47

shortlisting

Answer 47

Where candidates from the pool of applicants who best meet the essential and desirable criteria for the job opening in question are invited to the next stage of the recruitment process

Question 48

If a business needs to recruit quickly or if it is struggling to find the right employee it may use a recruitment agency to carry out the advertising and recruitment process on their behalf New employees may be found quickly through a recruitment agency which has potential candidates already enrolled It can be expensive as businesses have to pay a fee for these services

Answer 48

fairs

Question 49

training (of employees)

Answer 49

Training is the formal teaching of new skills

Question 50

development (of employees)

Answer 50

Development is the informal formation of new skills via watching youtube videos, being mentored, attending a masterclass

Question 51

formal training

Answer 51

Training that is structured and has specific objectives

Question 52

examples of formal training

Answer 52

Examples include certificated courses and apprenticeships

Question 53

is formal training delivered outside or inside the business?

Answer 53

outside, by experts

Question 54

is informal training delivered outside or inside the business?

Answer 54

inside, by colleagues

Question 55

informal training

Answer 55

Training that is less structured and takes place as and when required

Question 56

informal training examples

Answer 56

Examples include observing or shadowing other employees

Question 57

pros of off-the-job training (2)

Answer 57

Experts are likely to deliver high-quality training Employees can focus solely on learning if they are away from the workplace

Question 58

cons of formal, off-the-job training (2)

Answer 58

It is likely to be expensive A member of staff is taken away from the workplace

Question 59

pros of informal, on-the-job training (3)

Answer 59

It is focused on the specific skills needs of the business It is quick and inexpensive to implement Trainees are able to ask questions and ask for demonstrations to be repeated

Question 60

cons of on-the-job training (2)

Answer 60

It relies on the expertise and communication skills of the trainer Productivity of both the trainee and the trainer is likely to be lower during training

Question 61

self-learning

Answer 61

It involves workers studying or practising skills without the presence of a teacher of trainer

Question 62

pros of self learning (2)

Answer 62

It can take place outside of normal working hours and if online it can be undertaken anywhere Workers can learn at their own pace

Question 63

con of self learning (1)

Answer 63

Feedback is unlikely to be immediate and trainees cannot easily ask questions

Question 64

ongoing training

Answer 64

Ongoing training is provided to workers throughout their career and is a key way to continuously improve productivity as they understand how to fulfil their job roles effectively

Question 65

productivity

Answer 65

A measure of how effective a business is at using its assets to generate output, commonly measured in units per worker.

Question 66

pros of ongoing training (3)

Answer 66

It ensures that workers stay up to date with working practises It allows skills to be improved It reminds employees of business priorities

Question 67

con of ongoing training (1)

Answer 67

- employees may feel demotivated to continue training even after getting the job

Question 68

target setting

Answer 68

setting targets for the business to meet (it ain’t that complicated 🦧)

Question 69

performance review meetings

Answer 69

annual meetings which discuss progress towards targets and further training needs (and other stuff too)

Question 70

staff retention

Answer 70

An organisation's ability to prevent employee turnover, or the number of people who leave their job.

Question 71

Reasons for training and development (4)

Answer 71

- Keeps employees skills and knowledge up-to-date - Helps to identify mistakes or inefficiency - Improves the confidence of employees/ makes them feel valued - Meet legal requirements

Question 72

staff retention rate (SRR) formula

Answer 72

SRR = 100 x number of employees staying/ total number of employees

Question 73

motivation

Answer 73

the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome

Question 74

explain the impact of motivation on productivity (3)

Answer 74

Motivated employees are more productive and efficient as they are more likely to be engaged in their work and take initiative in order to meet or exceed their goals They will generate higher levels of output and quality Increased productivity results in higher profits for the business

Question 75

Explain the impact of motivation on the reliability of workers. (3)

Answer 75

Motivated employees are more likely to be reliable and dependable They take pride in their job, show up on time, meet deadlines, and take fewer sick days This leads to increased trust between the business and its employees and higher productivity

Question 76

Staff Turnover

Answer 76

A measure of the number of staff leaving over a given period of time in relation to the workforce as a whole.

Question 77

Explain the impact of motivation on turnover rates (3)

Answer 77

Motivated employees are more likely to stay with the company long-term which reduces the turnover rate Lower turnover rates reduce the need for costly recruitment and training This extra finance available may be invested in R&D for a new product, which will help a business differentiate from competitors.

Question 78

explain commission

Answer 78

A percentage of sales revenue paid to workers who sell products or services Commonly used in sales roles and motivates staff to sell more and increase their sales revenue

Question 79

ways of financial motivation (5)

Answer 79

- commision - bonus - remuneration - raise/promotion - fringe benefits

Question 80

explain remuneration

Answer 80

This refers to the basic wage or salary that a worker receives for their labour Employees who work on an hourly rate are paid wages Salaries are paid to full time staff and usually accompanied by benefits

Question 81

explain a bonus

Answer 81

An additional payment given to staff as a reward for achieving specific goals, completing projects on time, or exceeding performance expectations The opportunity to earn more money may motivates staff to work harder and achieve better results

Question 82

explain job promotion

Answer 82

Promotion usually demands a higher level of responsibility from an employee in the job role Higher pay is usually offered to reflect the increased responsibility A clear promotion pathway can act as a motivator to improve productivity and staff performance

Question 83

explain fringe benefits

Answer 83

These are additional benefits usually offered to salaried employees and include benefits such as a company car, private healthcare, gym membership etc. Employees can be motivated to work hard in order to keep their job and the associated fringe benefits

Question 84

non-financial motivation for employees (3)

Answer 84

- autonomy - job enrichment - job rotation

Question 85

explain autonomy

Answer 85

Involves giving staff the authority and resources to make decisions and take action without first receiving management approval Increases staff sense of ownership and responsibility, leading to improved productivity Gives employees a sense of ownership and control over their work, which can lead to improved productivity, especially for skilled workers

Question 86

explain job enrichment

Answer 86

Involves adding more challenging or meaningful tasks to a job Staff feel more motivated and engaged, leading to improved productivity

Question 87

explain job rotation

Answer 87

Involves moving staff between different roles in the business Exposes staff to new challenges and experiences which can increase motivation, understanding and skill