Making HR decisions

• An ORGANISATIONAL STRUCTURE is how a business organises its staff to represent the different layers of management.
• A TALL / HIERARCHICAL ORGANISATIONAL STRUCTURE has many layers of management
• A FLAT ORGANISATIONAL STRUCTURE has fewer layers of management
• SPAN OF CONTROL is the number of employees for whom a manager is directly responsible
• CHAIN OF COMMAND is the line of authority and the route that communication takes within a business
• CENTRALISATION means decision-making is kept at the top of the hierarchy, amongst the most senior managers.
• ADVANTAGES OF CENTRALISATION● Easier to implement common policies and practices for the business as a whole● Quicker decision-making because senior managers are experienced and skilled in making decisions and less likely to make mistakes
• DISADVANTAGES OF CENTRALISATION● Lack of decision-making powers amongst staff lower down in the hierarchy can be demotivating● Individual stores do not benefit from flexibility and speed in local decision making and therefore may struggle to meet the needs of local customers
• DECENTRALISATION means decision-making is spread out to include more junior managers in the hierarchy, as well as specific stores or trading locations.
• ADVANTAGES OF DECENTRALISATION DISADVANTAGES OF DECENTRALISATION● Better able to respond to needs of local customers● Should improve staff motivation because junior managers are also the decision-makers
• DISADVANTAGES OF DECENTRALISATION● Decision making might take longer because junior managers may be less experienced in making decisions● More difficult to ensure consistent practices and policies so customers might face different policies in stores in different location
• THE IMPORTANCE OF EFFECTIVE COMMUNICATION

  For communication to be effective, it should not be excessive or insufficient.

  Effective communication can motivate workers; make it easier to control the business; make decision making quicker; and improve relationships between the business and its stakeholders
• DIFFERENT WAYS OF WORKING:

  PERMANENT CONTRACTS: No fixed end date

  TEMPORARY CONTRACTS: Has an end date

  FREELAND CONTRACTS: A self-employed individual who carries out a specific piece of work over a define period of time

  FULL-TIME CONTRACTS: An employee working more than 35 hours per week

  PART-TIME CONTRACTS: An employee working less than 35 hours per week

  FLEXIBLE OR ZERO-HOUR CONTRACTS: No guaranteed hours of work
• Key roles and responsibilities:

  ● Directors - manage the company

  ● Managers or senior managers – responsible for the performance of employees

  ● Team leaders or supervisors – responsible for making sure the team operates effectively

  ● Operational staff – these employees directly do the work, such as manufacturing

  ● Support staff – these employees assist with areas of the organisation e.g. IT support staff
• How businesses recruit people:

  Documents:

  ● Person specification – provides information about the type of business the business wants to hire. This includes details about the educational background, skills, experience and hobbies

  ● Job description – this lists all of the duties that are required in the role

  ● Application form – this is completed by a potential employee when they apply for a job. It includes a series of questions that need answering so the business can learn more about them

  ● CV – this is a personal document about an applicant’s skills, experience, qualifications and hobbies which a business uses to decide whether the applicant matches the requirements of the person specification
• Recruitment methods:

  Internal recruitment – this means recruiting somebody who already works within the company

  External recruitment – this means recruiting somebody from outside of the company
• How businesses train and develop employees:

  ● Formal training – this is official, structured training that may be job specific

  ● Informal training – this is less structured and is often within the workplace or ‘on the job’

  ● Self-learning – this refers to an employee teaching themselves a skill or role through reading or watching videos

  ● Ongoing training – this takes place continuously throughout an employee’s time at a business

  ● Target setting or performance reviews – these are formal meetings between an employee and a manager to discuss the employee’s performance in their job role
• Retraining to use new technology:As technology is advancing and changing, a business has to ensure that they train their employees to use new technology to improve the efficiency of the workforce
• Motivation is about the commitment of doing something. This means working hard and completing tasks
• The importance of motivation in the workplace

  ● High productivity

  ● Easier to attract employees

  ● Low levels of absenteeism

  ● High levels of staff retention

  Low levels of staff turnover

  ● Improved product quality
• Financial methods of motivation:

  ● Remuneration – this is the money employees are paid in return for working in a business. Different roles are rewarded with different remuneration

  ● Bonuses – this is a form of additional remuneration

  ● Commission – this is paid on top of a normal wage or salary. It is usually given as a percentage of a sale or a specific amount of money per sale

  ● Promotions – When an employee is promoted, they are provided with a high-ranking job and more responsibility within a business, alongside a higher wage or salary

  ● Fringe benefits – these are additional rewards such as free gym membership or additional holiday allowance
• Non-financial methods of motivation:

  ● Job rotation – this involves an employee having a large amount of variety in their day-to-day role, preventing them becoming bored with their job

  ● Job enrichment – this involved enhancing employees’ roles through providing a wider range of tasks for them to complete during their working day

  ● Autonomy – this means allowing employees to make decisions about their day-to-day roles